 |
 |
|||||
 |
 |
 |
 |
 |
 |
|
 |
||||||
|
 |
|
|
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
ABANDONMENT: To relinquish or give up a right or any further interest.
ABSTRACT OF JUDGMENT: A condensation or summary of the essential
provisions of a court judgment.
ABSTRACT OF TITLE: A condensed history or a summary of the condition
of title
based on an examination of public records.
ACCELERATION CLAUSE: A clause in an installment note or trust deed
permitting
the payee or beneficiary to declare the entire unpaid balance immediately
due and
payable upon the occurrence of a stated event, such as the failure
to pay an installment
when due.
ACCESS RIGHT: The right of an owner of land to have ingress and egress
to and
from his property to a public street.
ACTUAL NOTICE: Notice which a party has received in fact or in reality,
as
compared with constructive notice which is implied or inferred.
ADMINISTRATOR: A person appointed by a probate court as the representative
of
a decedent’s estate where the decedent left no will.
ADVANCES: Money advanced by the beneficiary under a trust deed to
pay real estate
taxes, hazard insurance premiums, and other items needed to protect
the beneficiary’s
interest under the trust deed.
AFFIDAVIT: A written sworn statement made before an authorized official.
AFFIDAVIT OF DEATH OF JOINT TENANT: The sworn statement recorded
to
evidence the death of a person whose title to property is held in
joint tenancy.
ABSTRACT OF TITLE: A condensed history or a summary of the condition
of title
based on an examination of public records.
ACCELERATION CLAUSE: A clause in an installment note or trust deed
permitting
the payee or beneficiary to declare the entire unpaid balance immediately
due and
payable upon the occurrence of a stated event, such as the failure
to pay an installment
when due.
ACCESS RIGHT: The right of an owner of land to have ingress and egress
to and
from his property to a public street.
ACTUAL NOTICE: Notice which a party has received in fact or in reality,
as
compared with constructive notice which is implied or inferred.
ADMINISTRATOR: A person appointed by a probate court as the representative
of
a decedent’s estate where the decedent left no will.
ADVANCES: Money advanced by the beneficiary under a trust deed to
pay real estate
taxes, hazard insurance premiums, and other items needed to protect
the beneficiary’s
interest under the trust deed.
AFFIDAVIT: A written sworn statement made before an authorized official.
AFFIDAVIT OF DEATH OF JOINT TENANT: The sworn statement recorded
to
evidence the death of a person whose title to property is held in
joint tenancy.
AGENCY: The contractual relationship between a principal and an agent
in which the
agent is employed to act on behalf of the principal in dealings with
third parties.
AGENT: A person who acts on behalf of a principal.
A.K.A.: This abbreviation refers to “also known as” and is used in
instances where
confusion exists concerning the identity of a party on the vesting.
ALIENATION CLAUSE: A clause in a note or trust deed permitting the
payee or
beneficiary to declare the entire balance immediately due and payable
upon a transfer
of the property. Also referred to as a "due on sale" clause.
A.L.T.A.: American Land Title Association, commonly used in reference
to a form of
title policy required by lenders.
AMORTIZATION: Paying on an installment basis at stated times for
a stated period
until the debt is paid in full.
APPRAISAL: An opinion as to the fair market value of property.
ASSESSED VALUE: Value placed on property as a basis for taxation.
ASSESSMENTS: Special taxes imposed to pay for public improvements
beneficial to
a limited area.
ASSIGNEE: The person being assigned the position. For example, in
a sale
transaction, the Buyer’s Assignee will complete the transaction in
place of the Buyer.
ASSIGNMENT: A transfer in writing of a person’s interest.
ASSIGNOR: The person who assigns or transfers property.
ASSUMPTION: The taking over by one party of an obligation that was
originally
incurred by another, as in the assumption of an existing trust deed
by the new owner
when property is sold.
ATTORNEY-IN-FACT: An agent authorized to act for another as granted
in a Power
of Attorney document.
B
BALLOON PAYMENT: The final payment on an installment note which is
greater
than the preceding payments and which pays the note in full. Also,
a payment that
exceeds the normal payment program.
BENEFICIARY: As used in a trust deed loan, the Beneficiary is the
lender. The
Beneficiary is the party who obtains the benefit of the security.
