ABANDONMENT
A disclaimer of ownership by the trustee or debtor in property deemed burdensome or inconsequential. Once property has been "abandoned," it is no longer the property of the estate, and creditors can seek to recover their money. |
| |
ABSTRACT OF TITLE
A written history of all the transactions that bear on the title to a specific piece of land. An abstract of title covers the time from when the property was first sold to the present. Used by the title company to produce a title binder. |
| |
ACCELERATION CLAUSE
The section of a mortgage document that allows the lender to speed up the payment date in the event of a default, making the entire principal amount due. |
| |
ACCRETION
The buildup of land from natural forces such as wind or water. |
| |
ACKNOWLEDGEMENT
The confirmation by a party executing a legal document that this is his signature and voluntary act. This confirmation is made to an authorized officer of the Court or notary public who signs a statement also called an acknowledgment. |
| |
ACRE
43,560 square feet of land. |
| |
ADJUSTMENT INTERVAL
Indicates how often a loan’s interest rate may change. |
| |
ADMINISTRATOR
A person appointed by the Court to settle the estate of a person who dies without a will. The feminine form is Administratrix. |
| |
ADVERSE POSSESSION
A means of getting title to land by using it without the objection of the title holder. |
| |
AGENCY
A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party. |
| |
AGREEMENT OF SALE
A document in which a property's buyer and seller approve the price and other terms of the transfer of title. |
| |
AMORTIZATION
The repayment of a mortgage loan by installments with regular payments to cover the principal and interest. |
| |
AMORTIZED LOAN
A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity. |
| |
ANNUAL PERCENTAGE RATE (A.P.R.)
Is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit costs. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan. |
| |
APPRAISAL
An estimate of the value of property, made by a qualified professional called an "appraiser." Most states require licenses. Various lenders have their own lists of approved appraisers. |
| |
APPROVED ATTORNEY
An attorney authorized by a title insurance company to handle closings and render title opinions. |
| |
APPURTENANCE
Anything attached to the land or used with it passing to the new owner. |
| |
ASSESSMENT
A local tax levied against a property for a specific purpose, such as a sewer or street lights. |
| |
ASSIGN
To transfer interest. |
| |
ASSIGNEE
One who receives an assignment or transfer of rights. An assignment of a contract transfers the right to buy property. |
| |
ASSIGNOR
The one who assigns to another person. |
| |
ASSUMPTION
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing costs and new, possibly higher, market-rate interest charges will apply. |
| |
ATTACHMENT
Seizure of property through Court process to repay a debt. |
| |
ATTORNEY IN FACT
A type of agency relationship where one person holds a POWER OF ATTORNEY allowing him to execute legal documents on behalf of another. Decisions made by the attorney in fact are binding on the principal. |
| |