Helpful Mortgage Links
This section of the A-1 Signing Services, Inc. web site contains links to various sources of online information,
references, and tools related to mortgage closing and mobile notary industries.
News Sites
Real Estate Settlement Procedures Act (RESPA) News >>
Real Estate Technology News >>
The Legal Description - Legislative and Legal Analysis for the Real Estate Industry >>
The Title Report - Market Intelligence for the Title Insurance Industry >>
Organizations
Mortgage Industry Standards Maintenance Organization, Inc. >>
October Research Corporation >>
Glossary of Mortgage Terms
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Abandonment of Homestead - A recorded document, executed by those claiming a homestead exemption,
giving up said homestead. Not applicable to all states and procedure must be according to local statutes.
Abstract - A summary; an abridgement. Before the use of photo static copying public records were kept
by abstracts of recorded documents.
Abstract of Judgement - A summary of the essential provisions of a court judgment which when
recorded in the county recorder’s office creates a lien upon the property of the defendant in that county, both presently owned
or after acquired.
Abstract of Title - A compilation of the recorded documents relating to a parcel of land from
which an attorney may give an opinion as to the condition of title. Still in use in some states but giving way to the use of
title insurance.
Abut - To touch or border upon. A piece of land bordering on a street or an adjoining
property is said to abut such street or property.
Acceleration Clause - Clause used in an installment note and Mortgage (or Deed of Trust) which gives
the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a
certain date, change of ownership without the lender's consent, destruction of the property (see WASTE) or other event which
endangers the security of the loan (see ALIENATION CLAUSE).
Access - The right to enter and leave a tract of land from a public way.
"Often-times the right to enter and leave over the lands of another."
Accession - The right of an owner to an increase in his property by natural
means (such as a riparian owner's right to an abandoned river bed, rights of alluvium and relict ion, etc.) or artificially by
improvements.
Accommodation Recording - The recording of documents with
the county recorder by a title insurance company, without liability (no insurance) on the part of the company, but merely as a
convenience to a customer.
Accretion - The gradual addition to the shore of bank of a waterway. The
land generally becomes the property of the owner of the shore or bank except where statutes specify otherwise.
Acknowledgment - A written declaration by a person
executing an instrument, given before an officer authorized to give an oath (usually a notary public), stating that
the execution is of his own volition.
Acre - A measure, usually of land, equal to 160 square rods
(43,560 square feet) in any shape.
Action to Quiet Title - A court action to
establish ownership to real property. Although technically not an action to remove a cloud on title. The two
actions are usually referred to as "Quiet Title" actions (see CLOUD ON TITLE).
Administrator - A person appointed by a probate
court to settle the affairs of an individual dying without a will. "The term is administration if such a person
is a woman."
Advances - Money advanced by a Mortgagee (beneficiary
under a Deed of Trust) to pay the mortgagor’s (trustor’s) obligations of taxes, insurance or other items necessary
to protect the secured property.
Adverse Possession - A method of acquiring title by possession under certain conditions. Generally, possession must be actual, under claim of right, open, continuous, notorious, exclusive, and hostile (knowingly against the rights of the owner). Exact time (years) of possession and specific requirements (such as payment of property taxes) vary with the statutes of each state.
Affidavit - A written statement or declaration sworn to before an officer who has authority to administer an oath.
Affidavit of Death of Joint Tenant - A document which establishes of record the death of a decease joint tenant and establishes vesting in surviving joint tenant(s).
After Acquired Title - Legal doctrine by which property automatically vests in a grantee when the grantor acquires title to the property after the deed has been executed and delivered.
Agreement of Sale - Have two separate meanings depending on area of the country. In some states it is synonymous with a purchase agreement (see PURCHASE AGREEMENT). In other states it is synonymous with a land contract (see LAND CONTRACT).
AKA - "Also Known As" - Used frequently, e.g., California Fair Housing Law aka Rumford Act.
Alienation Clause - A type of acceleration clause calling for a debt under a Mortgage or Deed of Trust to be due in its entirety upon transfer of ownership of the secured property. Also called a "due-on-sale" clause.
All-Inclusive Deed of Trust - A second or junior Trust Deed with a face value of both the amount it secures and the balance due under the first Trust Deed. The beneficiary under the all-inclusive collects a payment based on its face value and then pays the first beneficiary. It is most effective when the first has a lower interest rate then the second since the beneficiary under the all-inclusive gains the difference between the interest rates or the trustor under the wrap-around may obtain a lower rate than if refinancing (See WRAP-AROUND).
A.L.T.A. - American Land Title Association - An organization composed of title insurance companies which have adopted certain insurance policy forms to standardize coverage on a national basis.
