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Real Estate Definitions
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Abstract of Title - A condensed history or summary of all transactions affecting a particular tract of land.
Acceleration Clause -A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.
Access - The right to enter and leave a tract of land from a public way. Can include the right to enter and leave over the lands of another.
Accretion - The slow build-up of lands by natural forces such as wind or water.
Acknowledgment - The act by which a party executing a legal document goes before an authorized officer or notary public and declares the same to be his or her voluntary act and deed.
Acre - A tract of land 208.71 feet square and containing 43,560 square feet of land.
Adjustable Rate Mortgage -A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Administrator - A person appointed by a probate court to settle the affairs of an individual dying without a will. The term is "administratrix" if such a person is a woman.
Adverse Possession - A claim made against the lands of another by virtue of open and notorious possession of said lands by the claimant.
Affidavit - A sworn statement in writing.
Agent - A person or company that has the power to act on behalf of another or to transact business for another, e.g., a title agent under contract with Old Republic Title to issue policies of title insurance.
Air Rights - The right to ownership of everything above the physical surface of the land.
ALTA - American Land Title Association, a national association of title insurance companies, abstractors and attorneys specializing in real property law. Its headquarters are in Washington, D.C.
Amortization - The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
Amortization Schedule - A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
Annual Percentage Rate - This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.
Application - The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.
Appraisal - A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
Appraised Value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.
Appraiser - An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.
Appreciation - The increase in the value of a property due to changes in market conditions, inflation, or other causes. Appurtenance - Anything so annexed to land or used with it that it will pass with the conveyance of the land.
ARM - Adjustable Rate Mortgage. See "Adjustable Rate Mortgage."
Assessed Value - The valuation placed on property by a public tax assessor for purposes of taxation.
Assessment - The imposition of a tax, charge or levy, usually according to established rates.
Assessor - A public official who evaluates property for the purpose of taxation.
Assignee - One to whom a transfer of interest is made. For example, the assignee of a mortgage or contract.
Assignment - When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.
Assignor - One who makes an assignment. For example, the assignor of a mortgage or contract.
Assumable Mortgage - A mortgage which, by its terms, allows a new owner to take over its obligations.
Assumption - The term applied when a buyer assumes the seller's mortgage.
Attachment -Legal seizure of property to force payment of a debt.
Attorney in Fact - One who holds a power of attorney from another allowing him or her to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.
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Balloon Mortgage - A mortgage that is amortized over a specific period of years, but requires a lump sum payment in full at an earlier date.
Balloon payment - The final lump sum payment that is due at the termination of a balloon mortgage.
Bankruptcy - A federal court proceeding in which debtors are relieved of liability for their debts after surrender of their assets to a court appointed trustee.
Biweekly mortgage - A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. Note: there are independent companies that encourage you to set up bi-weekly payment schedules with them on your thirty year mortgage. They charge a set-up fee and a transfer fee for every payment. Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle. You could save money by doing the same thing yourself, plus you have to have faith that once you transfer money to them that they will actually transfer your funds to your lender.
Bond market - Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.
Bridge loan - Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.
Broker - Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.
Bureau of Land Management - The branch of government in charge of surveying and managing public lands.
Buydown - Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now
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Cap - Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.
Cash-out refinance - When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance."
Certificate of depositA time deposit held in a bank which pays a certain amount of interest to the depositor.
Certificate of deposit indexOne of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit.
Certificate of EligibilityA document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan.
Certificate of Reasonable Value (CRV)Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.CC & R ' s - Covenants, Conditions and Restrictions
Chain - A term of land measurement that is 66 feet in length.
Chain of Title - A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.
Clear Title - One which is not encumbered or burdened with defects.
Closing - Also known as "escrow" or "settlement." The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase.
Closing Costs - Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application. Clouded Title - An encumbered title.
Cloud on title - Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.
Co-borrower - An additional individual who is both obligated on the loan and is on title to the property.
Collateral - In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.
Collection - When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.
Commission - Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.
Common area assessments - In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas.
Common areas - Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
Commitment to Insure - A report issued by a title insurance company, or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.
Common Interest Community (CIC) - Ownership characterized by mutual ownership of common areas, either jointly or through membership in an association, e.g., condominiums, planned unit developments, and townhomes.
Common law - An unwritten body of law based on general custom in England and used to an extent in some states.Company Loan - Loan by employer to facilitate relocation of employee. Usually short term .
