Gainesville Title Company, Inc.
Providing Professional Title and Closing Services - COOKE COUNTY, TEXAS
Information Library

ABA Number -- Originated by the American Bankers Association, it is the number (usually in the upper right-hand portion of the check) which identifies the bank upon which the check is drawn.

Abstract of Judgment -- A summary of the essential provisions of a court judgment, which when recorded in the county recorder's office, creates a lien upon the property of the defendant in that county, both presently owned or after acquired.

Abutting Owner -- One whose land is contiguous to (abuts) a public right of way.

Acceleration Clause -- Clause used in an installment note and mortgage (or deed of trust), which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender's consent, destruction of the property, or other event which endangers the security of the loan.

Access Right -- A right to ingress and egress to and from one's property. May be express or implied.

Accommodation Recording -- The recording of documents with the county recorder by a title insurance company, without liability (no insurance) on the part of the company, but merely as a convenience to a customer.

Acknowledgement -- A written declaration by a person executing an instrument, given before an officer authorized to give an oath (usually a notary public), stating that the execution is of his own volition.

Action to Quiet Title -- A court action to establish ownership to real property. Although technically not an action to remove a cloud on title, the two actions are usually referred to as "Quiet Title" actions.

Adjudication -- A judgment or decision by a court.

Adjustable Mortgage Loans (AML\'92S) -- Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM\'92s), Flexible Rate Loans, and Variable Rate Loans.

Administrator -- A person given authority by a proper court to manage and distribute the estate of a deceased person when there is no will.

Adverse Possession -- A method of acquiring title by possession under certain conditions. Generally, possession must be actual, under claim of right, open, continuous, notorious, exclusive and hostile (knowingly against the rights of the owner). Exact time (years) of possession and specific requirements (such as payment of property taxes) vary with the statutes of each state.

Affidavit -- A written statement or declaration, sworn to before an officer who has authority to administer an oath.

Affirmative Easement -- An easement described from the benefited estate (dominant tenement). Also called a parcel 2 easement. The same easement described from the burdened estate (servient tenement) would be a negative easement.

After Acquired Title -- Legal doctrine by which property automatically vests in a grantee when the grantor acquires title to the property after the deed has been executed and delivered.

Agency -- One who is authorized to act for or represent another (principal), usually in business matters. Authority may be expressed or implied.

Alias -- Latin for (otherwise) commonly meaning that a person is known by more than one name. In some states, indicated by the letters AKA (Also Known Aliases).

Alienation Clause -- A type of acceleration clause, calling for a debt under a mortgage or deed of trust to be due in its entirety upon transfer of ownership of the secured property. Also called a "due-on-transfer" clause.

A.L.T.A.(American Land Title Association) -- An organization, composed of title insurance companies, which has adopted certain insurance policy forms to standardize coverage on a national basis.

Amendment -- A change, either to correct an error or to alter a part of an agreement without changing the principal idea or essence.

American Institute of Real Estate Appraisers -- A trade organization designed to establish standards of competence in the appraisal industry. The designation MAI (competent by the institute's standards to appraise all types of real property) and RM (one to four family residences) are prestigious and heavily relied upon by the real estate industry, lenders, governments, and others who utilize appraisers.

Amortization -- Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments.

Amortization Schedule -- A schedule showing each payment of a loan to be amortized and breaking down the payment applied to principal and the amount applied to interest.

Amortize -- To reduce debt by regular payments of both principal and interest, as opposed to interest only payments.

Anchor Tenant -- The most reliable, and usually the largest, tenant in a shopping center. The strength of the anchor tenant greatly affects the availability of financing for the shopping center. The term may also be used to describe a tenant in an office building, industrial park, etc.

Annexation -- Permanently affixing to real property, such as city adding additional land to increase its size.

Appel Loan (Accelerating Payoff Progressive Equity Loan) -- A residential property loan which calls for a payment increase over the first six years. Level payments are made for the remaining years and the loan paid off during the 15th year. There is no prepayment penalty and P.M.I. is required.

Appraisal -- An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

Appraiser -- One who is trained and educated in the methods of determining the value of property through analysis of various factors which determine said value.

