| |
|
| Earnest
Money : |
| |
An
amount of money given as part of the purchase
price of property to bind the agreement between
buyer and seller.
|
|
|
| Easement
: |
| |
A
right or interest in the use of the land of another
which entitles the holder to some use, privilege
or benefit, such as to place pole lines, pipe
lines or roads thereon. |
|
|
| Eminent
Domain : |
| |
A
right or power of a government body to take property
for a public purpose upon payment of just compensation. |
|
|
| Encroachment
: |
| |
The
presence of an improvement, such as a building,
a wall, a fence or other fixture which overlaps
onto the property of an adjoining owner. |
|
|
| Encumbrance
: |
| |
A
lien affecting the land and improvements, such
as a mortgage or Trust Deed. |
|
|
| Equity
: |
| |
Market
value of property, less any encumbrance or other
liens on it. |
|
|
| Escheat |
| |
The
reversion of property to the State when an owner
dies, leaving no legal heirs, devisees or claimants.
|
|
|
| Escrow
: |
| |
According
to section 17003 of the State of California Financial
Code: "...any transactions wherein one person,
for the purpose of effecting the sale, transfer,
encumbering, or leasing of real property or personal
property to another person, delivers any written
instrument, money, evidence of title to real or
personal property, or other thing of value to
a third person to be held by such third person
until the happening of a specified event or the
performance of a prescribed condition, when it
is then to be delivered by such third person to
the grantee, grantor, promisee, promisor obligee,
obligor, bailee, bailor, or any agent or employee
of any of the latter. |
|
|
| Estate
: |
| |
(1)
The interest or nature of the interest which one
has in property, such as a life estate, the estate
of a deceased, real estate, etc.; (2) A large
house with substantial grounds surrounding it,
giving the connotation of belonging to a wealthy
person. |
|
|
| Exception
: |
| |
An
interest in real property which is excluded from
the conveyance and remains in the grantor or which
had been excluded in a prior conveyance. |
|
| |
|
|
|
|
| Exchange
: |
| |
A
reciprocal transfer of real property which has
certain tax advantages over a sale. Definite procedures
must be followed in order to qualify the transfer
as an exchange. |
|
|
| Executor
: |
| |
A
person appointed in a will and affirmed by the
probate court to cause a distribution of the decedent's
estate in accordance with the will. (The one who
makes the will is called a testator.) If a woman
is appointed, she is referred to as the executrix.
|
|
|
| Fee
Simple : |
| |
An
estate under which the owner is entitled to unrestricted
powers to dispose of the property, and which can
be left by will or inherited. Commonly, a synonym
for ownership. |
|
|
| Fire
Insurance : |
| |
Insurance
against loss or damage by fire to specific property.
|
|
|
| Firpta
: |
| |
Under
the Foreign Investment of Real Property Act, every
buyer must, unless an exemption applies, deduct
and withhold 10% of the gross sales price from
seller's proceeds and send it to the Internal
Revenue Service, if the seller is a "foreign
person" under that statute. |
|
|
| Foreclosure
: |
| |
A
proceeding to enforce a lien by the sale of the
property in order to satisfy the debt. |
|
|
| Grant
Deed : |
| |
One
of the many types of deeds used to transfer real
property. Contains warranties against prior conveyances
or encumbrances. When title insurance is purchased,
warranties in a deed are of little practical significance.
|
|
|
| Grantee
: |
|
|
| Grantor
: |
|
|
| Guardian
: |
| |
A
person appointed by a court to manage the person
and/or property of one who is legally incompetent
to handle his/her own affairs. |
|
|
| Hazard
(Homeowners) Insurance : |
| |
Real
estate insurance protecting against fire, some
natural causes, vandalism, etc., depending upon
the policy. Buyer often adds liability insurance
and extended coverage for personal property. |
|
|
|
Homestead : |
| |
A
statutory protection from execution or the establishment
of title by occupation of real property in accordance
with the laws of variousStates or the Federal
Government. |
|
|
| Impound
Account : |
| |
An
account held in trust by the lender in which the
borrower is required to place monthly deposits
for taxes, insurance and other purposes. |
|
|
| Indemnity
: |
| |
Insurance
against possible loss or damage. A title insurance
policy is a contract of indemnity. |
|
|
| Land
Sale Contract : |
| |
An
agreement to sell and purchase wherein legal title
is withheld from the purchaser until such time
as the required payments to the seller have been
completed. |
|
|
| Lease
Option (Lease with Option toPpurchase) : |
| |
A
lease containing an option giving the lessee the
right to purchase the property. The price and
terms of the purchase must be set forth for the
option to be valid. The option may run for the
length of the leases or only for a portion of
the lease period.
