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This glossary is for
informational purposes only and
should not be used without legal
counsel for the purpose of
reading/understanding a
contract.
-
Abandonment
-
The voluntary
relinquishment
of rights of
ownership or
another form of
interest (an
easement) by
failure to use
the property
over an extended
period of time.
- ABR
-
The Accredited
Buyer
Representative
designation
idicates a real
estate agent
specializing in
representating
buyers in the
real estate
transaction.
-
Abstract
(Of Title)
-
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
insurable title.
-
Acceleration
Clause
-
Condition in a
mortgage that
may require the
balance of the
loan to become
due immediately,
if regular
mortgage
payments are not
made or for
breach of other
conditions of
the mortgage.
-
Acre
-
A
measure of land,
equal to 160 sq.
rods (43,560
sq.ft.). An acre
is approximately
209' x 209'.
-
Acknowledgment
-
A
formal
declaration
before an
authorized
official
(usually a
notary public)
by a person who
has executed a
document, that
he did in fact
execute (sign)
the document
-
Addendum
-
Something added.
A list or other
items added to a
document,
letter,
contract, escrow
instructions,
etc.
-
Adverse
Possession
-
A
method of
acquiring title
by open and
notorious
possession
usually vary
with each state.
-
Agent
-
Acts of behalf
of another,
representing
that person's
interests and
serving as an
intermediary.
-
Agreement of
Sale
-
Known by various
names, such as
contract of
purchase,
purchase
agreement, or
sales agreement
according to
location or
jurisdiction. A
contract in
which a seller
agrees to sell
and a buyer
agrees to buy,
under certain
specific terms
and conditions
spelled out in
writing and
signed by both
parties.
-
Alienation
Clause
-
A
clause within a
loan instrument
calling for a
debt in its
entirety upon
the transfer of
ownership of the
secured
property. Also
called a "due on
sale" clause.
-
Amortization
-
A
payment plan
which enables
the borrower to
reduce his debt
gradually
through monthly
payments of
principal.
-
Appraisal
-
An expert
judgment or
estimate of the
quality or value
of real estate
as of a given
date.
-
Assessed
Value
-
Value placed on
property by the
tax assessor.
-
Assignment
-
A
transfer or
making over to
another the
whole of any
property, real
or personal, or
of any estate or
right therein.
To assign is to
transfer.
-
Assumption of
Mortgage
-
An obligation
undertaken by
the purchaser of
property to be
personally
liable for
payment of an
existing
mortgage. In an
assumption, the
purchaser is
substituted for
the original
mortgagor in the
mortgage
instrument and
the original
mortgagor is to
be released from
further
liability in the
assumption, the
mortgagee's
consent is
usually required
-
Attachment
-
Seizure of
property by
court order,
usually done in
pending law suit
to make property
available in
case of
judgment.
-
Balloon
Payment
-
The final
installment paid
at the end of
the term of a
note; used only
when preceding
installments
were not
sufficient to
pay off the note
in full.
-
Bill of
Sale
-
An instrument
used to transfer
personal
property
-
Binder
or "Offer to
Purchase"
-
A
preliminary
agreement,
secured by the
payment of
earnest money,
between a buyer
and seller as an
offer to
purchase real
estate. A binder
secures the
right to
purchase real
estate upon
agreed terms for
a limited period
of time. If the
buyer changes
his mind or is
unable to
purchase, the
earnest money is
forfeited unless
the binder
expressly
provides that it
is to be
refunded.
-
Blanket
Mortgage (Trust
Deed)
-
A
single mortgage
or trust deed
which covers
more than one
piece of real
estate
-
Bond
-
An insurance
agreement by
which one party
is insured
against loss or
default by a
third party. In
the construction
business a
performance bond
ensures the
interested party
that the
contractor will
complete the
project. A bond
can also be a
method of
financing debt
by a government
or corporation
which is
interest-bearing
and has priority
over stock in
terms of
security.
-
Breach
-
Violation of an
obligation in a
contract
-
Broker,
Real Estate
-
An agent
licensed by the
state to carry
on the business
of operating in
real estate. He
usually receives
a commission for
his services of
bringing
together buyers
and sellers,
owners and
tenants, in
exchange
agreements.