BENEFICIARY DEMAND: A statement setting forth the amount required
to payoff
a loan in full.
BENEFICIARY STATEMENT: A statement supplied by a lender for purposes
of
verifying the loan balance, present status, and terms of the loan.
In the case of a sale
transaction in which the buyer is assuming the loan, the statement
will often provide
the lender’s loan transfer requirements and a list of required transfer
fees.
BILL OF SALE: A written instrument evidencing the transfer of title
to personal
property.
BINDER: A report issued by a title insurance company binding or committing
the title
insurance company to issue a policy within a specified time.
BLANKET MORTGAGE OR TRUST DEED: A mortgage or trust deed which
covers more than one lot or parcel of real property, often an entire
subdivision.
return to top
C
C.A.R.: California Association of Realtors. This Association guides
the activities of the
real estate licensees in the State of California.
C.C. & R’s: Covenants, Conditions and Restrictions are those
matters that limit the
use and enjoyment of property usually by agreements contained in
deeds and other
documents.
C.E.A.: California Escrow Association. An active, State-wide organization
providing
guidance and services for escrow personnel, including training seminars
and materials.
CHAIN OF TITLE: The sequence of ownership or title on the property
as evidenced
by a chronological list of recorded instruments affecting the title
to land.
CLOUD ON TITLE: A defect in chain of title or in documentation keeping
the title
from being clear and easily conveyed.
COLLATERAL: The item used to secure a loan to assure the lender of
repayment or
provide a source of repayment in the event of default.
COMMUNITY PROPERTY: Property acquired by husband or wife or both
during
marriage when not acquired as separate property.
CONDOMINIUM (CONDO’S): A form of ownership of a property wherein
certain
parts (units) of the property are in fee title to individuals and
a portion of the property is
owned “in common” with the other owners.
CONFIRMATION OF SALE: Court approval of the sale of property by an
executor,
administrator, guardian or conservator.
CONSERVATOR: A person appointed by the court to take care of the
person or
property of an adult person needing such care.
CONSIDERATION: The inducement for entering into a contract sometimes
known
as the sales price.
CONSTRUCTIVE NOTICE: Notice given by the public records of a claim
of
ownership or interest in property.
CONTINGENCY: A condition of closing which is dependent upon an uncertain
future
event. Such conditions may prevent close of escrow by one of the
principals in the event
the contingency cannot be removed, such as Buyer obtaining a new
loan, a Seller being
able to purchase a new house, or a Buyer being able to sell an existing
house.
CONTRACT: An agreement by which a person undertakes to do or not
to do a certain
thing.
CONVENTIONAL LOAN: A mortgage loan which is not insured or guaranteed
by a
governmental agency.
CONVEYANCE: A written instrument transferring the title to or interest
in real estate
from one person or entity to another.
CORPORATION: An artificial being, created by law, possessing certain
rights,
privileges, and duties of natural persons.
return to top
D
DECLARATION OF HOMESTEAD: Document recorded by a homeowner to
protect his home from a forced sale up to a prescribed amount in
satisfaction of certain
types of creditors.
DECREE: A type of court order.
DEED: Written instrument by which the ownership of land is transferred
from one
person to another.
DEED OF TRUST: Written instrument by which title to land is transferred
to a
trustee as security for a debt or other obligation. Also known as
a trust deed.
DEFAULT: Failure to perform a duty or to discharge an obligation.
DEPOSIT RECEIPT: A document used when accepting “earnest money”
DOCUMENTARY TRANSFER TAX: A State tax on the sale or conveyance of
real
property located in any county in the state. Applies when the consideration
exceeds
$100. Tax is computed at the rate of $.55 for each $500.00 of consideration
or fraction
thereof. Some cities have their own City Transfer Taxes.
D.R.E.: Department of Real Estate. The agency which regulates real
estate licensees
and the sale of property by developers in the State of California.
DUE-ON-SALE CLAUSE: A provision in a real estate loan calling for
automatic
maturity at the lender’s option upon the sale or transfer of the
real property to a third
party. Also called an alienation clause or acceleration clause.
return to top
E
EARNEST MONEY: Funds given as a part of the purchase price to bind
a bargain,
usually the initial good faith deposit of the Buyer.
