| By permission of
Craig Buck, Esq.
ABSTRACT
The notes made by a title examiner based on his examination
of the land records. These notes are a concise summary
of the transactions affecting the property. The title
agency produces a BINDER from the information in the
abstract.
ACCELERATION CLAUSE
A condition in a real estate financing instrument giving
the lender the power to declare all sums owing lender
immediately due and payable upon the happening of an
event, such as the sale of the property, or a delinquency
in the repayment of the note.
ADJUSTMENT INTERVAL
On an adjustable rate mortgage, the time between changes
in the interest rate and/or monthly payment, typically
one, three or five years, depending on the index.
AMORTIZED LOAN
A loan to be repaid, interest and principal, by a series
of regular payments that are equal or nearly equal,
without any special balloon payment prior to maturity.
AMORTIZATION
The periodic principal pay down of a loan.
ANNUAL PERCENTAGE RATE (A.P.R.)
Is an interest rate reflecting the cost of a mortgage
as a yearly rate. This rate is likely to be higher than
the stated note rate or advertised rate on the mortgage,
because it takes into account point and other credit
costs. The APR allows home buyers to compare different
types of mortgages based on the annual cost for each
loan.
APPURTENANCE
Anything attached to the land or used with it passing
to the new owner.
ASSESSMENT
A local tax levied against a property for a specific
purpose, such as a sewer or street lights.
ASSIGN
To transfer interest.
ASSIGNEE
One who receives an assignment or transfer of rights.
An assignment of a contract transfers the right to buy
property.
ASSIGNOR
The one who assigns to another person.
ASSUMPTION
The agreement between buyer and seller where the buyer
takes over the payments on an existing mortgage from
the seller. Assuming a loan can usually save the buyer
money since this is an existing mortgage debt, unlike
a new mortgage where closing costs and new, possibly
higher, market-rate interest charges will apply.
ATTORNEY IN FACT
A type of agency relationship where one person holds
a POWER OF ATTORNEY allowing him to execute legal documents
on behalf of another. Decisions made by the attorney
in fact are binding on the principal.
BALLOON(payment) mortgage
Usually a short-term fixed-rate loan which involves
small payments for a certain period of time and one
large payment for the remaining amount of the principal
at a time specified in the contract.
BENEFICIARY
A person named to receive a benefit from a TRUST. A
contingent beneficiary has conditions attached to his
rights, usually someone else must die first.
BINDER
A title insurance binder is the written commitment of
a title insurance company to insure title to the property
subject to the conditions and exclusions shown on the
binder.
BLANKET MORTGAGE
A mortgage covering at least two pieces of real estate
as security for the same mortgage. This sort of loan
is more common for commercial property or "special case"
loans.
BOND
An amount of money, often posted with the Court, to
guarantee against loss as a result of a possible claim.
For example, if there is a LIEN against the property,
the owner may post a bond and the lien is removed from
the property and the parties argue over the money rather
than the property.
BROKER
An individual in the business of assisting in arranging
funding or negotiating contracts for a client buy who
does not loan the money himself. Brokers usually charge
a fee or receive a commission for their services.
BUY-DOWN
When the lender and/or the home builder subsidized the
mortgage by lowering the interest rate during the first
few years of the loan. While the payments are initially
low, they will increase when the subsidy expires. These
are sometimes used to qualify borrowers for a loan amount
that they would not otherwise qualify for but will be
able to pay in subsequent years as their income increases.
CAPITAL GAINS
Profit earned from a sale of real estate.
CAPITALIZATION
A method used to estimate value of a property based
on the rate of return on investment.
CASHFLOW
The amount of cash derived over a certain period of
time from an income-producing property. The cash flow
should be large enough to pay the expenses of the income-producing
property (mortgage payment, maintenance, utilities,
etc.).
CAVEAT EMPTOR
Buyer beware. The buyer must inspect the property and
satisfy himself that it is adequate for his needs. The
seller is under no obligation to disclose defects but
may not actively conceal a known defect or lie if asked.
