Common NH Real Estate Terms

Acceleration clause condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage Agreement of sale known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction, a contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties; in NH its a Purchase and Sale Agreement Amenity a feature of the NH home or NH property that serves as a benefit to the buyer but that is not necessary to its use; may be natural, like location, woods, water or man made like a swimming pool or garden Amortization repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period, for example, 15 or 30 years Annual percentage rate calculated by using a standard formula, the APR shows the cost of a loan, expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan Application the first step in the official loan approval process, this form is used to record important information about the potential borrower necessary to the underwriting process Appraisal a document that gives an estimate of a property's fair market value, an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property Appraised value an opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data Appraiser a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate Appreciation an increase in value, the opposite of depreciation ARM adjustable rate mortgage, a mortgage loan subject to changes in interest rates, when rates change, ARM monthly payments increase or decrease at intervals determined by the lender, the change in monthly payment amount, however, is usually subject to a Cap Assessment the process of placing a value on property for the strict purpose of taxation, may also refer to a levy against property for a special purpose, such as a sewer assessment Assessor a government official who is responsible for determining the value of a property for the purpose of taxation Assumable mortgage a NH mortgage that can be transferred from a seller to a buyer, once the loan is assumed by the buyer the seller is no longer responsible for repaying it, there may be a fee and, or a credit package involved in the transfer of an assumable mortgage Balloon mortgage a mortgage that typically offers low rates for an initial period of time. usually 5, 7, or 10 years, after that time period elapses, the balance is due or is refinanced by the borrower Balloon payment the unpaid principal amount of a mortgagee or other long term loan due at a certain date in he future, usually the amount that must be paid in a lump sum at the end of the term Bankruptcy a federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts, this usually occurs when someone owes more than they have the ability to repay Binder insurance a written evidence of temporary hazard or title coverage that only runs for a limited time and must be replaced by a permanent policy Borrower a person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms Building code based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building Building line or setback distances from the ends and,or sides of the lot beyond which construction may not extend, the building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances Budget a detailed record of all income earned and spent during a specific period of time Cap a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease Cash reserves a cash amount sometimes required to be held in reserve in addition to the down payment and closing costs, the amount is determined by the lender Certificate of occupancy written authorization given by a local municipality that allows a newly completed or substantially completed structure to be inhabited, the issuing of a CO means that, the home is safe, sound & santitary, and has matches the plans & specifications given to the appraiser at the beginning of the loan process Certificate of title a document provided by a qualified source, such as a title company, that shows the property legally belongs to the current owner, before the title is transferred at closing, it should be clear and free of all liens or other claims Closing also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer, it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller Closing costs customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing, these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application Cloud on title an outstanding claim or encumbrance which adversely affects the marketability of title Commission an amount, usually a percentage of the property sales price, that is collected by a real estate professional as a fee for negotiating the transaction Condemnation the taking of private property for public use by a government unit, against the will of the owner, but with payment of just compensation under the government's power of eminent domain, condemnation may also be a determination by a governmental agency that a particular building is unsafe or unfit for use Condominium a form of ownership in which individuals purchase and own a unit of housing in a multi unit complex, the owner also shares financial responsibility for common areas Construction loan a short term, interim loan for financing the cost of construction, the lender makes payments to the builder at periodic intervals as the work progresses Contractor in the construction industry, a contractor is one who contracts to erect buildings or portions of them, there are also contractors for each phase of construction, heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, and others Conventional loan a private sector loan, one that is not guaranteed or insured by the U.S. government Cooperative Co op, residents purchase stock in a cooperative corporation that owns a structure, each stockholder is then entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan Co signer a person who signs a legal instrument and therefore becomes individually and jointly liable for repayment or performance of an obligation Credit history history of an individual's debt payment, lenders use this information to gauge a potential borrower's ability to repay a loan Credit report a record that lists all past and present debts and the timeliness of their repayment, it documents an individual's credit history Credit bureau score a number representing the possibility a borrower may default, it is based upon credit history and is used to determine ability to qualify for a mortgage loan Debt to income ratio a comparison of gross income to housing and nonhousing expenses, with the FHA, the monthly mortgage payment should be no more than 29% of monthly gross income, before taxes, and the mortgage payment combined with non housing debts should not exceed 41% of income Deed the document that transfers ownership of a property Deed in lieu to avoid foreclosure, in lieu of foreclosure, a deed is given to the lender to fulfill the obligation to repay the debt, this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure Deed of trust like a mortgage, a security instrument whereby real property is given as security for a debt, however, in a deed of trust there are three parties to the instrument, the borrower, the trustee, and the lender, or beneficiary, in such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary, if the borrower pays the debt as agreed, the deed of trust becomes void, if, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust, in most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings, a few states have begun in recent years to treat the deed of trust like a mortgage Default the inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms Delinquency failure of a borrower to make timely mortgage payments under a loan agreement Depreciation decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason Discount point normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan Documentary stamps a state tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another, the amount of stamps required varies with each state.  