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- Abstract
- The condensed history of a title to a particular parcel of real estate, consisting
of a summary of the original grant and all subsequent conveyances and encumbrances
affecting the property and a certification by the abstractor that the history
is complete and accurate.
- Adjustable Rate
Mortgage (ARM) - a loan characterized by a fluctuating interest rate, usually
one tied to a bank or savings and loan association cost-of-funds index
- Annual
Percentage Rate (APR) - The relationship of the total finance charges associated
with a loan. This must be disclosed to the borrowers by lenders in the Truth-in-Lending
Act.
- Appraisal - An estimate of the
quantity, quality or value of something. The process through which conclusions
of property value are obtained; also refers to the report that sets forth the
process of estimation and conclusion of value.
- Balloon
Payment - A final payment of a mortgage loan that is considerably larger
than the required periodic payments because the loan amount was not fully amortized.
- Beneficiary
- (1) the person for whom a trust operates or in whose behalf the income from
a trust estate is drawn. (2) A lender in a deed of trust loan transaction.
- Broker
- One who acts as an intermediary on behalf of others for a fee or commission.
- Building
Permit - written governmental permission for the construction, alteration
or demolition of an improvement, showing compliance with building codes and zoning
ordinances.
- Commission - Payment
of a broker for services rendered, such as in the sale or purchase of real property;
usually a percentage of the selling price of the property.
- Consideration
- (1) that received by the grantor in exchange for his or her deed. (2) something
of value that induces a person to enter into a contract.
- Conventional
Loan - A loan that requires no insurance or guarantee.
- Deed
- A written instrument that, when executed and delivered, conveys title to or
an interest in real estate
- Easement
- a right to use the land of another for a specific purpose, such as for a right-of
-way or utilities; an incorporeal interest in land
- Escrow
- The closing of transaction through a third party called an escrow agent, who
receives funds on behalf of the broker's principal or some other person until
the consummation or termination of transaction.
- FHA
loan - A loan insured by the Federal Housing Administration and made by
an approved lender in accordance with the FHA's regulations.
- Grantee
- A person who receives a conveyance of real property from a grantor.
- Grantor
- The person transferring title to or an interest in real property to a grantee
- Home Equity Loan - A loan under
which a property owner uses his or her residence as collateral and can then draw
funds up to a prearranged amount against the property
- Homeowners
Insurance Policy - A standardized package insurance policy that covers
a residential real estate owner against financial loss from fire, theft, public
liability and other common risks.
- Construction
Loan - A short-term loan usually made during the construction phase of
a building project.
- Joint Tenancy
- Ownership of real estate between two or more parties who have been named in
one conveyance as joint tenants. Upon the death of a joint tenant, the decedent's
interest passes to the surviving joint tenant or tenants by the right of survivorship.
- Judgment - the formal decision
of a court upon the respective rights and claims of the parties to an action or
suit. After a judgment has been entered and recorded with the county recorder,
it usually becomes a general lien on the property of the defendant.
- Lease
- A written contract between a landlord and a tenant that transfers the right
to exclusive possession and use of the landlord real property to the lessee for
a specified period of time and for a stated consideration. By state law leases
for longer than a certain period of time must be in writing to be enforceable.
- Legal Description - A description
of a specific parcel of real estate complete enough for an independent surveyor
to locate it and identify it.
- Levy
- To assess; to seize or collect. To levy a tax is to assess a property and set
the rate of taxation. To levy an execution is to officially seize the property
of a person in order to satisfy an obligation.
- Lien
- a right given by law to certain creditors to have their debts paid out of the
property of a defaulting debtor, usually by means of a court sale.
- Listing
Broker - The broker in a multiple-listing situation from whose office a
listing agreement is initiated, as opposed to the cooperating broker, from whose
office negotiations leading up to a sale are initiated. The listing broker and
the cooperating broker may be the same person.
- Loan
Origination Fee - A fee charged to the borrower by the lender for making
a mortgage loan. The fee is usually computed as a percentage of the loan amount.
- Mortgage
- A conditional transfer or pledge of real estate as security for the payment
of a debt. Also, document creating a mortgage lien
- Mortgage
Banker - Mortgage loan companies that originate, service and sell loans
to investors.
- Mortgagor - A borrower
in a mortgage loan transaction.
- Owners Affidavit
- A written statement made by a seller or grantor in which the seller (1) identifies
as, (2) certifies that since the examination of title that no defects have occurred
in the title and (3) certifies that he or she is in possession of the property.
- Planned Unit Development (PUD) -
A planned combination of diverse land uses, such as housing, recreation and shopping,
in one contained development and subdivision.
- Power
of Attorney - A written instrument authorizing a person, the attorney-in-fact,
to act as agent for another person to the extent indicated in the instrument.
- Prepaid
Items - On a closing statement, items that have been paid in advance by
the seller, such as insurance premiums and some real estate taxes, for which he
or she must be reimbursed by the buyer, or items that buyer must pay in advance
of when they are due.
- Principal
- The original amount of the total due and payable at a certain date.
- Private
Mortgage Insurance (PMI) - Insurance provided by private carrier that protects
a lender against a loss in the event of a foreclosure and deficiency.
- Promissory
Note - a financing instrument that states the terms of the underlying obligation,
is signed by its maker and is negotiable.
- Recording
- The act of entering or recording documents affecting or conveying interests
in real estate in the County recorder's office. Until it is recorded, a deed or
mortgage ordinarily is not effective against subsequent purchasers or mortgages.
- Payoff Statement - The document
signed by a lender indicating the amount required to pay a loan balance in full
and satisfy the debt; used in the settlement process to protect both the sellers
and the buyers interest.
- Release Deed
- A document that transfers all rights given a trustee under a deed of trust loan
back to the grantor after the loan has been fully paid.
- Satisfaction
of Mortgage - A document acknowledging the payment of a mortgage debt.
- Settlement Statement (HUD1) - A
detailed cash accounting of a real estate transaction showing all cash received,
all charges and credits made and all cash paid out in the transaction.
- Subdivision
- A tract of land divided by the owner into building lots and streets according
to a recorded subdivision plat which must comply with local regulations
- Subordination
Agreement - A written agreement between holders of liens on a property
that changes the priority or mortgage, judgments and other liens under certain
circumstances
- Survey - The process
by which boundaries are measured and land areas are determined; the on-site measurement
of lot lines, dimensions and position of a house on a lot, including the determination
of any existing encroachments or easements.
- Tenancy
by the Entirety - The joint ownership, recognized in some states, of property
acquired by husband and wife during marriage. Upon the death of one spouse the
survivor becomes the owner of the property.
- Tenancy
in Common - A form of co-ownership by which each owner holds an undivided
interest in real property as if he or she were sole owner. Each individual owner
has the right to partition. Unlike joint tenants, tenants in common have right
of inheritance.
- Title - the right
to or ownership of land
- Title Insurance
- a policy insuring the owner or mortgage against loss by reason of defects in
the title to a parcel of real estate, other than encumbrances, defects and matters
specifically excluded by the policy.
- Title
Search - The examination of public records relating to real estate to determine
the current state of the ownership.
- Deed
of Trust - An instrument used to create a mortgage lien by which the borrower
conveys title to a trustee, who holds it as security for the benefit of the note
holder.
- VA Loan - A mortgage loan
on approved property made to a qualified veteran by an authorized lender and guaranteed
by the Department of Veteran Affairs in order to limit the lender's possible loss.
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