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A Glossary of Common Real Estate and Mortgage Terms

A - E|F - P|Q - Z

Q | R | S | T | U | V | W | Y | Z

Q

Quit Claim Deed - A deed operating as a release; intended to pass any title, interest or claim which the grantor may have in the property. back to top

R

Real Estate - Land and anything permanently affixed to the land and those things attached to the building. back to top

Real Estate Broker - A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner. back to top

Real Estate Tax - A pecuniary charge laid upon real property for public purposes. back to top

REALTOR - Registered name for a member of the NATIONAL ASSOCIATION OF REALTORS. back to top

REALTOR ASSOCIATE - Salesperson associated with a broker who is a member of a the NATIONAL ASSOCIATION OF REALTORS. back to top

Realty - A synonym for real estate. back to top

Recital - Setting forth in a deed or other writing some explanation for the transaction. back to top

Recording - The act of writing or entering an instrument in a book or public record, usually in the office of the county clerk and recorder. Such recording constitutes notice to all persons of the rights or claims contained in the instrument. This type of notice is called "constructive notice" or "legal notice." back to top

Recourse - The right of the holder of a note secured by a mortgage or deed of trust to look personally to the borrower or endorser for payment. back to top

Redlining - The practice of refusing to provide loans or insurance in a certain neighborhood. back to top

Refinancing - The repayment of a debt from the proceeds of a new loan using the same property as security. back to top

Reissue rate - A charge for a title insurance policy if a previous policy on the same property was issued within a specified period of time. Reissue is less than the original charge. back to top

REIT (Real Estate Investment Trusts) - A method in investing real estate in a group, with certain tax advantages. back to top

Recession of Contract - Annulling a contract and placing the parties to it in a position as if there had not been a contract. back to top

Release - An instrument releasing property from the lien of the mortgage, judgment, etc. back to top

RESPA (Real Estate Settlement Procedures Act) - A federal regulation that requires lenders and mortgage brokers to disclose to borrowers, in advance, the fees required to obtain a mortgage loan. back to top

Restrictive Covenants - Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and be binding only between the original seller and buyer. back to top

Revenue Stamps - Formerly, federal tax on a sale of real property. Canceled and replaced by state tax stamps. back to top

Reverse Mortgage - A special program for the elderly that provides income until death. Payment requirements are arranged through the increase in the principal amount of the loan. back to top

Riparian - Pertaining to the banks of a river, stream, waterway, etc. back to top

S

Sales Agreement - See agreement of sale. back to top

Satisfaction of Mortgage - Document issued by mortgagee when the mortgage is paid off. back to top

Second Home - Commonly known as a vacation home. This home is not rented and is occupied occasionally by the owners. back to top

Secondary Financing - A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed. back to top

Secondary Market - The buying and selling of mortgage notes between sophisticated investors such as pension funds, commercial banks, savings and loans and wall street firms. back to top

Secondary Market Investor - An entity, such as FNMA or FHLMC, that buys mortgage loans for investment or sells them again to another secondary market investor. Secondary market investors do not service loans and do not collect payments from borrowers. back to top

Secondary Mortgage Market - The buying and selling of first mortgages of trust deeds by banks, insurance companies, government agencies, and other mortgagers. back to top

Security - Real or personal property pledged by a borrower as additional protection for the lender's interest. back to top

Seller's Broker - Agent who takes the seller as a client, is legally obligated to a set of fiduciary duties and is required to put the seller's interests above all other's. back to top

Septic Tank - An Underground tank in which sewage from the house is reduced to liquid by bacterial action and drained off. back to top

Set Back Ordinance - Regulates the distance from the lot line to the point where improvements may be constructed. back to top

Settlement - See "closing". back to top

Settlement Cost, a HUD Guide - This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed. back to top

Settlement Statement - A statement prepared by broker, escrow or lender giving a complete breakdown of the cost associated with a real estate transaction. back to top

Sheriff's Deed - A deed given at the sheriff's sale in foreclosure of a mortgage. back to top

Single Family Detached Home - A residential home that is not attached physically to another home. back to top

Special Assessments - A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, etc. back to top

Special Lien - A lien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person's behalf. In some localities it is called "particular" lien or "specific" lien. (See lien). back to top

Special Warranty Deed - A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title. back to top

Specific Performance - Lawsuit requesting that a contract be exactly carried out, usually asking that the seller be ordered to convey the property as previously agreed. back to top

Standard Uniform Application - An application developed by FNMA and FHLMC that is widely used in the mortgage industry. back to top

State and Local Housing Programs - Unique housing finance programs to assist first time home buyers and low to moderate housing groups. Each state and local group has different sets of criteria. back to top

Statute of Frauds - The law requires that certain contracts, such as agreements of sale, to be in writing in order to be enforceable. back to top

Statutory Lien - An involuntary lien, includes tax liens, judgment liens, mechanic liens, etc. back to top

Substitute of Trustee - A document which is recorded to change the trustee under the deed of trust. back to top

Survey - Map or plat made by a licensed surveyor who measures land and charts its boundaries, improvements, and relationship to the property surrounding it. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description. back to top

Survivorship - All rights of a joint tenant passes to the surviving joint tenant. back to top

Sweat Equity - Equity created by the labor of the purchaser or borrower that increases the value of the property. back to top

T

Tax - Tax as applied to real estate is an enforced charge imposed on persons, property, or income to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public. back to top

Tax Lien - Lien for nonpayment of taxes. back to top

Tax Sale - Public sale of property at an auction by a governmental authority, due to non payment of property taxes. back to top

Tenancy - A holding, as of land, by any kind of title, occupancy of land, a house or the like under a lease or on payment of rent or tenure. back to top

Tenancy at Sufferance - A tenancy which arises when a tenant holds over after expiration of his lease. back to top

Tenancy at Will - A tenancy which may be terminated at the will of either the Lessor or lessee. back to top

Tenancy by the Entirety - A form of ownership by husband and wife whereby each owns the entire property. In event of the death of one, the survivor owns the property without probate. back to top

Tenant - Any person in possession of real property with the permission of the owner. back to top

Testate - Having made a will before death. back to top

Time is of the Essence - Legal phrase in a contract requiring punctual performance of all obligations. back to top

Title - Often used interchangeably with the word ownership. It indicates the accumulation of all rights in property by the owner and others. back to top

Title, Escrow and Closing Agent Fees - These companies charge various fees for their services. back to top

Title Insurance - An insurance policy which protects the insured (purchaser and lender) against loss arising from defects in title. back to top

Title Search - A review of the public 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 claims or outstanding restrictive covenants filed in the records, which would adversely affect the marketability or value of title. back to top

Trustee - A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. (See deed of trust). back to top

Truth in Lending Statement (Regulation Z) - A federal government regulation that provides details of the cost of obtaining a mortgage loan. Lenders must provide this shortly after the loan application has been completed. back to top

U

Usury - On a loan, claiming a rate of interest greater than permitted by law. back to top

V

Valuation - The act or process of estimating value; the amount of estimated value. back to top

W

Warranty Deed - Most valuable type of deed in which the grantor makes formal assurance of title. back to top

W2 Form - Income tax form that is provided by employers to employees that states the income and taxes paid in a calendar year. back to top

Y

Yield - The interest earned by an investor on his investment (or bank on the money it has lent). Also called Return. back to top

Z

Zoning Ordinances - The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage. back to top