JCSM Shareware Collection 1996 September/JCSM Shareware Collection (JCS Distribution) (September 1996).ISO/billacct/fin23.zip/DICT.TXT

Text File | 1993-04-20 | 42KB | 1,028 lines

  A:
AAA TENANT (TRIPLE A TENANT): A high-rated tenant whose net worth is assumed
to be at least one million dollars.

ABANDONMENT: Voluntarily relinquishing one's rights of ownership.

ABSENTEE OWNER: A person who owns property but does not reside in it; usually
this also means that someone else manages the property.

ABSTRACT OF DOCUMENTS: A statement, in abbreviated form, of the important
parts of a legal instrument, used as a substitute for a photoprint copy of
the full document.

ABSTRACT OF JUDGMENT: A court's record of the final determination of the
rights of the parties in a legal proceeding.

ABSTRACT OF TITLE: A compilation of abstracts of deeds, trust deeds, and other
data which affect the title to a piece of real property, all bound together in
chronological order for the purpose of title examination.

ABUTTING LAND: Land which borders on the land of another.

APPURTENANCE: Something annexed to real property so that it belongs with
the property.

ARB MAP: An office "subdivision" or map made by a title company for its own
convenience in locating property in an area in which all the descriptions
are by "metes and bounds."

ASSESSED VALUE: The value of property as determined by the county tax
assessor.

ASSESSOR: A community official authorized to assess property for purposes
of taxation.

ASSET: Anything that is owned, such as cash, accounts receivable, investment
vehicles, or real or personal property.

ASSIGN: To transfer or convey to another any right, claim, or property.

ASSIGNEE: One to whom something has been assigned.

ASSIGNOR: One who assigns.

ASSUMPTION OF A LOAN: Taking over the responsibility for making payments on
a loan without changing the terms of the loan in any way.

ATTACHMENT: Seizure of property by a court order.

ATA TITLE POLICY: An American Title Association insurance policy that has
greater coverage than a standard policy because it includes unrecorded liens
and easements.

AUTHORIZATION TO SELL: Same as Exclusive Right to Sell.

  B:
BALANCE SHEET: A statement of financial condition showing assets, liabilities,
and net worth as of a specific time.

BALLOON PAYMENT: A large final installment payment.

BASE: The title examiner's notes, report, and title insurance policy or a copy
thereof used as a starting point in making an examination for reissue of the
policy at a later date.

BASIS: Usually the property owner's original cost, plus capital improvements,
less depreciation, computed for income tax purposes according to one of many
possible formulas. Also called "book value."

BENEFICIARY: The one named in a will or insurance policy to receive property.
The lender on a note secured by a deed of trust. One entitled to benefit of
a trust.

BENEFICIARY'S STATEMENT: A statement from a lender or mortgage company which
shows the remaining principal balance and status of a loan. Also called
"bene statement" or "offset statement."

BILL OF SALE: A written instrument that transfers title or ownership of
property other than real property.

BINDER: A preliminary agreement for sale of property requiring a deposit and
calling for a formal agreement at some future date.

BLANKET MORTGAGE: A single trust deed or mortgage covering two or more pieces
of real property.

BLANKET POLICY: A insurance policy covering an entire subdivision from which
policies are issued on separate parcels.

BLIGHTED AREA: A neighborhood in which the property values are declining due
to economic or natural forces such as inharmonious property usages, rapid
depreciating buildings, or an influx or undesirable inhabitants.

BRIEF: A document containing legal conclusions and arguments filed by an
attorney.

BROKER: A person who deals in real estate and makes sales.

BUILDING CODE: A set of regulations setting forth minimum building
construction standards in a city, county, or state.

BUILDING RESTRICTIONS: Zoning ordinances and regulatory laws which require
that construction be protective of people's health and safety.

  C:
CALL: To require payment of loaned money on demand.

CAPACITY: A person's qualifications to enter into arguments, such as being
competent, of sound mind, over age 21, etc.

CAPITAL GAIN: Profit gained from the increase in value of a capital asset.

CAPITALIZE: To furnish with capital. To establish the value of an asset.

CAPITALIZATION: The process of amassing the funds necessary to purchase a
property. Also: a means of appraising which determines the value of property
by estimating net annual income and dividing by a capitalization rate; the
"cap rate" is usually determined from current market prices.

CAPITAL LOSS: The loss resulting from the sale of a capital asset.

CARRYBACK: Same as Seller Carryback.

CASH: Currency. Ready liquid funds. Negotiable instruments that can be
promptly converted into usable money.