Appropriation -- The private taking and use of public property, such as water from a river or lake. Not to be confused with condemnation or expropriation.

Appurtenance -- Something belonging to something else, either attached or not, such as a barn to a house or an easement to land. The appurtenance is part of the property and passes with it upon sale or other transfer.

Arbitrary Map -- A map drawn by a title company to be used in locating property in areas where legal descriptions are difficult and complex. Areas are arbitrarily subdivided, usually by ownership at a given time, into lots which are numbered. Recorded documents are then posted to these arbitrary lots by the same "arb" number.

Arbitration Clause -- A clause in a lease calling for the decision of a third party (arbiter) regarding disputes over future rents based on negotiation. Also used in construction contracts, disputes between brokers, etc.

Articles of Incorporation -- Documentation filled with the state which sets forth-general information about a corporation. More specific rules of the corporation would be contained in the by-laws.

"As Is" Condition -- Premises accepted by a buyer or tenant in the condition existing at the time of the sale or lease, including all physical defects.

Assessed Value -- Value placed upon property for property tax purposes by the tax assessor.

Assessment -- (1) The estimating of value of property for tax purposes. (2) A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, etc.

Assessment District -- An area, the boundaries of which are set for tax assessment purposes only; these boundaries may cross city boundaries.

Backup Offer -- A secondary offer to buy property, used in case the first (primary) offer fails. A backup offer is especially useful when the primary offer contains difficult contingencies.

Balloon Note -- A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as the "balloon" is due at maturity.

Balloon Payment -- The final payment (balance due) of a balloon note.

Bankruptcy -- Proceedings under federal bankruptcy statutes to relieve a debtor (bankrupt) from insurmountable debt. The bankrupt's property is distributed by the court to the creditors as full satisfaction of the debts, in accordance with certain priorities and exemptions. Voluntary bankruptcy is petitioned by the debtor; involuntary by the creditors.

Base Map -- A map having background information, such as state, county, or city boundaries, upon which more detailed data is plotted.

Beneficial Estate -- An estate, the right of possession of which has been postponed, such as a devise under a will. More commonly, an estate, the legal ownership of which has not yet vested, as under a land contract. An equitable estate.

Beneficial Interest -- The equitable, rather than legal ownership of property such as under a land contract.

Beneficiary -- (1)One for whose benefit trust is created. (2) In states in which deeds of trust are commonly used instead of mortgages, the lender (mortgagee) is called the beneficiary.

Beneficiary's Demand -- Written instructions by a beneficiary under a deed of trust stating and demanding the amount necessary for issuance of a reconveyance, whether a full or partial amount.

Beneficiary's Statement -- A statement by a lender under a deed of trust, setting forth the pertinent information necessary to assume said deed of trust, such as the unpaid balance, monthly payment, and interest rate.

Bequeath -- To give personal property by will.

Bequest -- Personal property left by will.

Bill of Sale -- An instrument by which one transfer personal property.

Binder -- A report issued by a title insurance company setting forth the condition of title to certain property as of certain date, and also setting forth conditions which, if satisfied, will cause a policy of title insurance to be issued. Also called a commitment. A policy of title insurance (used primarily by investors) calling for a reduced rated for a future policy if the property is sold within a specified period.

Blanket Mortgage -- (1) A mortgage covering more than one property of the mortgagor, such as a mortgage all the lots of a builder in a subdivision. (2) A mortgage covering all real property of the mortgagor, both present and future. When used in this meaning, it is also called a general mortgage.

Board of Equalization -- State board charged with the duty to equitable uniformity to the various local property tax assessments.

Boot -- Something given in addition to. Generally used in exchange to refer to something given other than the major properties to be exchanged, in order to equalize value.

Broker, Real Estate -- One who is licensed by the state to carry on the business of dealing in real estate. A broker may receive a commission for his or her part in bringing together a buyer and a seller, landlord and tenant, or parties to an exchange.

Bulk Sale -- A transfer in bulk, not in the ordinary course of business, of all or substantially all of the inventory and fixtures of a business.