Community property - In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. This is an outgrowth of the Spanish and Mexican heritage of the area.
Comparable sales - Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."
Condemnation - Taking private property for public use through court proceedings.
Condominium - Real property where all of the condominium association owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.
Condition or Conditions - A provision in a deed or will that, upon the happening or failure to happen of a certain event, limits, enlarges, changes or terminates the title of the purchaser or devisee.
Covenants, Conditions and Restrictions - (CC&R's) The covenants, conditions and restrictions on the use of land. Includes penalties for failure to comply. Commonly used by land subdividers on newly platted areas. HOA will have CC&R's.
Condominium - A system of individual fee ownership of units in a multi-unit structure, combined with joint ownership of common areas of the structure and land.
Condominium conversion - Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.
Condominium hotel - A condominium project that has rental or registration desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the units are individually owned. These are often found in resort areas like Hawaii.
Conservator - See "Guardian"
Construction loan - A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
Contingency - A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
Contract - An oral or written agreement to do or not to do a certain thing.
Conventional mortgage - Refers to home loans other than government loans (VA and FHA).
Contract for Deed - An agreement to sell and purchase under which title is held as security by the seller until such time as the required payments to the seller have been completed.
Convey - The act of deeding or transferring title to another.
Conveyance - An instrument by which title is transferred; a deed. Also, the act of transferring title.
Cooperative - (co-op) A residential multi-unit building owned by a corporation in which each unit is occupied by a member of the corporation pursuant to a lease or occupancy agreement.
Cost of funds index - (COFI)One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.
Covenant - An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.
Credit - An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
Credit history - A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.
Creditor - A person to whom money is owed.
Credit report - A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
Credit repository - An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
Cul-de-Sac - The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turn around for vehicles.
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Debt - An amount owed to another.
Deed - A written document by which the ownership of land is transferred from one person to another.
Deed-in-lieu - Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.
Deed of Trust - See " Mortgage." Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.
Default - Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.
Delinquency - Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.Delivery - The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by the seller. A necessary requisite to the transfer of title.
Deposit - A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."
Depreciation - A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.Devise - The disposition of real property by will.
Discount points - In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.
Down payment - The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
Due on Sale Clause - Provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.
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Earnest Money - A deposit made by the potential home buyer per the purchase contract, usually into escrow.
Easement - An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property.
Effective Age - An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
Egress - The right to leave a tract of land. Often used interchangeably with "access."
Eminent Domain - The power of the state to take private property for public use upon payment of just compensation.
Encroachment - A trespass or intrusion onto another's property, usually by a structure, wall or fence.
Encumber - To burden a parcel of land with a lien or charge, e.g., a mortgage.
Encumbrance - A lien, liability or charge upon a parcel of land.
Equal Credit Opportunity Act - (ECOA) A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
Equity - A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
Escheat - A reversion of property to the state in those cases where an individual dies without heirs or devisees, and, in some states, without a will.
Escrow - An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed. The escrow company is a disinterested third party handles legal documents and funds on behalf of a seller and buyer, and delivers them upon performance by the parties.
Escrow Account - Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.
Escrow analysis - Once each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.
Escrow disbursements - The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
Estate - A person's possessions. The extent of a person's interest in real property.
Eviction - The lawful expulsion of an occupant from real property.
Exclusive Listing - A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
Examination of Title - The investigation and interpretation of the record title to real property based on the title search or abstract.
Exception - In legal descriptions, that portion of land to be deleted or excluded. The term often is used in a different sense to mean an objection to title or encumbrance on title.
Executor - A person appointed by the probate court to carry out the terms of a will. The term is "executrix" if that person is a woman.
Extended Mortgage - One in which the due date of a mortgage is extended for a longer period, often at a higher interest rate than the original mortgage.
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Fair Credit Reporting Act - A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.
Fair market value - The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept. Fannie Mae - Federal National Mortgage Association (also FNMA) is a private corporation, federally chart e re d to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.
Fannie Mae - (FNMA)The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the Library.
Fee Simple - The greatest possible interest a person can have in real estate.
Fee simple estate - An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.
Federal Housing Administration (FHA) Guarantee - An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.
FHA mortgage - A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.
Financing Statement - A document filed with the Register of Deeds or Secretary of State securing the title to personal property.
First Mortgage - The mortgage that is in first place among any loans recorded against a property.