CASH FLOW: Net or spendable income. Usable cash, determined by subtracting from
gross income all loan payments, operating expenses, and an allowance for
income tax.

CASH VALUE: The actual or estimated amount of money that an asset will bring on
the open market without a lengthy delay. Also called "market value."

CAVEAT EMPTOR: "Let the buyer beware." An expression meaning that the buyer
must examine the goods or property, as he takes them at his own risk.

CC & R's: "Covenants, Conditions & Restrictions"- limitations sometimes put
on the use of real property, usually through agreements contained in deeds
or other documents.

CERTIFICATION OF SALE: A certificate issued to a purchaser at a judicial sale.

CERTIFICATE OF TITLE: A statement furnished by a title company which certifies
that according to records a certain ownership is properly vested in the
present owner.

CHATTEL: Personal property. Any type of property, movable or immovable, other
than real property.

CHATTEL MORTGAGE: A mortgage of chattel property.

CIVIL LAW: National, state and municipal laws concerning the rights of the
individual, as distinguished from criminal law.

CLAIM OF LIEN: A legal claim for payment, made by an individual or company
who performed labor or services or who furnished material. A mechanic's lien.

CLOSING: Closing of escrow. The final meeting of the parties to a real estate
transaction, at which title is transferred, monies are paid, and papers are
signed.

CLOSING COSTS: The expenses incurred in a real estate transaction, including
costs of title examination, title insurance, attorney's fees, lender's service
charges, documentary transfer tax, etc.

CLOUD ON TITLE: Any claim or condition which impairs the title to property.

CODE: A collection of laws on a specified subject, organized for clarity and
understanding.

COLLATERAL: Anything of value that a borrower offers as security. In real
estate, the collateral for loan is usually the property itself.

COLLUSION: An attempt by two or more people to defraud another of his rights.

COLOR OF TITLE: Title that appears to be good but is not legal title in fact.

COMMISSION: A fee of any kind paid for obtaining a buyer for a seller.

COMMITMENT: A firm or conditional pledge or promise.

COMMUNITY PROPERTY: Real and personal property accumulated during marriage
through the joint efforts of husband and wife.

COMPENSABLE DAMAGES: The actual money for damages an owner is awarded by the
government or a public utility as compensation for property taken for public
use. If all his property is not expropriated, he will be given an additional
sum for damages to the portion of the property that he retains.

COMPLETION BOND: A bond posted by a contractor as a guarantee that he will
satisfactorily complete a project and that it will be free of any liens.

COMPOUND INTEREST: Interest computed on both the original principal and the
accrued interest.

CONDITION: A requirement that must be met before something else becomes
effective. Also a restriction in a deed which, if not performed or if violated,
defeats the deed and returns the title to the original grantor.

CONDITIONAL SALES CONTRACT: A sales contract which states that delivery be
made to the buyer, but that title to the property is to remain vested in
the seller until the conditions of the contract have been fulfilled.

CONDOMINIUM: A multi-unit building whose units are owned by separate
individuals.

CONSIDERATION: Anything of value given to induce someone to enter a contract.

CONSOLIDATION LOAN: A loan taken to pay off two or more other debts, usually
to reduce periodic payments.

CONSTRUCTION EVICTION: An eviction that takes place when a landlord disturbs a
tenant's possession to the extent that the property is unfit to dwell in, or
the tenant is deprived of the benefit of the premises.

CONSTRUCTIVE FRAUD: A fraud stemming from a breach of fiduciary relationship,
e.g., when a person who has gained another's confidence takes an unethical
advantage of that confidence.

CONSTRUCTIVE NOTICE: Notice given by public records. (In general, the law
presumes that a person has the same knowledge of recorded documents as
though he were actually acquainted with them.)

CONSTRUCTIVE POSSESSION: Having possession by virtue of title, but not
necessarily occupying the property.

CONTINGENCY: An item in a contract dependent on a specific condition for its
fulfillment.

CONTRACT: An oral or written agreement by two or more persons.

CONTRACT OF SALE: Same as Conditional Sales Contract.

CONTRACTOR: One who agrees to do something for another. In building industry,
one who contracts to build homes or other buildings, or portions of them.
Those performing specific duties, such as installing heating, electrical
systems, plumbing, etc., are also called contractors.

CONVEYANCE: Any document which transfers the title to or interest in real
property from one person to another.

COUNTER OFFER: A new offer as to price, terms, and/or conditions, made in
reply to a prior one. The counter offers cancels the original offer.

CONVENANT: A clause in a deed requiring the performance or nonperformance of
certain acts, or prohibiting certain use or non-use of the property.