CERTIFICATE OF ELIGIBILITY
The document given to qualified veterans which entitles
them to VA guaranteed loans for homes, business, and
mobile homes. Certificates of eligibility may be obtained
by sending DD-214 (Separation Paper) to the local VA
office with VA form 1880 (request for Certificate of
Eligibility).
CERTIFICATE OF SATISFACTION
A document signed by the Noteholder and recorded in
the land records evidencing release of a DEED OF TRUST,
MORTGAGE or other lien on the property.
CERTIFICATE OF TITLE
A written opinion by an attorney setting forth the status
of title to the property as shown on the public records.
The certificate does not certify as to matters not of
record and affords no protection unless the author was
negligent. Compare, TITLE INSURANCE.
CHATTEL
Personal property.
CLOSING
The meeting between the buyer, seller and lender or
their agents where the property and funds legally change
hands. Also called settlement. Closing costs usually
include an origination fee, discount points, appraisal
fee, title search and insurance, survey, taxes, deed
recording fee, credit report and notary fees.
CLOUD ON TITLE
An evidence of encumbrances.
COLLATERAL
Property pledged to secure a loan.
CONSTRUCTION LOAN
A short-term interim loan to pay for the construction
of buildings or homes. These are usually designed to
provide periodic disbursements to the builder as he
progresses. These are generally done by lenders with
offices local to the site of the construction. This
enables the lender or their agent to monitor the progress
of the construction.
CONTRACT FOR DEED
Also known as a Land Contract or Land Installment Contract.
A method of financing where title remains in the Seller's
name until the Buyer has paid the full purchase price.
A Contract for Deed will normally trigger the DUE ON
SALE CLAUSE in a DEED OF TRUST or MORTGAGE but Veterans
Administration regulations specifically allow Contracts
for Deed without invoking the DUE ON SALE CLAUSE.
CONVENTIONAL LOAN
A mortgage not insured by FHA or guaranteed by the VA.
COST APPROACH
A method used by an appraiser to estimate replacement
costs of improvements less depreciation.
COTENANCY
Ownership in the same land by more than one person.
See, TENANTS IN COMMON, JOINT TENANTS, TENANTS BY THE
ENTIRETY.
DEBT-TO-INCOME RATIO
The ratio, expressed as a percentage, which results
when a borrower's monthly payment obligation on long-term
debts is divided by his or her gross monthly income.
See housing expenses-to-income ratio.
DEED
The written document conveying real property. The Deed
must be executed (signed), ACKNOWLEDGED, and DELIVERED
to the Grantee. Once recorded at the Courthouse, the
original piece of paper is not needed to convey title
in the future.
DEED OF TRUST
A voluntary lien to secure a debt deeding the property
to Trustees who foreclose, sell the property at public
auction, in the event of default on the Note the Deed
of Trust secures. Compare, MORTGAGE.
DEFAULT
Failure to meet legal obligations in a contract, specifically,
failure to make the monthly payments on a mortgage.
DEFERRED INTEREST
When a mortgage is written with a monthly payment that
is less than required to satisfy the note rate, the
unpaid interest is deferred by adding it to the loan
balance. See negative amortization
DEFICIENCY JUDGMENT
If the foreclosure sale does not bring sufficient proceeds
to pay the costs of sale and the note in full, the holder
of the note may obtain a judgment against the maker
for the difference.
DELIVERY
The final, unconditional and absolute transfer of a
DEED to the Grantee so that the Grantor may not revoke
it. A Deed, signed but held by the Grantor, does not
pass title.
DOWER
A spouse's interest in the property of a deceased spouse.
DUE ON SALE CLAUSE
A clause in the MORTGAGE that makes the loan non-assumable
by providing the noteholder may call the loan immediately
due and payable upon a sale or conveyance of an interest
in the property. The FNMA/FHLMC form provides that a
lease of more than three years or a lease with an option
to buy also triggers this provision.
