|
Abstract of title |
A condensed history or summary of all
transactions affecting a particular parcel of real estate, including the
original grant, all conveyances and encumbrances affecting the property, and
the abstractor's certification of the history's accuracy |
|
Acceleration clause |
A clause in a mortgage that gives the lender the
right to require payment of the entire principal balance if the borrower
defaults on an installment payment or other covenant |
|
Acceptance |
An offeree's consent to enter into, and be bound
by the terms of, a contract |
|
Access |
The right to enter and exit a parcel of land
from a public way, including the right to enter and exit via land belonging to
others |
|
Acknowledgment |
The confirmation by which a party executing a
legal document confirms his signature and voluntary agreement with the terms of
the document, made before an authorized officer of the Court or notary
public |
|
Acre |
43,560 square feet of land |
|
Adjustable-rate mortgage
(ARM) |
A mortgage with interest rates that may
fluctuate based on market conditions; the lender is permitted to adjust the
mortgage's interest rate periodically, though most ARM's are limited in the
amount that the interest rates can vary |
|
Adjusted
basis |
The total of the original cost of a property and
the value of any capital expenditures for improvements done to it, minus any
depreciation taken |
|
Adjustment
date |
The date on which the interest rate changes for
an adjustable-rate mortgage (ARM) |
|
Adjustment
period |
The period of time between the adjustment dates
for an adjustable-rate mortgage (ARM) |
|
Administrator |
A person appointed by a probate court to
administer the estate of an individual who has died without a
will |
|
Adverse
Possession |
A claim made against the land titled to another
person, by virtue of open and hostile possession and use of the land to the
exclusion of the titled owner |
|
Affidavit of
title |
A sworn statement that is made in writing under
oath by a seller of real property, and certified by a notary public, in which
the seller identifies himself or herself, indicates marital status, certifies
that no defects have occurred in the title since the examination of the title
on the date of the contract, and confirms that he or she is in possession of
the property (if applicable) |
|
Agency |
The relationship between two or more persons
wherein the agent is authorized to act on behalf of another person (or
principal) in certain transactions |
|
Agent |
A person or company that acts on behalf of
another to transact business, generally in exchange for payment. In real
estate, it is a person or company with a real estate license working under the
authority of a real estate broker |
|
Alienation |
The act of transferring property to another,
either voluntarily (via a sale), or involuntarily (via adverse
possession) |
|
Alienation
clause |
The clause in a mortgage or deed of trust which
asserts the lender's option to require that the balance of the secured debt
becomes immediately due and payable if the property is sold by the borrower,
preventing the borrower from assigning the debt without the lender's
approval |
|
ALTA |
American Land Title Association, the national
association of title insurance companies, abstractors and attorneys
specializing in real property law, headquartered in Washington,
D.C. |
|
Amenity |
A natural or manmade feature of real property
that enhances its value and attractiveness, though it is not essential to the
property's use |
|
Amortization |
The process of payment of a debt or mortgage
loan over time by installments |
|
Amortization
schedule |
A timetable for repayment of a debt or mortgage
loan, showing the amount of each payment, what portion is applied to interest
and principal, and the remaining balance |
|
Amortization
term |
The amount of time required to repay the
mortgage loan, expressed in number of months |
|
Amortize |
To pay off a loan or mortgage with periodic
payments that cover both principal and interest |
|
Amortized
loan |
A loan in which both the principal and interest
are payable in monthly or other periodic installments over the term of the
loan, with no balloon payment prior to maturity |
|
Annual mortgagor
statement |
An annual report sent to the borrower
(mortgagor) each year, showing the amount paid in taxes and interest during the
year, as well as the remaining mortgage loan balance |
|
Annual percentage rate
(APR) |
The overall cost of a mortgage, including
interest, mortgage insurance, and loan origination fee (points), stated as a
yearly percentage, thus allowing buyers to compare different types of mortgages
based on the associated annual finance charges; the APR must be disclosed to
borrowers by lenders, per the Truth-in-Lending Act |
|
Annuity |
The return, including interest, from an
investment of capital, paid in a series of regular payments |
|
Appraisal |
A written estimate of the value of an asset or
property prepared by a qualified, independent party, through which the asset or
property value is determined |
|
Appraised
value |
The estimate of a property's fair market value,
based on an appraiser's analysis of the property |
|
Appraiser |
An individual educated to estimate the value of
real property and personal property |
|
Appreciation |
An increase in the worth of a property due to
changes in economic conditions or other causes; the opposite of
depreciation |
|
Appurtenance |
Anything attached to, or used with, a parcel of
land that will go to the new owner on conveyance of the land |
|
ARM |
Adjustable-rate Mortgage. Also see "Variable
Rate Mortgage" |
|
Assessment |
A tax, charge or levy against a property made by
the government, based on its value, and levied for a specific purpose, such as
to finance sidewalks, a sewer, etc. |
|
Assessment
rolls |
The public record of taxable
property |
|
Assessor |
A public official who evaluates the value of a
property for taxation purposes |
|
Asset |
Anything of monetary value owned by an
individual, including real property, personal property, and enforceable claims
against others (bank accounts, stocks, mutual funds, etc.) |
|
Assign |
To transfer interest |
|
Assignee |
One who receives an assignment or transfer of
rights |
|
Assignor |
One who makes an assignment or transfer of
rights to another |
|
Assumable
mortgage |
A mortgage that allows a new owner to take over
its obligations |
|
Assumption |
The process of transferring the seller's
existing mortgage and liability for payments to the buyer when purchasing a
property, which usually saves the buyer money, since assuming a new mortgage
incurs additional closing costs and possibly higher interest
charges |
|
Assumption
clause |
The provision in an assumable mortgage that
allows a buyer to take responsibility for that mortgage from the
seller |
|
Attachment |
Seizure of property through Court process to
force payment of a debt |
|
Attorney-in-fact |
One who holds a power of attorney from another
to execute legal documents on behalf of the grantor of the
power |
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