|
|
|
| Lender
: |
| |
Any
person or entity advancing funds which are to
be repaid. A general term encompassing all mortgages,
and beneficiaries under deeds of trusts.
|
|
|
| Lessee
: |
| |
The
tenant under a lease.
|
|
|
| Lessor
: |
| |
The
landlord under a lease.
|
|
|
| Legal
Description : |
| |
Description
of real property, as used in legal documents in
contrast to a street address by which the property
is commonly known. Legal descriptions usually
refer to recorded maps, surveys, or other public
documents. . |
|
|
| Lien
: |
| |
A
security interest in real or personal property
which places the holder in a position prior to
the rights of the general creditors of the owner.
Examples include Trust deeds, mortgages, special
assessments, recorded judgments, mechanics liens,
taxes, etc.
|
|
|
| Lis
Pendens : |
| |
A
notice recorded in the official records of a county
to indicate that a lawsuit is pending affecting
the lands described in the notice. |
|
|
| Market
Value : |
| |
The
price that real property would reasonably be expected
to bring were it to be offered for sale with a
reasonable sales effort over a reasonable period
of time. |
|
|
| Metes
and Bounds : |
| |
A
term used in describing the boundary lines of
land setting forth all the boundary lines together
with their terminal points and angles.. |
|
|
| Mortgage
: |
| |
A
written document executed by the owner of land
by which the land is given as security for the
payment of a debt or performance of an obligation
(rarely used in California).
|
|
|
| Mortgagee
: |
| |
The
party lending the money and receiving the Mortgage.
|
|
|
| Mortgagor
: |
| |
The
party who borrows the money and gives the Mortgage.
|
|
|
| Note
: |
| |
Written
evidence of a debt by a borrower that included
a promise of payment in accordance with specified
terms. A valuable document which must not be lost
even when paid in full. In real property transactions,
a note is usually secured by a Deed of Trust. |
|
|
| Notice
of Completion : |
| |
A
notice which should be recorded to indicate completion
of a work of improvement to real property. A valid
notice of completion limits the time for filing
valid mechanic's liens. |
|
|
| Notice
of Default : |
| |
A
recorded notice that a default has occurred under
a Deed of Trust and/or note.
|
|
|
| Offset
Statement : |
| |
A
statement furnished to an escrow from an owner
of land subject to an incumbrance (note) as to
the balance due. Not to be confused with a beneficiary's
statement. This can also be provided by a tenant
regarding his rights of possession. |
|
|
| Open
End Deed of Trust : |
| |
A
Deed of Trust which secures additional notes for
funds that a lender may advance to a trustor,
subsequent to the execution of the original loan. |
|
|
| Owner
Carry Back : |
| |
A
term used to indicate that the seller is willing
to take back a purchase money mortgage.
|
|
|
| Owner's
Policy : |
| |
A
policy of title insurance usually insuring an
owner of real estate against loss occasioned by
defects in, liens against, or unmarketability
of the ownerr's title. |
|
|
| Payee
: |
| |
One
who receives payments.
|
|
|
| Payer
: |
|
|
| Personal
Property : |
| |
All
property which is not land or improvements permanently
affixed to land. Example: stocks, bonds, furniture,
automobiles, clothing, promissory notes, etc.