Business Opportunity -- The sale of a business (may or may not include the sale of real estate). Some states require a real estate license for these sales even when real estate is not involved. The Uniform Commercial Code, state statutes, and special laws for alcoholic beverage licenses (when applicable) should be studied by the business opportunities broker.

By-Laws - Rules and regulations, adopted by an association or corporation, which govern its activities.

Chain - A term of land measurement that is 66 feet in length.

Chain of Title - A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.

Clear Title - One which is not encumbered or burdened with defects.

Closing - Also known as "escrow" or "settlement." The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase .

Clouded Title - An encumbered title.

Commitment to Insure - A report issued by a title insurance company, or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.

Common Interest Community (CIC) - Ownership characterized by mutual ownership of common areas, either jointly or through membership in an association, e.g., condominiums, planned unit developments, and townhomes.

Company Loan - Loan by employer to facilitate relocation of employee. Usually short term .

Condemnation - Taking private property for public use through court proceedings .

Condition or Conditions - A proviso in a deed or will that, upon the happening or failure to happen of a certain event, limits, enlarges, changes or terminates the title of the purchaser or devisee.

Conditions and Restrictions - A common term used to designate conditions and restrictions on the use of land. Includes penalties for failure to comply. Commonly used by land subdividers on newly platted areas.

Condominium - A system of individual fee ownership of units in a multi-unit structure, combined with joint ownership of common areas of the structure and land.

Conservator - See "Guardian . "

Contract for Deed - An agreement to sell and purchase under which title is held as security by the seller until such time as the required payments to the seller have been completed.

Convey - The act of deeding or transferring title to another.

Conveyance - An instrument by which title is transferred; a deed. Also, the act of transferring title.

Cooperative - A residential multi-unit building owned by a corporation in which each unit is occupied by a member of the corporation pursuant to a lease or occupancy agreement .

Covenant - An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.

Cul-de-Sac - The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turn around for vehicles.

Deed - A written document by which the ownership of land is transferred from one person to another.

Deed of Trust - See " Mortgage."

Delivery - The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by the seller. A necessary requisite to the transfer of title.

Devise - The disposition of real property by will.

Due on Sale Clause - Provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.

Earnest Money - Advance payment of part of the purchase price to bind a contract for property.

Easement - An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property.

Egress - The right to leave a tract of land. Often used interchangeably with "access."

Eminent Domain - The power of the state to take private property for public use upon payment of just compensation.

Encroachment - A trespass or intrusion onto another's property, usually by a structure, wall or fence.

Encumber - To burden a parcel of land with a lien or charge, e.g., a mortgage.

Encumbrance - A lien, liability or charge upon a parcel of land.

Escheat - A reversion of property to the state in those cases where an individual dies without heirs or devisees, and, in some states, without a will.

Escrow - A pro c e d u re whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer, and delivers them upon performance by the parties.

Estate - A person's possessions. The extent of a person's interest in real property.

Examination of Title - The investigation and interpretation of the record title to real property based on the title search or abstract.

Exception - In legal descriptions, that portion of land to be deleted or excluded. The term often is used in a different sense to mean an objection to title or encumbrance on title.

Executor - A person appointed by the probate court to carry out the terms of a will. The term is "executrix" if that person is a woman.

Extended Mortgage - One in which the due date of a mortgage is extended for a longer period, often at a higher interest rate than the original mortgage.

Fannie Mae - Federal National Mortgage Association (also FNMA) is a private corporation, federally chart e re d to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.

Fee Simple Estate - The greatest interest in a parcel of land that it is possible to own. Sometimes designated simply as "Fee."

Federal Housing Administration (FHA) Guarantee - An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.

Financing Statement - A document filed with the Register of Deeds or Secretary of State securing the title to personal property.

Fixtures - Any item of property so attached to real property that it becomes a part of the real property.

Flood Certification - A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Pro g r a m .

Forfeiture of Title - Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.

Freddie Mac - Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.

Ginnie Mae - Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration) or VA (Veterans Administration).

Graduated Payment Mortgage - A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.

Grantee - A person who acquires an interest in land by deed, grant, or other written instrument.

Grantor - A person, who, by a written instrument , transfers to another an interest in land.