EARNEST MONEY
A good faith deposit.
EASEMENT
The right to use the land of another for a specific
limited purpose. Examples include utility lines, driveways,
and INGRESS AND EGRESS. Easements can be temporary or
permanent.
EMINENT DOMAIN
The power of the state to take private property for
public use upon payment of just compensation
ENCROACHMENT
The physical intrusion of a structure or improvement
on the land of another. Examples include a fence or
driveway over the property line
ENCUMBRANCE
Any lien, liability or charge against a property.
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Is a federal law that requires lenders and other creditors
to make credit equally available without discrimination
based on race, color, religion, national origin, age,
sex, marital status or receipt of income from public
assistance programs.
EQUITY
The difference between the fair market value and current
indebtedness, also referred to as the owner's interest.
The value an owner has in real estate over and above
the obligation against the property.
EQUITY SHARING
A form of joint ownership between an owner/occupant
and an owner/investor. The investor takes depreciation
deductions for his share of the ownership. The occupant
receives a portion of the tax write-offs for interest
and taxes and a part of his monthly payment is treated
as rent. The co-owners divide the profit upon sale of
the property. Compare, JOINT OWNERSHIP AGREEMENT.
ESCHEAT
Property that reverts to the state when an individual
dies without heirs and without a will.
ESCROW
A disinterested third party holds funds or documents
on behalf of others and subject to their instructions.
EXECUTOR
A person named in a will to carry out its terms and
administer the estate. The feminine form is Executrix.
Compare, ADMINISTRATOR.
FEE SIMPLE
The absolute total interest in real property. Compare,
LIFE ESTATE, REVERSION.
FEDERAL HOME LOAN MORTGAGE CORPORATION
An affiliate of the Federal Home Loan Bank which creates
a secondary money market in conventional residential
loans and in FHA and VA loans by purchasing mortgage
loans from members of the Federal Reserve System and
the Federal Home Loan Bank Systems.
FIDUCIARY RELATIONSHIP
A relationship of trust and confidence between principal
and agent; lawyer and client; doctor and patient; etc.
FORECLOSURE
The process by which a lender sells property securing
a loan in order to repay the loan. Under a DEED OF TRUST,
foreclosure is by public auction after appropriate advertisement.
A MORTGAGE may require the lender to obtain Court approval
prior to sale.
FULLY INDEXED NOTE RATE
As related to adjustable rate mortgages, the index value
at the time of application plus the gross margin stated
in the note.
GENERAL WARRANTY DEED
The Grantor warrants title against all claims.
GRANTEE
The person receiving an interest in property. Compare,
GRANTOR
GRANTOR
The person granting, selling or giving up an interest
in property. Compare, GRANTEE.
GRADUATED PAYMENT MORTGAGE (GPM)
A type of flexible-payment mortgage where the payments
increase for a specified period of time and then level
off.
GROSS INCOME
Income before expenses.
GROSS MARGIN
With regard to an adjustable rate mortgage, an amount
expressed as percentage points, stated in the note which
is added to the current index value on the rate adjustment
date to establish a new note rate.
GROUND LEASE
The owner grants a long-term lease of the land (usually
99 years) and allows the lessee to build and use the
land as agreed. At the end of the term, the land and
all improvements revert to the owner.
GUARDIAN
One appointed by the Court to administer the affairs
of a minor. A guardian ad litem is appointed to protect
one's interest in a particular legal action. See, CONSERVATOR.
GROSS INCOME
Income before expenses.
HAZARD INSURANCE
A form of insurance in which the insurance company protects
the insured from specified losses, such as fire, windstorm
and the like
HIATUS
A gap or space left between two parcels of land and
not included in the legal description of either parcel.
Similar terms are Gaps and Gores.
HOMESTEAD DEED
A declaration filed in the land records that an individual
is asserting his homestead exemption. That exemption
allows one to protect some assets (amount varies by
state) against the claims of creditors.