-
Building
Code
-
A
set of stringent
laws that
control the
construction of
buildings,
design,
materials and
other similar
factors
-
Building
Line or Setback
-
Distances from
the ends and/or
sides of the lot
beyond which
construction may
not extend. The
building line
may be
established by a
filed plat of
subdivision, by
restrictive
covenants in
deeds or leases,
by building
codes, or by
zoning
ordinances.
-
Built-Ins
-
Items that are
not movable,
such a stoves,
ovens, microwave
ovens,
dishwashers.
-
Buyers
Market
-
A
market condition
which occurs in
real estate
where more homes
are for sale
than there are
interested
buyers
-
Capital
Gains
-
A
term used for
income tax
purposes which
represents the
gain realized
from the sale of
an asset less
the purchase
price and
deductible
expense.
-
Capitalization
-
An appraising
term used in
determining
value by
considering net
operating income
and a percentage
of reasonable
return on
investment.
-
Cash
Flow
-
The owner's
spendable income
after operating
expenses and
debt service is
deducted
-
Certificate of
Title
-
A
certificate
issued by a
title company or
a written
opinion rendered
by an attorney
that the seller
has good
marketable and
insurable title
to the property
which he is
offering for
sale. A
certificate of
title offers no
protection
against any
hidden defects
in the title
which an
examination of
the 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.
-
Chain Of
Title
-
A
history of
conveyances and
encumbrances
affecting the
title as far
back as records
are available
-
Client
-
One who employs
another's
services, as in
an attorney,
real estate
agent, insurance
agent, etc.
-
Closing
-
In the sale of
real estate it
is the final
moment when all
documents are
executed and
recorded and the
sale is
complete. Also a
general selling
term where a
sales person is
attempting to
sell something
and the buyer
agrees to
purchase
-
Closing
Costs
-
The numerous
expenses which
buyers and
sellers normally
incur to
complete a
transaction in
the transfer of
ownership of
real estate.
These costs are
in addition to
price of the
property and are
items prepaid at
the closing day.
-
Closing
Statement
-
A
list of the
final accounting
of all Moines of
both buyer and
seller prepared
by an escrow
agent which
notes all costs
each must pay at
the completion
of a real estate
transaction.
-
Cloud
(On Title)
-
An outstanding
claim or
encumbrance
which adversely
affects the
marketability of
title.
-
Commission
-
Money paid to a
real estate
agent or broker
by the seller as
compensation for
finding a buyer
and completing
the sale.
Usually it is a
percentage of
the sale price-
- 6 to 7 percent
on houses, 10
percent on land.
-
Common
Area
-
That area owned
in common by
owners of
condominiums and
planned sight
development
homes within a
subdivision.
-
Community
Property
-
Both real and
personal
property
accumulated by a
husband and wife
after marriage
through joint
efforts of both
living together.
-
Condemnation
-
A
declaration by
governing powers
that a structure
is unfit for
use.
-
Conditional
Sales Contract
-
A
contract for the
sale of property
where the buyer
has possession
and use, but the
seller retains
title until the
conditions of
the contract
have been
fulfilled. Also
known as a land
contract.
-
Condominium
-
Individual
ownership of a
dwelling unit
and an
individual
interest in the
common areas and
facilities which
serve the multi-
unit project.
-
Consideration
-
Anything of
value given to
induce someone
into entering
into a contract.
-
Construction
Loan
-
The short-term
financing of
improvements on
real estate.
Once the
improvements are
completed a
'take out' loan
for a longer
term is usually
issued.
-
Contingency
-
A
condition upon
which a valid
contract is
dependent. For
example; the
sale of a house
is contingent
upon the buyer
obtaining
adequate
financing.
-
Contract
-
An agreement
between tow or
more parties,
written or oral,
to do or not to
do certain
things.
-
Contractor
-
In the
construction
industry, a
contractor is
one who
contracts to
erect buildings
or portions of
them. There are
also contractors
for each phase
of construction:
heating,
electrical,
plumbing, air
conditioning,
road building,
bridge and dam
erection, and
others.
-
Conventional
Mortgage
-
A
mortgage loan
not insured by
HUD or
guaranteed by
the Veterans'
Administration.
It is subject to
conditions
established by
the lending
institution and
State statutes.
The mortgage
rates may vary
with different
institutions and
between States.
(States have
various interest
limits.)
