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Assessments - The amount of tax or
special payment due to a municipality or association.
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Balloon - The final payment on a mortgage,
trust deed or land contract when that payment is greater than the
preceding installment payments and pays the loan in full.
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Cloud on Title - ANy condition revealed
by a title search that adversely affects the title to a property.
Usually cloud on title cannot be removed except by a quit claim deed,
release or court action.
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Deed - A written document that conveys
or transfers title from one party to another. There are various types
of deeds; however the two most commonly used are Warranty Deed and
Quit Claim Deed.
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Escrow Account - An account in which
a prescribed amount of money is deposited each time a payment is collected
to be used for paying real estate taxes and/or insurance.
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Foreclosure - A termination of all
rights of a mortgagor in the property covered by a Mortgage. Statutory
foreclose is effected without recourse to courts but must conform
to applicable laws.
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Grantor - the person conveying an interest
in property. For example, in a land contract sale the Grantor is most
often referred to as the Seller.
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Hereditaments - Any property, whether
real or person, tangible or intangible, that may be inherited.
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Interest Rate - The percentage of money
charged for its use. For example, a Seller may charge a Purchaser
10% interest on the unpaid balance of a mortgage, trust deed or land
contract.
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Judgment - A decree of a court stating
that one individual is indebted to another or a certain fixed amount.
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Land Contract - A real estate installment
sale arrangement whereby the Buyer may use, occupy, and enjoy land,
but no Deed is given by the Seller (no Title passes) until all or
a specified part of the sale price has been paid.
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Mortgage - A pledge of real property
as security for the payment of a debt. With a mortgage, the Borrower
retains possession and use of the property. A mortgage is typically
signed simultaneously with a note.
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Notice of Default - A letter sent to
a defaulting party as a reminder of the default. Such a notice may
state a grace period and the penalties for failing to cure the default.
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Opinion of Title - A certificate, generally
from an attorney, as to the validity of the title of property being
sold.
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Principal - The original amount for
the total due on a mortgage, trust deed or land contract; the principal
portion of a payment is that portion which is not interest.
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Quit Claim Deed - A deed that transfers
only such interest, title or right as a Grantor may have at the time
the conveyance is executed; a deed without representations or warranties
as to the nature of the rights conveyed.
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Real Estate - Land and everything attached
to it.
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Seller - Individual who has sold real
estate; also referred to as Vendor.
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Trustee - One who holds property in
trust for another to secure performance of an obligation.
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Underlying Debt - An original loan
that is still in existence. This loan may be owned on a mortgage,
trust deed or land contract.
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Vendee - A person who buys property;
another word for Purchaser.
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Warranty Deed - A deed that conveys
or transfers title from one party to another with covenants assuring
that the title transferred is free from all encumbrances.
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Yield - The rate of return on an investment.
For example, if one invests $100 and receives $15 after the first
year, one's yield is 15% on the invested cash for the first year.
