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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: E
- The earnest money is the deposit money given to the seller or his agent by the potential
buyer upon the signing of the agreement of sale to show that he is serious about buying
the house. If the sale goes through, the earnest money is applied against the down
payment. If the sale does not go through, the earnest money deposit will be forfeited to
the seller unless the purchase contract expressly provides conditions for its return to
the buyer.
- A right-of-way created by grant, reservation, agreement, prescription or necessary
implication which one has in land owned by another.
- Impairment of desirability or useful life arising from economic forces, such as changes
in optimum land use, legislative enactments which restrict or impair property rights and
changes in supply-demand relationships. Loss in the use and value of property arising from
the factors of economic obsolescence is to be distinguished from loss in value from
physical deterioration and functional obsolescence.
- A government right to acquire private property for public use by condemnation and the
payment of just compensation.
- Unauthorized intrusion of a building or improvement such as a wall, fence, etc. onto
another's land.
- A legal right or interest in land that affects a good or clear title and may diminish
the land's value. It can take numerous forms, such as zoning ordinances, easement rights,
claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive
covenants. An encumbrance does not legally prevent the transfer of real property. It is up
to the buyer to determine whether to purchase with the encumbrance.
- The market value of the property less the homeowner's unpaid mortgage balance and any
outstanding liens or other debts against the property.
- Reversion of property to the State by reason of failure to find persons legally entitled
to hold or lack of heirs. The State must try to find heirs.
- The deposit of instruments and/or funds into the care of a neutral third party with
instructions to carry out the provisions of an agreement or contract once all instruments
and/or funds have been deposited. Many closings are handled by escrow agents. In this
situation, the seller deposits the deed and the buyer deposits the funds necessary with
the escrow agent. Once all requirements of the purchase contract are in the control of the
escrow agent, the money and deed are distributed accordingly.
- That portion of a mortgagor's monthly payment held in trust by the lender to pay for
taxes, mortgage insurance, hazard insurance, lease payments and other items as they become
due. Also known as "impounds" in some states.
- The buyer reimburses the seller for the current balance of his escrow (or impounded)
funds.
- Possession of property at the discretion of the owner.
- Tenant has rights in real property for a designated number of years.
- The statement which lists the financial settlement between buyer and seller and the
costs each must pay. A separate statement for buyer and seller is sometimes prepared.
- An impediment to a law of action, whereby one is forbidden to contradict or deny one's
own previous statement or act.
- Listing agreement in which only the listing office may sell the property and earn the
commission. If the owner sells the house, the listing office would not receive any
commission.
- Listing agreement under which the owner promises to pay a commission if the property is
sold during the listing period by anyone, even the owner.
GLOSSARY: |