Page Title

Abatement - A reduction or decrease. Usually applies to a decrease of assessed valuation of ad valorem taxes after the assessment and levy.

 

Abstract - A summary or history of a property prepared by an abstractor of all the documents in public record regarding the property.

 

Abstract of judgment - A summary of the essential provisions of a court judgment, which when recorded in the county recorder’s office, creates a lien upon the property of the defendant in that county, both presently owned or after acquired.

 

Abstract of title - A summary of the public records affecting the title to a particular piece of land. An attorney or title insurance company officer creates the abstract of title by examining all recorded instruments (documents) relating to a specific piece of property, such as easements, liens, mortgages, etc.

 

Abut - To touch or border upon. For example, a piece of land bordering on a street or an adjoining property is said to abut such street or property.

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Abutting owner - One whose land is contiguous to (abuts) a public right of way.

 

Acceleration Clause - A clause in a deed of trust or mortgage, which accelerates, or hastens the time when the indebtedness becomes due. For example, some deeds of trust contain an acceleration clause stating that the note shall become due immediately upon the sale of the land or upon failure to pay interest or an installment of principal and interest.

 

Access Right - A right to ingress and egress to and from one’s property. May be express or implied.

 

Acknowledgment - (1) Generally, the act of the maker or makers of a real estate instrument in going before a Notary Public or other judicial officer and acknowledging that they signed such instrument without fear or compulsion, and for the purposes expressed in such instrument. The laws making provision for acknowledgments incident to real estate papers were enacted to help prevent forgeries or undue advantage taken over the makers of such instruments. Forms and procedures incident to acknowledgments vary from state to state, some being considered probate procedures in which the probity or authenticity of the instrument is proven. (2) Generally, a form of certificate made by a notary public or judicial officer, appended to deeds, mortgages, leases and other real estate instruments, certifying that the maker or makers of such instruments appeared before the notary or judicial officer and acknowledged that they signed the instrument without compulsion or fear and for the purposes indicated in the instrument.

 

Acre - A measure of land equaling 43,560 square feet.

 

 

Action to quiet title - A court action to establish ownership to real property. Although technically not an action to remove a cloud on a title, the two terms are often used interchangeably.

 

Ad valorem - Based on value. "According to value." A method of taxation using the value of the thing taxed to determine the amount of tax. Taxes can be either "ad valorem" or "specific." Example: a tax of $5.00 per $1000.00 of value per house is "ad valorem." A tax of $5.00 per house (irrespective of value is specific.

 

Addendum - An addition or change to a contract.

 

Adjacent - Close to. May or may not be contiguous (touching).

 

Adjustable-rate mortgage (ARM) - (ARM)- Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. The extent and number of these adjustments are agreed to at the inception of the loan.

 

Adjustment date - The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

 

Administrator - A person appointed by a court to administer the estate of a deceased person who left no will.

 

Administrator's Deed - A conveyancing instrument used by an administrator to transfer property from an estate. (See Administrator)

 

Adverse Land Use - A use which causes surrounding property to lose value, such as an industrial development in a residential area.

 

Adverse possession - A method of acquiring title by possession under certain conditions. Generally, possession must be actual, under claim of right, open, continuous, notorious, exclusive, and hostile (knowingly against the rights of the owner). Exact time (years) of possession and specific requirements (such as payment of property taxes) vary with the statutes of each state.

 

Affiant - One who makes an affidavit. Also called a deponent, although technically not the same.

 

Affidavit - A written statement made under oath.

 

Affidavit of title - A written statement, made under oath by a seller or grantor of real property and acknowledged by a notary public, in which the grantor (1) identifies himself and indicates marital status, (2) certifies that since the examination of the title on the date of the contracts no defects have occurred in the title and (3) certifies that he is in possession of the property (if applicable).

 

Affirmative Easement - An easement described from the benefited estate (dominant tenement). Also called a parcel 2 easement. The same easement described from the burdened estate (servient tenement) would be a negative easement.

 

Agency - A relationship in which one-person (agent) acts for or represents another (principal) under the authority of the latter.

 

Agency agreement - (agency listing) - In some states, the term describing a listing under which the broker's commission is protected against a sale by other agents but not by a sale by the principal. Called a "not-exclusive" listing in some states.

 

Agent - One who acts for and with authority from another called the principal.

 

Agreement of sale - An agreement between the seller (vendor) and buyer (vendee) for the purchase of real property.

 

Alienation - The transferring of property to another; the transfer of property and possession of lands, or other things, from one person to another.

 

Alienation clause - A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

 

ALTA - (American Land Title Association) - Organization composed of title insurance firms which sets standards for the industry, including title insurance policy forms used on a national basis.

 

Amendment – Changes to alter, add to, or correct part of an agreement without changing the principal idea or essence.

 

Amortization - The process of paying off a debt (such as a mortgage) in regular installments over a period of time.

 

Amortization schedule - A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

 

Amortization term - The amount of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.

 

Annual percentage rate (APR) - The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees.

Annuity - A payment received every year.

 

Application - A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

 

Appraisal - An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

 

Appraisal Methods - Generally, three major methods of appraisal: cost approach, income approach, market value (comparables) approach.

 

Appraisal Report - A written report by an appraiser containing his opinion as to the value of a property and the reasoning leading to this opinion. The factual data supporting the opinion, such as comparables, appraisal formulas, and qualifications of the appraiser, will also be set forth.

 

Appreciation - An increase in the value of a property due to changes in market conditions or other causes.

 

Approved Attorney - An attorney whose opinion is acceptable to a title company as the basis for issuance of a title insurance policy by the insurer. The insurer, rather than the attorney, executes the policy

 

Appurtenance - Something belonging to something else, either attached or not, such as a barn to a house, or an easement to the land. The appurtenance is part of the property and passes with it upon sale or other transfer.

 

Articles of Incorporation - Documentation filled with the state which sets forth general information about a corporation. More specific rules of the corporation would be contained in the by-laws.

 

Assessed value - The valuation placed on property by a public tax assessor for purposes of taxation.

 

Assessment - (1) The estimating of value of property for tax purposes. (2) A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, etc.

 

Assessor - A public official who establishes the value of a property for taxation purposes.

 

Assignment - The transfer of a mortgage from one person to another.

 

Assignor: For example, the person who transfers ownership of a contract or mortgage to another.

 

Assumable mortgage - A mortgage that can be taken over ("assumed") by the buyer when a home is sold.

 

Assumption - The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller.

 

Assumption agreement: Undertaking or adoption of a debt or obligation primarily resting on another person.

 

Assumption clause - A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller.

 

Assumption fee - The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

 

Assumption of Mortgage - Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) from liability.

 

Attachment - Legal seizure of property to force payment of a debt.

 

Attorney-in-fact - One who is appointed to act (as agent) for another (principal) under a power of attorney. The scope of the agent's authority is limited to that given by the power of attorney, which may be limited to one specific act or may be broader. (see also "Power of Attorney")

 

Attorney opinion of title:  An opinion generated by an attorney after review of abstract of title.