Usually depends to the date in which loans are recorded, but there are exceptions.
Fixed-rate mortgage - A mortgage in which the interest rate does not change during the entire term of the loan.
Fixture - Any item of property so attached to real property that it becomes a part of the real property.
Flood Certification - A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Pro g r a m .
Flood insurance - Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
ForeclosureThe legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
Forfeiture of Title - Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.
Freddie Mac - Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.
401(k)/403(b)An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.
401(k)/403(b) loanSome administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are an acceptable source of down payment for most types of loans.
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Ginnie Mae - Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration) or VA (Veterans Administration).
Government loan - (mortgage)A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.
Government National Mortgage Association - (Ginnie Mae)A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)
Graduated Payment Mortgage - A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.
Grantee - A person who acquires an interest in land by deed, grant, or other written instrument.
Grantor - A person, who, by a written instrument , transfers to another an interest in land.
Guardian - One appointed by the court to administer the affairs of an individual not capable of administering his or her own affairs.
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Hazard Insurance - Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.
Harbor Line - An arbitrary line set by authorities on navigable rivers, beyond which wharves and other structures may not be built. Also designated as line of navigation.
Heir - One who might inherit or succeed to an interest in land of an individual who dies without leaving a will (intestate).
Hiatus - A gap or space unintentionally left, when attempting to describe adjoining parcels of land.
Home Equity Conversion Mortgage - A reverse or reverse annuity mortgage in which HUD through FHA guarantees that the borrower will receive monthly payments from the insurer (FHA) in the event the lender is unable to make payments to the borrower.
Home equity line of credit - A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.Home Repair Loan - Used for repairs and additions to existing structures without affecting existing mort g a g e . Typically 10 years or less in length.
Home inspection - A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.
Homeowners' association - A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements/areas.
Homeowner's insurance - An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.
Homeowner's warranty - A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay.
HUD Median Income - Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).
HUD 1 settlement statement- A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.
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Improvements - Those additions to raw lands
Inchoate Dower - The imperfect interest which the law gives a wife in the lands of her husband. This is an interest which upon the death of the husband may ripen into possession and use. Most states have abolished dower rights.
Inchoate Curtesy - The imperfect interest which the law gives a husband in the lands of his wife. This is an interest which upon the death of the wife my ripen into possession and use. Most states have abolished curtsey rights.
Indemnify - To make payment for a loss.
Ingress - The right to enter a tract of land. Often used interchangeably with "access."
Insurance - A contract of indemnity against specified perils.
Insurance Loan - When cash value of a life insurance policy is borrowed by the insured.
Interim Financing - Temporary or short term loans. Often used with new construction. Usually replaced with a permanent long-term mortgage.
Intestate - Designates the estate or condition of failing to leave a will at death. "To die intestate."
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Joint Tenancy - An estate where two or more persons hold real estate jointly for life, where each owns an undivided interest in the property, and commonly includes a right of survivorship whereby following the death of one or more joint title owners, title vests in any surviving joint tenants.
Judgment - A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from the Court 's award of money to a creditor.
See "Judgment Lien."
Judgment Docket - The record book of a County Clerk where a judgment is entered in order that it may become a lien upon the property of the debtor.
Judgment Lien - The charge upon the lands of a debtor resulting from the decree of a court properly entered into the judgment docket.
Judicial foreclosure - A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court. Other states use non-judicial foreclosure.
Jumbo loan - A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
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There are no items in this category.
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Late Charge - The penalty a borrower must pay when a payment is made a stated number of days. On a first trust deed or mortgage, this is usually fifteen days.
Land Contract - See "Contract for Deed ."
Landmark - Any conspicuous object that helps establish land boundaries.
Lease - A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental.
Leasehold estate - A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
Lease option - An alternative financing option that allows home buyers to lease a home with an option to buy. Each month's rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.
Legal description - A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.
Lender -A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as "lenders." Lender's Policy - A form of title insurance policy which insures the validity, enforceability and priority of a lender's lien. This form does not provide protection for the owner.
Lessee - One who takes lands upon a lease.
Lessor - One who grants lands under a lease.
Liabilities - A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.
Liability insurance - Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. It is usually part of a homeowner's insurance policy.
Lien - A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics' liens.
Life Cap - For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the mortgage.
Life Estate - A grant or reservation of the right of use, occupancy and ownership for the life of an individual.
