terms Flashcards
abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstracter that the history is complete and accurate
acceleration clause
The clause in a mortgage or trust deed or note that can be enforced to make the entire amount of principal and interest due immediately if the mortgagor defaults on an installment payment or other covenant.
accrued item
on a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.
acknowledgment
a formal declaration before a notary public or other authorized public officer that authenticates signatures on a document for the purpose of recording.
actual eviction
the result of legal action, originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order
actual notice
the result of legal action, originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order
adjustable-rate mortgage
a mortgage loan in which the interest rate may increase or decrease at specified intervals over the life of the loan
adverse possession
the actual, visible, hostile, notorious, exclusive, and continuous possession of another’s land under a claim of title. possession for a statutory period may be a means of acquiring title
alienation clause
the clause in a mortgage or deed of trust stating that the balance of the secured debt becomes immediately due and payable at the mortgagee’s option if the property is sold by the mortgagor. in effect, this clause prevents the mortgagor from assigning the debt without the mortgagee’s approval; also called a due-on-sale clause
amortization
a loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan
appraisal
an estimate of the quantity, quality, or value of something. the process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value
appraisal
an estimate of the quantity, quality, or value of something. the process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value
appreciation
an increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.
area
the size in square units (square inches, etc.) of a two-dimensional figure such as a triangle or a rectangle
attorney’s opinion of title
a writing based on a lawyer’s reading of an abstract of title that specifies any interprets it; states whether a seller may convey good title
auctioneer
a person who conducts the sale of property by competitive bid using any method, format, or venue; licensed by the Texas Department of Licensing and Regulation
automated underwriting
the process of electronically evaluation a loan application, assessing a borrower’s ability to repay, and subsequently providing a recommendation for or against loan approval.
balloon payment
a final payment of a mortgage loan that is considerable larger than the required periodic payments because the loan amount was not fully amortized
bargain and sale deed
a deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title; a bargain and sale deed
basis
the dollar amount associated with an asset to determine annual depreciation and gain or loss on the sale of the asset. the owner’s basis is the cost of the property; adding the value of any capital expenditures for improvements to the property and subtracting any depreciation claimed as a tax deduction yields the adjusted basis
bequest
the transfer of personal property to a legatee in accordance with will
biweekly payment plan
a loan that calls for 26 half-month payments a year, resulting in an earlier loan retirement date and lower total interest costs than with a typical fully amortized loan
blanket mortgage
a mortgage covering more than one parcel of real estate, providing for each parcel’s partial release from the mortgage lien or repayment of a definite portion of the debt
boot
money or property given to make up any difference in value or equity between two properties in an exchange