Amendment - A change either to correct an error or to alter a part of an agreement without changing the principle idea or essence.
Amortization - Payment of a debt or obligation in equal installments over a given period so that at the end of the period the debt is completely extinguished (opposite of a balloon payments).
Appraisal - An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.
Appraisal Report - A written report by an appraiser containing his opinions as to the value of a property and the reasoning leading to the opinion. The factual data supporting the opinion, such as comparables, appraisal formulas and qualifications of the appraiser, will also be set forth.
Approved Attorney - An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the issuance of title insurance policies.
Appurtenance - Something belonging to something else, either attached or not, such as a barn to a house or an easement to land. The appurtenance is part of the property and passes with it upon sale or other transfer.
Arbitrary Map - A map drawn by a title company to be used in locating property in areas where legal descriptions are difficult and complex. Areas are arbitrarily subdivided usually by ownership at a given time into lots which are numbered. Recorded documents are then posted to these arbitrary lots by the same "arb" number.
Area Code - Code set by the County Tax Assessor referring to tax rate area which reflects everything that determines area tax multiplier which in turn determines individual taxes.
Assessed Value - Value placed upon property for property tax purposes by the tax assessor.
Assessment - (1) The estimating of value of property for tax purposes.
(2) A levy against property in addition to general taxes usually for improvements such as streets, sewers, etc.
Assessor - A public official who evaluates property for the purpose of taxation.
Assessor's Parcel Number – A.P.N. - An arbitrary number given to each taxable parcel of land by the county for tax assessment purposes.
Assignee - One who receives an assignment (pl. assigns).
Assignment - A transfer to another of any property, real or personal, or of any rights or estates in said property. Common assignments are of Leases, Mortgages and Deeds of Trust but the general term encompasses all transfers of title.
Assignment of Rents Clause - A clause in a Trust Deed which gives the beneficiary the right to collect rents of the secured property in the event of a default.
Assignment of Rents and Agreement Not To Sell or Encumber Real Property - Outdated document which a creditor used to encumber a debtor’s real property. Does not carry non-judicial rights to sell.
Assignor - One who makes an assignment.
Assumption of Deed of Trust (Assumption of Liability) - Agreement by a buyer to assume the liability under an existing note secured by a Mortgage or Deed of Trust. The lender usually must approve the debtor in order to release the existing debtor (usually the seller) from liability.
Assumption of Mortgage - An obligation undertaken by the purchaser of land to be personally liable for payment of an existing note secured by a mortgage. As between the lender and the original borrower, the original borrower remains liable on the mortgage note.
Attorney in Fact - One who holds a power of attorney from another allowing him to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.
Attorney's Opinion - A written opinion by an attorney that ownership of the particular parcel of land is as stated in his opinion.
Attachment - An act of seizing persons or property by judicial order to bring them within the custody of the court. Most commonly the seizure of property to furnish security for a debt in connection with a pending action.
Avulsion - A sudden and substantial tearing away of land by water and the deposit of said land as an addition to the land of another owner. The original boundaries apply and ownership of the land in question remains in the original owner.
Balloon Note - A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity so that a principal sum known as "balloon" is due at maturity.
Bankruptcy - Proceedings under federal bankruptcy statutes by which the property of a debtor is seized by the court and divided among his creditors. Voluntary bankruptcy is petitioned by the debtor, involuntary by the creditors.
Base Line - A survey line used in the government survey to establish township lines. The base line runs East and West through a principal meridian (line running North and South).
Beneficial Estate - An estate, the right to possession of which has been postponed, such as a devise under a will. More commonly, an estate, the legal ownership of which has not yet vested as under a land contract (an equitable estate).
Beneficial Interest - The equitable rather than legal ownership of property such as under a land contract.
Beneficiary - (1) One for whose benefit a trust is created.
(2) In states in which Deeds of Trust are commonly used instead of Mortgages, the lender (mortgagee) is called the beneficiary.
Beneficiary’s Demand - Written instructions by a beneficiary under a Deed of Trust stating and demanding the amount necessary for issuance of a reconveyance whether a full or partial amount.
Beneficiary’s Statement - A statement by a lender under a Deed of Trust setting forth the pertinent information necessary to assume said Deed of Trust such as the unpaid balance, monthly payment and interest rate.
Binder of Commitment - An enforceable agreement that upon satisfaction of the requirements, which are, stated in the binder the insurer will issue the specified title insurance policy subject only to the exceptions stated in the binder. A binder sets forth status of title as of a particular date.
Blanket Deed of Trust - (1) A Trust Deed covering more than one property of the trustor such as a Trust Deed covering all the lots of a builder subdivision.