Guardian - One appointed by the court to administer the affairs of an individual not capable of administering his or her own affairs.

Harbor Line - An arbitrary line set by authorities on navigable rivers, beyond which wharves and other structures may not be built. Also designated as line of navigation.

Heir - One who might inherit or succeed to an interest in land of an individual who dies without leaving a will (intestate).

Hiatus - A gap or space unintentionally left, when attempting to describe adjoining parcels of land.

Home Equity Conversion Mortgage - A reverse or reverse annuity mortgage in which HUD through FHA guarantees that the borrower will receive monthly payments from the insurer (FHA) in the event the lender is unable to make payments to the borrower.

Home Repair Loan - Used for repairs and additions to existing structures without affecting existing mort g a g e . Typically 10 years or less in length.

HUD 1 - A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.

Improvements - Those additions to raw lands tending to

Inchoate Dower - The imperfect interest which the law gives a wife in the lands of her husband. This is an interest which upon the death of the husband may ripen into possession and use. Most states have abolished dower rights.

Inchoate Curtesy - The imperfect interest which the law gives a husband in the lands of his wife. This is an

Indemnify - To make payment for a loss.

Ingress - The right to enter a tract of land. Often used

Insurance - A contract of indemnity against specified perils.

Insurance Loan - When cash value of a life insurance policy is borrowed by the insured.

Interim Financing - Temporary or short term loans. Often used with new construction. Usually replaced with a permanent long-term mortgage.

Intestate - Designates the estate or condition of failing to leave a will at death. "To die intestate."

Joint Tenancy - An estate where two or more persons hold real estate jointly for life, the survivors to take the

Judgment - A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from the Court's award of money to a creditor. See "Judgment Lien."

Judgment Docket - The record book of a County Clerk where a judgment is entered in order that it may become a lien upon the property of the debtor.

Judgment Lien - The charge upon the lands of a debtor resulting from the decree of a court properly entered into the judgment docket.

Land Contract - See "Contract for Deed ."

Landmark - Any conspicuous object that helps establish land boundaries.

Lease - A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental.

Lender's Policy - A form of title insurance policy which insures the validity, enforceability and priority of a lender's lien. This form does not provide protection for the owner.

Lessee - One who takes lands upon a lease.

Lessor - One who grants lands under a lease.

Lien - A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics' liens.

Life Estate - A grant or reservation of the right of use, occupancy and ownership for the life of an individual.

Link - A term of land measurement being 1/100th of a chain or 66/100ths of a foot.

Lis Pendens - A notice recorded in the official records of a county to indicate that a suit is pending affecting the lands where the notice is recorded.

Loan Policy - See " Lender's Policy ."

Loss Payable Clause - Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. Usually the owner and the mortgage lender.

Lot - A part of a subdivision or block having fixed boundaries ascertainable by reference to a plat or survey.

M.A.I.(Member Appraisal Institute) -- The designation given to a member of the American Institute of Real Estate Appraisers. A designation earned through experience, education and examination.

Maintenance Fee -- As applied to condominiums and planned developments, the amount charged each unit owner to maintain the common area. Usually a monthly fee paid as part of the budget.

Management Fee -- The amount paid for property management or the estimated value of such management if owner managed or the building is not yet built.

Marketable Title -- Title that can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

Market Value -- The highest price a willing buyer would pay and a willing seller accept, both being fully informed, and the property exposed for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time.

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.

Metes and Bounds -- Description of land by boundary lines, with their terminal points and angles. Originally metes referred to distance, bounds to direction; contemporarily, the words have no individual meaning of practical significance.

Mineral Rights -- The ownership of the minerals (coal, gold, iron, etc.) under the ground, with or without ownership of the surface of the land.

Minerals -- In real estate terms, those minerals of value which may be taken by mining, such as coal, iron, copper, gold, silver, etc. Mineral rights, as well as oil rights, may be sold or leased separately from the land itself.

Mobil Home -- Originally, a trailer pulled behind a car or truck cab. Now includes large homes, which are not truly mobile but are constructed in the same manner as trailers, as opposed to conventional on-site construction.