HOUSING RATIO
The ratio, expressed as a percentage, which results
when a borrower's housing expenses are divided by his/her
gross monthly income. See debt-to-income ratio.
IMPOUND
That portion of a borrower's monthly payments held by
the lender or servicer to pay for taxes, hazard insurance,
mortgage insurance, lease payments, and other items
as they become due. Also known as reserves.
INCOME APPROACH
A method used by an appraiser to estimate the value
of a property by calculating its generated income.
INDEMNITY
A protection against actual loss or damage as a result
of the matter mentioned. An indemnity is not an absolute
guarantee that something won't happen; it states the
terms under which an actual loss will be compensated.
INDEX
A published interest rate against which lenders measure
the difference between the current interest rate on
an adjustable rate mortgage and that earned by other
investments (such as one-, three-, and five-year U.S.
Treasury security yields, the monthly average interest
rate on loans closed by savings and loan institutions,
and the monthly average costs-of-funds incurred by savings
and loans), which is then used to adjust the interest
rate on an adjustable mortgage up or down.
INGRESS AND EGRESS
Applied to EASEMENTS, meaning the right to go in and
out over a piece of property but not the right to park
on it.
INSURABLE TITLE
Title subject to a defect or claim which a title insurance
company is willing to insure against. Compare, MARKETABLE
TITLE.
INSURED CLOSING LETTER
An indemnity given to a lender from a title insurance
company, agreeing to be responsible if the closing agent
does not follow the lender's instructions or misappropriates
the loan proceeds. Lenders usually require an insured
closing letter be on file for each settlement.
INTERIM FINANCING
A construction loan made during completion of a building
or a project. A permanent loan usually replaces this
loan after completion.
INITIAL NOTE RATE
With regard to an adjustable rate mortgage, the note
rate upon origination. This rate may differ from and
is usually less than the fully indexed rate.
INTESTATE
An estate without a Will. Compare, TESTATE
JOINT OWNERSHIP AGREEMENT
An agreement between owners defining their rights, ownership,
monetary obligations and responsibilities. This could
be between and investor and an occupant or the occupants.
If an investor is involved, the investor does not take
depreciation deductions and none of the occupant's payment
is deemed rent for tax purposes. Compare, EQUITY SHARING.
JOINT TENANTS
Two or more persons own a property. Joint tenants with
the common law right of survivorship means the survivor
inherits the property without reference to the decedent's
will. Creditors may sue to have the property divided
to settle claims against one of the owners. Compare,
TENANTS IN COMMON, TENANTS BY THE ENTIRETY.
JUDGMENT LIEN
A judgment is a lien against all real property owned
by the judgment debtor in the county where the judgment
is docketed (recorded).
JUMBO LOAN
A loan which is larger (more than $207,000 as of 1/1/96)
than the limits set by the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation.
Because jumbo loans cannot be funded by these two agencies,
they usually carry a higher interest rate.
JUNIOR MORTGAGE
Mortgage of lesser priority than the prior recorded
mortgage.
LAND CONTRACT
See, CONTRACT FOR DEED.
LEASE HOLD ESTATE
Tenant's right of possession for a specific period of
time under a lease agreement. (Common in Hawaii.)
LIEN
A claim or charge against property. Property is said
to be encumbered by a lien and the lien must be removed
to clear title.
LIFE CAP
With regard to an adjustable rate mortgage, a ceiling
the note rate cannot exceed over the life of the loan.
LIFE ESTATE
The right to use, occupy and own for the life of an
individual. Compare, FEE SIMPLE.
LOAN-TO-VALUE RATIO (LTV)
The relationship between the amount of the mortgage
loan and the appraised value of the property expressed
as a percentage.
LIS PENDENS
Recorded document showing a pending litigation filed
in the court. These show up on the preliminary title
report and must be dealt with when transferring ownership
or refinancing.