(2) A Trust Deed covering all real property of the trustor both present and future. When used in this meaning, it is also called a "general Deed of Trust".
Block - In some states a part of a subdivision legal description such as Lot 1, Block 1, Tract 1.
Board of Equalization - State board charged with the duty to bring equitable uniformity to the various local property tax assessments.
Bond - (1) An insurance agreement under which one party becomes surely to pay, within stated limits, financial loss caused to another by specified acts or defaults of a third party.
(2) An interest bearing security evidencing a long-term debt, issued by a government or corporation, and sometimes secured by a lien on property.
Building (Restriction) Line or Setback - A line fixed at a certain distance from the front and/or sides of a lot or at a certain distance from a road or street, which line marks the boundary of the area within which no part of any building may project. This line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases. By building codes or by zoning ordinances.
Bureau of Land Management - The branch of government in change of surveying public lands.
CC&R’s – Covenants, Conditions and Restrictions - A term used in some areas to describe the restrictive limitations which may be placed on property. In other areas simply called restrictions.
Certificate of Authenticity - Proof from the county seat that a person is authorized in that state as a notary public.
Certificate of Redemption - Evidence of redeeming (buying back) a property by the owner after losing it through a judicial sale. The time limit for redemption is set by statute.
Certificate of Sale - Certificate issued to the buyer at a judicial sale (such as a tax sale) which will entitle the buyer to a Deed upon confirmation of the sale by the court if the land is not redeemed within a specified time.
Certified Copy - A true copy attested to be true by the officer holding the original.
Chain - A term of land measurement being 66 feet in length.
Chain of Title - The chronological order of conveyance of a parcel of land from the original owner (usually the government) to the present owner.
Chains and Links – Measurements - In real estate measurements (surveying) a chain is 66 feet long or 100 links (each link being 7.92 inches). The measurement may change when used in fields other than surveying.
Chattel Mortgage - A lien on personal property (also called a Security Interest or Financing Statement).
Clear Title - One, which is not encumbered or burdened with defects.
Cloud on Title - An invalid encumbrance on real property, which if valid, would affect the rights of the owner. For example: "A" sells Lot 1, Tract 1 to "B". The Deed is mistakenly drawn to read Lot 2, Tract 1. A cloud is created on Lot 2 by the recording of the erroneous Deed. The cloud may be removed by Quitclaim Deed or if necessary by court action.
Closing - Often referred to as "settlement". The process of completing a real estate transaction during which deeds, mortgages, leases or other required instruments are signed or delivered. Additionally, the accounting between parties is made, monies disbursed and recording of all pertinent documents prepared.
Coinsurance - Insurance in which more than one insurer shares a part of a single risk. Insurance with another of a risk. Coinsurance is usually affected by separate contracts of insurance by separate companies, each of which undertakes a fractional part of the whole risk.
Collateral - Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral.
Color of Title - That which gives the appearance of good title but actually contains some defect. For example, a conveyance given without the grantor having good title.
Commercial Property - That which is designated by zoning ordinances as "commercial", not for residential use.
Commitment to Insure - A report issued by a title insurance company, or its agent, showing the condition of the title and committing the title insurance company to issue a form policy as designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.
Common Area - The area owned in common by the owners of condominiums or planned unit development homes in a subdivision.
Community Property - Property owned in common by a husband and wife which has not acquired as separate property. A classification of property peculiar to certain states.
Comparables - Properties used as comparisons to determine the value of a specific property.
Condemnation - Taking private property for public use through court proceedings.
Condition - In real property law some limiting restriction to a Grant or Conveyance of property stating that upon the happening or not happening or a stated event the estate shall be changed in some manner.
Conditional Sales Contract - A sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract usually payment-in-full (see LAND CONTRACT).
Conditions and Restrictions - A common term used to designate the uses to which land may not be put and providing penalties for failure to comply. "Commonly used by land sub-dividers on newly plated areas.
Condominium - A structure of two or more units in which the interior space of which are individually owned and the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior walls, floor and ceiling. The balance of the property is called the common area.
Conservator - A person appointed by the court to protect and preserve the lands and property of an individual physically incapacitated or otherwise not able to handle his own affairs.
Constructive Notice - Notice given by publishing in a newspaper, recording or other method which legally notifies the parties involved but may not actually notify them.
Contingent Beneficiary - One who under the terms of a Will or Trust may or may not share in the estate upon the happening of an uncertain event. For example, "A" leaves property to "B" when "B" reaches age 30 stipulating that if "B" dies before age 30 the property goes to "C". "C" is the contingent beneficiary.