Monument -- A visible, permanent object, marked by a surveyor, to indicate the boundaries of land. May be artificial, such as post, or natural, such as a tree or large stone.

Mortgage -- (1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for repayment of a loan.

Mortgage Banker -- A company providing mortgage financing with its own funds rather than simply bringing together lender and borrower, as does a mortgage broker. Although the mortgage banker uses its own funds, these funds are generally borrowed and the financing is either short term or, if long term, the mortgages are sold to investors (many time's insurance companies) within a short time, in general mortgage.

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 a real property by giving a mortgage or deed of trust as a security. Also called a loan broker.

Mortgage Company -- A company authorized to service real estate loans, charging a fee for this service.

Mutual Water Company -- A company in which the owners are the customers. Stock is issued to the users, who are the organizers of the company.

NAR (National Association of REALTORS®) -- An association of people engaged in the real estate business. Organized in 1908, it currently lists over half a million members. With headquarters in Chicago, it is dedicated to the betterment of the real estate industry through education, legislation, and high ethical standards for its members.

Negative Cash Flow -- When the income from an investment property does not equal the usual expenses, the owner must come up with cash each month to meet these expenses.

Non Exclusive Listing -- A listing under which the real estate broker has an exclusive listing as opposed to other agents, but the owner may sell the property without using an agent, and not be liable to pay a commission. Also called an agency agreement.

Non Judicial Foreclosure Sale -- Sale by a trustee under a deed of trust, or mortgage under a power of sale of a mortgage. There is no court (judicial) proceeding.

Notary Public -- One who is authorized by the state or federal government, to administer oaths, and to attest to the authenticity of the signatures. A federal authorization may extend the authority to attest to the authenticity of certain documents, and to act as a notary in foreign countries.

Notice of Action -- A recorded notice that property may be subject to a lien, or even that the title is defective, due to pending litigation. Notice of a pending suit. Also called "Lis Pendens".

Notice of Completion -- A notice, recorded to show that construction job is finished. The length of time in which a mechanic's liens may be filed depends upon when and if a notice of completion is recorded.

Notice of Default -- A notice is filed to show that the borrower under a mortgage or deed of trust is in default (behind on the payments).

Offer -- A presentation of proposal for acceptance, in order to form a contract. To be legally binding, an offer must be definite as to price and terms.

Off-Site Improvements -- Development of land to make adjacent property suitable for construction. Includes sidewalks, curbs, streets, sewers, streetlights, etc.

Open House -- A house which is open without appointment to prospective buyers (or tenants) for inspection, during certain hours and days of the week.

Open Listing -- A written authorization to a real estate agent by a property owner, stating that a commission will be paid to the agent upon presentation of an offer which meets a specified price and terms. However, the agent has no exclusive right to sell and must bring in his offer before any other offer is presented or accepted.

Origination Fee -- A fee made by a lender for making a real estate loan. Usually a percentage of the amount loaned, such as one percent.

Owner's Policy -- Title insurance for the owner of the property, rather than a lien holder.

Owner will carry mortgage -- A term used to indicate that the seller is willing to take back a purchase money mortgage.

Parcel 2 Easement -- A colloquial term used to describe an appurtenant easement of the dominant tenement, because the easement is described in the legal description. Usually, the property is described as parcel 1 and the easement as parcel 2.

Parcel Map -- A map allowed in some states as a substitute for a subdivision map for 1 to 4 parcels (lots) with no common area. The procedure is much simpler and less costly than creating subdivision map.

Peroration -- To divide (prorate) property taxes, insurance premiums, rental income, etc., between buyer and seller proportionally to time of use or the date of closing.

PI (Principal and Interest) -- Used to indicate what is included in a monthly payment on real property. If the payment includes only principal and interest, property taxes and hazard insurance would make the total payment higher.

PITI (Principal, Interest, Taxes and Insurance) -- Used to indicate what is included in a monthly payment on real property. Principal, interest, taxes and insurance are the four major portions of a usual monthly payment.

Planned (Unit) Development -- A subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels. The lots are generally small, being the exact size of the improvements, or slightly larger.

Point of Beginning (POB) -- A term used in metes and bounds descriptions. The description will start with the words "Beginning at a point" and end with "to the point of the beginning".

