Certificate of Title.
document signed by a title examiner or attorney,
stating that the seller has a good marketable
and insurable title.
Closing Statement (Settlement)
computation of financial adjustments between the
buyer and seller as of the day of closing a sale
to determine the net amount of money which the
buyer must pay to the seller to complete the
purchase of the real estate and seller's net
proceeds. Also, "Settlement Sheets", "HUD-1".
to a real estate broker for services performed.
or transfer title of property from one person to
A formal written instrument by which title to
real property is transferred from one owner to
another. Also, "conveyance"
Deed of Trust.
mortgage, a security instrument whereby real
property is given as security for a debt.
However, in a deed of trust there are three
parties to the instrument: the borrower, the
trustee, and the lender (or beneficiary)
money given to the seller by the potential buyer
(usually held in escrow) upon the signing of the
agreement of sale to show that buyer is serious
about buying the house. Also, "Deposit".
interest or value which the owner has in real
estate over and above the debts against it.
(Sales Price – Mortgage Balance = Equity.)
property, or other things of value left in trust
to a third party. The escrow may be released
upon the fulfillment of certain conditions or by
agreement of the parties.
was formerly personal property which is now
permanently attached to real property and goes
with the property when it is sold.
Protects against damages caused to property by
fire, windstorms, and other common hazards.
a homeowner (as principal) and a licensed real
estate broker (as agent) by which the broker is
employed to market the real estate within a
given time for which service the owner agrees to
pay a commission. Also, "listing agreement".
highest price which a buyer, ready, willing and
able but not compelled to buy, would pay, and
the lowest price a seller, ready, willing and
able but not compelled to sell, would accept.
Basis for "listing price", or "asking price".
actual amount for which a piece of property is
sold. Also, "Sales Price", "Purchase Price".
or claim against real property given by the
buyer to the lender as security for money
written agreement to repay a loan. The agreement
is secured by a mortgage, serves as proof of an
indebtedness, and states the manner in which it
shall be paid. Also, "Deed Of Trust Note".
Principal, interest, taxes, and insurance. Most
residential mortgage payments include the above
and are therefore referred to as P.I.T.I
Sometimes called "Discount Points", a point is
one percent of the amount of the mortgage loan.
for the payment of a mortgage note or deed of
trust note before it actually becomes due.
word has several meanings:
1. to denote the most important;
2. a capital sum lent on interest;
3. one who appoints an agent to act on their
4. either party to a contract.
operation of real property, including the
leasing of space, collection of rents, selection
of tenants, and the repair and renovation of the
buildings and grounds.
allocate between the seller and buyer their
proportionate share of an obligation paid or
due. For example, a prorate of real property
taxes, fire insurance, or condominium fee.
person with a real estate license and associated
with a specific real estate broker.
or plat made by a licensed surveyor showing the
results of measuring the land with its
elevations, improvements, boundaries, and its
relationship to surrounding tracts of land. A
survey is often required by the lender to assure
a building is actually sited on the land
according to its legal description.
generally used, a document that indicates rights
of ownership and possession of a particular
summary of the public records relating to the
title to a particular piece of land. An attorney
or title company reviews an abstract or title to
determine whether there are any title defects.
Protects lenders and homeowners against loss of
their interest in property due to legal defects
Title Search or Examination.
of the title records, generally at the local
courthouse, to make sure the buyer is purchasing
a house from the legal owner and there are no
liens, overdue special assessments, or other
tax, local tax (where applicable), and tax
stamps (in some areas) required by law when
title passes from one owner to another.