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Abstract of Judgment - This type of lien is issued pursuant to a court order for the payment of a debt.
Abstract of Title - A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record, which may affect the marketability of the title.
Adjustable Rate Mortgage (ARM) - A mortgage that has an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).
Adjustment Period - The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one year ARM, which means that the interest rate can change once a year.
Adverse Possession - A method of acquiring property based on open and notorious possession, under a claim of right, color of title, continuous use for five years, and the payment of taxes. A method of acquiring property through continuous use of that property while paying taxes on it.
Agency Relationship - A special relationship of trust by which one person (agent) is authorized to conduct business, sign papers, or otherwise act?on behalf of another person (principal). This relatoinship may be created by expressed agreement, ratification, or estoppel.
Agent - One who represents another called a principal and has authority to act for the principal in dealing with third parties. The relationship is referred to as an agency. Someone authorized to act for another (called the principal) in business matters.
Affidavit - A statement or declaration reduced to writing, sworn to or affirmed before some officer who has authority to administer an oath or affirmation, such as a notary public or a commanding officer in the service.
Alluvion (Alluvium) - Soil that has been deposited by accretion on the shore of a river or body of water and that increases the real property.
Amortization - 1. Repayment of a loan in equal installments of principal and interest, rather than interest only payments. 2 Recovery of cost or value over a period of time. The method or plan for the payment of a debt, bond, deed of trust, etc., by installments or sinking fund.
Amortized Loan - A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan.
Annual Percentage Rate (APR) - The total finance charges (interest, loan fees, points) expressed as a percentage of the loan amount. Defined as "The cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act.."
Appreciation - An increase in the value of real estate.
Assumption of Mortgage - A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
Balloon Payment - A lump sum principal payment due at the end of some mortgages or other long term loans.
Binder - Sometimes known as an offer to purchase or an earnest money request. An agreement to consider a down payment for the purchase of real estate as evidence of good faith on the part of the purchaser. Also, a notation of coverage on an insurance policy, issued by an agent, and given to the insured prior to issuing of the policy.
Cap - The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.
Caveat Emptor - Let the buyer beware. The buyer must examine the goods
or property and buy at his or her own risk, absent misrepresentation.
CC&RS — Covenenants, Conditions and Restrictions - A document that controls the use, requirements and restrictions of a property.
Certificate Of Reasonable Value (CRV) - A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.
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