Power of Attorney -- An authority by which one person (principal) enables another (attorney in fact) to act for him. (1) General power -- Authorizes sale, mortgaging, etc. of all property of the principal. Invalid in some jurisdictions. (2) Special Power -- Specifies property, buyers, price and terms. How specific it must be varies in each state.

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 -- A penalty under note, mortgage, or deed of trust, imposed when the loan is paid before it is due.

Prescriptive Easement -- The granting of an easement by a court, based on the presumption that a written easement was given (though none existed), after a period of open and continuous use of land.

Private Mortgage Insurance -- Insurance against a loss by a lender in the event of default by a borrower (mortgagor). The insurance is similar to insurance by a governmental agency such as FHA, except that a private insurance company issues it. The premium is paid by the borrower and is included in the mortgage payment.

Pro Rate -- To divide in proportionate shares, such as taxes, insurance, rent or other items which buyer and seller share as of the time of closing, or other agreed upon time.

Public Records -- Usually at a county level, the records of all documents, which are necessary to give, notice. The records are available to the public. All transactions for real estate sales should be recorded.

Public Report -- A report given to prospective purchasers in a new subdivision, stating the conditions of the area (costs of common facilities, availability of schools, noise factor if near an airport, etc.) issued by the real estate commission.

Purchase Agreement -- An agreement between a buyer and seller of real property.

Quiet Title - An action in a proper Court to remove record defects or possible claims of other parties named in the action.

Quitclaim Deed -- A deed operating as a release; intended to pass any title, interest, or claim, which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.

Range -- (1) A division of land in the government survey, being a six mile wide row of townships, running North and South, and used in legal descriptions. (2) Land used for grazing livestock.

Real Estate -- (1) Land and anything permanently affixed to the land, such as buildings, fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items that would be personal property if not attached. The term is generally synonymous with real property, although in some states a distinction may be made. (2) May refer to rights in real property as well as the property itself.

Real Estate Board -- A state license granted to one as a broker or salesperson, after passing an examination. Some states have educational requirements before the brokers' examination may be taken.

Real Estate Owned (REO) -- Most commonly refers to property owned by a lender from foreclosure of mortgages or trust deeds. The property is usually for sale.

Recital -- Setting forth in a deed or other writing some explanation for the transaction. For example: A deed may state that the property is being transferred in lieu of foreclosure.

Reconveyance -- An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

Recordation -- Filing instruments for public record (and notice) with a recorder (usually a county official).

Recorded Map -- A map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.

Recorded Plat -- Subdivision map filed as a matter of public record.

Recorder's Office -- The county office where instruments are recorded, giving public notice.

Recording -- Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statue and usually requires the witnessing and notarizing of an instrument to be recorded.

Recording Fee -- The amount paid to the recorder's office in order to make a document a matter of public record.

Referral -- In real estate business, generally the act of a past client recommending a real estate broker or agent to one currently a buyer or seller. Also, any recommendation by one real estate agent of another for a referral fee.

Refinance -- (1) The renewing of an existing loan with the same borrower and lender. (2) A loan on the same property by either the same borrower or lender. (3) The selling of loans by the original lender.

Regulation Z -- Federal Reserve regulation issued under the Truth-In-Lending Law, which requires that a credit purchaser be advised in writing of all costs connected with the credit portion of the purchase.

Reinstatement -- (1) Payment of a note, mortgage, deed of trust, etc., to bring it from default to good standing. (2) Restoring the previously used entitlement of a veteran to enable the veteran to purchase property under a VA program. (Also called restoration of Eligibility).

REIT(Real Estate Investment Trusts) -- A method of investing in real estate in a group, with certain tax advantages. Federal and state statutes dictate procedure.

Release -- An instrument releasing property from the lien of the mortgage, judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a "discharge" is used instead of a release.

Request for Reconveyance -- A request by a beneficiary under a deed of trust to the trustee, requesting the trustee to reconvey the property (release the lien) to the trustor, usually upon payment in full.

RESPA (Real Estate Settlement Procedures Act) -- A federal statute effective June 20, 1975, requiring disclosure of certain costs in the sale of residential (one to four family) improved property which is to be financed by a federally insured lender.