-
Conveyance
-
The transfer of
the title to
land from one to
another.
-
Counter
Offer
-
An offer in
response to an
offer. 'A'
offers to by
'B's' house for
$20,000 which is
listed for
$22,000. 'B'
counter offers
'A's' offer by
stating that he
will sell the
house to 'A" for
$21,000. The
$21,000 is the
counter offer.
-
Covenants
-
Agreements
written into
deeds and other
instruments
stating
performance or
non-performance
of certain acts
or noting
certain uses or
non-uses of
property.
-
Deed
-
A
formal written
instrument by
which title to
real property is
transferred from
one owner to
another. The
deed should
contain an
accurate
description of
the property
being conveyed,
should be signed
and witnessed
according to the
laws of the
State where the
property is
located, and
should be
delivered to the
purchaser at
closing day.
There are two
parties to a
deed: the
grantor and the
grantee. (See
also deed of
trust, general
warranty deed,
quitclaim deed,
and special
warranty deed.)
-
Default
-
Failure to make
mortgage
payments as
agreed to in a
commitment based
on the terms and
at the
designated time
set forth in the
mortgage or deed
of trust. It is
the mortgagor's
responsibility
to remember the
due date and
send the payment
prior to the due
date, not after.
Generally,
thirty days
after the due
date if payment
is not received,
the mortgage is
in default. In
the event of
default, the
mortgage may
give the lender
the right to
accelerate
payments, take
possession and
receive rents,
and start
foreclosure.
Defaults may
also come about
by the failure
to observe other
conditions in
the mortgage or
deed of trust.
-
Depreciation
-
Decline in value
of a house due
to wear and
tear, adverse
changes in the
neighborhood, or
any other
reason.
-
Documentary
Stamps
-
A
State tax, in
the forms of
stamps, required
on deeds and
mortgages when
real estate
title passes
from one owner
to another. The
amount of stamps
required varies
with each State.
-
Down
Payment
-
The amount of
money to be paid
by the purchaser
to the seller
upon the signing
of the agreement
of sale.
-
Earnest Money
- 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 downpayment.
If the sale does
not go through,
the earnest
money will be
forfeited or
lost unless the
binder or offer
to purchase
expressly
provides that it
is refundable.
-
Easement Rights
- A right- of-
way granted to a
person or
company
authorizing
access to or
over the owner's
land. An
electric company
obtaining a
right- of- way
across private
property is a
common example.
-
Economic
Obsolescence
- Loss of
useful life and
desirability of
a property
through economic
forces, such as
change in
zoning, changes
in traffic flow,
etc., rather
than
deterioration.
-
Encroachment
- An
obstruction,
building, or
part of a
building that
intrudes beyond
a legal boundary
onto neighboring
private or
public land, or
a building
extending beyond
the building
line.
-
Encumbrance
- A legal
right or
interest in land
that affects a
good or clear
title, and
diminishes 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 transfer
of the property
to another. A
title search is
all that is
usually done to
reveal the
existence of
such
encumbrances,
and it is up to
the buyer to
determine
whether he wants
to purchase with
the encumbrance,
or what can be
done to remove
it.
-
Equity
- The value of
a homeowner's
unencumbered
interest in real
estate. Equity
is computed by
subtracting from
the property's
fair market
value the total
of the unpaid
mortgage balance
and any
outstanding
liens or other
debts against
the property. A
homeowner's
equity increases
as he pays off
his mortgage or
as the property
appreciates in
value. When the
mortgage and all
other debts
against the
property are
paid in full the
homeowner has
100% equity in
his property.
-
Escalation
Clause
- A clause in
a lease
providing for an
increased rent
at a future time
due to increased
costs to lessor,
as in cost of
living index,
tax increases,
etc.
-
Escheat
- The
reverting of
property to the
state in the
absence of
heirs.
-
Escrow
- Funds paid
by one party to
another (the
escrow agent) to
hold until the
occurrence of a
specified event,
after which the
funds are
released to a
designated
individual. In
FHA mortgage
transactions an
escrow account
usually refers
to the funds a
mortgagor pays
the lender at
the time of the
periodic
mortgage
payments. The
money is held in
a trust fund,
provided by the
lender for the
buyer. Such
funds should be
adequate to
cover yearly
anticipated
expenditures for
mortgage
insurance
premiums, taxes,
hazard insurance
premiums, and
special
assessments.
