ABSTRACT OF TITLE
A historical summary of all of the recorded instruments and proceeding that affect the title of property.


ACRE

A 2-dimmensional measure of land equaling 160 square rods, 10 square chains, 4,840 square yards, or 43,560 square feet. (length x width)


ADDENDUM

Something added, as an attachment to a CONTRACT.


AMORTIZATION SCHEDULE

A table that shows the periodic payment, interest and principal requirements and unpaid loan balance for each period of the life of a loan.


ANNUAL PERCENTAGE RATE

The effective rate of interest for a loan per year, disclosure of which is required by the TRUTH-INLENDING-LAW.


APPRECIATION

An increase in the value of property. Causes of appreciation for real estate my include inflation, demand pressures for land and buildings, a physical addition, modernization, removal of a negative factor from with or outside a property, and SWEAT EQUITY.


ASSESSED VALUATION

The value established for property tax purposes.


BALLOON PAYMENT

The final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.


BID

The amount someone offers to pay.


BREACH OF CONTRACT

A violation of the terms of a legal agreement.


CLEAR TITLE a MARKETABLE TITLE

A one free of CLOUDS and disputed interests.


CLOSING

1. The act of transferring ownership of a property from seller to buyer in accordance with a sales contract.
2. The time when a closing takes place.


CLOSING COSTS

Various fees and expenses payable by the seller and buyer at the time of a real estate CLOSING.


CLOUD ON THE TITLE

An outstanding claim or ENCUMBRANCE that, if valid, would affect or impair the owner's TITLE.


CONDITIONS, CONVENANTS, AND RESTRICTIONS

(CCRs) often found in a condominium or subdivision, these are rules, written into the deeds or bylaws, that define how property may be used. They prevent property owners from making change to their individual properties that could result in an unattractive or inharmonious setting, which could adversely affect other owners.


CONTRACT FOR DEED

Same as LAND CONTRACT.


CONVEYANCE

The transfer of the TITLE of real estate from one to another, the means or medium by which title of real estate is transferred.


DEBT

An obligation to pay.


DEED

A written document, properly signed and delivered, that conveys TITLE to real property.


DEED RESTRICTION

A clause in a deed that limits the use of land.


DOWN PAYMENT

The amount one pays for property in addition to the DEBT incurred.


EASEMENT

The right, privilege, or interest that one party has in the land of another.


ENCUMBERANCE

Any right to or interest in land that affects its value. Includes outstanding MORTGAGE loans, unpaid taxes, EASEMENTS, DEED RESTRICTIONS.


FINANCING

Borrowing money to buy property.


FUN

An emotion or feeling of exuberance normally at its highest level when at STOCKTON LAKE.


FRONTAGE

The linear distance of a piece of land along a lake, river, street, or highway.


GOVERNMENT RECTANGULAR SURVEY

A rectangular system of land SURVEY that divides a district into 24-square mile QUADRANGELS from the MERIDIAN (north-south line) and the BASELINE (east-west line); the tracts are divided into 6-mile-square parts called townships, which are in turn divided into 36 tracts, each 1 mile square, called SECTIONS.


GRANT

A technical term used in deeds of CONVEYANCE of property to indicate a transfer.


GRANTEE

The party to who the TITLE to REAL PROPERTY is conveyed; the buyer.


GRANTOR

Anyone who gives a DEED.


INSTALLMENT CONTRACT

Same as LAND CONTRACT.


INTEREST RATE

The percentage of a sum of money charged for its use.


LAND CONTRACT

A real estate INSTALLMENT selling arrangement whereby the buyer may use, occupy and enjoy land, but no DEED is given by the seller (so no TITLE passes) until all or a specified part of the sale price has been paid. Same a CONTRACT FOR DEED and INSTALLMENT LAND CONTRACT.


LEGAL AGE
The official standard of maturity upon which one is held legally responsible for one's acts. Contracts for the sale or lease of real estate by a minor are voidable by the minor.


LEGAL DESCRIPTION

Legally acceptable identification of REAL ESTATE by of the following:
The GOVERNMENT RECTANGULAR SURVEY
METES AND BOUNDS
Recorded PLAT (LOT AND BLOCK number).


LIEN

A charge against property making it SECURITY for the payment of a DEBT, JUDGEMENT, MORTGAGE, or taxes; it is a type of EMCUMBRANCE. A specific lien is against certain property only. A GENERAL LIEN is against all of the property owned by the debtor.


METES AND BOUNDS

A land description method that details all the boundary lines of the land, together with their terminal points and angles.


NOTARIZE

To attest in one's capacity as a NOTARY PUBLIC, to the genuineness of a signature.


NOTARY PUBLIC

An officer who is authorized to take ACKNOWLEDGEMENT to certain types of documents, such as DEEDS, CONTRACTS, and MORTGAGES, and before whom AFFIDAVITS may be sworn.


NOTICE OF DEFAULT

A letter sent to a defaulting party as a reminder of the DEFAULT. May state a GRACE PERIOD and the PENALTIES for failure to cure the default.


PARCEL

A piece of property under one ownership; a lot in a SUBDIVISION.


PLAT

A plan or map of a specific land area.


PREPAYMENT PENALTY

Fees paid by borrowers for the privilege of retiring a loan early.


RESERVE PRICE

In a auction or other bidding procedure, an established amount below which the seller is not obligated to accept a winning bid.


RESTRICTION

A limitation placed upon the use of property, contained in the DEED or other written instrument in the chain of title or in local ordinances pertaining to land use. See ENCUMBRANCE.


SIMPLE INTEREST

A method of calculating the future value of a sum assuming that interest paid is not compounded. i.e., that interest is paid only on the principal.


SPECIAL ASSEMENT

An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.


SUBDIVISION

A tract of land divided into lots suitable for home-building purposes. Some states and localities require that subdivision PLAT is recorded.


SURVEY

1. the process by which a PARCEL of land is measured and it s area ascertained.
2. the plan showing the measurements boundaries, area, and contours. 3. a detailed canvass of attitudes or market characteristics.


SWEAT EQUITY

Value added to a property due to improvements as a result of work performed personally by the owner.


TERM

The period of time during which something is in effect.


TIME IS OF THE ESSENCE

A phrase that, when inserted in a CONTACT, requires that all references to specific date and times of day noted in the contract be interpreted exactly, In its absence extreme delays might be acceptable.


TITLE

Evidence that the owner of land is in lawful possession thereof; evidence of ownership.


TITLE INSURANCE

An insurance policy that protects the holder from loss sustained by defects in the title.


TOPOGRAPHY

The state of the surface of the land; may be rolling, rough, flat, etc.


UTILITIES

Services such as water, sewer, gas, electricity, and telephones, that are generally required to operate a building.


UTILITY EASEMENT

Use of another's property for the purpose of laying gas, electric, water, and sewer lines.


WARRANTY DEED

One that contains a covenant that the GRANTOR will protect the GRANTEE against any and all claims. Usually contains covenants assuring good title and freedom from encumbrances.