Exam 1 Flashcards
A mortgage in which the interest changes periodically, according to corresponding fluctuations in and index. All are tied to indexes.
Adjustable-Rate Mortgage (ARM)
An opinion of a property’s fair market value, based on an appraiser’s knowledge, experience, and analysis of the property.
Appraised Value
A title that is free of liens or legal questions as to ownership of the property
Clear title
Items which recur over time, such as property taxes and homeowners insurance.
Prepaid closing costs
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.
Construction Loan
The legal document conveying title to a property
Deed
Part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
Down payment
A right of way giving persons other than the owner access to or over a property
Easement
An improvement that intrudes illegally on another’s property
Encroachment
Lawful expulsion of an occupant from property
Eviction
Personal property that becomes real property when attached in a permanent manner to real estate
Fixture
A legal claim against a property that must be paid off when the property is sold.
Lien
Legal document that pledges a property to the lender as security for payment of a debt.
Mortgage
Amount borrowed or remaining unpaid
Principal
drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features
Survey