CREDITOR: One to whom a debt is owed. Also: a person who gives credit.

CUT-OUT: A parcel or a portion of a property taken or "cut out" from a large
parcel on an "arbitrary" map.

  D:
DAMAGES: The amount of money ordered by a court to be paid to a person who
has sustained an injury, either to his property, person, or relative rights,
through the actions or failures to act of another.

DATE DOWN: The date through which an examination of title is to be conducted.

DEBIT: A charge or debt. The opposite of credit. In double-entry bookkeeping,
it is the column used to record that which is owed to the individual or
company.

DEBT SERVICE: The amount of money periodically required to make the payments
necessary to amortize a debt, including interest charges; the principal and
interest payments.

DEBTOR: One owing a debt or liable for a claim. Opposite of creditor.

DECLARATION OF HOMESTEAD: A document that protects a homeowner against
judgements up to a specified exemption amount.

DEED: A written instrument that transfers title to real property.

DEED IN LIEU OF FORECLOSURE: The conveying of title to a mortgagee to prevent
foreclosure.

DEED OF TRUST: A written document which transfers title to a trustee as
security for a loan.

DEED RESTRICTIONS: Limitations on the use of real estate written into a deed.

DEFAULT: Failure to perform a duty as agreed upon in a written document. A
breach of obligation.

DEFAULT JUDGMENT: A judgment resulting from the failure of a defendant to
answer a complaint in a lawsuit.

DEFEAT: To make null and void.

DEFICIENCY JUDGMENT: A judgement given when a loan has defaulted and the
security pledged for the loan is insufficient to satisfy the balance due (This
could happen, for example, if real-estate values had declined since the loan
was made).

DEPOSIT RECEIPT: A written document used to secure a firm offer to purchase
property and provide a receipt for the buyer's earnest money. Also called a
"purchase offer."

  E:
ECONOMIC RENT: The estimated income that a property should bring in the current
rental market based on what comparable properties are bringing.

EFFECTIVE AGE: The age assigned to a building by an appraiser, based on the
physical condition of the property rather than its chronological age.

EGRESS: The means of exiting from a property.

EMINENT DOMAIN: The right of a government to take private property for
public use, usually with compensation to the owner.

ENCROACHMENT: A situation wherein a building, wall, fence, etc. overlaps the
land of an adjoining owner without his consent.

EQUITABLE OWNER: One who has pledged his property as security for a debt but
retains the right to use and enjoy the property.

EQUITABLE TITLE: The title granted to a buyer under a contract of sale.

EQUITY: The value an owner has in real estate not counting the total existing
liens against it.

EQUITY SHARING: A type of purchase in which two or more parties (e.g., buyer
and seller, or absentee investor and resident owner) share in the equity and
appreciation of a property.

ESCALATOR CLAUSE: A clause in a lease that provides for rent increases under
certain specified circumstances.

ESCROW: A transaction in which a third party acts as agent for both seller
and buyer, or borrower and lender, carrying out the instructions of both and
handling and disbursing documents and funds.

ESTATE: The degree, nature, and amount of interest or ownership a person has
in any property. More often the term is applied to property

ESTATE FOR LIFE: A freehold estate held by a tenant for the duration of his
life, or the life of one or more other named persons. It terminates on death
and is not inheritable.

ESTOPPEL AFFIDAVIT: A document setting forth certain facts and understandings,
and which stops, or bars, the person signing it from later making claims based
on other facts or understandings that may arise.

EXCHANGE AGREEMENT: A contract for an exchange of properties.

EXCLUSIVE-RIGHT-TO-SELL LISTING: A written agreement between an owner and an
agent which gives the agent the right to collect a commission if the property
is sold by anyone without a specified time period.

EXECUTOR: A person named in a will to carry out its provisions.

EXPROPRIATE: To take land or other property from a property owner for public
use.

EXTENSION AGREEMENT: An agreement that allows additional time in which to
perform an obligation.

  F:
FEDERAL HOUSING ADMINISTRATION (FHA): A federal agency which insures loans on
residential property.

FEE;FEE SIMPLE; FEE SIMPLE ABSOLUTE: Title to real property without limitation
or end; this is highest possible interest one can have in real estate.

FIDUCIARY; Any person in a position of confidence or trust. A person acting as
fiduciary is expected to transact business in the best interest of another.

FIXTURES: Fitting or furnishings attached to land or property and which
usually cannot be removed without agreement.

FORECLOSURE: A legal action used in the event of default in payments, whereby
the property pledged as security may be sold to pay the debt.

