 Home Buyers Glossary of Terms |
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| Abstract of Title: | A synopsis of the history of a title, indicating all changes of ownership and including liens, mortgages, changes, encumbrances, encroachments or any other matter that might affect the title. In some states the buyer is given a copy at closing. | ||
| Affidavit of Title: | A sworn written statement signed by the seller stating that he owns the property, has clear title to it and therefore has the right to sell it. | ||
| Amortization: | The gradual paying out of a loan through regular fixed payments over a period of time. | ||
| Appraisal: | The estimate of a disinterested qualified professional as to the current market value of a property. The term also refers to the report that sets forth the estimate. | ||
| Assessment: | A tax or charge on a property to pay for a portion of a specific improvement such as streets, sidewalks or sewers. | ||
| Cancellation: | Any clause in a contract that allows the buyer to seller to cancel the contract if a certain specified condition or situation occurs. The mortgage contingency is a cancellation clause since it allows the buyer to cancel the contract if he cannot obtain a mortgage. | ||
| Chain of Title: | A list of all the transfers of title as far back as records are available. | ||
| Chattel: | Item of personal property, such as furniture, appliances, chandeliers, that are not permanently affixed to the house. If included in a real estate sale, each piece must be specifically listed in the contract. | ||
| Closing: | The meeting of all concerned parties in order to transfer title. The date when the buyer takes title to the property. | ||
| Closing Costs: | Various fees and expenses, not including the price of the home, payable by the seller and the buyer at the time of a real estate closing - e.g., brokerage commissions, title insurance premiums, inspection, appraisal, deed recording and attorney fees. | ||
| Contract: | An agreement between two parties. To be valid a contract must be dated; must be in writing; and must include a consideration, a description of the property, the place and date of delivery of the deed, and all terms and conditions that were mutually agreed upon. It must also be executed (signed) by all concerned parties. | ||
| Deed: | A written instrument that conveys title to real property. | ||
| Easement: |
A right-of-way or access. The right of one party to cross or use for some specified purpose the property of another party. |
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| Earnest Money: | : A sum paid to a seller by a potential buyer to demonstrate that the buyer is serious about buying. If a contract is executed, the earnest money is returned in whole with deductions for processing charges, paperwork, etc. Make sure you know the terms of your contract. | ||
| Escrow: | Money or documents held by a third party until specific conditions of a an agreement or contract are fulfilled. The earnest money paid by the buyer with the signing of the contract is usually held in escrow until all contingencies in the contract are met. | ||
| Foreclosure: | The selling of a property to satisfy the debt of a mortgage. In order to force the sale, the mortgage (lender) must file a "Lis pendens" with the county clerk, thus giving due notice tot he mortgager (borrower). | ||
| Lien: | A recorded notice that there is a debt on a piece of property. This debt could be a judgment, mortgage, back taxes or unpaid accounts, etc. | ||
| Listing: | The employment of a real estate broker to sell a piece of property. a piece of property for sale. | ||
| Market Value: | Generally accepted as the best price that a ready, willing, and able buyer will pay, and the lowest price a ready willing, and able seller will accept. In other words, the dollar figure at which there is a meeting of the minds. | ||
| Mortgage: | A legal document that creates a lien upon a piece of property. | ||
| Offer: | A proposal, oral or written, to buy a piece of property at a specified price. | ||
| Points: | Sometimes call "discount". This is a fee that the lending institution charges for the mortgage. | ||
| Right-of-Way: | An easement; the right of one party to cross or in some way use the property of another party. | ||
| Survey: | The measurement of a piece of land by civil engineers or surveyors to determine its area and attest to its boundaries. | ||
| Title: | Actual ownership; the right of possession; evidence of ownership. | ||
| Title Search: | A professional examination of
pubic records to determine the chain of ownership of a particular piece of property
and to note any liens, mortgages, encumbrances, easements, restriction or other
factors that might affect the title.
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