Abstract
A succinct summary; (e.g. an abstract of judgment; an abstract of title, an abstract plant.)
Abstract of Judgment
Summary of a court judgment creating a lien against a property when filed with the county recorder.
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 abstractor that the history is complete and accurate.
Abstract Plant
A collection of information and documents relating to title of a particular property. Also known as “title plant”.
Acceleration Clause
The clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.
Acceptance
The written approval made by the seller from a buyer’s offer.
Accrued
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.
Addendum
Any addition or change to a contract.Adjustable Rate Mortgage (Arm)A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.
Agent
A licensed representative of the state to conduct real estate transactions.
Agreement of Sale
Also known as an agreement to convey. A signed, written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) under certain specific terms and conditions.
Alienation
The transfer of property from one person to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.
Alienation Clause
A term of a mortgage which requires that the borrower pay in full the principal and interest due upon the sale of the property. ( See Acceleration or Due-on-Sale Clause)
All-Inclusive Deed of Trust
A form of deed of trust that, in addition to any other amounts actually financed, includes the amounts of any prior deeds of trust. Sometimes referred to as a wrap-around or over-riding trust deed.
Amortization
The repayment of a debt in installments.
Appraisal
A valuation or an estimation of value of property by disinterested persons of suitable qualifications; the process of ascertaining a value of an asset or liability that involves expert opinion rather than explicit market transactions.
Appraise
To fix or set a price or value upon.
Appreciation
The difference between the increased value of the property and the original value.
Arrears
Generally, being overdue in an installment payment.
Assessor
A municipality employee who estimates the value of properties for the purpose of taxes.
Assignee
The person to whom a transfer of interest is made. Hence an assignee of an Agreement of Purchase and Sale may buy the property and enforce the contract in the same fashion as the original party.
Assignment
The method by which a right or contract is transferred from one person (the assignor) to another (the assignee).
Assignor
The person who makes an assignment to another person.
Assumable Mortgage
A mortgage that can be taken over (“assumed”) by the buyer when a home is sold. If interest rates have risen, an assumable mortgage at a low rate may prove a selling point for the property.