-
Estate
- The
ownership
interest of a
person in real
property. Is
also used to
refer to a
deceased
person's
property. And
often used to
describe a large
home with
spacious grounds
-
Fair
Market Value
- That price a
property will
bring given that
both buyer and
seller are fully
aware of market
conditions and
comparable
properties.
- Fee
Simple
- Ownership of
title to
property without
any limitation,
which can be
sold, left at
will, or
inherited.
-
Fixtures
- Items
affixed to
buildings or
land usually in
such a way that
they cannot be
moved without
damage to
themselves or
the property,
such as
plumbing,
electrical
fixtures, trees,
etc.
-
Foreclosure
- A legal term
applied to any
of the various
methods of
enforcing
payment of the
debt secured by
a mortgage, or
deed of trust,
by taking and
selling the
mortgaged
property, and
depriving the
mortgagor of
possession.
-
Front Footage
- The linear
measurement
along the front
of a parcel.
That portion of
the parcel which
fronts the
street or
walkway.
-
Functional
Obsolescence
- Loss in
value due to
out-of-date or
poorly designed
equipment while
newer equipment
and structures
have been
invented since
it's
construction.
-
General Warranty
Deed
- A deed which
conveys not only
all the
grantor's
interests in and
title to the
property to the
grantee, but
also warrants
that if the
title is
defective or has
a "cloud" on it
(such as
mortgage claims,
tax liens, title
claims,
judgments, or
mechanic's liens
against it) the
grantee may hold
the grantor
liable.
-
Grantee
- That party
in the deed who
is the buyer or
recipient.
-
Grantor
- That party
in the deed who
is the seller or
giver.
-
Ground Lease
- A lease of
vacant land
-
Hazard Insurance
- Protects
against damages
caused to
property by
fire,
windstorms, and
other common
hazards.
- Home
Owners
Association
- An
association of
homeowners
within a
community formed
to improve and
maintain the
quality of the
community. An
association
formed by the
developer of
condominiums or
planned
developments.
- HUD
- U.S.
Department of
Housing and
Urban
Development.
Office of
Housing/Federal
Housing
Administration
within HUD
insures home
mortgage loans
made by lenders
and sets minimum
standards for
such homes.
-
Interest
- A charge
paid for
borrowing money.
(See mortgage
note)
-
Involuntary Lien
- A lien which
attaches to
property without
the consent of
the owner such
as tax liens as
opposed to
voluntary liens
(mortgages).
-
Joint Tenancy
- Joint
ownership by two
or more persons
with right of
survivorship.
Upon the death
of a joint
tenant, his/her
interest does
not go to
his/her heirs,
but to the
remaining joint
tenants.
-
Lease
- A contract
between the
owner of real
property, called
the lessor, and
another person
referred to as
the lessee,
covering all
conditions by
which the lessee
may occupy and
use the
property.
-
Lease With
Option To
Purchase
- A lease
where the lessee
has the option
to purchase the
leased property.
The terms of the
purchase option
must be set
forth in the
lease.
-
Legal
Description
- The
geographical
identification
of a parcel of
land
-
Lessee
- One who
contracts to
rent property
under a
specified lease>
-
Lessor
- An owner who
contracts into a
lease with a
tenant (lessee).
- Lien
- A claim by
one person on
the property of
another as
security for
money owed. Such
claims may
include
obligations not
met or
satisfied,
judgments,
unpaid taxes,
materials, or
labor. (See also
special lien.)
- Life
Estate
- A estate in
real property
for the life of
a person
-
Listing
- A contract
between owner
and broker to
sell the owner's
property
-
Marketable Title
- A title that
is free and
clear of
objectionable
liens, clouds,
or other title
defects. A title
which enables an
owner to sell
his property
freely to others
and which others
will accept
without
objection.
-
Mechanic's Lien
- A lien
created by
statute on a
specific
property for
labor or
materials
contributed to
an improvement
on that
property.
-
Mortgage
- A lien or
claim against
real property
given by the
buyer to the
lender as
security for
money borrowed.
Under
government-
insured or loan-
guarantee
provisions, the
payments may
include escrow
amounts covering
taxes, hazard
insurance, water
charges, and
special
assessments.
Mortgages
generally run
from 10 to 30
years, during
which the loan
is to be paid
off.
