| Gift Deed - |
A deed for which the consideration is love
and affection and where there is no material consideration. |
| GI Loan - |
Analyzed by - and approval granted by -
Veterans' Administration. Also called VA loan. Only eligible veterans may apply. Veterans'
Administration guarantees a portion of the loan to the lender against loss. |
| Graduated Lease - |
A type of long-term lease agreement which
provides for a fixed rental fee during the initial period of the lease with increases
and/or decreases in rental amount at
stated times during the balance of the contract term. |
| Grant Deed - |
A technical legal term in a deed of
conveyance bestowing an interest in real property on another. The words "convey"
and "transfer" have the same effect. |
| Grantee - |
The purchaser; the person to whom a grant
is made. |
| Grantor - |
Seller of property; one who signs a deed. |
| Gross Income - |
Total income from property before any
expenses are deducted. |
| Guarantee of Title - |
The opinion of a title company backed by
its assets as to the true condition of the title to a certain piece of land at a
particular time, as shown by the public records in the recording office. |
| Homestead - |
A home upon which the owner or owners have
recorded a Declaration of Homestead, as provided by California statutes; protects home
against judgments up to specified amounts. |
| Hypothecate - |
To give a thing as security without the
necessity of giving up possession of it. To mortgage real property. |
| Implied - |
Not expressed in writing; presumed or
inferred.
|
| Income Property - |
Property which produces income from
residential or commercial rentals and profits attributable to real estate other than rent. |
| Incompetent - |
One who is mentally incompetent,
incapable; any person who, though not insane, is, by reason of old age, disease, weakness
of mind, or any other cause, unable unassisted to properly manage and take care of himself
or his property. |
| Injunction - |
A writ or order issued under the seal of a
court to restrain one or more parties to a suit or proceeding from doing an act which is
deemed to be inequitable or unjust in regard to the rights of some other party or parties
to the suit. |
| Installment Note - |
A note which provides that payments of a
certain sum or amount be paid on the dates specified in the instrument. |
| Instrument - |
A legal document in writing to create,
alter, modify or terminate a right. |
| Interest Rate - |
The percentage of a sum of money charged
for its use. |
| Investment - |
Money put in property or other ventures
with the expectation of making a profit, with sufficient security to return and protect
the capital; not speculation. |
| Involuntary Conveyance - |
Sheriff's deed; tax deed; an instrument
against the will of the owner. |
| Involuntary Lien - |
A lien imposed against property without
consent of owner. Examples: taxes, assessments, federal income tax liens, judgments, etc. |
| Joint Tenancy - |
Joint ownership by two or more persons
with right of survivorship. |
| Judgment - |
Final decision, determination, decree or
sentence of a court of law. |
| Land Contract - |
An agreement for the purchase or sale of
real property. (See agreement of sale, conditional sales contract.) |
Lease -
|
A contract between the owner of real
property, called the lessor, and another person, called the lessee, covering conditions
under which the lessee may occupy and use
the property. |
| Legal Description - |
A written description by which property
can be located definitely by reference to government surveys or approved recorded maps. |
| Leverage - |
The use of a small amount of cash to
control a large amount of property values. |
| Lien - |
A charge or encumbrance upon property for
the payment or discharge of a debt. |
| Life Estate - |
An interest in real property, which is
held for the duration of the life of some certain person. It may be limited by the life of
the person holding it or by the life of some other person. |
| Liquidate - |
Disposal of property or settlement of
debts. |
| Liquidity - |
The ability of property to be exchanged
for cash. |
| Lis Pendens - |
A notice recorded for the purpose of
warning all persons that the title or right of possession of certain real property is in
litigation. Gives constructive notice of such litigation. |
| Listing - |
An employment contract between owner and
broker authorizing broker to perform services involving the principal's property. |
| Loan Costs - |
The actual expense for services rendered
in obtaining a loan. Includes appraisal fees, attorney fees, survey fees, loan
commissions. Usually itemized for the benefit of the borrower. |
| M.A.I. - |
Designates a person who is a member of the
American Institute of Real Estate Appraisers |
| Marketable Title - |
Merchantable title; one free and clear of
objectionable liens or encumbrances. |
| Market Price - |
The price the property brings in a given
market. |
| Market Value - |
The price a willing buyer would pay and a
willing seller would accept, both being fully informed and the property being exposed for
sale for a reasonable time period. |
| Mechanic's Lien - |
A lien created by statute for the purpose
of securing priority of payment for the price or value of work performed and materials
furnished in construction or repair of improvements to land, and which attaches to the
land as well as the improvements. |
| Moratorium - |
Temporary suspension, usually by statute,
of the enforcement of liability for an obligation. |
| Mortgage - |
An instrument by which property is
hypothecated to secure the payment of a debt. |
| Mortgage Broker - |
One who, for a fee, brings together a
borrower and lender, and handles the necessary applications for the borrower to obtain a
loan against real property by giving a mortgage or deed of trust as security. |
| Mortgagor - |
One who borrows money on his property and
gives a mortgage as security. |
| Negotiable - |
Capable of being negotiated; assignable or
transferable in the ordinary course of business. |
| Net Listing - |
A listing which provides that the agent
may retain, as compensation for his services all sums received over and above a net price
to the owner. |
| Net Worth - |
Value remaining after subtracting the
liabilities from the assets of a company or an individual. |
| Nonconforming Use - |
A use that was lawfully established and
maintained, but no longer conforms to the use regulations of the zone in which it is