FIXED EXPENSES: The actual charges or costs required to own or have possession
of a property (e.g., rent, insurance, maintenance).

FORFEITURE: Loss of anything of value because of failure to act (e.g.,loss of
a deposit given to insure performance).

FRAUD: Deceiving or misrepresenting to obtain something of value from another.
Collusion, cunning, deception, artifice.

FREEHOLD ESTATE: Property held for the duration of one's life only.

  G:
GARNISHMENT: A legal action in which money, property, or credits of a debtor
that are in possession of another are seized and applied to payment of the
debt.

GENERAL INDEX: An index kept by a title company of all matters of a general
nature which cannot be entered on the Lot Books because no specific property
is mentioned.

GENERAL PARTNER: The managing partner of a limited partnership. The partner
ultimately liable for all obligations of the partnership.

GIFT DEED: A deed given free of charge or for only a nominal sum.

GI LOANS: Loans provided to veterans and insured by the Veterans Administration
(VA).

GRADUATED PAYMENT MORTGAGE (GPM): Also known as FHA 245 GPM. A fixed-rate,
fixed-term mortgage that provides for reduced payments in beginning years,
with payments increasing to a set level in later years.

GRANT DEED: An instrument used to convey title to real property. It carries
two implied warranties: (1) the title is free of encumbrances, and (2) the
owner has the right to sell.

GROSS INCOME: Total income before any expenses are deducted.

GUARANTEED LOAN: A loan backed by a guarantee from a party other than the
borrower.

  H:
HEIR: A person designated by law to receive an inheritance.

HOLDER IN DUE COURSE: One who has taken a check, note, or bill of exchange
in good faith and for value, without notice that it is overdue or has been
dishonored, and free of any claims to it or defenses against it by any
person.

HOMESTEAD: A home on which the owner has recorded a Declaration of Homestead.

HUD: The U.S. Department of Housing and Urban Development.

HUNDRED PERCENT LOCATION: An area, usually within a business district, which
is considered the best available for attracting customers.

HYPOTHECATE: To pledge property as security for a debt without giving up
possession of the property.

  I:
IMPOUND ACCOUNT: An account into which a borrower deposits monthly payments
towards annual taxes or interest, usually at the insistence of the lender.

IMPROVEMENTS: Items added to or built on a parcel of land.

INCOME AND EXPENSE STATEMENT: An itemized statement of income received from
a property and expenses incurred in its operation.

INCOME PROPERTY: Property owned or purchased for the generation of income from
residential or commercial rentals.

INGRESS: The means of entrance to a property.

INHERIT: Acquire property as an heir.

INHERITANCE TAX: A state tax on the estate of a deceased person.

INJUNCTION: A court order restraining one or more parties from doing an act
deemed unjust with respect to the rights of some other party.

INSOLVENT: A situation where liabilities exceed assets. Inability to pay all
one's debts. Impoverished.

INSTALLMENT LOAN: A loan which requires periodic payments until both principal
and interest are paid off.

INSTALLMENT SALE: An arrangement which permits the seller, for income tax
purposes, to spread the proceeds of a sale over two or more tax years. He
cannot receive more than 30% of the proceeds in the first year of sale.

INSTITUTIONAL LENDERS: Savings and loan companies, insurance companies,
or banks that provide real estate loans, as distinguished from governmental
or private lenders.

INSTRUMENT: A written legal document that secures, alters, creates, or
terminates the transaction of legal business.

INTANGIBLE VALUE: Good will, franchises, licenses, patents, trademarks, and
similar benefits of established business.

INTEREST-ONLY NOTE: A promissory not which requires that only the interest be
paid during the term of the note, with the principal amount due in a lump sum
at the end of the term.

INTERLOCUTORY DECREE: A decree used in divorce proceedings. It does not
terminate a case, but requires that some further steps be taken.

INTESTATE: Having made no will.

INTRINSIC VALUE: Actual, true, or inherent value not based on temporary
economic swings.

INVESTMENT: The amount of money put into property with the expectations of
making a profit.

INVOLUNTARY LIEN: A lien imposed upon property without the consent or choice
of the owner.

IRREVOCABLE: Unchangeable, or incapable of being recalled or revoked.

  J:
JOINT TENANCY: Ownership by two or more persons in equal shares created a
single transfer. Upon the death of a joint tenant, the surviving joint tenants
take the entire property and nothing passes to heirs of the deceased.

JUDGEMENT: The final determination of a judge.

JUNIOR MORTGAGE: A lien that is subordinate to one or more others.

  K:
KAOLIN: A fine unusual white clay typically used as a filler or extender.

