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Abstract
A report of a title search ordered by the Title Company or Attorney prior to settlement.
Acceleration Clause
Mortgage companies can often accelerate to "due and payable" when a borrower goes in default.
Agreement of Sale
Contract of Sale, usually residential property.
Amortization
Term of mortgage loan representing full payment and may be 5 years, 15 years or 30 years or more.
Appraisal
Determination of value of property by licensed Appraiser based on review of recent sales of like properties in the ara.
Assumption of Mortgage
Buyer assumes existing indebtedness on property and pays seller the difference between what is owed and sales price.
Basement Styles
In-ground, walk-out, walk-up, steps up, double wide steps up, level exit from basement and more.
Binder or "Offer to Purchase"
Ratified Contract, accepted contract.
Broker (See real estate broker)
Licensed to engage in real estate brokerage, may employ licensed sales persons.
Building Line or Setback
County requirement for distance from boundary to structure in which decks, sheds, etc. may be constructed.
Closing Costs
Cost of transferring property, legal fees, county/state transfer fees, settlement costs, lender fees and more.
Closing Day
Day of settlement, seller signs deed, buyer pays for property, buyer gets keys, deed is recorded usually next day.
Cloud (On Title)
Unpaid tax liens, judgment liens, bankruptcy, mortgage note liens.
Commission
Fee for sale of real property under listing agreement, often shared with buyers agents.
Condemnation
County declaration of unsafe property usually in preparation for tax sale.
Condominium
Association owned property with condo owner members who own the interiors of their units.
Contract of Purchase
Agreement to purchase and sell residential real estate or land with the improvements thereon.
Contractor
Licensed construction company, electrical, plumbing, roofing, heating and AC mechanics.
Conventional Mortgage
Mortgage loans not insured by FHA or guaranteed by Veterans Affairs, often sold to Fannie Mae or Freddie Mac or held in portfolio.
Cooperative Housing
Property owned by corporation and shares owned by residents on a pro rate based depending on the square feet of the unit.
Deed
Title to real property, land, improved land, shows who owns the property.
Deed of Trust
Security for mortgage loan which is a lien on deed, shows who pays for the property.
Default
Mortgage that is in arrears, usually more than 30 days late following due date.
Depreciation
Value of property decreases from purchase price or previous valuation.
Documentary Stamps
State tax on transfer of real property, improved or unimproved.
Downpayment
Cash payment towards purchase price, usually applied to full purchase price at settlement.
Earnest Money
Deposit held in escrow until settlement and credited to buyer at closing.
Easement Rights
Right-of-way for government, utilities or other access including driveways, etc.
Encroachment
Part of building, fence or other structure that intrudes on property, often with easement granted by property owner.
Encumbrance
Property interest or lien on property.
Equity
Owners interest in property over mortgage balance and market value.
Escrow
Depository account for earnest money held in trust until settlement.
Foreclosure
Taking and sale of property on which the owner has defaulted on the payment and property is transferred to lender.
General Warranty Deed
A deed which conveys the grantor's interests in and title and warrants good title free of defects
Guarantee
Buyer of real property
Grantor
Seller of real property
Hazard Insurance
Insurance for fire and other hazards
Home Types
Single family detached, single family attached such as town home or condominium or multi-family.
Home Styles
Design of one story, two story, split, bi-level, multi-level.
HUD
U.S. Department of Housing and Development, enforces federal housing laws
Interest
Charge paid by borrower to lender of money.
Lien
Claim filed against deed on property for money owed
Marketable Title
Title is free of liens and encumbrances
Mortgage
A lien against property for which money is borrowed
Mortgage Commitment
Approval of loan after all information has been verified
Mortgage Note
Agreement to repay a mortgage loan
Mortgagee
Lender of money secured by property
Mortgagor
Borrower of money secured by property
Plat
Map or drawing showing boundaries, easements, location of structures
Points
1% of loan amount paid to lender as a fee
Premium
Fee paid by borrower to HUD to pay for cost of FHA mortgage insurance
Prepayment
Payment of mortgage principal before due date
Principal
Mortgage loan balance owed
Purchase Agreement
Contract of Sale
Quitclaim Deed
A deed transferring ownership from one party or parties to another party or parties
Real Estate Broker
Person licensed to engage in helping buyer or seller buy or sell
Refinancing
Obtain new mortgage loan and pay off old one
Restrictive Covenants
Private restrictions limiting use of property
Sales Agreement
Contract of Sale
Special Assessments
Periodic or one time charge to owners to pay for improvements
Special Lien
A lien against a specific piece of property, not all property
Special Warranty Deed
In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title.
State Stamps
Transfer taxes paid to state or county to transfer property
Survey
Drawing of boundaries of lot, situate of improvements, if any, and easements
The survey is a critical element of a land survey. The survey is performed by a Civil Engineer and is a valuable element of establishing ownership boundaries. Practiced for over 5,000 years, the survey is a basic element of construction, land development, roads construction, mapping and recording legal boundaries for land ownership.
Tax
Fee levied by government against property owners
Title
Document of ownership of property
Title Insurance
Insures property owner for claims against the title
Title Search or Examination
Search land records for liens or encumbrances against title
Trustee
A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another.
Zoning Ordinances
The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.