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REAL ESTATE AND MORTGAGE TERMS:
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- A summary; an abridgment. Before the use of photostatic copying
public records were kept by abstracts of recorded documents.
- A summary of the public records relating to the title to a
particular piece of land. An attorney or title insurance company
reviews an abstract of title to determine whether there are
any title defects which must be cleared before a buyer can purchase
clear, marketable, and insurance title.
- Provision in a mortgage document stating that if a payment
is missed or any other provision is violated the whole debt
becomes immediately due and payable.
- Formal declaration before a public official that one has signed
a document. Prior to recording real estate legal documents,
such as grant deeds and deeds of trust, a Notary Public acknowledges
the person's signature on the document.
- A measure of land equal to 43,560 square feet.
- A court action to establish ownership of real property. Although
technically not an action to remove a cloud on title, the two
actions are usually referred to as "Quiet Title" actions.
- A mortgage where the interest rate is not fixed for the life
of the loan. These mortgages adjust periodically based on an
index that changes with market conditions. The rate of interest
is the sum of the index plus a margin ( the margin remains fixed
for the life of the loan). Most ARMs have periodic interest
rate and payment caps, as well as a life cap. ARM's may also
be referred to as AML's or VRM's.
- Designates an assessment of taxes against property. Literally,
acording to value; basen on the "ability to pay" theory.
- The actual, exclusive, open notorious, hostile and continuous
possession and occupation of real property under an evident
claim of right or title. The time required legally to obtain
title by adverse possession varies from state to state.
- A contract by which the agent undertakes to represent the
principal in business transactions, using some degree of discretion.
- Person authorized to act on behalf of another in dealings
with third parties.
- An agreement between parties for the sale of real estate.
In some states it is synonymous with a Purchase Agreement, Sales
Agreement, or Land Contract. In Texas it is known as an Earnest
Money Contract.
- Provision in a mortgage document stating that the loan must
be paid in full if ownership is transferred.
- Thequalities and state of being pleasant and agreeable. In
appraising, those qualities that attach to property in the benefits
derived from other than monetary. Satisfactions of possession
and use arising from architectural excellence, scenic beauty
and social environment.
- Title policy that assures a lender that it has the proper
rights as the beneficiary on a mortgage loan.
- Gradual payment of a debt through regular installments that
cover both interest and principal.
Annual Percentage Rate(APR)
- A measure of the total cost of credit (interest as well as
other recurrring charges) expressed as a yearly percentage rate.
Because all lenders apply the same rules in calculating the
annual percentage rate, it provides consumers with a good basis
for comparing the cost of loans.
- These fees are generally collected by the lender and paid
to outside companies performing the services.
- An expert option of the value of a property at a given time,
based on facts regarding the location, improvements, etc., of
the property and surroundings.
- Estimate of real estate value, presumably by an expert. An
appraisal evaluates the property at a given time based on facts
regarding the location, improvements, neighborhood and comparable
sales. Generally, the value is based on three approaches: cost,
market and income.
- Increase in value or worth of property.
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- A line of credit secured by the accounts receivable of a company.
Lender will typically “advance” a percentage of the
account receivable base that is considered eligible for lending
purposes. Eligibility is generally determined by the age and
credit worthiness of the receivable.
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- Payment made after it is 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.
- A clause that is sometimes used in the transfer of property.
It means that the present property is being transferred with
no guarantee or warranty provided by the seller.
- The total assessed value of all property in a given assessment
district.
- Value placed on real estate by governmental assessors as a
basis for levying property taxes; not identical with appraised
or market value.
- Transfer of a contract from one party to another.
- New owner assumes the responsibility for repaying an existing
mortgage. Both FHA and VA loans are fully assumable. Some adjustable
rate mortgages may be partially assumable, but the new owners
may be required to re-qualify for the loan.
- A home that has one or more common walls adjoining another
home. Condominiums and row houses are attached homes.
GLOSSARY:
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