EASEMENTS: A right or interest in the land of another which exists
apart from the
ownership of the land, such as a right to cross over another person’s
property. Examples
include utilities easements and ingress and egress easements.
EGRESS/INGRESS: An easement right of way for egress (exit) and ingress
(entry)
to a property owned by another.
EMINENT DOMAIN: The right or power of the government to take property
for a
public purpose upon payment of just compensation.
ENCROACHMENT: The extension of an improvement onto the property of
another,
for example, a garage, fence or driveway that crosses over a lot
line.
ENCUMBRANCE: A lien or charge on a property encumbering the subject
parcel.
ENDORSEMENT: As to a title insurance policy, a rider or attachment
forming a part
of the insurance policy expanding or limiting coverage. Endorsement
also refers to the
act of signing a name of the back of a check or promissory note to
evidence its transfer.
EQUITY: Property value in excess of mortgages and other liens.
ESCHEAT: The transfer of unclaimed funds to the State of California.
ESCROW: A transaction in which an impartial third party (escrow holder)
acts upon
written instructions for both seller and buyer (or for borrower and
lender) by holding
and delivering documents and disbursing funds when certain conditions
have been
fulfilled.
ESCROW ACCOUNT: An account in which the borrower’s monthly deposits
for
taxes, hazard insurance, and mortgage insurance, if any, are held
in trust by the lender
for the future payment of these items as they become due. Also known
as an Impound
Account.
ESCROW ANALYSIS: The periodic examination of escrow accounts to determine
if
monthly deposits will provide sufficient funds to pay tax and insurance
bills when due.
ESCROW HOLDER: The escrow officer, escrow company or escrow agent.
EXECUTOR: A person who is designated in a will as the representative
of a
decedent‘s estate.
EXECUTRIX: Feminine of executor.
return to top
F
FIDUCIARY: One who holds a position of trust and confidence. As an
example: an
escrow holder.
FORECLOSURE: A proceeding to enforce a lien by a sale of the property
in order to
satisfy the debt.
return to top
G
GRANT: A transfer of real property.
GRANT DEED: A written instrument transferring title to real property.
GRANTEE: The person to whom a grant is made.
GRANTOR: The person who makes a grant.
GUARDIAN: A person appointed by the court to care for the person
or estate of a
minor or incompetent person.
return to top
H
HOMESTEAD: A residence upon which the owner has recorded a Declaration
of
Homestead under California law.
HYPOTHECATE: To mortgage or pledge without delivery of the security
to the
lender. To give something as security without parting with possession.
return to top
I
IMPOUND ACCOUNT: Funds retained by a lender to cover such items as
taxes and
hazard insurance premiums. Also known as Escrow Account.
INDEMNITY: Insurance against possible loss or damage. A title insurance
policy is a
contract of indemnity.
INSTALLMENT NOTE: A promissory note providing for payment of the
principal in
two or more fixed amounts at different stated times.
INSURANCE CERTIFICATES: On condominium or townhome properties, an
insurance certificate is the evidence that the unit owner and lender,
if any, are insured
under the terms of a Master Insurance Policy.
return to top
J
JOINT TENANCY: Title held by two or more persons in equal shares
with right of
survivorship.
JOINT VENTURE: A business undertaking by two or more persons to conduct
a
single enterprise for profit.
JUDGMENT LIEN: A statutory lien created by recording an abstract
of judgment.
JUNIOR LIEN: A subordinate lien.
JURAT: The sworn statement form of the notary public certificate.
The clause at the
end of an affidavit with the date, location and person before whom
the statement was
sworn.
return to top
L
LAND SALES CONTRACT: A contract used in connection with the sale
of real
property where the seller retains legal title until all or a certain
part of the purchase
price is paid by the buyer.
LEASE: A contract for the possession of land in consideration of
payment of rent.
LEASEHOLD INTEREST: Having possession of a property by virtue of
a Lease.
LESSEE: The tenant under a lease.
LESSOR: The landlord under a lease.
LIEN: A charge, claim, or liability upon property for the payment
of a debt or
performance of an obligation. Examples include taxes, special assessments,
judgments,
mortgages, and mechanic's liens.
