|
|
Abstract of Judgement
A summary of a court's judgment.
When recorded (in the county), a lien is created against
all real property owned by the judgement's debtor
as collateral for the judgment's creditor.
Abstract of Title
A historical summary of all of the recorded conveyances,
instruments, proceedings and facts that affect
title of the property with any other elements of the record.
Acceleration Clause
A clause in a loan or
trust deed that allows the
lender or
beneficiary to demand immediate payment of the
outstanding (entire unpaid) loan balance.
The most common reasons for accelerating a loan are if the borrower
defaults on the loan
or transfers title to another individual without approval
from the lender.
This kind of transfer is sometimes referred to as an
alienation clause.
Acceptance
An offeree's consent and agreement to enter into a contract
and be bound by the terms of the offer.
Acknowledgement
A declaration by the person who has signed a document that such signature is a voluntary
act made before a duly authorized person.
Additional Principal Payment
A payment by a borrower of more than the principal
amount due in order to reduce the remaining balance on the loan.
Adjustable-Rate Mortgage (ARM)
A mortgage loan that allows the interest to change periodically, according to
fluctuations of an index and a fixed offset in an
index.
Adjustment Date
The date the interest rate changes on an
adjustable-rate mortgage (ARM).
Agency
The legal relationship between a principal and his agent
from a contract in which the principal engages the agent
to perform certain acts on the principal's behalf.
Agency Disclosure
A written explanation to be signed by the prospective buyer or seller explaining the
broker's role in the transaction.
Agent
A licensed real estate broker or salesperson that
undertakes to transact some business or manage an affair for an individual.
For example an owner engages a broker
to act as an agent in selling real property.
Alienation Clause
A clause in a loan or
note that causes immediate payment of the entire loan balance
upon transfer of title to another individual.
Amenity
A feature of real property that enhances its attractiveness,
desirability and increases the occupant's or user's satisfaction.
Natural amenities include a desirable location near water and scenic views.
Human-made amenities include modern appliances, fixtures, swimming pools
and tennis courts.
Amortization
The gradual payment of a debt by periodic installments.
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 Term
The amount of time required to amortize (retire) the loan.
The amortization term is expressed as a number of months.
For example, a 30-year fixed-rate mortgage,
the amortization term is 360 months.
Amortize
Payment of a mortgage with regular payments
that cover both principal and interest.
Annual Cap
The limit on the amount of adjustment in the interest rate
on an Adjustable-rate Mortgage.
Annual Mortgage Statement
A report sent to the mortgagor each year.
The report shows how much was paid in principal and interest during the year, as well
as the remaining mortgage loan balance at the end of the year.
Annual Percentage Rate (APR)
This is a value created according to a government formula
(Truth-in-Lending Law)
intended to reflect the true annual cost of borrowing, expressed as a percentage
on an annual basis.
The cost of a mortgage stated as a yearly rate;
includes interest, mortgage insurance, and
loan origination fee
(points).
The APR is always higher than the actual interest rate
on your loan.
Annuity
An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.
Application
A form used to apply for a mortgage loan, containing information about a borrower's income, savings,
assets, debts,
proposed security, etc.
Apportionment
The prorating of property taxes expenses such as property taxes and insurance
between buyer and seller.
Appraisal
A written analysis of the estimated or opinion of value for a
real property
which is primarily based on an analysis of
comparable sales of similar homes nearby.
Appraised Value
An written justification (opinion) of a property's
fair market value, based on an
appraiser's knowledge, experience, and analysis of the property primarily based on an
analysis of comparable sales of similar homes nearby.
Appraiser
A person qualified by education, training, and experience to estimate the value of
real property and
personal property.
Appreciation
The increase in the value of a property due to changes in market conditions (supply and demand) such as
inflation as well as property repairs and modernization.
Appurtenance
Something that is outside the property but is considered part of the property and adds
value, such as a right to cross another's land.
As Is
Without guarantees as to condition, as in a sale.
A buyer or tenant accepts premises as they are, including physical defects except
latent defects.
Asking Price
The list price that an owner would like to receive.
Assessed Value
The valuation placed on property by a public tax assessor for purposes of taxation.
Assessment
Placing a value on property for the purpose of taxation.
The County Tax Collector usually places a value on property for the purpose of computing real property taxes.
Assessment also refers to a levy against property for a special purpose, such as utility assessments
or association fees.
Assessor
A public official who establishes the value of a property for the purpose of taxation.
Asset
Anything of monetary value.
Assets include real property,
personal property,
and enforceable claims against others.
Assets also include bank accounts, stocks, bonds, mutual funds, etc.
Assignment
The transfer of a right or contract,
such as a mortgage from one person to another.
Assumable Loan
A mortgage loan that can be taken over ("assumed") by the buyer when a home is purchased.
Assumption
The transfer of the seller's existing mortgage to the buyer.
Assumption Clause
A provision in an assumable mortgage that allows a buyer to assume responsibility
for the mortgage from the seller.
Attachment
Seizure of property by court order.
|
|