KEYSTONE: A wedge-shaped piece at the crown of an arch that locks other pieces
in place.

  L:
LACHES: Delay or negligence in asserting one's legal rights.

LEASE OPTION: A lease allowing a tenant the right to buy the property if
and when certain conditions are met. Usually part or all of the rent applies
to the purchase if the tenant exercises the option.

LEGAL DESCRIPTION: The exact location of a piece of property stated in terms
of lot, block and tract, or "metes and bounds," or government survey.

LESSEE: One who rents property under a lease agreement. A tenant.

LESSOR: An owner who enters into a lease agreement with a tenant. A landlord.

LESS-THAN-INTEREST NOTE: A promissory note which requires the borrower to
make periodic payments less than the accumulated interest, with the
principal plus the rest of the interest due in lump sum at the end of the
loan term.

LICENSE: Permission by a recognized authority to act or engage in a
business, profession, or other activity. A certificate or document which gives
the right to perform a specific service.

LIEN: An encumbrance, charge, or claim upon property, usually to help ensure
the payment of trust deeds, taxes, special assessments, or other debts.

LIMITED PARTNERSHIP: A partnership arrangement in which some of the partners
(the "limited partners") have limited investment and limited liability.

LIQUIDATE: To convert property or other assets into money.

LIQUID ASSETS: Assets readily convertible to cash.

LIS PENDENS: Latin for "suit pending." Gives constructive notice or pending
litigation.

LISTING: A written contract between an owner (principal) and agent (broker)
authorizing the broker to sell, lease, or rent the owner's property.

LOAN VALUE: The amount a lending institution will lend on a property.

  M:
MANAGEMENT: The supervision of property for another.

MARKETABLE TITLE: A good title to property, free and clear of any
objectionable encumbrances or liens.

MARKETABILITY: The status of a title with respect to how a purchaser would
view the condition of title.

MARKET VALUE: The price a willing buyer and a willing seller would agree
upon for the property when neither are under abnormal pressure.

MATERIAL FACT: A fact which in all likelihood would affect the decision of an
owner in giving his consent to an agent to enter into a particular transaction.

MECHANIC'S LIEN: A statutory lien whereby payment for labor or materials may
be obtained.

MINERAL LEASE: A lease which permits a lessee to explore for and extract
minerals from and owner's land. Mineral leases are usually payable on a
royalty basis.

MINERAL RIGHTS: The rights given to a lessee to take minerals from an owner's
land.

MORTGAGE: A legal document used to pledge real property as security for the
payment of a debt.

MORTGAGEE: A lender who loans money on property and holds a mortgage as
security for repayment of the loan.

MORTGAGOR: A borrower who gives a mortgage on his property as security for
a loan.

MORTGAGE COMPANY: An investment company that specializes in real estate loans
that are readily saleable in the secondary mortgage market.

MULTIPLE LISTING: A listing taken by a member broker of an organization
that gives all its members and opportunity to find and interested client.

  N:
NET INCOME: The amount of money from income property which remains after
expenses and charges have been deducted.

NET LEASES: A lease that requires the tenant to pay all costs of maintaining
the building including taxes, insurance, repairs and other expenses normally
paid by the owner.

NET LISTING: A listing which states the minimum amount the seller is to
receive, and which stipulates that any amount above this goes to the broker
as commission.

NET WORTH: Assets minus liabilities.

NONDISCLOSURE: Misrepresentation by silence.

NON-RESOURCE LOAN: A loan which limits the lender, in the event of default by
the borrower, to foreclosure on the property that was put up as security. The
lender is specifically prohibited form attaching the borrower's personal
assets.

NOTARY PUBLIC: A person authorized by law to acknowledge the signing of
documents.

NOTE: A signed document showing proof of a debt and a promise to repay that
debt.

NOTICE OF DEFAULT: A document filed with the trustee by the beneficiary of
a trust deed indicating that the borrower has defaulted on the payments, and
that foreclosure proceedings may be started.

NOTICE OF NONRESPONSIBILITY: A notice that relieves a property owner from
responsibility for cost of materials furnished or work done on property by a
tenant or other party.

NOTICE TO QUIT: A written notice to a tenant to either pay past due rents or
vacate.

  O:
OFFICIAL RECORDS: The books in which all documents filed in a county recorder's
office are recorded.

OFFSET STATEMENT: A statement, usually made by a lien holder, setting forth the
present status of lien against a specific property.

OPEN LISTING: A listing given by a property owner which states that the first
agent to secure a buyer on terms and conditions agreeable to the seller will
be paid a commission.

