Abstract
Title
A summary of the history of the legal title to a piece of property;
all changes in ownership, liens, mortgages or any other matter that
might affect the title.
Agreement
of sale; or purchase and sale agreement
A written agreement by which a buyer agrees to purchase and a seller
agrees to sell according to terms set forth in that agreement.
Amortization
The reduction of a loan or debt by periodic payments according to
agreed upon terms. Your mortgage is being amortized every month
that you send a payment to the lender.
Appraisal
A procedure in which a qualified individual estimates the value
of a piece of property.
Appreciation
The increase in value of real estate due to external circumstances
including inflation and other economic conditions.
Binder
An offer to purchase property which is accompanied by a sum of money,
smaller that a down payment, to show good faith prior to a formal
agreement.
Closing
The final meeting at which the transfer of title of property passes
from the seller to the buyer.
Closing
Costs
Includes all the charges attached to closing. These one-time fees
include charges for title search and insurance, attorney's fee,
survey, and points charged by lender of mortgage. These are also
known as settlement costs.
Deed
A legal document whereby title to real estate is transferred from
one person to another.
Equity
The difference between the market value of a house and the balance
owed on the mortgage, usually referring to the owner's interest
or value on real estate.
Escrow
Money, securities, or other property placed in the keeping of a
third party until obligations by the other two sides, set out in
the escrow agreement, have been fulfilled.
Lease
A written document containing the conditions for the exclusive possession
of real estate by the owner to another for a definite period of
time.
Leverage
The use of a small investment to generate a greater rate of return
through borrowed funds.
Lien
A claim or charge upon property for payment of a debt, obligation
or duty.
Listing
An agreement between a broker and an owner, that the broker may
sell or lease the real estate.
Market
value
The highest price that a buyer will pay and the lowest price a seller
will accept for a property.
Mortgage
The conditional transfer of title to real estate as security for
a loan.
Points
or discount
The fee charged by a lending institution for making a loan at an
interest rate below the conventional rate. One point equals one
percent of the loan.
Refinance
Process of paying off an existing loan with proceeds from another.
Second
mortgage
Financing real estate with a loan or loans that are subordinate
to the first mortgage. It usually calls for a higher interest rate
and a shorter repayment period.
Survey
An exact measurement of a parcel of land to ascertain corners, boundaries
and divisions.
Title
Evidence, usually in the form of a deed, that a person has the right
to ownership of the property in question.
Title
insurance
A policy that protects the buyer against any loss or damage resulting
from a defective title.
Title
Search
A detailed investigation to ensure that any property is purchased
from the legal owner and that there are no liens or special assessments
against it.
Zoning
Procedure that classifies real property for a number of different
users: residential, commercial, industrial, etc., in accordance
with a land-use plan. Ordinances are enforced by a governing body
or locality. |