Line of Credit - An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
Link - A term of land measurement being 1/100th of a chain or 66/100ths of a foot.
Liquid asset - A cash asset or an asset that is easily converted into cash.
Lis Pendens - A notice recorded in the official records of a county to indicate that a suit is pending affecting the lands where the notice is recorded.
Loan - A sum of borrowed money (principal) that is generally repaid with interest.
Loan officer - Also referred to by a variety of other terms, such as lender, loan representative, loan "rep," account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.
Loan origination - How a lender refers to the process of obtaining new loans.Loan Policy - See " Lender's Policy ."
Loan servicing - After you obtain a loan, the company you make the payments to is "servicing" your loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services.
Loan-to-value - (LTV)The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).
Lock - An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.
Lock-in period - The time period during which the lender has guaranteed an interest rate to a borrower.
Loss Payable Clause - Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. Usually the owner and the mortgage lender.
Lot - A part of a subdivision or block having fixed boundaries ascertainable by reference to a plat or survey.
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Majority - The age at which a person is entitled to handle his or her own affairs.
Margin - The difference between the interest rate and the index on an adjustable rate mortgage. The margin remains stable over the life of the loan. It is the index which moves up and down.
Maturity - The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
Marketable Title - A good title about which there is no fair or reasonable doubt.
Mechanic's Lien - A lien allowed by statute to contractors, laborers and material suppliers on buildings or other structures upon which work has been performed or materials supplied.
Merged credit report - A credit report which reports the raw data pulled from two or more of the major credit repositories. Contrast with a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.
Metes and Bounds - A description of land by courses and distances.
Minor - One who because of insufficient age or status is legally incapable of making contracts.
Modification - Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.
Monument of Survey - Visible marks or indications left on natural or other objects indicating the lines and boundaries of a survey. May be posts, pillars, stones, cairns, and other such objects. May also be fixed natural objects, blazed trees, roads and even a water course.
Mortgage - A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust DeedsAn instrument used to encumber land as security for a debt.
Mortgage-Backed Security - A security evidencing either the ownership of an interest in a mortgage loan or pools of mortgage loans, or a separate obligation secured by a mortgage loan or pool of mortgage loans.
Mortgage Banker - A specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.
Mortgage Broker - A person or company that buys and sells mortgages for another on commission or who arranges for and negotiates mortgage contracts.
Mortgage insurance - (MI)Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Mortgages above 80% LTV that call themselves "No MI" are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.
Mortgage insurance premium - (MIP)The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.
Mortgage life and disability insuranceA type of term life insurance often bought by borrowers. The amount of coverage decreases as the principal balance declines. Some policies also cover the borrower in the event of disability. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. In the case of disability insurance, the insurance will make the mortgage payment for a specified amount of time during the disability. Be careful to read the terms of coverage, however, because often the coverage does not start immediately upon the disability, but after a specified period, sometime forty-five days.
Mortgage Revenue Bonds - Issued by communities as a means of providing lower cost mortgage funds to certain qualified borrowers.
Mortgagee - The mortgage lender.
Mortgagee's Policy - See "Lender's Policy ."
Mortgagor - The mortgage borrower.
Multidwelling units - Properties that provide separate housing units for more than one family, although they secure only a single mortgage.
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Negative Amortization - An actual increase in the principal amount of real estate loan because of the addition of matured but unpaid interest to the loan balance. Usually the result of monthly payments which are temporarily set at a lower than needed level. Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment it may not cover all of the interest that would normally be due at the current interest rate. In essence, the borrower is deferring the interest payment, which is why this is called "deferred interest." The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.
No cash-out refinance - A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is caculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a "rate and term refinance."
No-cost loan - Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higherthan if you obtain a loan that has costs associated with it.
Notary Public - A Notary Public is an official of integrity appointed by state government —typically by the secretary of state — to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts related to the signing of important documents. These official acts are called notarizations, or notarial acts. Notaries are publicly commissioned as “ministerial” officials, meaning that they are expected to follow written rules without the exercise of significant personal discretion, as would otherwise be the case with a “judicial” official. A public official who witnesses the making of a document and signs it to show that it is authentic.
Note - The instrument evidencing the indebtedness secured by a security instrument such as a mortgage or deed of trust.
Note rate - The interest rate stated on a mortgage note.
Notice of default - A formal written and recorded notice to a borrower that default has occurred and that legal action, such as foreclosure, may be taken.
