Glossary

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A succinct summary; (e.g. an abstract of judgment; an abstract of title, an abstract plant.)

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

The clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.

On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.

A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.

Also known as an agreement to convey. A signed, written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) under certain specific terms and conditions.

A term of a mortgage which requires that the borrower pay in full the principal and interest due upon the sale of the property. ( See Acceleration or Due-on-Sale Clause)

The repayment of a debt in installments.

To fix or set a price or value upon.

Generally, being overdue in an installment payment.

The person to whom a transfer of interest is made. Hence an assignee of an Agreement of Purchase and Sale may buy the property and enforce the contract in the same fashion as the original party.

The person who makes an assignment to another person.

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

A person entitled to receive money or assets from a trust or an estate. A lender is a beneficiary with a deed of trust or a note as a security for a loan.

An offer by an intending purchaser to pay a designated price for property which is about to be sold at auction.

A deed of trust secured by more than one lot or parcel of land.

Brokers Price Opinion.

A agent authorized by the state to deal in real estate.

A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.

The surplus left over out of the rents after paying out all operating expenses and mortgage payments.

A succession of conveyances that comprises the title record history to a specific parcel of real property.

A mortgage which is secured by personal property.

The date agreed upon which the buyer takes over the property.

A collection of laws relating to a certain topic, such as real property, patents, etc.

Real estate or personal property which is pledged as security for a debt.

Similar properties used as yardsticks to determine the market value of a certain property.

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.

An agreement between two or more persons that creates an obligation to do or not to do a particular thing.

A written instrument that transfers title to or an interest in land from one party to another (i.e. a deed, an assignment, a bill of sale, etc.)

A document from a credit bureau setting forth a credit rating and pertinent financial data concerning a person or a company and used by banks, merchants, suppliers and the like in evaluating a credit risk.

A court order to set out the outstanding amount on a delinquent mortgage in order to sell the property to pay the mortgagee.

A process whereby the owner, with the approval of the lender, deeds the property to the lender to avoid foreclosure. Lenders are generally reluctant to accept a "deed in lieu" unless the title is free and clear of any other encumbrances junior to theirs and the owners execute an estoppel affidavit acknowledging that they are acting volitionally, with informed consent.

A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The owner is called the "trustor". The neutral third party to whom the bare legal title is conveyed (and who is called on to liquidate the property if need be) is the "trustee". The lender is the "beneficiary". When the loan is paid off the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which extinguishes the trust deed lien.

A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.

A judgment entered in a lawsuit when a property is sold for less than the amount of the loan.

Also known as a Breach Letter or Notice of Intent to Foreclose. Notice to the borrower that he/she is in "breach" of the terms of the Note and advising of the right to "cure" the default.

An independent federal agency which oversees programs for military veterans, including loan and mortgage programs. This agency allows most veterans to purchase a house without a down payment.

A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the property.

A deposit made by a purchaser of real estate used as a down payment as evidence of good faith.

A fixture that illegally intrudes into or invades the property or encloses a portion of it, diminishing its width or area.

The surplus of value which may remain after existing liens are deducted from the property.

A bank account generally held in the name of the depositor and an escrow agent which is returnable to the depositor or paid to a third person on the fulfillment of a condition.

A certificate in which a borrower certifies the amount owed on a mortgage loan and the rate of interest.

The amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

A mortgage that is in first position and has priority as a lien over all other mortgages.

A period of days during which a debtor may cure a delinquency without penalty (before triggering a late charge, a foreclosure or an acceleration of the balance due).

Meaning "to have and to hold" which defines the quantity of the estate that is transferred to the new owner of land.

Owners who borrow against the equity in their homes.

Any losses and damages endured by another person that you are fully responsible for.

When two or more parties own the same property.

The final decision of the court resolving the dispute and determining the rights and obligations of the parties.

An agreement used to sell real property that transfers ownership of the property, but the title does not transfer until most or all of the purchase price is paid.

An agreement involving payment of rent for possession of real estate for a specific period of time.

He from whom a thing or money is borrowed.

An estate whose duration is limited to the life of the party holding it.

A department which helps homeowners avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan

A title with no claims or defects that could otherwise hinder a property being sold.

An interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt.

The person who borrows the money from a lender to purchase a property.

National Association of Retail Collection Attorneys.

A legal document used when the defaulting party has cured or corrected the default

A written document signed by the owner which authorizes someone else to act in behalf of the owner.

An action at law to remove an adverse claim or cloud from the title of property.

Property acquired back by the lender after it has gone to auction.

A contract to which the buyer and seller agree to terms of sale.

A creative method in real estate where the seller of a property agrees to finance all or some of the property. In a sense, the owner acts like a bank.

The term "simultaneous closing" refers to two closings occurring simultaneously, or at the same time. This is a creative technique used when traditional financing will not work.

A type of deed used to convey title after real property is sold at auction by public authority for non-payment of taxes.

One who holds possession of premises with the owners permission.

Firms that examine properties to ensure that the title to a piece of property is clear and free of any encumbrances. They also issue title insurance.

A report which sets out the current state of title to a property.

A torrens title contains a listing of all legal instruments (mortgages, judgments, liens) that have been recorded on the property from its origin.

A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The owner is called the "trustor". The neutral third party to whom the bare legal title is conveyed (and who is called on to liquidate the property if need be) is the "trustee". The lender is the "beneficiary". When the loan is paid off the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which extinguishes the trust deed lien.

Uniform Commercial Code; uniform laws drafted by the National Conference of Commissioners on Uniform State Laws governing commercial transactions.

Debt not secured by collateral.

A program that allows the purchase of a house without a down payment to most veterans.

Deed in which the grantor warrants good clear title.