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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 |
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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 |
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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 |
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Adjustment date |
The date on which the interest rate changes for
an adjustable-rate mortgage (ARM) |
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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 |
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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) |
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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 |
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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 |
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Alienation |
The act of transferring property to another,
either voluntarily (via a sale), or involuntarily (via adverse
possession) |
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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 |
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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. |
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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 |
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Amortization |
The process of payment of a debt or mortgage
loan over time by installments |
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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 |
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Amortization term |
The amount of time required to repay the
mortgage loan, expressed in number of months |
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Amortize |
To pay off a loan or mortgage with periodic
payments that cover both principal and interest |
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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 |
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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 |
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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 |
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Annuity |
The return, including interest, from an
investment of capital, paid in a series of regular payments |
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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 |
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Appraised value |
The estimate of a property's fair market value,
based on an appraiser's analysis of the property |
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Appraiser |
An individual educated to estimate the value of
real property and personal property |
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Appreciation |
An increase in the worth of a property due to
changes in economic conditions or other causes; the opposite of
depreciation |
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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" |
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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. |
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Assessment rolls |
The public record of taxable property |
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Assessor |
A public official who evaluates the value of a
property for taxation purposes |
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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.) |
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Assign |
To transfer interest |
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Assignee |
One who receives an assignment or transfer of
rights |
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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 |
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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 |
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Assumption clause |
The provision in an assumable mortgage that
allows a buyer to take responsibility for that mortgage from the
seller |
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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 |
