|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.
||A legal term referring to the acceptance of an offer.
A buyer offers to buy and the seller accepts the offer.
||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.
||A statement or declaration reduced to writing and
sworn to or affirmed before some officer who has authority to administer an oath or
||A solemn declaration made under the penalties of
perjury by a person who conscientiously declines taking an oath. This is equivalent to an
||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.
||The liquidation of a financial obligation on an
installment basis; also recovery, over a period, of cost or value.
||An estimate of value of property resulting from an
analysis of facts about the property. An opinion of value.
||Something belonging to the land and transferred with
it, such as buildings, fixtures, rights
||Putting together two or more lots to form a large
|Assessed Value -
||A value placed upon property by the tax assessor.
||The valuation of property for the purpose of levying a
tax, or the amount of the tax levied.
||One appointed to assess property for taxation.
||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
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.
||Seizure of property by court order, usually done to
have it available in event a judgment is obtained in a pending suit.
||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
|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.
||(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.
||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;
||Violation of an obligation in a contract.
||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
|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
|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.
||A systematic collection of laws in writing.
|Collateral Security -
||A separate obligation attached to another contract to
performance of the contract.
||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
|Color of Title -
||That which appears to be good title but which is not
title in fact
||The broker's unauthorized and improper mixing of
office funds, which are personal or business monies, with trust funds, which are client
||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.
||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
Housing Administration (FHA) or Veterans' Administration (VA).
||The transfer of title to land. Includes most
instruments by which an interest in real estate is created, mortgaged, or assigned.
||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.