-
Mortgage
Commitment
- A written
notice from the
bank or other
lending
institution
saying it will
advance mortgage
funds in a
specified amount
to enable a
buyer to
purchase a
house.
-
Mortgage
Insurance
Premium
- The payment
made by a
borrower to the
lender for
transmittal to
HUD to help
defray the cost
of the FHA
mortgage
insurance
program and to
provide a
reserve fund to
protect lenders
against loss in
insured mortgage
transactions. In
FHA insured
mortgages this
represents an
annual rate of
one- half of one
percent paid by
the mortgagor on
a monthly basis.
-
Mortgage Note
- A written
agreement to
repay a loan.
The agreement is
secured by a
mortgage, serves
as proof of an
indebtedness,
and states the
manner in which
it shall be
paid. The note
states the
actual amount of
the debt that
the mortgage
secures and
renders the
mortgagor
personally
responsible for
repayment.
-
Mortgage (Open-
End)
- A mortgage
with a provision
that permits
borrowing
additional money
in the future
without
refinancing the
loan or paying
additional
financing
charges. Open-
end provisions
often limit such
borrowing to no
more than would
raise the
balance to the
original loan
figure.
-
Mortgagee
- The lender
in a mortgage
agreement.
-
Mortgagor
- The borrower
in a mortgage
agreement.
-
Multiple Listing
- A listing
taken by a
member of an
organization of
brokers, whereby
all members have
an opportunity
to find a buyer.
-
Negative
Amortization
- When monthly
payments are not
enough to cover
interests costs,
they are added
to the principal
balance, and you
may end up owing
more than when
you started.
This is most
likely to occur
with
ARMs
that have
payment caps.
-
Notary Public
- One who is
authorized by
federal or local
government to
attest authentic
signatures and
administer
oaths.
- Note
- A written
instrument
acknowledging a
debt and
promising
payment
-
Offer
- A
presentation to
form a contract
or agreement.
-
Option
- A right
given, for
consideration,
to purchase or
lease property
upon stipulated
terms within a
specific period
of time
-
Origination Fee
- Application
fee(s) for
processing a
proposed
mortgage.
- Plat
- A map or
chart of a lot,
subdivision or
community drawn
by a surveyor
showing boundary
lines,
buildings,
improvements on
the land, and
easements.
-
P.M.I.
(Private
Mortgage
Insurance)
- Insurance
which covers a
portion of the
first mortgage
allowing the
lender to offer
more lenient
terms to a
borrower.
-
Points
- Sometimes
called "discount
points." A point
is one percent
of the amount of
the mortgage
loan. For
example, if a
loan is for
$25,000, one
point is $250.
Points are
charged by a
lender to raise
the yield on his
loan at a time
when money is
tight, interest
rates are high,
and there is a
legal limit to
the interest
rate that can be
charged on a
mortgage. Buyers
are prohibited
from paying
points on HUD or
Veterans'
Administration
guaranteed loans
(sellers can
pay, however).
On a
conventional
mortgage, points
may be paid by
either buyer or
seller or split
between them.
-
Prepayment
- Payment of
mortgage loan,
or part of it,
before due date.
Mortgage
agreements often
restrict the
right of
prepayment
either by
limiting the
amount that can
be prepaid in
any one year or
charging a
penalty for
prepayment. The
Federal Housing
Administration
does not permit
such
restrictions in
FHA insured
mortgages.
-
Prepayment
Penalty
- A penalty
within a note,
mortgage, or
deed of trust
imposing a
penalty if the
debt is paid in
full before the
end of its
terms.
-
Principal
- The basic
element of the
loan as
distinguished
from interest
and mortgage
insurance
premium. In
other words,
principal is the
amount upon
which interest
is paid.
-
Purchase
Agreement
- An agreement
between buyer
and seller
denoting price
and terms of the
sale.
- Real
Estate Agent
- a licensed
person who works
under the
direction of a
broker selling
and renting real
estate.
- Real
Estate Broker
- A middle man
or agent who
buys and sells
real estate for
a company, firm,
or individual on
a commission
basis. The
broker does not
have title to
the property,
but generally
represents the
owner.
-
Realtor
- A real
estate broker
holding
membership with
the National
Association of
Realtors.