Contract - An agreement to sell and purchase under which title is withheld from the purchaser until such time as the required payments to the seller have been completed.
Controller’s Deed - A Deed issued by the state usually at the time property is sold due to tax delinquency.
Convey - The act of deeding or transferring title to another.
Conveyance - Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged or assigned.
Cooperative - A residential multi-unit building owned by and operated for the benefit of persons living within.
Corner Lot - A lot contiguous to two intersecting streets and for purposes of value having access to both streets.
Co-tenancy - Ownership of the same interest in a particular parcel of land by more than one person; e.g., tenancy in common, joint tenancy, tenancy by the entireties.
County Mortgage - A mortgage placed on property by the county to secure aid given to indigent persons. Usually paid upon sale of the property (also called Indigent Mortgage).
County Records - Public recorded documents by which notice is given of changes of title, liens and other matters affecting real estate.
Covenant - Generally almost any written agreement. Most commonly in real estate, assurances set forth (express) in a Deed by the grantor or implied by law. For example, covenant against encumbrances, covenant, right-to-convey, etc.
Creditor - One who is owed a debt.
Cul de Sac - The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turnaround for vehicles. In French "the bottom of the sack."
Curbstone Appraisal - See DRIVE-BY APPRAISAL.
D.A. - "Doesn’t Apply".
Datedown - A complete title report issued within six months of the original report to the same customer.
D.B.A. – "Doing Business As" - An identification of the owner or owners of a business and the business name, not a partnership or corporation.
Debt - Money owing from one person to another.
Debtor - One who owes a debt.
Declaration of Homestead - See HOMESTEAD.
Declaration of Restrictions - A set of restrictions filed by a sub-divider to cover an entire tract or subdivision.
Declaration of Trust - A written acknowledgement by one holding legal title to property that the property is held in trust for the benefit of another.
Decree of Distribution - The final determination of the rights of heirs to receive the property of an estate.
Dedication - The giving y an owner of private property for public use and the acceptance by the proper public authority. Most commonly the dedication by a builder of the streets in a subdivision.
Deed - Any one of many conveyance or financing instruments, but generally a conveyance instrument, given to pass fee title to property upon sale.
Deed of Reconveyance - See RECONVEYANCE.
Deed of Trust - An instrument used in many state in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconvened upon payment-in-full.
Deed Restrictions - Limitations on the use of property place in the conveyance Deed by the grantor which binds all future owners.
Default - An omission or failure to perform a legal duty.
Default Judgment - A judgment entered against a party who fails to appear to defend against the action.
Defective Title - (1) Title to a negotiable instrument obtained by fraud.
(2) Title to real property which lacks some of the elements to transfer good title.
Defendant - The person against whom a civil or criminal action is brought.
Deferred Payments - (1) Payments to begin at a future time.
(2) Installment payments.
Deficiency Judgment - The amount due on a note and mortgage if the foreclosure sale does not bring enough to cover the debt. The judgment is for the total amount and not for the deficiency.
Delayed Reconveyance - A reconveyance of a Deed of Trust which is issued and recorded after transfer of title and issuing of title insurance (not showing the Deed of Trust). Usually occurs when the lender is in another state and will not issue the reconveyance until paid-in-full.
Delivery - The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by the seller. " A necessary requisite to the transfer of title."
Demand - A letter from a lender showing the amount due in order to pay off a Mortgage or Trust Deed.
Demise - A lease or conveyance for "life" or "years". Loosely used to describe any conveyance whether in fee for "life" or for "years".
Delinquent Taxes - See TAX DELINQUENCIES.
Devise - Real estate left by will.
Discount Points - The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. This amount is equal to the difference between the principal balance on the not and the lesser amount, which a purchaser of the note would pay the original lender for it under market conditions. A point equals one percent of the loan.
Documentary Tax Stamps - Stamps affixed to a Deed showing the amount of transfer tax paid.
Documentary Transfer Tax - A state tax on the sale of real property based on the sale price or equity transferred being fifty-five cents for each five-hundred dollars of the taxable amount (also known as IRS tax).
Dominant Tenement - A parcel of land which benefits from an easement. For example, an easement exists over Parcel A for access to Parcel B. Parcel B is the dominant tenement and Parcel A is the servant tenement.
Dower - An estate for life to which a married woman by statute is entitled on the death of her husband owned during their marriage. Dower has been abolished by statue in some states. The reason for requiring a wife’s joining in the deed of any land by her husband is the release of her dower right.
Drive-By Appraisal - An appraisal in which the appraisers estimates the value of property from his knowledge of previous neighborhood sales comparison of the subject property to those sales and visual inspection of the outside of the house (also known as CURBSTONE APPRAISAL).