LOAN APPLICATION
The loan application is the source of information on
which the lender bases a decision to make the loan;
defines the term of the loan, gives the name(s) of the
borrower(s), place of employment, salary, bank accounts
and credit references, and describes the real estate
that is to be mortgaged. It also stipulates the amount
of the loan being applied for and the repayment terms.
MAJORITY
The age at which a person may handle his own affairs.
MARGIN
The amount a lender adds to the index on an adjustable
rate mortgage to establish the adjusted interest rate.
MARKETABLE TITLE
Title without defects or claims so as to be readily
accepted without fair or reasonable doubt. Compare,
INSURABLE TITLE.
MARKET VALUE
The highest price that a buyer would pay and the lowest
price a seller would accept on a property. Market value
may be different from the price a property could actually
be sold for at a given time.
MECHANIC'S LIENS
The right of an unpaid contractor, laborer or supplier
to file a lien against property to recover the value
of his work
METES AND BOUNDS
A means of describing land by directions and distances
rather than reference to a lot number. Generally used
when land has not been subdivided into lots.
MORTGAGE
A voluntary lien filed against property to secure a
debt, usually a loan. To foreclose, the lender must
often institute a court action and the borrower may
have the right to reclaim the property after foreclosure.
Compare, DEED OF TRUST.
MORTGAGE INSURANCE
Money paid to insure the mortgage when the down payment
is less than 20 percent. See private mortgage insurance,
FHA mortgage insurance. Mortgagee, The lender
MORTGAGOR
The borrower or home owner.
NEGATIVE AMORTIZATION
Occurs when your monthly payments are not large enough
to pay all the interest due on the loan. This unpaid
interest is added to the unpaid balance of the loan.
The danger of negative amortization is that the home
buyer ends up owing more than the original amount of
the loan.
NET EFFECTIVE INCOME
The borrower's gross income minus federal income tax.
NET WORTH
The difference between total assets and total liabilities.
NON-ASSUMPTION CLAUSE
A statement in a mortgage contract forbidding the assumption
of the mortgage without the prior approval of the lender.
Note: The signed obligation to pay a debt, as a mortgage
note.
A loan in default. A loan of which no payments are
being made and in danger of resulting in foreclosure.
NOTE
A written promise to pay a certain sum of money at a
certain time. A negotiable note starts "Pay to the order
of" and is transferable by endorsement similar to a
check.
NOTARY PUBLIC
One authorized by law to acknowledge and certify documents
and signatures.
OFFER
A proposal; after acceptance it becomes a contract.
OPTION
A right given for a consideration to keep an offer to
purchase or lease open for specific time.
PARTITION
The forced division of land among parties who were formerly
co-owners. A partition suit may ask to divide the land,
or if that is not practical, sell the land and divide
the proceeds.
PAY-OFF AMOUNT
A total balance; amount of a full payment on existing
loan or lien.
PLAT
A map showing the division of a piece of land with lots,
streets and, if applicable, common area.
PIPESTEM LOT
A lot connected to a public street by a narrow strip
of land. Usually several adjacent pipestems are combined
to form one driveway with each owner having a mutual-reciprocal
easement to use and maintain the driveway to the street.
PITI
Principal, Interest, Taxes and Insurance. Also called
monthly housing expense.
POINTS (loan discount points)
Prepaid interest assessed at closing by the lender.
Each point is equal to 1 percent of the loan amount
(e.g., two points on a $100,000 mortgage would cost
$2,000).
POWER OF ATTORNEY
A written document authorizing another to act on his
behalf as an ATTORNEY IN FACT. One does not need to
be a licensed attorney to act as an attorney in fact,
but power of attorney forms are powerful legal documents
that should be used only under advice of a licensed
attorney at law.
PREPAYMENT PENALTY
An additional charge imposed by the lender for paying
off a loan before the due date.
PRIME RATE
The most favorable interest rate charged by lenders
on short-term loans to qualified customers.
