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REAL ESTATE AND MORTGAGE TERMS:
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- The earnest money is the deposit money given to the seller
or his agent by the potential buyer upon the signing of the
agreement of sale to show that he is serious about buying the
house. If the sale goes through, the earnest money is applied
against the down payment. If the sale does not go through, the
earnest money deposit will be forfeited to the seller unless
the purchase contract expressly provides conditions for its
return to the buyer.
- A right-of-way created by grant, reservation, agreement, prescription
or necessary implication which one has in land owned by another.
- Impairment of desirability or usful life arising from economic
forces, such as changes in optimum land use, legislative enactments
which restrict or impair property rights and changes in supply-demand
relationships. Loss in the use and value of property arising
from the factors of economic obsolescence is to be distinguished
from loss in value from physical deterioration and functional
obsolescence.
- A government right to acquire private property for public
use by condemnation and the payment of just compensation.
- Unauthorized intrusion of a building or improvement such as
a wall, fence, etc. onto another's land.
- A legal right or interest in land that affects a good or clear
title and may diminish the land's value. It can take numerous
forms, such as zoning ordinances, easement rights, claims, mortgages,
liens, charges, a pending legal action, unpaid taxes, or restrictive
covenants. An encumbrance does not legally prevent the transfer
of real property. It is up to the buyer to determine whether
to purchase with the encumbrance.
- The market value of the property less the homeowner's unpaid
mortgage balance and any outstanding liens or other debts against
the property.
- Reversion of property to the State by reason of failure to
find persons legally entitled to hold or lack of heirs. The
State must try to find heirs.
- The deposit of instruments and/or funds into the care of a
neutral third party with instructions to carry out the provisions
of an agreement or contract once all instruments and/or funds
have been deposited. Many closings are handled by escrow agents.
In this situation, the seller deposits the deed and the buyer
deposits the funds necessary with the escrow agent. Once all
requirements of the purchase contract are in the control of
the escrow agent, the money and deed are distributed accordingly.
- That portion of a mortgagor's monthly payment held in trust
by the lender to pay for taxes, mortgage insurance, hazard insurance,
lease payments and other items as they become due. Also known
as "impounds" in some states.
- The buyer reimburses the seller for the current balance of
his escrow (or impounded) funds.
- Possession of property at the discretion of the owner.
- Tenant has rights in real property for a designated number
of years.
- The statement which lists the financial settlement between
buyer and seller and the costs each must pay. A separate statement
for buyer and seller is sometimes prepared.
- An impediment to a law of action, whereby one is forbidden
to contradict or deny one's own previous statement or act.
- Listing agreement in which only the listing office may sell
the property and earn the commission. If the owner sells the
house, the listing office would not receive any commission.
- Listing agreement under which the owner promises to pay a
commission if the property is sold during the listing period
by anyone, even the owner.
GLOSSARY:
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