Real Estate Dictionary

Dictionary

Abstract

A summary; an abridgment. Before the use of photo static copying, public records were kept by abstracts of recorded documents.; Abstract of Title; A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title. Still in use in some states, but giving way to the use of title insurance.; A measure, usually of land, equal to 160 sq. rods (43,560 sq. ft.) in any shape.; A court action to establish ownership to real property. Although technically not an action to remove a cloud on a title, the two actions are usually referred to as "Quiet Title" actions.; A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. This is also referred to as an AML's or VRM's.; Any relationship in which one party acts for or represents another under the authority of the latter. Agency involving real property should be in writing, such as listing, trust, powers of attorney, etc.; One who is authorized to act for or represent another. Authority may be either written or implied.; This is different depending depending on the area of country. In some states it is synonymous with a purchase agreement (Purchase Agreement). In other states, it is synonymous with a land contract (Land Contract).; A clause that calls for debt under a mortgage or deed of trust to be due, in its entirety, upon transfer of ownership of the property.; To reduce a debt by regular payments of both principal and interest, as opposed to interest only payment.; A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.; An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc., of the property and surroundings.; Payment made after its due is in arrears. Interest is said to be paid in arrears since it is paid to the date of payment rather than in advance.; Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor from liability.; A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a "Balloon" is due at maturity.; The final payment of a mortgage which is usually used to pay off the debt and is much larger than a regular payment. Typically associated with 5/25 and 7/23 mortgage programs or owner carry back mortgages.; A report issued by a title insurance company setting forth the condition of title to certain property as of a certain date, and setting forth conditions, which, if satisfied, will cause a policy of title insurance to be issued.; A mortgage covering more than one property. Also known as a general mortgage.; A form of interim loan, generally made between a short term loan and a long term loan, when the borrower needs to have more time before taking on long term financing.; Unit of heat required to raise one pound of water one degree Fahrenheit. Usually used to express the capacity of typical heating and cooling systems.; A payment to the lender to reduce the interest rate on a mortgage.; The maximum increase that an Adjustable Rate Mortgage (ARM). can change, either at each adjustment or during the life of the mortgage. Example: If the original loan was made at 10% with a 5% cap the interest on the loan may not exceed 15% regardless of market conditions.; A certificate obtained by a veteran from a Veteran's Administration office which states that the veteran is eligible for a V.A. insured loan.; A true copy, attested to be true by the officer holding the original.; One having an equitable interest in property, legal title being vested in a trustee.; The chronological order of conveyancing of a parcel of land, from the original owner (usually the government) to the present owner.; Personal property.; Expenses incurred in the closing of a real estate or mortgage transaction. Usually includes things like loan fees, title fees, appraisal fees, processing fees, etc.; The statement which lists the financial settlement between buyer and seller, and also the costs each must pay. A separate statement for buyer and seller is sometimes prepared.; An invalid encumbrance on real property, which if valid, would affect the rights of the owner. For example: A sells lot 1, tract 1, to B. The deed is mistakenly drawn to read lot 2, tract 1. A cloud is created on lot 2 by the recording of the erroneous deed.; A surety under a loan. The co-maker is equally responsible for repayment as the borrower.; A written promise to make or insure a loan for a specified amount and on specified items.; Properties used as comparisons to determine the value of a specified property.; A structure of two or more units, the interior space of which are individually owned; the balance of the property is owned in common by the owner of the individual units.; Short term financing of real estate construction. Generally followed by the long term financing called a "take out" loan, issued upon completion of improvements.; The dependence upon a stated event which must occur before a contract is binding.; Depending on area of country it may be a Land Contract or a Purchase Agreement.; A mortgage or deed of trust not obtained under a government insured program (such as FHA or VA).; A building contract setting the builder's profit at a set percentage of actual cost of labor and materials.; A division within a state, usually encompassing one or more cities or towns.; A set of restrictions filed by a subdivider to cover an entire tract or subdivision.; A document temporarily conveying ownership of the mortgaged property to the note holder; should a default occur, the note holder becomes the owner more quickly than if a mortgage had been used.; Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer good title.; Decrease in value to real property improvements caused by deterioration or obsolescence.; Real estate left by will.; One to whom real estate is given by will.; A Testator who leaves real estate.; An amortized mortgage. One on which principal and interest payments are paid at the same time with interest being computed on the remaining balance.; The difference between face value of an installment note and mortgage or deed of trust, and the present cash value.; Payments made during the course of an escrow or at closing.; A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another.; A Government right to acquire private property for public use by condemnation, and the payment of just compensation.; Generally construction onto the property of another, as of a wall, fence, building, etc.; A claim, lien, charge, or liability attached to and binding real property.; The difference between the market value of the real property and any liens on the property..; Delivery of a deed by a grantor to a third party for delivery to the grantee upon the happening of a contingent event.; The board which charters and regulates federal savings and loan associations, as well as controlling the system of Federal Home Loan Banks.; A lien attached to property for nonpayment of a federal tax.; An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited.; A federal Agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.; A proceeding in or out of court, to extinguish all rights, title, and interest, of the owner(s) of property in order to sell the property to satisfy a lien against it.; Federal Home Loan Mortgage Corporation. A federal Agency purchasing first mortgages, both conventional and federally insured, from members of the Federal Reserve System, and the Federal Home Loan Bank System.; In real estate, revealing all the known facts which may affect the decision of a buyer or tenant.; A lien such as a tax lien or judgment lien which attaches to all property of the debtor rather than the lien of, for example, a trust deed, which attaches only to a specific property.; Government National Mortgage Association. A federal association working with FHA which offers special assistance in obtaining mortgages, and purchases mortgages in a secondary capacity.; The clause in a law permitting the continuation of a use, business, etc., which, when established, was permissible but, because of a change in the law, is now not permissible.; Rent paid for vacant land. If the property is improved, ground rent is that portion attributable to the land only.; Words usually found in a deed, showing the interest the grantee is receiving.; An account where a portion of a mortgagor's monthly payment is held in trust by the lender to pay for taxes mortgage insurance, hazard insurance, lease payments, and other items as they become due.; An index used to adjust the interest rate of an adjustable mortgage loan.; A tax term used to describe a sale which is usually accomplished by use of a land contract.; A mortgage insured against loss to the mortgagee in the event of default and a failure of the mortgaged property to satisfy the balance owing plus costs of foreclosure.; The percentage of an amount of money which is paid for its use for a specified time. Usually expressed as an annual percentage.; An undivided interest in property, taken by two or more joint tenants. The interests must equal, accruing under the same conveyance, and beginning at the same time. Upon death of a joint tenant the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.; The decision of a court of law. Money judgments, when recorded, become a lien on real property of the defendant.; A penalty for failure to pay an installment payment on time.; A lease under which the lessee has the right to purchase the property. The option may run for the length of the lease or only for a portion of the lease period.; Any person or entity advancing funds which are to be repaid. A general term encompassing all mortgagees, and beneficiaries under deeds of trust.; A formal method of stating that a prospective developer, buyer or lessee, is interested in property without legal obligation.; A Latin word for book.; An encumbrance against property for money, either voluntary or involuntary.; An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party.; A partnership consisting of one or more general partners who conduct the business and are responsible for losses, and one or more special partners, contributing capital and liable only to the amount contributed.; A legal notice recorded to show pending litigation relating to real property and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.; The file of all items necessary for the lender to decide to give or not give a loan. These items would include the information on the prospective borrower, and information on the property.; The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property.

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