Due-on-Sale Clause - See ALIENATION CLAUSE.
Duplex - Any building containing exactly two dwelling units. Most commonly refers to the units which are side-by-side with a common wall and roof.
Earnest Money - Advance payment of part of the purchase price to bind a contract for property.
Easement - A right created by grant, agreement, prescription or necessary implication which one has in the land of another. It is either for the benefit of land (appurtenant) such as right to cross "A" to get to "B" or "in gross" such as a public utility easement.
Egress - A term concerning a right to come and go across the land (public or private) of another. Usually part of the term ingress and egress.
Eminent Domain - A governmental right to acquire private property for public use by condemnation and the payment of just compensation.
Encroachment - Generally, construction onto the property of another as a wall, fence, building, etc.
Encumbrance - A claim, lien, charge or liability attached to and binding real property. Any right to or interest in land which may exist in one other than the owner but which will not prevent the transfer of fee title.
Equitable Lien - A lien enforceable in a court of equity based on evidence of intent between debtor and creditor to create a lien on specific property of the debtor but a failure to legally create said lien.
Equitable Ownership or Title - Ownership by one who does not have legal title such as a vendee under a land contract, or technically a trustor under a Deed of Trust (legal title being in the trustee) (also called Equitable Title).
Equity - The market value of real property less the amount of existing liens.
Equity Participation - A type of mortgage transaction in which the lender, in addition to receiving a fixed rate of interest on the loan, acquires an interest in the borrower’s land and shares in the profits derived from the land.
Equity of Redemption - The right to pay off the lien of a mortgage which is in default by payment of the principal interest and cost which are due. Often confused with the redemption period after the foreclosure sale which is a right established by statute.
Escheat - A reversion of property to the state in the absence of an individual owner. Usually occurs when a property owner dies interstate without heirs.
Escrow - Delivery of a Deed by a grantor to a third party for delivery to the grantee upon the happening of a contingent event. In some states all instruments necessary to the sale (including funds) are delivered to a third (neutral) party with instructions as to the delivery of the instruments.
Estate - The interest or nature of the interest which one has in property such as a life estate, the estate of a deceased, real estate, etc.
Estate for Life - See LIFE ESTATE.
Estate for Years - Any estate for a definite period of time, commonly a lease.
Et Al - "Others".
Et Ux - "And wife".
Examination of Title - The interpretation of the record title to real property based on the title search or abstract.
Exception - In legal descriptions that portion of lands to be deleted or excluded. "The term is often used in a different sense to mean an objection to title or encumbrance on title."
Executor’s Deed - A deed, court approved, under which the grantor is an executor or one who is appointed under Will to carry out the terms of the Will. If female executor known as "Executrix Deed".
Fee Simple - An estate under which the owner is entitled to unrestricted powers to dispose of the property and which can be left by will or inherited (commonly a synonym for "ownership").
F.H.A. – Federal Housing Administration - A federal agency which insures first mortgages on residences enabling lenders to loan a very high percentage of the sale price.
FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation, an affiliate of the Federal Home Loan Bank, which creates a secondary market in conventional residential loans and in FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.
Fictitious Deed of Trust - A Deed of Trust recorded by a trustee that discloses all the general terms and provisions contained in the Deed of Trust but does not relate to a specific transaction. It is used for reference only.
Fiduciary - A person who bears a special relationship of trust, confidence and responsibility to others, such as a trustee or agent.
Filing - The delivery of real estate documents to a county/city recorder for recording.
Final Decree - A decree completely deciding all pending matters before a court and obviating the need for further litigation.
Final Judgment of Dissolution - A decree dissolving a marriage.
Financing Statement - A document prepared for filing with Register of Deeds or Secretary of State indicating that personal property or fixtures is encumbered with a debt.
First Mortgage - A mortgage having a priority first lien position over any other mortgage or lien on the same property.
Fixtures - Personal property which is attached to real property and is legally treated as real property while it is so attached. Fixtures not specifically excepted from an accepted offer to purchase or pass with the real estate.
FNMA – Federal National Mortgage Association – Fannie Mae - A private corporation dealing in the purchase of first mortgages at discounts.
Foreclosure - A proceeding in or out of court to extinguish all right title and interest of the owner(s) of property in order to sell the property to satisfy a lien against it.
Free and Clear - Real property against which there are no liens especially voluntary liens (Trust Deeds).
Freehold - An estate at least of duration of a lifetime, or of fee.
Full Appraisal - An appraisal which includes a full inspection of the property to ascertain a value.
Future Interest - A present interest but only a future right to possession and enjoyment of the land such as a remainder interest, reversionary interest, etc.
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