-
Refinancing
- The process
of the same
mortgagor paying
off one loan
with the
proceeds from
another loan.
-
Restrictive
Covenants
- Private
restrictions
limiting the use
of real
property.
Restrictive
covenants are
created by deed
and may "run
with the land,"
binding all
subsequent
purchasers of
the land, or may
be "personal"
and binding only
between the
original seller
and buyer. The
determination
whether a
covenant runs
with the land or
is personal is
governed by the
language of the
covenant, the
intent of the
parties, and the
law in the State
where the land
is situated.
Restrictive
covenants that
run with the
land are
encumbrances and
may affect the
value and
marketability of
title.
Restrictive
covenants may
limit the
density of
buildings per
acre, regulate
size, style or
price range of
buildings to be
erected, or
prevent
particular
businesses from
operating or
minority groups
from owning or
occupying homes
in a given area.
(This latter
discriminatory
covenant is
unconstitutional
and has been
declared
unenforceable by
the U.S. Supreme
Court.)
-
Seller's Market
- More buyers
than sellers.
-
Special
Assessments
- A special
tax imposed on
property,
individual lots
or all property
in the immediate
area, for road
construction,
sidewalks,
sewers, street
lights, etc.
-
Special Lien
- A lien that
binds a
specified piece
of property,
unlike a general
lien, which is
levied against
all one's
assets. It
creates a right
to retain
something of
value belonging
to another
person as
compensation for
labor, material,
or money
expended in that
person's behalf.
In some
localities it is
called
"particular"
lien or
"specific" lien.
(See lien.)
-
Special Warranty
Deed
- A deed in
which the
grantor conveys
title to the
grantee and
agrees to
protect the
grantee against
title defects or
claims asserted
by the grantor
and those
persons whose
right to assert
a claim against
the title arose
during the
period the
grantor held
title to the
property. In a
special warranty
deed the grantor
guarantees to
the grantee that
he has done
nothing during
the time he held
title to the
property which
has, or which
might in the
future, impair
the grantee's
title.
-
Survey
- A map or
plat made by a
licensed
surveyor showing
the results of
measuring the
land with its
elevations,
improvements,
boundaries, and
its relationship
to surrounding
tracts of land.
A survey is
often required
by the lender to
assure him that
a building is
actually sited
on the land
according to its
legal
description.
- Tax
- As applied
to real estate,
an enforced
charge imposed
on persons,
property or
income, to be
used to support
the State. The
governing body
in turn utilizes
the funds in the
best interest of
the general
public.
-
Title
- As generally
used, the rights
of ownership and
possession of
particular
property. In
real estate
usage, title may
refer to the
instruments or
documents by
which a right of
ownership is
established
(title
documents), or
it may refer to
the ownership
interest one has
in the real
estate.
-
Title Insurance
- Protects
lenders or
homeowners
against loss of
their interest
in property due
to legal defects
in title. Title
insurance may be
issued to a
"mortgagee's
title policy."
Insurance
benefits will be
paid only to the
"named insured"
in the title
policy, so it is
important that
an owner
purchase an
"owner's title
policy", if he
desires the
protection of
title insurance.
-
Title Search or
Examination
- A check of
the title
records,
generally at the
local
courthouse, to
make sure the
buyer is
purchasing a
house from the
legal owner and
there are no
liens, overdue
special
assessments, or
other claims or
outstanding
restrictive
covenants filed
in the record,
which would
adversely affect
the
marketability or
value of title.
-
Trustee
- A party who
is given legal
responsibility
to hold property
in the best
interest of or
"for the benefit
of" another. The
trustee is one
placed in a
position of
responsibility
for another, a
responsibility
enforceable in a
court of law.
(See deed of
trust.)
-
Variable
Interest Rate
- A
fluctuating
interest rate
which can go up
or down
depending on the
going market
rate.
-
Voluntary Lien
- A voluntary
lien by the
owner such as a
mortgage, as
opposed to
involuntary
liens (taxes).
-
Waive
- To
relinquish, or
abandon. To
forego a right
to enforce or
require
anything.
-
Wrap-Around
Mortgage
- A second
mortgage which
is subordinate
to but includes
the face value
of the first
mortgage.
-
Zoning
Ordinances
- The acts of
an authorized
local government
establishing
building codes,
and setting
forth
regulations for
property land
usage.
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