NH charges $15 per $1000 of value; split between buyer and seller of the NH property. Down payment the portion of a home's purchase price that is paid in cash and is not part of the mortgage loan Draw system scheduled payment of money to a builder during the phases of home construction, between each draw, the appraiser must inspect the home to ensure that construction is proceeding as planned Due on sale 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 Earnest money money put down by a potential buyer to show that he or she is serious about purchasing the home, it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal Easement rights a right of way granted to a person or company authorizing access to or over the owner's land, an electric company obtaining a right of way across private property is a common example EEM energy efficient mortgage, an FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase Eminent domain the right of a government to take private property for public use upon payment of its fair value Encroachment an obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line Encumbrance a legal right or interest in land that affects a good or clear title, and diminishes the land's value, it can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants, an encumbrance does not legally prevent transfer of the property to another, a title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it Equity an owner's financial interest in a property, calculated by subtracting the amount still owed on the mortgage loans from the fair market value of the property Escrow account a separate account into which the lender puts a portion of each monthly mortgage payment, an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.Fair Housing Act a law that prohibits discrimination in all facets of the homebuying process on the basis of race, color, national origin, religion, sex, familial status, or disability Exclusive right to sell listing a written contract giving a licensed real estate agent the exclusive right to sell a property for a specified time, the owner agrees to pay a full commission to the broker even though the owner may sell the property Fair market value the hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation Fannie Mae FNMA, a federally chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors, by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers Fee simple an estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited, the greatest interest a person can have in real estate FHA Federal Housing Administration, established in 1934 to advance homeownership opportunities for all Americans, assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults, this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages Fiduciary a person in a position of trust and confidence for another Firm commitment a lender's agreement to make a loan to a specific borrower of a specific property First mortgage a mortgage having priority over all other voluntary liens against certain property Fixed rate mortgage a mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change Flood insurance insurance that protects homeowners against losses from a flood, if a home is located in a flood plain, the lender will require flood insurance before approving a loan Foreclosure a legal process in which mortgaged property is sold to pay the loan of the defaulting borrower Freddie Mac Federal Home Loan Mortgage Corporation, FHLM, a federally, chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors, this provides lenders With funds for new homebuyers General warranty deed a deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a cloud on it, such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it the grantee may hold the grantor liable Ginnie Mae Government National Mortgage Association, GNMA, a government owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA insured and VA guaranteed loans to back securities for private investment, as with Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders Good faith estimate an estimate of all closing fees including pre paid and escrow items as well as lender charges, must be given to the borrower within three days after submission of a loan application Graduated payment mortgage residential mortgage which has monthly mortgage payments that start at a low level and increase at a predetermined rate Grantee that party in the deed who is the buyer or recipient Grantor that party in the deed who is the seller or giver Hazard insurance protects against damages caused to property by fire, windstorms, and other common hazards Holdback that portion of a loan commitment not funded until some additional requirement such as rental or completion is attained, in construction it is a percentage of the contractor's draw held back to provide additional protection for the interim lender, often in an amount equal to the contractor's profit Home inspection an examination of the structure and mechanical systems to determine a home's safety, makes the potential homebuyer aware of any repairs that may be needed Home warranty offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance, overage extends over a specific time period and does not cover the home's structure Homeowner's insurance an insurance policy that combines protection against damage to a dwelling and it's contents with protection against claims of negligence or inappropriate action that result in someone's injury or property damage Housing counseling agency provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and homebuying HUD the U.S. Department of Housing and Urban Development, established in 1965, HUD works to create a decent home and suitable living environment for all Americans, it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws HUD1 Statement also known as the settlement sheet, it itemizes all closing costs, must be given to the borrower at or before closing HVAC heating, ventilation and air conditioning, a home's heating and cooling system Index a measurement used by lenders to determine changes to the interest rate charged on an adjustable rate mortgage Inflation the number of dollars in circulation exceeds the amount of goods and services available for purchase, inflation results in a decrease in the dollar's value Interest a fee charged for the use of money Interest rate the amount of interest charged on a monthly loan payment, usually expressed as a percentage Insurance protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium Investor an person or institution investing in mortgages Involuntary lien a lien imposed against property without consent of an owner, examples include taxes, special assessment, federal income tax liens, mechanics liens, and materials liens Judgment a legal decision, when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source Land contract a contract ordinarily used in connection with the sale of property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer, this financing vehicle is often used when property is sold on a