LIFE ESTATE: An estate measured by the life of a natural person.
LIMITED PARTNERSHIP: A partnership composed of partners whose contribution
and liability are limited.
LIQUIDATED DAMAGES: An agreed-to sum of money to be paid under a
contract
in the event of a breach where it would be difficult to prove the
amount of actual
damages.
LIS PENDENS: A legal notice recorded against property to show that
litigation is
pending, typically used to control or stop the transfer of the property
when a conflict
arises between parties in a transaction.
return to top
M
MECHANIC'S LIEN/CONTRACTOR'S LIEN: A statutory lien in favor of
laborers and suppliers who have contributed to a work of improvement.
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.
MORTGAGEE: The party who obtains the benefit of a mortgage.
MORTGAGOR: The party who executes a mortgage.
MUTUAL WATER COMPANY: A water company organized by or for the benefit
of
water users in a given district with the object of securing an ample
water supply at a
reasonable rate. Shares of stock are issued to the users.
return to top
N
NOMINEE: A party designated to act in place of the original buyer
in a real estate
transaction.
NOTE: A written acknowledgment of a debt by a borrower including
a promise of
payment in accordance with specified terms. Also known as Promissory
Note.
NOTICE OF DEFAULT: Recorded notice that a default has occurred under
a deed of
trust.
NOTICE OF SALE: A notice recorded by the Trustee of a Deed of Trust
stating that a
foreclosure action has begun and giving the date of the proposed
foreclosure sale.
return to top
O
OFFSET STATEMENT/ESTOPPEL CERTIFICATE: Statement obtained to
verify or substantiate terms of an agreement or sums of money. As
an example: A
Tenant Offset or Estoppel is a statement signed by the Tenant giving
monthly rental
sum, security deposits, last month rent paid, and describing any
special agreements
with the Lessor (Landlord).
return to top
P
PARTNERSHIPS: A voluntary association of two or more persons to carry
on as co-
owners of a business for profit.
PERSONAL PROPERTY: Movable property such as furniture, clothing,
or a car.
Property which is not real property.
PLAT MAP: A drawing giving the general physical lay-out of the land
covered and
included in the preliminary title report.
P.M.I.: Private Mortgage Insurance. It is obtained by a lender at
the borrower's
expense as insurance covering the payment of the loan.
POWER OF ATTORNEY: A document authorizing another to act on one's
behalf as
his agent.
PRELIMINARY TITLE REPORT: The initial report issued by a title insurer
reflecting results of the search of title. This report sets out the
terms upon which a title
insurer is willing to insure the title, provides a description of
the property, the vesting of
the title, and any liens and encumbrances against which the company
is not willing to
insure.
PREPAYMENT PENALTY: A provision in a note providing for the payment
of a
penalty in the event the note is paid off prior to its due date
PRINCIPAL: One who employs an agent to act on his behalf, such as
the seller and
buyer in an escrow transaction. Also, an amount of debt or the face
value of a note or
mortgage.
PROBATE: The official proving of a will as authentic or valid in
a probate court.
PROPERTY PROFILE: A informational package furnished by title companies
to real
estate agents which usually provides copies of the current vesting
deed, the tax parcel
number, copies of trust deeds, and a plat map.
PRORATE: To divide equally or proportionately as to the time of use.
In a sales
escrow, it is the custom to prorate taxes, interest, rents, and hazard
insurance
premiums between buyer and seller in accordance with the respective
periods of
ownership.
PUBLIC REPORT: A report issued by the Department of Real Estate containing
information of interest to a buyer about newly subdivided property.
PURCHASE MONEY DEED OF TRUST: A deed of trust to secure payment of
all
or a portion of the purchase price of real property.
return to top
Q
QUALIFIED INTERMEDIARY: A person or entity serving as an intermediary
in an
exchange transaction.
QUIET TITLE: A legal action to establish title to real property usually
used to obtain
clear title on a property that is clouded by an issue of title.
QUITCLAIM DEED: A deed which conveys whatever present right, title
or interest
the grantor may have in real property but not containing any warranty
of a valid interest
on title in the grantor.
return to top
R
REAL PROPERTY: Land and buildings affixed to the land, including
the air space
above and mineral rights below, as opposed to personal property or
chattels.