Items of tangible personal property are often
referred to as chattels. |
|
|
| PITI
: |
| |
A
payment that combines Principal, Interest, Taxes,
and Insurance. |
|
|
| PMI
(Private Mortgage Insurance) : |
| |
Insurance
against a loss by a lender in the event of a default
by a borrower (mortgagor). The insurance is similar
to insurance by a governmental agency such as
FHA, except that it is issued by a private insurance
company. The premium is paid by the borrower and
is included in the mortgage payment.
|
|
|
| Points
: |
| |
A
charge made by a lender. One point equals one
percent of the loan. |
|
|
| Power
Of Attorney : |
| |
A
charge made by a lender. One point equals one
percent of the loan. |
|
|
| Preliminary
Title Report : |
| |
A
report from a title company of the present condition
of title made prior to the issuance of a title
policy. |
|
|
| Prepayment
Penalty : |
| |
An
agreement to pay a penalty for the payment of
a note before it actually becomes due.
|
|
|
| Proration
: |
| |
The
allocation of property taxes, interest, insurance
premiums, rental income, etc. between buyer and
seller proportionate to time of use. . |
|
|
| Qualified
Intermediary : |
| |
A
party to an IRC S1031 exchange transaction who
satisfies the "safe harbor" requirements
of Reg. S1.1031 (k)-1g(4); A Qualified Intermediary
is not the agent of the Exchanger; Money actually
or constructively received by a Qualified Intermediary
will not be attributed to the Exchanger. . |
|
|
| Quiet
Title : |
| |
To
free the title to a piece of land from the claims
of other persons by means of a court action called
a "quiet title" action. The court decree
obtained is a "quiet title" decree.
. |
|
|
|
Quitclaim Deed : |
| |
A
deed which conveys whatever right, title or interest
the grantor may have in property at the time of
conveyance. There is no guarantee implied in a
quit claim deed.
|
|
|
| Real
Property : |
| |
Land
or improvements permanently affixed to land.
|
|
|
| Reconveyance
: |
| |
The
document that is evidence that the Deed of trust.
Affecting real property has been paid in full
and that the lender and the trustee no longer
have any interest in the property. . |
|
|
| Recordation
: |
| |
Filing
for record in the office of the county recorder,
a very necessary process in dealing with real
property. |
|
|
| REO
(Real Estate Owned by Lendig Institutions) : |
| |
Properties
acquired by lenders through foreclosures or deeds
in lieu of forclosures. |
|
|
| Request
For Notice of Default : |
| |
A
recorded request for notification of a recorded
notice of default on a Deed of Trust. . |
|
|
|
Reservation : |
| |
Right
reserved by the grantor in conveying property,
or a right which had previously been reserved.
|
|
|
| Restrictions
: |
| |
This
is often referred to as covenants, conditions
and restrictions (CC & R) in regard to a piece
of property, setting limitations on its use. .
|
|
|
| Right
of Way : |
| |
The
right of another to cross over, under or through
a parcel of land.
|
|
|
| Seller
: |
| |
One
who sells property to another. |
|
|
| Separate
Property : |
| |
Real
property owned by one spouse exclusive of any
interest of the other spouse. |
|
|
| Short
Pay (Short Sale) : |
| |
A
short sale is the sale of real property where
the fair market sale price is less than the loan
balance. . |
|
|
| Subject
To : |
| |
An
agreement to pay a penalty for the payment of
a note before it actually becomes due.
|
|
|
| Subordination
Agreement : |
| |
An
agreement by which a prior lien is made inferior
to an otherwise junior lien. . |
|
|
| Tax
Collector : |
| |
One
who collects the taxes on the property. |
|
|
| Title
: |
| |
Evidence
of a person's right to or the extent of his interest
in property. |
|
|
| Title
Insurance : |
| |
Insurance
against loss or damage resulting from defects
in title to a particular parcel of real property.
|
|
|
| Trust
Deed : |
| |
A
Deed of Trust. (See Deed of Trust). |
|
|
| Trustee
( In a Deed of Trust) : |
| |
The
entity to which property is conveyed in trust,
not to be confused with the beneficiary. |
|
|
| Trustor
( In a Deed of Trust) : |
| |
The
borrower under a Deed of Trust..
|
|
| Vendee
: |
| |
One
who is purchasing property under a land sale contract.
|
|
|
| Vendor
: |
| |
One
who is selling property under a land sale contract.
|
|
|
| Vesting
: |
| |
The
manner in which the owner or real property holds
title. For example, John Jones, a single man.
|
|
|
| Zoning
: |
| |
Local government regulations relating to the use
of property. |
| |
|
| |
|
|
|