PRIVATE MORTGAGE INSURANCE (PMI)
In the event that you do not have a 20 percent down
payment, lenders will allow a smaller down payment-
as low as 3 percent in some cases. With the smaller
down payment loans, however, borrowers are usually required
to carry private mortgage insurance. Private mortgage
insurance will usually require an initial premium payment
and may require an additional monthly fee depending
on your loan's structure.
PROBATE
Court process to prove a valid will.
PROMISSORY NOTE
A written unsecured note promising to pay a specified
amount of money on demand, transferable to a third party.
PUBLIC SALE
Sale, auction open to the public.
PURCHASE MONEY MORTGAGE (PMM)
Seller financing as a part of the purchase price.
QUIET TITLE
A suit brought to remove a claim or objection on title.
QUITCLAIM DEED
A deed releasing whatever interest you may hold in a
property but making no warranty whatsoever. Compare,
SPECIAL WARRANTY DEED and GENERAL WARRANTY DEED
REISSUE RATE
A discounted rate for title insurance when the title
was previously insured with an owner's title insurance
policy issued within the last ten years.
RECISION
The cancellation of a contract. With respect to mortgage
refinancing, the law that gives the home owner three
days to cancel a contract in some cases once it is signed
if the transaction uses equity in the home as security.
RECORDING FEES
Money paid to the lender for recording a home sale with
the local authorities, thereby making it part of the
public records.
REFINANCE
Obtaining a new mortgage loan on a property already
owned, often to replace existing loans on the property.
REMAINDER
An interest in land that is postponed until the termination
of some other interest such as a LIFE ESTATE. Compare,
FEE SIMPLE.
RESPA
Short for the Real Estate Settlement Procedures Act.
RESPA is a federal law that allows consumers to review
information on known or estimated settlement costs once
after application and once prior to or at a settlement.
The law requires lenders to furnish the information
after application only.
REVERSION
A provision in a conveyance that the land will return
to the grantor upon the happening of an event or contingency.
Compare, FEE SIMPLE.
RIPARIAN RIGHTS
The rights of an owner of land adjacent to water.
SBA
Small Business Administration.
SECONDARY MARKET
A market for the purpose of purchase and sale of existing
mortgages usually at discounted prices to provide greater
liquidity to the mortgagee/lender.
SECOND MORTGAGE
A mortgage recorded after a First mortgage, ranks second
in priority.
SPECIAL ASSESSMENT
Additional tax imposed by the local government for public
improvements such as new streets, etc.
SPECIAL WARRANTY DEED
The seller warrants he has done nothing to impair title
but makes no warranty before his ownership. Compare,
GENERAL WARRANTY DEED and QUITCLAIM DEED.
SPECIFIC PERFORMANCE
A legal action to complete the performance of a contract.
STATUTE OF LIMITATIONS
The time period to file a law suit to enforce a claim
or it is barred by law.
SUBDIVISION
Dividing land into lots and streets. The owner signs
a PLAT and Deed of Resubdivision which is recorded among
the land records. The state and county have strict requirements
for subdivision of land.
SUBJECT TO
Taking title to property with a lien but not agreeing
to be personally responsible for the lien, if the holder
who forecloses the lien can take the property but may
not collect any money from the owner who took "subject
to." Compare, ASSUMPTION.
TENANTS BY THE ENTIRETY
A husband and wife own the property with the common
law right of survivorship so, if one dies, the other
automatically inherits. One may not sue the other to
PARTITION the property. A creditor of one may not claim
the property or the proceeds of sale. Compare, TENANT
IN COMMON, JOINT TENANTS.
TENANTS IN COMMON
Two or more persons own the property with no right of
survivorship. If one dies, his interest passes to his
heirs, not necessarily the co-owner. Either party, or
a creditor of one, may sue to PARTITION the property.
Compare, TENANTS BY THE ENTIRETY, JOINT TENANTS.
TESTATE
To die with a Will. Compare, INTESTATE.
