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| Abstract of Title - |
A summary of the conveyances, transfers, and any other
facts relied on as evidence of title, together with any other elements of record which may
impair the title to real property. |
| Acceleration Clause - |
A clause in trust deed or mortgage giving the lender
the right to call all sums owing him to be immediately due and payable upon the happening
of a certain stated event. |
| Acceptance - |
A legal term referring to the acceptance of an offer.
A buyer offers to buy and the seller accepts the offer. |
| Acknowledgment - |
A formal declaration before a duly authorized officer
by a person who has executed an instrument that such execution is his act and deed. |
| Ad Valorem - |
"According to value." A method of imposing a
tax on the ownership of real property. |
| Adverse Possession - |
The open and notorious possession and occupancy under
an evident claim or right, in denial or opposition to the title of another claimant. |
| Affidavit - |
A statement or declaration reduced to writing and
sworn to or affirmed before some officer who has authority to administer an oath or
affirmation. |
| Affirmation - |
A solemn declaration made under the penalties of
perjury by a person who conscientiously declines taking an oath. This is equivalent to an
oath. |
| Agency - |
The relationship between an agent and principal. One
who represents another from whom he has derived authority. |
| Agreement of Sale - |
A written contract between seller and buyer in which
they reach a meeting of minds on the terms and conditions of the sale. |
| Amortization - |
The liquidation of a financial obligation on an
installment basis; also recovery, over a period, of cost or value. |
| Appraisal - |
An estimate of value of property resulting from an
analysis of facts about the property. An opinion of value. |
| Appurtenance - |
Something belonging to the land and transferred with
it, such as buildings, fixtures, rights |
| Assemblage - |
Putting together two or more lots to form a large
parcel. |
| Assessed Value - |
A value placed upon property by the tax assessor. |
| Assessment - |
The valuation of property for the purpose of levying a
tax, or the amount of the tax levied. |
| Assessor - |
One appointed to assess property for taxation. |
| Assignment - |
A transfer or making over to another of the whole of
any property, real or personal, or of any estate or right therein. To assign - to transfer
or make over to another. |
| Assumption of Mortgage - |
When a grantee takes a title to real property and the
deed
contains an assumption agreement, or grantee executes a separate assumption agreement, the
grantee becomes the principal guarantor for unpaid portions of the note and is primarily
liable for the amount of any deficiency judgment. |
| Attachment - |
Seizure of property by court order, usually done to
have it available in event a judgment is obtained in a pending suit. |
| Attorney-in-Fact - |
One who is authorized to perform certain acts for
another under a Power of Attorney; may be limited to a specific act or acts, or be
general. |
| Balloon Payment - |
Where the final installment payment on a note is
greater than the
preceding installment payments and it pays the note in full, such final installment is
termed a balloon payment. |
| Beneficiary - |
(1) One entitled to the benefit of a trust; (2) One
who receives profit from an estate, the title of which is vested in a trustee; (3) The
lender on the security of a note and deed of trust. |
| Blanket Encumbrance |
A single mortgage or trust deed which covers more than
one piece of real estate. |
| Bona Fide - |
In good faith, without fraud or deceit; authentic;
sincere. |
| Breach - |
Violation of an obligation in a contract. |
| Capitalization - |
In appraising it is a method of determining the value
of property by interpreting the property's net income with a percentage which represents a
reasonable return on invested capital. |
| Capitalization Rate - |
The rate of interest which is considered a reasonable
return on the investment. It is used in the process of determining value based upon net
income. |
| Cash Flow - |
Income generated by a property which is determined by
subtracting vacancy allowances and collection costs, operating expenses and debt-servicing
costs from the property's scheduled gross income. |
| Caveat Emptor - |
"Let the buyer beware." The buyer must
examine the goods or property and buy at his own risk. |
| Chain of Title - |
A history of conveyances and encumbrances affecting
the title from the time it passed from government ownership, or as far back as records are
available. |
| Closing Statement - |
The written statement provided by the escrow company
to each of the parties to the loan transaction showing the amounts received and the
amounts paid out for various items. |
| Cloud on Title - |
Any conditions revealed by a title search which affect
the title to property; usually relatively unimportant items but which cannot be removed
without a quitclaim deed or court action. |
| Codes - |
A systematic collection of laws in writing. |
| Collateral Security - |
A separate obligation attached to another contract to
guarantee
performance of the contract. |
| Collusion - |
An illegal agreement between two or more persons to
defraud another of his rights by the forms of law, or to obtain an object forbidden by
law. |
| Color of Title - |
That which appears to be good title but which is not
title in fact |
| Commingling - |
The broker's unauthorized and improper mixing of
office funds, which are personal or business monies, with trust funds, which are client
customer monies. |
| Commission - |
A payment for the performance of specific duties in
real estate; a percentage of the selling price of property, percentage of rentals, etc. |
| Compound Interest - |
Interest paid on the original principal and on
interest accrued from time it became due. |
| Condemnation - |
The act of taking private property for public use by
the sovereign powers; a declaration that a structure is unfit for use. |
| Conventional Loan - |
A loan that's neither guaranteed nor insured by
Federal
Housing Administration (FHA) or Veterans' Administration (VA). |
| Conveyance - |
The transfer of title to land. Includes most
instruments by which an interest in real estate is created, mortgaged, or assigned. |
| Convenants - |
Agreements written into deeds and other instruments
promising performance or non-performance of certain acts or stipulating certain uses or
non-uses of the property. |
