Glossary

Question 1

“Good Guy” Guarantee

Answer 1

A personal guarantee of an entity’s lease. Usually, the “good guy” is the entity’s principal.

Question 2

“Or More” Clause

Answer 2

A clause in a note, mortgage, or deed of trust, allowing for additional payments to be made without penalty.

Question 3

“Subject to” loan or mortgage

Answer 3

A method of purchasing real estate without agreeing to pay the underlying encumbrance. Since the buyer is not personally liable on the loan, a deficiency judgment from a foreclosure would have to be against the original seller/borrower.

Question 4

Abatement

Answer 4

To decrease, reduce or stop an activity.

Question 5

Abrogate

Answer 5

To abolish by formal or official means; to annul by an

authoritative act; to repeal.

Question 6

Abstract and Opinion

Answer 6

A historical record of the documents on a property PLUS the written opinion of an attorney concerning the quality of the chain of title

Question 7

Abstract of Judgment

Answer 7

A general lien placed on a debtor’s real and personal property until a judgment is paid in full to the plaintiff in the lawsuit.

Question 8

Abstract of Title

Answer 8

A complete historical summary of all recorded documents affecting the title of a property.

Question 9

Abstraction (Abstractive Method)

Answer 9

Estimating the value of land by deducting the value of the improvements from the overall price of the property. (also called the extraction method)