Flashcards in Vocabulary Letter A Deck (40):
Abstract of Judgement
The summary of a court judgment that creates a lien against a property when filed with the county recorder
Abstract of Title
historical summary of all of the recorded instruments and proceedings that affect title to a property.
Accelerated Cost Recovery System
A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.
a loan provision giving the lender the right to declare the entire amount immediately due and payable upon violation of another specific loan provision, commonly referred to as the Due on Sale Clause.
a buyers or sellers agreement to enter into a contract and be bound by the terms of the offer.
interest that has been earned but not paid.
in accounting, the amount of depreciation expense that has been claimed to date.
a declaration by a person who has signed a document that such signature is a voluntary act, made before a duly authorized person.
the price and all fees required to obtain a property.
money borrowed for the purpose of purchasing a property.
a two dimensional measure of land equaling 4,840 square yards or 43,560 square feet.
something added as an attachment to a contract.
Additional Principal Payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
contiguous, attached, sharing a common border.
Adjustable Rate Mortgage (ARM)
a mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, based on a monitored index.
Adjusted Cost Basis
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.
Adjusted Tax Basis
the original cost or other basis of the property, reduced by depreciation deductions and increased by capital expenditures.
The amount of time between interest rate adjustments in an adjustable- rate mortgage.
a person appointed by a court to administer the estate of a deceased person who left no will
A legal document that an administrator of an estate uses to transfer property.
a means of acquiring title to real estate where an occupant has been in actual, open, notorious, exclusive and continuous occupancy of property for the period required by state law.
a written statement, sworn to or affirmed before an officer who is authorized to administer an oath or affirmation.
the legal relationship between a principal and his agent arising from a contract in which the principal engages the agent to perform certain acts on behalf of the principal.
Agreement for Deed
see Contract for Deed.
to convey or transfer title and possession of property.
All Inclusive Trust Deed
This applies to states that use trust deeds instead of mortgages. It is the same as a wraparound mortgage.
loan that is repaid in a series of installments each of which contains a portion that is applied to reduce the principal amount of the loan and a portion that is applied to pay interest with each successive payment allocates a larger portion to principal reduction and a smaller portion to interest payment until the outstanding balance is ultimately reduced to zero.
maximum amount the interest rate on an adjustable rate mortgage can be raised or lowered in the course of one twelve month period.
Annual Percentage Rate (APR)
effective rate of interest rate for a loan per year including fees and points, disclosure of which is required by the Truth-in-Lending Law
A communication that informs a party that the obligations of the original contract will not be fulfilled.
opinion or estimate of a value of a property, values are determined by one of three methods: comparable sales (residential), replacement cost (insurance), or income approach (commercial).
an increase in the value of a property.
mortgage payment includes interest for prior month, or overdue payments in default.
without guarantees as to condition.
the value established for property tax purposes.
the person to whom an agreement or contract is sold or transferred.
the method by which a right or contract is transferred.
the person who assigns or transfers an agreement or contract to another.
An existing mortgage which allows the next purchaser of a property to be liable for the payments and other obligations of the note and mortgage. Depending on the type of loan, the assumption of the obligation by this next purchaser may or may not require a qualification and approval process and may or may not release the original mortgagor (borrower) from further liability. A written release from the mortgagee (lender) is required to relieve the original mortgagor of responsibility.