small down payment Lease a written document containing the conditions under which the possession and use of real or personal property are given by the owner to another for a stated period and for a stated consideration Lease purchase assists low to moderate income homebuyers in purchasing a home by allowing them to lease a home with an option to buy, the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment Legal description a property description recognized by law which is sufficient to locate and identify the property without oral testimony Lessee tenant the person or persons holding rights of possession and use of property under terms of a lease Lessor landlord the one leasing property to a lessee Licensed mortgage broker the licensed person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them, a firm or individual bringing the borrower and lender together and receiving a commission, a mortgage broker does not retain servicing Lien a legal claim against property that must be satisfied when the property is sold Limited partnership a partnership that consists of one or more general partners who are fully liable and one or more limited partners who are liable only for the amount of their investment Loan money borrowed that is usually repaid with interest Loan fraud purposely giving incorrect information on a loan application in order to better qualify for a loan, may result in civil liability or criminal penalties Loan Processing a system by which a buyer is evaluated for loan approval, the system compares the stated income, debt, savings and credit against documentation provided by the buyer or alternative federal documents, calculations of debt to income, loan to value, net worth, cash reserves and compensating factors are used to develop and underwriting opinion, the system of structuring a buyer's financial situation and documentation in such a way that an underwriting opinion can be reached Loan submission a package of pertinent papers and documents regarding specific property or properties, it is delivered to a prospective lender for review and consideration for the purpose of making a mortgage loan Loan to value ratio a percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased, the higher the LTV, the less cash a borrower is required to pay as down payment Lock in since interest rates can change frequently, many lenders offer an interest rate lock in that guarantees a specific interest rate if the loan is closed within a specific time Loss mitigation a process to avoid foreclosure, the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan Margin an amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage Marketable title a title that is free and clear of objectionable liens, clouds, or other title defects, a title which enables an owner to sell his property freely to others and which others will accept without objection Metes and bounds a description in a deed of the land location in which the boundaries are defined by directions and distances Mortgage a lien on the property that secures the promise to repay a loan Mortgage banker a company that originates loans and resells them to secondary mortgage lenders like, Fannie Mae or Freddie Mac Mortgage broker a firm that originates and processes loans for a number of lenders Mortgage Commitment a written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house Mortgage insurance a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan, mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price Mortgage insurance premium a monthly payment, usually part of the mortgage payment, paid by a borrower for mortgage insurance Mortgage life insurance a type of term life insurance often bought by mortgagors, the amount of coverage decreases as the mortgage balance declines, in the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds Mortgage modification a loss mitigation option that allows a borrower to refinance and,or extend the term of the mortgage loan and thus reduce the monthly payments Mortgage note a written agreement to repay a loan, the agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid, the note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment Mortgage open end a mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges, open end provisions often limit such borrowing to no more than would raise the balance to the original loan figure Mortgagee the lender in a mortgage agreement Mortgagor the borrower in a mortgage agreement Offer indication by a potential buyer of a willingness to purchase a home at a specific price, generally put forth in writing Origination the process of preparing, submitting, and evaluating a loan application, generally includes a credit check, verification of employment, and a property appraisal Origination fee the charge for originating a loan, is usually calculated in the form of points and paid at closing Originator a person who solicits builder, brokers, and others to obtain applications for mortgage loans, origination is the process by which the mortgage lender brings into being a mortgage secured by real property Partial claim a loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an interest free loan from HUD to bring their mortgage payments up to date PITI principal, interest, taxes, and insurance, the four elements of a monthly mortgage payment, payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance, homeowner's and mortgage, if applicable goes into an escrow account to cover the fees when they are due Plans and specifications architectural and engineering drawings and specifications for construction of a building or project, including a description of materials to be used and the manner in which they are to be applied Plot a map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements PMI private mortgage insurance, privately owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price Points sometimes called discount points, a point is one percent of the amount of the mortgage loan, for example, if a loan is for $25,000, one point is $250, points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage, buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans sellers can pay, however, on a conventional mortgage, points may be paid by either buyer or seller or split between them Pre approve lender commits to lend to a potential borrower, commitment remains as long as the borrower still meets the qualification requirements at the time of purchase Preclosing a transaction preceding the formal closing, often used to settle outstanding issues, survey, pest inspection, hazard insurance, flood insurance if required, with the formal closing shortly thereafter Pre foreclosure sale allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure Pre qualify a lender informally determines the maximum amount an individual is eligible to borrow Premium an amount paid on a regular schedule by a policyholder that maintains insurance coverage Prepayment payment of the mortgage loan before the scheduled due date, may be subject to a prepayment penalty Principal the amount borrowed from a lender, doesn't include interest or additional fees Principal balance the outstanding balance of a loan Private mortgage insurance insurance written by a private company protecting the mortgage lender against loss by a mortgage default Quitclaim deed a deed which transfers whatever interest the maker of the deed may have in the particular parcel of land, a quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable, by