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- A summary; an abridgment. Before the use of
photostatic copying public records were kept by abstracts of recorded
documents.
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- A compilation of the recorded documents relating
to a parcel of land, from which an attorney may give an opinion as to
the condition of title. Still in use in some states, but giving way
to the use of title insurance.
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- A measure of land equal to 43,560 square feet.
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- Formal declaration before a public official
that one has signed a document. Prior to recording real estate legal
documents such as grant deeds and deeds of trust, a Notary Public acknowledges
the person's signature on the document.
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- A court action to establish ownership to real
property. Although technically not an action to remove a cloud on a
title, the two actions are usually referred to as "Quiet Title" actions.
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- A mortgage where the interest rate is not fixed
for the life of the loan. These mortgages adjust periodically based
on an index that changes with market conditions. The rate of interest
is the sum of the index plus a margin ( the margin remains fixed for
the life of the loan). Most ARMs have periodic interest rate and payment
caps as well as life cap. ARM's may also be referred to as AML's or
VRM's.
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- Person authorized to act on behalf of another
in dealings with third parties.
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- An agreement between parties for the sale of
real estate. In some states it is synonymous with a Purchase Agreement
or Land Contract. In Texas it is known as an Earnest Money Contract.
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- Provision in a mortgage document stating that
the loan must be paid in full if ownership is transferred, sometimes
contingent upon other occurrences such as transfer of ownership of secured
property.
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- Title policy that assures lenders have the proper
rights as the beneficiary on a mortgage loan.
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- Gradual payment of a debt through regular installments
that cover both interest and principal.
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Annual Percentage Rate(APR)
- A measure of the cost of credit, expressed as
a yearly rate. It includes interest as well as other charges. Because
all lenders follow the same rules to ensure the accuracy of the annual
percentage rate, it provides consumers with a good basis for comparing
the cost of loans, including mortgage plans.
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- These fees are generally collected by the lender
and paid to outside companies performing the services.
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- An option of the value of a property at a given
time, based on facts regarding the location, improvements, etc., of
the property and surroundings.
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- Estimate of real estate value, presumably by
an expert. An appraisal evaluates the property at a given time based
on facts regarding the location, improvements, neighborhood, and comparable
sales. Generally, the value is based on three approaches: cost, market,
and income.
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- Increase in value or worth of property.
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- Payment made after its due is in arrears. Interest
is said to be paid in arrears since it is paid to the date of payment
rather than in advance.
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- A clause that is used sometimes in the transfer
of property. It means that the present property is being transferred
with no guarantee or warranty provided by the seller.
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- The total assessed value of all property in
a given assessment district.
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- Value place on property as a basis for levying
property taxes; not identical with appraised or market value.
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- Transfer of a contract from one party to another.
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- When a home is sold, the seller may be able
to transfer the mortgage to the new buyer. This means the mortgage is
assumable. Lenders generally require credit review of the new borrower
and may charge a fee for the assumption. Some mortgages contain a due-on-sale
clause, which means that the mortgage may not be transferable to the
new buyer. Instead, the lender may make you pay the entire balance that
is due when you sell the home. Assumability can help you attract buyers
if you sell your home.
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- New owner takes over an the responsibility
of repaying an existing mortgage. Both FHA and VA loans are fully assumable.
Some adjustable rate mortgages may be partially assumable, but the new
owners may be required to re-qualify for the loan.
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- Agreement by a buyer to assume the liability
under an existing note secured by a mortgage or deed of trust.
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- A home that has one or more common walls adjoining
another home. Condominiums and row houses are attached homes.
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