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Meridian
Financial
4501 E. La Palma, Suite 150
Anaheim, CA 92807
Phone: 1-866-333-1500 (Toll Free)
REAL ESTATE AND MORTGAGE TERMS: A
- A summary; an abridgment. Before the use of photo static copying public records were kept
by abstracts of recorded documents.
- A summary of the public records relating to the title to a particular piece of land. An
attorney or title insurance company reviews an abstract of title to determine whether
there are any title defects which must be cleared before a buyer can purchase clear,
marketable, and insurance title.
- Provision in a mortgage document stating that if a payment is missed or any other
provision is violated the whole debt becomes immediately due and payable.
- Formal declaration before a public official that one has signed a document. Prior to
recording real estate legal documents, such as grant deeds and deeds of trust, a Notary
Public acknowledges the person's signature on the document.
- A measure of land equal to 43,560 square feet.
- A court action to establish ownership of real property. Although technically not an
action to remove a cloud on title, the two actions are usually referred to as "Quiet
Title" actions.
- A mortgage where the interest rate is not fixed for the life of the loan. These
mortgages adjust periodically based on an index that changes with market conditions. The
rate of interest is the sum of the index plus a margin ( the margin remains fixed for the
life of the loan). Most ARMs have periodic interest rate and payment caps, as well as a
life cap. ARM's may also be referred to as AML's or VRM's.
- Designates an assessment of taxes against property. Literally, according
to value; based on the "ability to pay" theory.
- The actual, exclusive, open notorious, hostile and continuous possession and occupation
of real property under an evident claim of right or title. The time required legally to
obtain title by adverse possession varies from state to state.
- A contract by which the agent undertakes to represent the principal in business
transactions, using some degree of discretion.
- Person authorized to act on behalf of another in dealings with third parties.
- An agreement between parties for the sale of real estate. In some states it is
synonymous with a Purchase Agreement, Sales Agreement, or Land Contract. In Texas it is
known as an Earnest Money Contract.
- Provision in a mortgage document stating that the loan must be paid in full if ownership
is transferred.
- The qualities and state of being pleasant and agreeable. In appraising, those qualities
that attach to property in the benefits derived from other than monetary. Satisfactions of
possession and use arising from architectural excellence, scenic beauty and social
environment.
- Title policy that assures a lender that it has the proper rights as the beneficiary on a
mortgage loan.
- Gradual payment of a debt through regular installments that cover both interest and
principal.
- A measure of the total cost of credit (interest as well as other recurring
charges)
expressed as a yearly percentage rate. Because all lenders apply the same rules in
calculating the annual percentage rate, it provides consumers with a good basis for
comparing the cost of loans.
- These fees are generally collected by the lender and paid to outside companies
performing the services.
- An expert option of the value of a property at a given time, based on facts regarding
the location, improvements, etc., of the property and surroundings.
- Estimate of real estate value, presumably by an expert. An appraisal evaluates the
property at a given time based on facts regarding the location, improvements, neighborhood
and comparable sales. Generally, the value is based on three approaches: cost, market and
income.
- Increase in value or worth of property.
- Payment made after it is due is in arrears. Interest is said to be paid in arrears since
it is paid to the date of payment rather than in advance.
- A clause that is sometimes used in the transfer of property. It means that the present
property is being transferred with no guarantee or warranty provided by the seller.
- The total assessed value of all property in a given assessment district.
- Value placed on real estate by governmental assessors as a basis for levying property
taxes; not identical with appraised or market value.
- Transfer of a contract from one party to another.
- New owner assumes the responsibility for repaying an existing mortgage. Both FHA and VA
loans are fully assumable. Some adjustable rate mortgages may be partially assumable, but
the new owners may be required to re-qualify for the loan.
- A home that has one or more common walls adjoining another home. Condominiums and row
houses are attached homes.
GLOSSARY: |