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REAL ESTATE AND MORTGAGE TERMS:
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- Accumulated wealth. A portion of wealth which is set aside
for the production of additional wealth; specifically, the funds
belonging to the partners or shareholders of a business, invested
with the expressed intention of their remaining permanently
in the business.
- Taxable profit on the sale of an appreciated asset.
- Caps are used on adjustable rate mortgages (ARM's) to limit
the interest rate and/or the payment. Most ARMs have a periodic
cap that is around 2% per year and a life cap of around 5%-6%
over the life of the loan. "Payment only" caps sometimes create
negative amortization where the principal balance of the loan
increases rather than decreases over time.
- A legal term meaning "let buyer beware".
- A certificate obtained by a veteran from a Veteran's Administration
office which states that the veteran is eligible for a VA insured
loan..
- Document issued by a local governmental agency that states
a property meets the local building standards for occupancy.
- An appraisal of property for the purpose of insurance by the
Veteran's Administration.
- A certification issued by a title company or a written opinion
rendered by an attorney that the seller has good marketable
and isnurable title to the property which he is offering for
sale. A certificate of title offers no protection against any
hiden defects in the title which an examination of the public
records could not reveal. The issuer of a certificate of title
is liable only for damages due to negligence. The protection
offered a homeowner under a certificate of title is not as great
as that offered in a title insurance policy.
- A true copy, attested to be true by the officer holding the
original.
- One having an equitable interest in property with the legal
title being vested to the trustee.
- The chronological order of conveyance of a parcel of land
from the original owner to the present owner.
- Personal property.
- Person who employs the agent. Typically the seller is a client.
The buyer can be a client (buyer's broker) or customer (seller's
broker).
- Conclusion of a real estate sale where the title of the property
is transferred to the new owners and funds are transferred to
the appropriate parties ( seller, old lender, real estate broker,
etc.).
- A neutral third party that facilities the closing of a real
estate transaction. The closing agent can be an escrow company,
title company or attorney.
- Expenses incurred by the buyer/borrower and the seller in
a real estate or mortgage transaction. There can be non-recurring
costs that include a one time charge for points, appraisal fees,
etc. or a proration of recurring costs such as taxes and insurance
incurred while the new buyer/borrower owns the real estate.
- Statement prepared for the buyer and seller itemizing all
of the costs of a real estate transaction.
- The day on which the formalities of a real estate sale are
concluded. The buyer signs the mortgage, and closing costs are
paid. The final closing merely confirms the original agreement
reached in the agreement of sale..
- An outstanding claim or encumbrance which, if valid, adversely
affects the marketability of title.
- Standards subscribed to by members of the National Association
of Realtors.
- Equally responsible for repayment as the borrower.
- Property intedned for use by all types of retail and wholesale
stores, office buildings, hotels and service establishments.
- Fee paid to a broker or other entity for services rendered.
Real estate brokers and mortgage brokers receive a commission
for the services they provide; a real estate broker secures
a buyer for a property that is for sale and a mortgage broker
secures a mortgage loan for the buyer to finance the purchase
of a property. Commissions are generally paid as a percentage
of the sales price in a real estate transaction or the loan
amount in a mortgage transaction.
- A written promise to make or insure a loan for a specified
amount and on specified items.
- Rules based on usage as demonstrated by decrees and judgments
from the courts.
- Property owned jointly by husband and wife.
- Properties which are similar in value to a particular property
and are used as comparisons to determine the fair market value
of a specified property.
- The taking of private property for public use by a government
unit, against the will of the owner, but with payment of just
compensation under the government's power of eminent domain.
Condemnation may also be a determination by a governmental agency
that a particular building is unsafe or unfit for use.
- A lenders promise to issue a loan subject to certain conditions.
Generally, the lender will not fund the loan until the conditions
have been met.
- Purchase offer in which the buyer proposes to purchase property
only after certain events (sale of another home, finding a loan
commitment, etc.) occur.
- A structure of two or more units, the interior space of which
are individually owned.
- Anything of value given to induce another to enter into a
contract. Earnest money deposit on a sales contract is consideration.
- Short-term financing for real estate construction. Generally
followed by long term financing called a "take out" loan issued
upon completion of construction.
- Condition which must be satisfied before the buyer can consummate
the purchase of a property. Contingencies are generally outlined
in the purchase contract between the buyer and seller.
- 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.
- A purchase transaction in which the buyer receives possession
of the property, but the seller retains title.
- The full purchase price as stated in the contract.
- A mortgage loan that is not guaranteed or insured by the government.
FHA and VA loans are not conventional loans.
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- Converting one property type into another property type. An
example would be converting a hotel into a condo or time-share.
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- ARMs that have a provision allowing the borrower to convert
the mortgage to a fixed rate term. The conversion feature is
outlined in the mortgage note and has certain restrictions.
- A loan neither insured by the FHA nor guaranteed by the VA.
- An apartment building or a group of dwellings owned by a corporation,
the stockholders of which are the residents of the dwellings.
It is operated for their benefit by their elected board of directors.
In a cooperative, the corporation or association owns title
to the real estate. A resident purchsese stock in the corporation
which entitles him to occupy a unit in the building or porperty
owned by the cooperative. While the resident does not own his
unit, he has an absolute right to occupy his unit for as long
as he owns the stock.
- A building contract setting the builder's profit at a set
percentage of actual cost of labor and materials.
- Accounting figure that includes original cost of property
plus certain expenses to purchase, money spent on permanent
improvements and other costs, minus any depreciation claimed
on tax returns over the years.
- A new offer made as a result of another offer, which cancels
the original offer
- A division within a state, usually encompassing one or more
cities or towns.
- An agreement written into deeds and other instruments promising
performance or nonperformance of certain acts or stipulating
certain uses or nonuses of the property.
- Typically, the buyer (before buyer agency laws), as opposed
to the principal (seller).
GLOSSARY:
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