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Original principal balance - The total amount of principal owed on a mortgage before any payments are made.
Origination fee - On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called "discount points." One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.
Owner financing - A property purchase transaction in which the property seller provides all or part of the financing.
Owner's Policy - A policy of title insurance which insures an owner's interest and possession in real property. This form does not provide protection for a lender.
Ownership - The right to possess and use property to the exclusion of others.
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Partial payment - A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. Normally, a lender will not accept a partial payment, but in times of hardship you can make this request of the loan servicing collection department.
Patent - A document or grant by which the federal or state government originally transferred title to public lands to an individual. The first in the series of transfers by which title comes down to present owners.
Payment change date - The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
Periodic payment cap - For an adjustable-rate mortgage where the interest rate and the minimum payment amount fluctuate independently of one another, this is a limit on the amount that payments can increase or decrease during any one adjustment period.
Periodic rate cap - For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.
Personal property - Any property that is not real property
Personal Representative - A person appointed by the probate court to administer a decedent's estate. See also "Executor" or "Administrator."
PITI - This stands for principal, interest, taxes and insurance. If you have an "impounded" loan, then your monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If you do not have an impounded account, then the lender still calculates this amount and uses it as part of determining your debt-to-income ratio.
PITI reserves - A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.
Planned unit development - (PUD) A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.
Plat or Plot - A map representing a piece of land subdivided into lots with streets shown there on.
P.M.I. - Private Mortgage Insurance. An insurance contract which insures that the named lender will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.
Points - A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as one percent of the amount of the mortgage loan.
Policy - A written contract of title insurance.
Policyowner - The insured on a title insurance policy.
Power of Attorney - An instrument authorizing another to act on one's behalf as his or her agent or attorney.
Power of Sale - A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.
Pre-approval - A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. Contrast with pre-qualification.
Prepayment - Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.
Prepayment penalty - A fee that may be charged to a borrower who pays off a loan before it is due.
Pre-qualification - This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.
Prime rate - The interest rate that banks charge to their preferred customers. Changes in the prime rate are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans.
Principal - The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
Principal balance - The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance.
Principal, interest, taxes, and insurance - (PITI)The four components of a monthly mortgage payment on impounded loans. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance.
Private mortgage insurance - (PMI) Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
Promissory Note - A written promise to repay a specified amount over a specified period of time.
Prorate - To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.
Public auction - A meeting in an announced public location to sell property to repay a mortgage that is in default.
Purchase agreement - A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Purchase money transaction - The acquisition of property through the payment of money or its equivalent.
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Qualifying ratios - Calculations that are used in determining whether a borrower can qualify for a mortgage. There are two ratios. The "top" or "front" ratio is a calculation of the borrower's monthly housing costs (principle, taxes, insurance, mortgage insurance, homeowner's association fees) as a percentage of monthly income. The "back" or "bottom" ratio includes housing costs as will as all other monthly debt.
Quiet Title - An action in a proper Court to remove record defects or possible claims of other parties named in the action.
Quitclaim deed - A deed that transfers without warranty whatever interest or tile a grantor may have at the time the conveyance is made.
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Range - A part of the government survey, being a strip of land six miles in width, and numbered east or west of the principal meridian.
Rate lock - A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.
Real estate agent - A person licensed to negotiate and transact the sale of real estate.
Real Estate Settlement Procedures Act (RESPA) - A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
Real Property - Land, together with fixtures, improvements and appurtenances.
Real Estate Settlement Procedures Act - (RESPA)A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
Realtor® - A federally registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors® a n d subscribes to its strict Code of Ethics.
Realty - A brief term for real property.
Recorder - The public official who keeps records of transactions that affect real property in the area. Sometimes known as a "Registrar of Deeds" or "County Clerk."
Recording - The noting in the registrar's office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.
Redeem - Literally "to buy back." The act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.
Refinance transaction - The process of paying off one loan with the proceeds from a new loan using the same property as security.
Registered Land - See " Torrens Ti t l e ."
Reinsurance - To insure again by transferring to another insurance company all or part of an assumed liability, thus spreading the loss risk any one company has to carry.
REIT - Real Estate Investment Trust. A product of federal tax legislation formed as a business trust, under a special state REIT statute or as a corporation for the purpose of investing in real estate or mortgages on real estate.
Remaining balance - The amount of principal that has not yet been repaid. See principal balance.