accepting such a deed the buyer assumes all the risks, such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has Radon a radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems Real estate agent an individual who is licensed to negotiate and arrange real estate sales, works for a real estate broker Realtor a real estate agent or broker who is a member of the National Association Of Realtors, and its local and state associations Reconveyance the transfer of land from one person to the immediately preceding owner, it is used when the performance of debt is satisfied under the terms of a deed of trust Redemption period that period of time in those states where it is allowed in which a foreclosed mortgagor has to buy back his property by paying principal amount and interest and fees Refinancing paying off one loan by obtaining another, refinancing is generally done to secure better loan terms, like a lower interest rate Rehabilitation mortgage a mortgage that covers the costs of rehabilitating, repairing or improving, a property, some rehabilitation mortgages like the FHA's 203(k) allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan Release of lien an instrument discharging secured property from a lien RESPA Real Estate Settlement Procedures Act, a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships Restrictive covenants private restrictions limiting the use of real property, restrictive covenants are created by deed and may run with the land, binding all subsequent purchasers of the land, or may be personal and binding only between the original seller and buyer, the determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the state where the land is situated, restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area this latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court Right of survivorship in joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant Right of way a privilege operating as an easement upon land, whereby a land owner, by grant or agreement, gives another the right to pass over land, also knows as easement Sale leaseback a technique in which a seller deeds property to a buyer for a consideration and the buyer simultaneously leases the property back to the seller, usually on a long term basis Sales contract another name for a sales agreement, purchase agreement, etc, not to be confused with a land contract, which is a conditional sales contract Satisfaction of mortgage the record able instrument given by the lender to evidence payment in full of the mortgage debt, sometimes knows as a release deed Secondary financing financing real estate with a loan, or loans, subordinate to a first mortgage or first trust deed Secondary mortgage market the market where existing mortgages are bought and sold, it contrasts with the primary mortgage market, where mortgages are just originated, and packaged for delivery to the secondary market Servicing the duties of the mortgage lender as a loan correspondent as specified in the servicing agreement for which a fee is received, consists of operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow up, delinquency loan follow up and loan analysis Settlement another name for closing Special assessments a special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, etc Special forbearance a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments Special lien a lien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets, it creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person's behalf, in some localities it is called particularlien or specific lien Special warranty deed a deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property, in a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title Subordinate to place in a rank of lesser importance or to make one claim secondary to another Survey a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc Sweat equity using labor to build or improve a property as part of the down payment Takeout commitment a promise to make a loan at a future specified time, it is commonly used to designate a higher cost, shorter term, backup commitment as a support for construction financing until a suitable permanent loan can be secured Tax as applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the state, the governing body in turn utilizes the funds in the best interest of the general public Tax lien a claim against property for the amount of its due and unpaid taxes Tenancy a holding of real estate under any kind of right of title Tenancy at will a holding of real estate that can be terminated at the will of either the lessor or the lessee, usually with notice Tenancy by entirety the joint ownership of property by a husband and wife where both are viewed as one person under common law that provides for the right of survivorship Tenancy in common in law, the type of tenancy or estate created when real or personal property is granted, devised or bequeathed to two or more persons, in the absence of expressed words creating a joint tenancy, there is no right of survivorship Term the period of time between the commencement date an termination date of a note, mortgage, legal document, or the contract Title as generally used, the rights of ownership and possession of particular property, in real estate usage, title may refer to the instruments or documents by which a right of ownership is established title documents, or it may refer to the ownership interest one has in the real estate Title 1 an FHA insured loan that allows a borrower to make non luxury improvements, like renovations or repairs to their home, Title I loans less than $7,500 don't require a property lien Title insurance insurance that protects the lender against any claims that arise from arguments about ownership of the property, also available for homebuyers Title search a check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property Trustee a party who is given legal responsibility to hold property in the best interest of or for the benefit of another, the trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law Truth in lending a federal law obligating a lender to give full written disclosure of all fees, terms, and conditions associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan Underwriting the process of analyzing a loan application to determine the amount of risk involved in making the loan, it includes a review of the potential borrower's credit history and a judgment of the property value Unencumbered property a property the title to which is free and clear Usury charging more for the use of money than allowed by law VA Department of Veterans Affairs, a federal agency which guarantees loans made to veterans, similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default Variable rate mortgage a mortgage agreement that allows for adjustment of the interest rate in keeping with a fluctuating market and terms agreed upon in the note Warehousing the holding of a mortgage on a short term basis pending either a sale to an investor or other long term financing Warranty deed a deed in which the grantor or seller warrants or guarantees that good title is being conveyed, as opposed to a quitclaim deed that contains no representation or warrant as to the quality of title being conveyed Zoning ordinances the acts of an authorized local government establishing building codes, and setting forth regulations for property land usage

 

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