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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 |
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Acceptance |
An offeree's consent to
enter into, and be bound by the terms of, a contract |
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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 |
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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 |
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Acre |
43,560 square feet of
land |
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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) |
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Administrator |
A person appointed by a
probate court to administer the estate of an individual
who has died without a will |
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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 |
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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 |
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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 |
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Attorney-in-fact |
One who holds a power
of attorney from another to execute legal documents on
behalf of the grantor of the power |