OPTION: A right given, in return for cash or other valuable consideration, to
buy, sell, or lease a property at a future date for a specified price.

ORAL CONTRACT: A contract not put in writing. A verbal agreement.

ORIGINATION FEE: A charge made for obtaining and processing a new loan.

OWNER'S EQUITY: The difference between the market value and the existing liens
on a property.

  P:
PARCEL: A piece of land that cannot be designated by lot number.

PAPER: Jargon for the use of a note or mortgage in lieu of cash.

PARTIAL RELEASE CLAUSE: A clause found in some mortgages and deeds providing
the release of a portion of a property when certain specified conditions are
met.

PARTY WALL: A wall built on the property line between two adjoining properties
for the use of both owners,.

PATENT: A conveyance by the government of title to government land.

PERCENTAGE LEASE: A property lease which states that the rent is to be based
on a percentage of gross business done by the lessee, usually with a certain
minimum.

PERCOLATION TEST: A test that determines how well the ground will absorb and
drain water, used to determine the feasibility of installing a septic tank
system.

PERSONAL PROPERTY: Property other than real property (e.g.,cars, jewelry,
furniture).

PIQ: Abbreviation for "property in question."

PITI: Abbreviation for "principal, interest, taxes, and insurance," the items
normally included in homeowner's monthly payments.

PLAT: The map included with a title policy to show the insured property. Also:
a plan or chart of a city or town showing individual blocks.

PLOTTAGE: The assemblage of adjoining land to increase the area of a holding.

POINT: A term commonly used to denote one percent of the loan amount. Points
are often charged by lenders in order to obtain additional revenue over the
interest rate.

POWER OF ATTORNEY: A document authorizing a person (the "attorney-in-fact")
to act on behalf of another (the "principal").

POWER OF SALE: A right granted in a trust deed or mortgage which permits the
trustee or mortgagee to sell the property in the event the borrower defaults.

PRELIMINARY REPORT: A commitment letter stating the conditions under which
a title company is willing to insure the title to a property.

PREPAYMENT PENALTY: A provision inserted in a note whereby a penalty is to be
paid by the borrower in the event that the note is paid off before it becomes
due.

PRESCRIPTION: The securing of a property right by using the property openly
and continuously without opposition for a period of time prescribed by the
civil code.

PRIMARY FINANCING: A first note, mortgage, or trust deed.

PRINCIPAL: One of the main parties in a real estate transaction; i.e.,the
purchaser or the seller. Also: one who give power of attorney to another.

PROBATE: A period of time during which the court has jurisdiction over the
administration of an estate of a deceased person.

PROCURING CAUSE: An action by a broker or salesman that originates a series of
events that eventually lead to a sale.

PROMISSORY NOTE: A document promising to pay a sum of money at a specified
time in the future.

PROPERTY MANAGEMENT: The renting, supervising, collecting, paying of expenses,
and maintenance of real estate.

PRORATION: Dividing according to relative time or amount of use.

PURCHASE OFFER: Same as Deposit Receipt.

  Q:
QUIET TITLE SUIT: A court action to establish clear title or to remove a
defect or a "cloud" on a title to real property.

QUITCLAIM DEED: A deed which transfers the grantor's rights with no guarantees.

  R:
REAL PROPERTY: Land and whatever is erected, growing, or affixed to the land.

REALTOR: A real-estate broker who is a member of a real estate board
affiliated with the National Association of Real Estate Boards. "Realtor" is
a registered name with the U.S. Patent Office.

RECOGNIZED GAIN: The amount of monetary gain subject to tax that is realized
from the sale or exchange of property.

RECONVEYANCE: A document that returns ownership of real estate back to the
former owner.  This instrument is commonly used when a trustee conveys a title
back to the owner upon the owner's completion of an obligation.

RECORD: To give public notice of a document by placing the document on file
with the county recorder.

RECORDER'S OFFICE: The government office that publicly records deeds,
mortgages, and all other documents related to real estate.

RECOURSE LOAN: A loan which allows the lender to attach the borrower's
personal assets (over and above the property that was put up as security) in
the event of default by the borrower.

REDEMPTION: The buying back of one's property after it has been lost through
foreclosure.

REFINANCING: The process of generating cash by taking out a new loan on a
property once the property has appreciated in value.

REFORMATION: An action to correct a mistake or modify a document.

REGRESSION: A principal used in appraising which holds that when property of
a given value is placed in a neighborhood with properties of lower value, it
tends to assume the value of lower valued properties.

RELEASE CLAUSE: A clause in a trust deed which permits, upon payment of a
specific sum, the release of certain parcels of property from the blanket lien
against the whole property.