RECONVEYANCE: A document releasing the lien of a deed of trust.
RECORDATION: Filing a document for record in the office
of the county recorder,
thereby making the document part of the public record.
RENT STATEMENT: A detailed statement provided by the seller covering
the rental
income of a property and amounts of deposits. The statement is used
in escrow for rent
proration purposes and for making adjustments between the parties
for deposits.
REQUEST FOR NOTICE OF DEFAULT: A notice recorded by the holder of
a
junior lien requesting that he be notified in the event that a Notice
of Default is recorded
under a senior deed of trust. If the deed of trust is foreclosed,
the person requesting the
notice will be notified of the foreclosure by the trustee processing
the foreclosure.
R.E.S.P.A.: The Real Estate Settlement Procedures Act enacted by
Congress in 1974,
provides protective measures for borrowers, including establishing
the manner in which
closing costs are disclosed. Lenders are required to use the R.E.S.P.A.
settlement
statement at closing. In common usage, this form is called a 'H.U.D." statement.
RIGHT OF WAY: A right to cross over a parcel of land.
return to top
S
SATISFACTION OF JUDGMENT: Evidence of the payment in full of a judgment
lien.
SECURITY DEPOSIT: A deposit made to assure performance of an obligation,
usually by a lessee.
STATEMENT OF INFORMATION FORM: A brief statement of facts relied
upon
by title insurers to assist in the proper identification of persons.
SUBESCROW AGENT: An approved agent to receive and disburse funds
on behalf
of the escrow holder or a lender, usually the title company named
in the escrow.
SUBORDINATION: The procedure of allowing a new loan or obligation
to take
priority over an existing encumbrance.
SUBORDINATION AGREEMENT: An agreement under which a prior lien is
given
a lower priority to an otherwise junior lien.
SURVEY: A map or plat containing a statement of courses, distances
and quantity of
land and showing boundary lines of real property. Also, a process
of measuring a parcel
of land and ascertaining its area and boundaries.
SWING LOAN: A short-term loan obtained on a Seller's equity for the
purpose of
purchasing a second property.
return to top
T
TAX SERVICE: A service which provides notification to a lender of
whether or not a
borrower is paying the real property taxes. Companies who perform
this service audit
the tax rolls and issue notices to lenders when taxes are delinquent.
TENANCY IN COMMON: Ownership of property by two or more persons in
an
undivided interest without right of survivorship.
TITLE: The evidence of ownership.
TITLE INSURANCE: An insured statement of the condition of title or
ownership of
real property. For a one-time-only premium, the named insured and
their heirs are
protected against title defects, liens, and encumbrances existing
as of the date of the
policy and not specifically excluded from coverage. In the event
of a claim, the title
company provides legal defense for the policyholder and pays any
covered losses
incurred as a result of such claim.
TRUST: A fiduciary relationship in which one party (trustee) holds
the title to property
for the benefit of another party (beneficiary).
TRUST AGREEMENTS: A fiduciary relationship in which a trustee holds
title to
property for the benefit of a beneficiary.
TRUST DEED: A three-party security instrument conveying title to
land as security
for the performance of an obligation. The three parties are the Trustor
(borrower),
Trustee (acts only at time of payoff and in case of foreclosure),
and Beneficiary (lender).
TRUSTEE: The acting principal named in a Trust Agreement or the third
party named
in a trust deed.
TRUSTEE'S DEED: In a case of a foreclosure, the deed given by the
trustee under a
deed of trust when the property is sold under the power of sale.
TRUSTOR: The person
who conveys property in trust or the borrower under a deed of trust.
return to top
U
UNINCORPORATED AREA: Property located outside the limits of any city.
UNLAWFUL DETAINER: A legal action to recover possession of real property.
USURY: Charging more interest than the law allows on a loan.
return to top
V
VEST: To give title to or to pass ownership to property.
return to top
W
WILD DOCUMENT: A commonly used expression for a document that is
recorded
against a property but seems to have no basis for application or
connection with the
property.
WILL: A disposition of property effective upon the maker's death
often referred to as a "last will and testament".
return to top
Z
ZONING: Governmental regulations relating to the use of real property.
return to top
