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Acceleration Clause
A clause in a note, trust deed or mortgage advancing the date of maturity of the debt upon the happening of a certain event, such as a sale or transfer of title to property.
Adjustable Rate Mortgage (ARM)
A mortgage with an interest rate that is periodically adjusted up or down, depending on a specific index.
Agency
A relationship between two or more persons whereby one is authorized to act for another.
Amortization
Payment of principal and interest at stated periods for a stated time until debt is paid off.
Annual Percentage Rate (APR)
The finance charges for a loan, including points and other loan fees, that are in addition to interest on the loan.
Appurtenance
Anything incidental to or belonging to land and considered a part of the real property.
Assessed Value
The value of property for taxation purposes.
Assumption of a Mortgage (or Deed of Trust)
An agreement in which the buyer accepts liability for payment of a seller's existing promissory note secured by a mortgage or deed of trust.
Balloon Payment
A final installment payment larger than preceding installment payments on a promissory note.
Beneficiary
One for whose benefit a trust is created, such as a lender whose loan is secured by a deed of trust.
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Beneficiary's Demand
The payment required by a beneficiary under a deed of trust before authorizing a reconveyance, the removal of the lien on title to property created by a deed of trust.
Beneficiary Statement
The statement of a beneficiary under a deed of trust stating the principal balance due on a promissory note and other information concerning the loan.
Binder
A memorandum of agreement to issue insurance giving temporary coverage until a formal policy is issued.
Chain of Title
A chronological list of documents comprising the record history of title to a specific parcel of real property.
Commitment
A pledge, promise, or firm agreement, such as a title insurer's contractual obligation to insure title to real property.
Contract of Sale
An agreement entered into for sale and purchase of real property.
Convey
To transfer title to property from one to another.
Dedication
The donation of land for public use by its owner.
Deed
A written document transferring ownership of land from one to another.
Deed of Trust
A three party security document conveying title to land, secured by the performance of an obligation, such as the repaying of a loan. It is also called a trust deed.
Default
Omission or failure to fulfill a duty or promise, discharge an obligation or perform an agreement.
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Documentary Transfer Tax
A tax on recorded transfers of title to real property.
Down Payment
The amount or percentage of the purchase price paid by the buyer in cash, not borrowed from the lender.
Due on Sale Clause
A clause in a promissory note or deed of trust calling for automatic maturity and payoff of the loan in the event of a sale or transfer of title to real property.
Earnest Money
Something given as a part of the purchase price to bind a bargain, such as a deposit.
Easement
A limited right or interest in the land of another entitling the easement holder to some use, privilege or benefit.
Encroachment
The extension of an improvement onto the land of another.
Equity
The value of the property actually owned by the property owner, often calculated by adding together the purchase price, appreciation and value of improvements and then subtracting the amount of all mortgages and liens on the property.
Escrow
A transaction in which an impartial third party acts as an agent for both the seller and buyer, or both the borrower and lender, in carrying out instructions, delivering papers and documents and disbursing funds.
Fee Simple
Absolute ownership of real property.
Fixture
Personal property that is considered a part of the real property because it has been affixed in a manner that to remove it would cause damage to the property.
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Foreclosure Sale
The sale of real property given to secure performance of an obligation after the obligation has been breached.
Grant Deed
A written instrument transferring title to real property.
Grantee
The person/entity acquiring title to real property by a deed.
Grantor
The person/entity transferring title to real property by a deed.
Interest
The cost of borrowing money, usually expressed as a percentage over time.
Lien
A charge on real property in order to secure payment or satisfaction of a debt or other obligation.
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Legal Description
A description of real property sufficient to locate it on the ground by reference to surveys or approved recorded maps.
Lis Pendens
A recorded notice of the pendency of a lawsuit.
Notice of Default
A recorded notice of a borrower's failure to perform the obligations in a deed of trust.
Ordinance
A legislative enactment of a city or county.
Party Wall
A wall located on a boundary line of real property and used by the owners of the property on each side.
PITI
The amount of principal, interest, taxes and insurance which are the bases for monthly mortgage payments.
Point
One percent of the loan principal, charged in part or in multiples to obtain a loan, in addition to interest and other fees.
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Pre-Payment Clause
A charge imposed by a lender for payment of a debt before its due date.
Principal
A party to a contract; also, the amount of money borrowed upon which interest is charged.
Promissory Note
A written promise, signed by the borrower, to repay a loan.
Probate
To divide or assess proportionately.
Public Report
A report issued by the California Department of Real Estate containing a wide variety of information of interest to a prospective buyer of subdivided property.
Real Property
Immovable property such as land and improvements on it, such as buildings.
Reconveyance
A document, executed when obligations in a deed of trust have been met, that removes the lien on title to property created by a deed of trust.
Recording
The act of filing documents in the office of the County Recorder.
Request for Reconveyance
A written instruction by a beneficiary under a deed of trust acknowledging that the obligations in the deed of trust have been met, and directing that the lien on title to the property created by the deed of trust be removed.
Rescission
The act of canceling the effect of a document.
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Rider
A supplement, addition, or endorsement to a document.
Statute of Frauds
A law requiring certain agreements to be in writing in order to be enforceable, including an agreement for the sale of real property.
Straight Note
A promissory note calling for payment of principal in one sum rather than in installments.
Subdivision
The division of a tract of land into separate parcels.
Title
A document indicating ownership of a specific parcel of property.
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Title Insurance or Title Policy
A contract indemnifying the policy holder against loss resulting from a defect in the title to the insured interest in real property.
Title Search
The steps required to complete the chain of title to a parcel of real property.
Trustee
The fiduciary designated to hold title to real property for the benefit of another.
Usury
The exaction of a greater payment or return for a loan of money than is permitted by law.
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