REMAINDER ESTATE: An estate created at the same time as another estate, but
which vests title only upon the termination of the other estate.

RENEGOTIABLE RATE MORTGAGE: A mortgage whose interest rate may be renegotiated
periodically (typical every 3-5 years).

RENOVATE: Restore to a former condition. Upgrade.

RENT: Income -- whether money, goods, or services -- received for the use of
property.

REQUEST FOR NOTICE: A request made by the beneficiary of a trust deed (or
other person) that requires that he be notified in the event that foreclosure
proceedings are started.

RESCISSION OF CONTRACT: To rescind or annul a contract by mutual consent of all
parties, or for cause by any one party.

RESTRICTION: A limitation on the use of real estate (e.g.,prohibiting the
owner from using the property for certain purposes). Can also be a legislative
ordinance affecting all properties in a given area.

RIGHT OF SURVIVORSHIP: The right of a surviving joint owner to acquire the
interest of deceased joint owner.

RIPARIAN RIGHTS: The right of an owner to the water comprising the shoreline
of a water course adjacent to his property.

  S:
SANDWICH LEASE: A sublease which is subject to an original lease, and which,
in turn, has been further sublet. An "in-between" lease.

SALEABLE: Property that can be readily sold because of location, demand, price
or some other desirable factor.

SEARCHER: A person who collects all the facts and documents regarding the
title to real property for submission to a title examiner.

SECONDARY FINANCING: Mortgages or trust deeds which are second in priority or
subordinate to first mortgages or trust deeds.

SECONDARY MORTGAGE MARKET: The market where existing trust deeds and mortgages
of banks, savings and loan associations, etc., are bought and sold.

SECURITY DEPOSIT: A deposit made to assure future performance of an
obligation.

SELLER CARRYBACK: Any situation in which a seller acts as lender, holding or
"carry back" a mortgage note from the buyer.

SEPARATE PROPERTY: Property owned separately by either husband or wife.
Property that is not jointly held.

SET-BACK LINE: A line established by a zoning regulation prohibiting the
construction of a building beyond a prescribed distance from the edge of
the property.

SEVERALTY OWNERSHIP: Sole ownership.

SHARED APPRECIATION MORTGAGE: A mortgage loan usually at lower-than-market
interest rates, offered by a seller in return for a share in the property's
appreciation.

SHORT-RATE INSURANCE: The rate of an insurance premium that is charged when
one cancels his policy. Insurance based on a period of less than a year.

SOLVENT: Able to pay all one's debts and financial obligations.

SPECIFIC OR SPECIAL LIEN: A lien which affects only one specific asset, as
opposed to a general lien which affects a number of assets.

SPECIFIC PERFORMANCE: A sale of real property that fulfills the terms agreed
upon.

STARTER: The base or policy of the last title order, used as a starting point
from which examination of the current order is begun.

STATUTE OF FRAUDS: A law which requires that certain contracts (especially
real estate contracts) must be in writing in order to be enforceable by law.

STRAIGHT-LINE DEPRECIATION: A depreciation method that assigns an equal loss
in value for each year of a property's useful life.

STRAIGHT NOTE: A promissory note which requires that no payments be made
during the term of the note, with the principal and all interest to be paid
in a lump sum on the due date.

STREET IMPROVEMENT BONDS: Interest-bearing bonds issued by a city or county
to secure the payment of assessments levied against land for street
improvements.

"SUBJECT-TO" MORTGAGE: A phrase used when a buyer takes title to real
property without assuming personal liability for payment of an existing
promissory note.

SUBLEASE: The leasing of premises by a tenant to another party while retaining
some portion or interest in it.

SUBORDINATION CLAUSE: A clause used in a senior, or first mortgage or deed of
trust permitting it to be subordinated (place in lesser rank) to a subsequent
mortgage or deed or trust.

SUBROGATION: Replacing one person with another with respect to a legal right,
interest, or obligation.

SUCCESSION: The legal act or right to take property by inheritance. The legal
act of doing so.

SWEAT EQUITY: Labor or services put into improving real property and used in
place of money to gain title.

  T:
TAX DEED: A document that passes title in real property from a county
collector to a buyer at a public sale after property was seized for
non-payment of taxes.

TAX SALE: The sale of property, usually at auction, for non-payment of taxes
assessed against it.

TENANCY IN COMMON: Separate undivided interest ownership held by two or more
persons but without right of survivorship.

TENANCY IN PARTNERSHIP: The interest held by two or more partners in property
purchased by the partnership.