TESTATOR
One who makes out a last will and testament. The feminine
form is Testatrix.
TITLE
A document that gives evidence of an individual's ownership
of property.
TITLE INSURANCE
Insurance that provides an INDEMNITY against loss or
damage as a result of defect in title ownership to a
particular piece of property. Title insurance covers
mistakes made during a TITLE SEARCH as well as matters
which could not be found or discovered in the public
records such as missing heirs, mistakes, fraud and forgery.
Compare, CERTIFICATE OF TITLE.
TITLE SEARCH
An examination of the public records, including court
decisions, to disclose facts concerning the ownership
of real estate. The title examiner prepares an ABSTRACT
and the title agent prepares a BINDER but decisions
regarding the legal sufficiency of title or questions
requiring legal interpretation must be resolved by a
licensed attorney at law.
TRUST
A right to or in property held for the benefit of another.
A trust may be written or implied. An implied trust
is called a Constructive Trust.
TRUSTEE
One who holds property in Trust for another.
TRUTH-IN-LENDING
A federal law requiring disclosure of the Annual Percentage
Rate to home buyers shortly after they apply for the
loan. Also known as Regulation Z.
TWO-STEP MORTGAGE
A mortgage in which the borrower receives a below-market
interest rate for a specified number of years (most
often five or seven), and then receives a new interest
rate adjusted (within certain limits) to market conditions
at that time. the lender sometimes has the option to
call the loan due with 30 days' notice at the end of
five or seven years.
UNDERWRITING
The decision whether to make a loan to a potential home
buyer based on credit, employment, assets, and other
factors and the matching of this risk to an appropriate
rate and term or loan amount.
USURY
Charging more than the maximum legally permitted rate
of interest.
VA LOAN
A long-term, low- or no-down-payment loan guaranteed
by the Department of Veterans Affairs. Restricted to
individuals qualified by military service or other entitlements.
VARIABLE RATE MORTGAGE (VRM)
See adjustable rate mortgage
VERIFICATION OF DEPOSIT (VOD)
A document signed by the borrower's financial institution
verifying the status and balance of his/her financial
accounts.
VERIFICATION OF EMPLOYMENT (VOE)
A document signed by the borrower's employer verifying
his/her position and salary.
WAIVER
Relinquishment of a right.
WARRANTY DEED
A deed conveying the title to a property with a warranty
of clean, clear marketable title.
WRAPAROUND
The debt secured includes an existing debt already on
the property. The payments made to the holder of the
wraparound include payments due on the existing loan
and the holder must forward the appropriate portion
of each payment to the existing noteholder. Often used
to avoid a PREPAYMENT PENALTY or a DUE ON SALE CLAUSE.
Can refer to a wraparound DEED OF TRUST or CONTRACT
FOR DEED.
ZONING
Regulation of private land use and development by local
government.
A special thanks to Craig E. Buck for granting the
right to reproduce this dictionary on our site. For
further information visit his web site at: http://members.aol.com/realawbuck
This dictionary started out based on an on-line dictionary
produced by Craig E. Buck. The following pertains thereto:Copyright
1994, Craig E. Buck. All Rights Reserved. No part of
this material may be reproduced, transmitted or stored
in any manner, in any form or by any means without the
express written permission of the author.
Reproduced here by permission of Craig E. Buck, Attorney
at Law.
ABOUT THE AUTHOR:
Craig E. Buck is a Virginia real estate attorney, Chairman
of the Northern Virginia Association of REALTORS Standard
Forms Committee and author of The Real Estate Contracts
Handbook. His office address is 8404 Arlington Blvd.,
Suite 103, Fairfax, Va. 22031.
"This publication is designed to provide accurate
and authoritative information in regard to the subject
matter covered. It is provided with the understanding
that the publisher is not engaged in rendering legal,
accounting, or other professional services. If legal
advice or other expert assistance is required, the services
of a competent professional person should be sought."
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