Remaining term - The original amortization term minus the number of payments that have been applied.
REMIC - Real Estate Mortgage Investment Conduit. A product of 1986 federal tax legislation in which a business entity such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects to be treated as a REMIC. Qualification avoids treatment as a corporation for tax purposes.
Reverse or Reverse Annuity Mortgage - A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower's estate is settled, provided the borrower continues to live in the home and keeps current all taxes and insurance.
Rent loss insurance - Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use and as a result of which the tenant is excused from paying rent.
Repayment plan - An arrangement made to repay delinquent installments or advances.
Replacement reserve fund - A fund set aside for replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc.
Revolving debt - A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
Right of first refusal - A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
Right of ingress or egress -The right to enter or leave designated premises.
Right of survivorship - The right of survivors to acquire the interest of a deceased joint tenant. Automatically connotated in joint tenancy and sometimes added on to community property vesting.
Right - of - Way - The right which one has to pass across the lands of another. An easement.
Riparian - Rights to use of water and waterways in adjoining lakes or rivers.
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Sale-leaseback - A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.
Second Mortgage - A second loan on real estate that a l ready has a mortgage. It is subordinate to the first mortgage. Usually of shorter term and often at a higher interest rate.
Secondary market -The buying and selling of existing mortgages, usually as part of a "pool" of mortgages.
Section or Section of Land - A parcel of land comprising one square mile or 640 acres.
Secured loan - A loan that is backed by collateral.
Security - The property that will be pledged as collateral for a loan.
Seller carry-back - An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.
Servicer - An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
Servicing - The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
Set Back Lines - Those lines which delineate the required distances for the location of structures in relation to the perimeter of the property.
Subdivision - A housing development that is created by dividing a tract of land into individual lots for sale or lease.
Subordinate financing - Any mortgage or other lien that has a priority that is lower than that of the first mortgage.
Sub-surface Right - The right of ownership to things lying beneath the physical surface of the property.
Survey - The process of measuring land to determine its size, location and physical description and the resulting drawing or map.
Sweat equity - Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.
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Tenancy by the Entirety - Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other's death.
Tenancy in Common - An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.
Tenant - Any person occupying real property with the owner's permission.
Testament - Another term for a will. Commonly referred to as "last will and testament."
Testate - The estate or condition of leaving a will at death. "To die testate."
Testator - A man who makes or has made a testament or will.
Testatrix - A woman who makes or has made a testament or will.
Third-party origination - A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.
Title - The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.
Title Defect - Any legal right held by others to claim property or to make demands upon the owner.
Title Insurance - Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.
Title search - A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.
Title Plant - The total facilities - records, equipment, fixtures, and personnel - required to function as a title insurance operation. Technically, the organization of official records affecting real property into a system which allows quick and efficient recovery of title information.
Title Search - An examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.
Torrens Title - A system whereby, after court proceedings, a certificate is issued setting forth the extent of the applicant's estate in land subject to the exceptions shown. Most popular in the early 1900's, the system was adopted in 19 states. It is presently used only in parts of six states.
Township - A division of territory six miles square, containing 36 sections or 36 square miles.
Tract - A particular parcel of land.
Transfer of ownership - Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.
Transfer tax - State or local tax payable when title passes from one owner to another.
Treasury index - An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.
Trust - A property right held by one as a fiduciary for the benefit of another.
Truth-in-Lending - A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
Trustee - A person holding property in trust as a fiduciary for the benefit of another.
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There are no items in this category.
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VA Guarantee - An insurance contract in which the Veterans Administration (VA) insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.
VA mortgage - A mortgage that is guaranteed by the Department of Veterans Affairs (VA).
Variable Rate Mortgage - A loan in which the interest rate fluctuates with the cost of funds or some other index.
Vendee - A purchaser of real property under land contract.
Vendor - A seller of real property under land contract.
Vest - To pass to a person an immediate right or interest. Title may be said to vest in John Smith.
Vestee - A nonlegal term used by title insurers to indicate the owner of real property in a policy or report.
Vested - Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.
Veterans Administration - (VA)An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.
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Warranty - A promise by the grantor of real property that he or she is the owner and will be responsible to the buyer if title is other than as represented.
Will -A written document providing for the distribution of property owned by a person after his or her death.
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There are no items in this category.
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There are no items in this category.
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Zoning - The right of a municipality to regulate and determine the compatible character and use of property.