TIME-IS-OF-THE-ESSENCE CLAUSE: A clause in a contract that specifies a date
of completion of the terms and conditions and makes this date an essential
element of the agreement.

TITLE: A document furnishing proof of ownership of real property.

TITLE INSURANCE POLICY: A policy which insures ownership of real property --
or the priority and validity of an encumbrance on real property -- against loss
through defects in the title, or against liens and encumbrances that may
affect the title at the time the policy is issued.

TITLE SEARCH: The locating and investigating of all documents affecting the
ownership of a piece of property.

TORRENS: A system under which the title to land is registered with a registrar
of land titles. The name comes from Sir Robert Torrens, who introduced the
system in 1858 in Australia. After the first registration, it is not necessary)at
(at least in theory) to go beyond the registry to investigate the validity of
a title. This system is used in only few states.

TOWN HOUSE: An apartment unit having two floors, typically with the living
area and kitchen on the ground floor and the bedrooms on the second floor.

TOWNSHIP: In U.S. land survey: a plot of land six miles square, containing
36 sections each of which is one mile square. More common meaning: a division
of a county, constituting a unit of local government.

TRACT HOUSE: A house in a housing development.

TRADE FIXTURES: Articles necessary to the carrying on of a business or trade,
and which are considered personal property that can be removed by the owners
or sold for a specific and separate sum to the purchasers.

TRUST ACCOUNT: A special account which must be kept separate from any other,
and into which a trustee or other agent can deposit monies belonging to a
principal for safekeeping.

TRUST DEED: Same as Deed of Trust.

TRUSTEE: One who holds a trust deed.

TRUSTEE'S DEED: A document that passes title to real property from a trustee
in a trust deed to the buyer at a public sale that resulted from foreclosure.

TRUSTOR: One who conveys his property to a trustee to be held as security
under a trust deed.

  U:
UNDIVIDED INTEREST: Interest in a property that has not been divided (e.g.
tenancy in common, joint tenancy).

UNILATERAL CONTRACT: A contract in which only one party states an agreement to
do something.

UNLAWFUL DETAINER: A legal action to remove a tenant who remains after his
lease expires or after default in payment.

URBAN RENEWAL AND REDEVELOPMENT: A plan to improve substandard areas in
populated communities. Used by HUD for slum clearance.

USURY: Changing an interest rate higher than that permitted by law.

  V:
VALID: Legally sufficient. Authorized by law. Having binding force.

VALUATION: An opinion (usually expert) of an asset's worth. The act of
valuing by appraisal.

VARIANCE: A change of the zoning on a specific property from the existing
zoning in that district.

VERIFICATION: A statement that attests to the correctness of the contents of
document, signed before a duly qualified officer.

VEST: To give title to or to transfer ownership of property.

VESTED INTEREST: Unconditional, fixed interest in a property, for both now
and in the future; this includes the right to transfer the property at a later
date.

VESTING: A statement of the name(s) of the owner(s) of a property and the
type of ownership (e.g., joint tenancy, community property, sole and
separate property).

VOIDABLE: Able to be void, but not void without action.

  W:
WATA: An abbreviation for "who acquired title as."

WAIVE: To  relinquish or forego a right. To abandon.

WARRANTY: An assurance or promise that certain defects (e.g.. in an item of
real property) do not exist or will be corrected. To guarantee something.

WARRANTY DEED: A deed in which the grantor: (1) guarantees that he is giving
the grantee and his heirs good title free of encumbrances, and (2) agrees to
defend the title and possession against all claims. Also called a full
covenant or general warranty deed.

WILL: Written instructions on the disposition of property effective upon an
individual's death.

WITHOUT RECOURSE: A phrase frequently found in endorsements of negotiable
instruments. It means that the endorser does not assume responsibility or
liability for collection.

WRAP-AROUND MORTGAGE: A refinancing technique in which a lender assumes (or
continues) the payments on an existing mortgage loan, and gives a new loan
to the borrower at a higher interest rate. The new loan is said to "wrap
around" the old loan.

WRIT: A court order.

WRIT OF EXECUTION: A court order instructing an official to carry out a
judicial decision.

  X:
XYL or XYLO: Wood (i.e. xylophilous - growing or living in or on wood).

  Y:
YIELD: The profit or income that an investment will return.  The rate of
return. The money derived from any given business venture.

  Z:
ZONE: An area, region, or district marked off for specific use.

ZONING: An act of county or city officials which specifies the usage that
property can have in different zones -- such as business, residential, light
or heavy industrial -- and also regulating the type and density of
improvements allowed on property.