Restriction -- Most commonly used to describe a use or uses prohibited to the owner of land. Restrictions are set forth by former owners in deeds or in the case of a subdivision, a declaration of restrictions is recorded by the developer. A limitation on use of the property by law (zoning ordinances) may also be termed a restriction.

Revenue Stamps -- Formerly federal tax on sale of real property. Canceled and replaced by state tax stamps. The stamps (similar to postage stamps) are affixed to the conveyance instrument (deed), or a rubber stamp is used to show the amount of tax.

Right of Survivorship -- The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.

Right of Way -- A strip of land, which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.

Riparian -- Belonging or relating to the bank of a river or stream. Land within the natural watershed of a river or stream.

Riparian Owner -- One who owns land along the bank of a river or stream.

Riparian Rights -- Rights of an owner to riparian lands and water.

Rollover Loan -- A loan, which is periodically reviewed, adjusted (usually to reflect current interest rates) and extended. Short term loans can be rolled over into long term loans. The process is by initial agreement or necessity.

Running with the Land -- Usually concerned with easements and covenants. Passing with the transfer of the land.

Second Mortgage - A second loan on real estate that a l ready has a mortgage. It is subordinate to the first mortgage. Usually of shorter term and often at a higher interest rate.

Section or Section of Land - A parcel of land comprising one square mile or 640 acres.

Set Back Lines - Those lines which delineate the required distances for the location of structures in relation to the perimeter of the property.

Sub-surface Right - The right of ownership to things lying beneath the physical surface of the property.

Survey - The process of measuring land to determine its size, location and physical description and the resulting drawing or map.

Tenancy by the Entirety - Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other's death.

Tenancy in Common - An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.

Tenant - Any person occupying real property with the owner's permission.

Testament - Another term for a will. Commonly referred to as "last will and testament."

Testate - The estate or condition of leaving a will at death. "To die testate."

Testator - A man who makes or has made a testament or will.

Testatrix - A woman who makes or has made a testament or will.

Title - The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.

Title Defect - Any legal right held by others to claim property or to make demands upon the owner.

Title Insurance - Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.

Title Plant - The total facilities - records, equipment, fixtures, and personnel - required to function as a title insurance operation. Technically, the organization of official records affecting real property into a system which allows quick and efficient recovery of title information.

Title Search - An examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.

Torrens Title - A system whereby, after court proceedings, a certificate is issued setting forth the extent of the applicant's estate in land subject to the exceptions shown. Most popular in the early 1900's, the system was adopted in 19 states. It is presently used only in parts of six states.

Township - A division of territory six miles square, containing 36 sections or 36 square miles.

Tract - A particular parcel of land.

Trust - A property right held by one as a fiduciary for the benefit of another.

Trustee - A person holding property in trust as a fiduciary for the benefit of another.

Underwriter -- One who insures another. A small title insurance company may buy insurance from a larger one (the underwriter) for all or part of the liability of its policies. A larger title company may buy part of the insurance from another company on high liability policies.

Unity of Title -- In joint tenancy, the holding by the joint tenants under the same title.

Unmarketable Title -- Not salable. A title which has serious defects.

Unrecorded Instrument -- A deed, mortgage, etc., which is not recorded in the county recorder's office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.

VA Guarantee - An insurance contract in which the Veterans Administration (VA) insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.

Variable Rate Mortgage - A loan in which the interest rate fluctuates with the cost of funds or some other index.

Vendee - A purchaser of real property under land contract.

Vendor - A seller of real property under land contract.

Vest - To pass to a person an immediate right or interest. Title may be said to vest in John Smith.

Vestee - A nonlegal term used by title insurers to indicate the owner of real property in a policy or report.

Warranty - A promise by the grantor of real property that he or she is the owner and will be responsible to the buyer if title is other than as represented.

Wetlands -- Lands which, in their normal condition, have wet or spongy soil, such as a marsh or bog.

Will -A written document providing for the distribution of property owned by a person after his or her death.

Zoning - The right of a municipality to regulate and determine the compatible character and use of property.

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