located because of a subsequent change in a zoning ordinance. |
| Notary Public - |
An official authorized by law to witness
or attest to an acknowledgment by a person who has executed an instrument. |
| Note - |
A signed written instrument acknowledging
a debt and promising payment. |
| Notice of Default - |
A notice filed to show that the borrower
under a mortgage or deed of trust is in default (behind on the payments). |
Notice of
Non-Responsibility - |
A notice provided by law designed to
relieve a property owner from responsibility for the cost of improvements ordered by
another person |
| Notice of Rescission - |
A recorded notice to rescind a notice of
default of a mortgage or deed of trust. |
| Obsolescence - |
Loss in value due to reduced desirability
and usefulness of a structure because it has become old fashioned and not in keeping with
modern needs or because of adverse social or economic influences. |
| Offer and Acceptance - |
A contract used in the sale of real
property; a deposit receipt or exchange agreement. |
| Offer to Buy - |
An agreement between owner and purchaser
as to the price, terms, conditions and date of occupancy. Usually prepared by a Realtor or
attorney. |
| Open-End Mortgage - |
One which provides that the outstanding
balance can be increased in order to advance additional loan funds to the borrower, up to
the original sum of the note. |
| Open Listing - |
An authorization given by a property owner
to a real estate agent wherein said agent is given the non-exclusive right to secure a
purchaser; open listings may be given to any number of agents without liability to
compensate any except the one who first secures a buyer ready, willing and able to meet
the terms of the listing, or secures the acceptance by the seller of a satisfactory offer |
| Option - |
A right given for a consideration to
purchase or lease a property upon specified terms within a specified time. |
| Oral Contract - |
A verbal agreement; one which is not
reduced to writing. |
| Percolation - |
The seepage of water through soil; the
soil's ability to absorb to water or other liquid. |
| Personal Property - |
Any property which is not real property. |
| Planned Development - |
Five or more individually owned lots where
one or more other
parcels are owned in common or there are reciprocal rights in one or more other parcels. A
subdivision. |
| Plat - |
A map or plan of a certain parcel of land.
|
| Plat Book - |
A book showing the lots and legal
subdivisions of an area. |
| Pocket Listing - |
A trade term. An open listing that a real
estate salesperson "pockets" or keeps hidden from his/her associates. |
| Possessory Interest - |
Right to possess. |
| Power of Attorney - |
An instrument authorizing a person to act
as the agent of the person granting it. |
| Preliminary Title Report - |
A report showing the condition of title
before a sale or loan transaction. After completion of the transaction, a title insurance
policy is issued. |
| Prepayment Penalty - |
The percentage a lender may require to be
paid in addition to the unpaid principal balance when a loan is paid off ahead of
schedule. |
| Prescription - |
Obtaining title to property by adverse
possession by occupying it for the period determined by law to bar action for recovery. |
| Prima Facie - |
Presumptive on its face; true, valid, or
sufficient at first impression. |
| Principal - |
The employer of an agent. |
| Promissory Note - |
The document signed by the borrower
promising repayment of the loan showing the amount of monthly payments, interest rate,
first payment date, last payment date, and the late charge and prepayment provisions. |
| Proration of Taxes - |
To divide or prorate the taxes equally or
proportionately to time of use. |
| Puffing - |
The sometimes exaggerated buildup a
salesperson or the seller may give to property. It is recognized in law as an opinion and
not necessarily representing the facts |
| Purchase Money Encumbrance - |
(1) A trust deed or mortgage given by the
buyer to the
seller as part or all of the purchase price of the property. (2) A trust deed or mortgage
given to a third party as security for the borrowing of money used to purchase less than
five residential units, one of which is to be occupied by the purchaser. |
| Quiet Title - |
A court action brought to establish title;
to remove a cloud on title. |
| Quitclaim Deed - |
A deed used to remove clouds on title by
relinquishing any right, title or interest that the grantor may have. |
| Ratification - |
The adoption or approval of an act
performed on behalf of a person without previous authorization. |
Real Estate Investment
Trust - |
A special arrangement under Federal and
State law whereby
investors may pool funds for investments in real estate and mortgages and yet escape
corporation taxes; requires one hundred persons or more. |
| Realtor - |
A real estate broker holding active
membership in a real estate board affiliated with the National Association of Realtors. |
| Reconveyance - |
The transfer of the title of land from one
person to the immediately preceding owner. This instrument is commonly used in California
when the performance or debt is satisfied under a deed of trust and the trustee conveys
the title he has held back to the owner. |
| Redemption - |
The buying back of one's property after it
has been lost through foreclosure. Payment of delinquent taxes after sale to the
State. |
| Rescission of Contract - |
The annulling, revocation or repealing of
a contract by mutual
consent of the parties to the contract or for cause by either party to the contract. |
| Restriction - |
The term, as used in relation to real
property, means that the owner of real property is restricted or prohibited from doing
certain things relating to the property or using the property for certain purposes. |
| Reversion - |
The right to future possession or
enjoyment by the person or his heirs, creating the preceding estate. |
| Reversionary Interest - |
A type of interest a person may have in
lands or other property upon the termination of the preceding estate. |
| Right of Survivorship - |
Right to acquire the interest of a
deceased joint owner. Distinguishing characteristic of a Joint Tenancy Deed. |
| Right-of-Way - |
A privilege operating as an easement upon
land, whereby the owner does, by grant or by agreement, give to another the right to pass
over his land. |