Helpful Mortgage Links - Glossary of Mortgage Terms: N - Z
Glossary of Mortgage Terms
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Non-judicial Foreclosure Sale - Sale by a trustee under a Deed of Trust or mortgagee under a power of sale of a Mortgage. There are not court (judicial) proceedings.
Notary Public - One who is authorized by the state or federal government to administer oaths and to attest to the authenticity of signatures. A federal authorization may extend the authority to the authenticity of certain documents and to act as a notary in foreign countries.
Note - A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order or bearer a definite sum of money at a specified date or on demand. Usually provides for interest and, concerning real property, is secured by a Mortgage or Trust Deed.
Notice of Action - A recorded notice that property may be subject to a lien or even that the title is defective due to pending litigation. Notice of a pending suit also called "LIS PENDENS".
Notice of Cessation - A notice stating that work has stopped on a construction project. Done to accelerate the period for filing a mechanic's lien.
Notice of Completion - A notice recorded to show that a construction job is finished. The length of time in which mechanic’s liens may be filed depends upon when and if a Notice of Completion is recorded.
Notice of Default - A notice filed to show that the borrower under a Mortgage or Deed of Trust is in default (behind in payments).
Notice of Lis Pendens - See NOTICE OF ACTION.
Notice of Non-responsibility - A notice filed by an owner of property to show that work being done has not been contracted for by said owner. If properly done, mechanic’s liens will not attach to the property. Often done when a tenant contracts for work on property.
Notice of Rescission - A recorded notice to rescind a Notice of Default of a Mortgage or Deed of Trust.
Notice of Sub-Standard Property - A notice recorded by the county to indicate that owner of property has stated time to restore property to standard. If not done, the county will do it and assess the owner.
Notice of Trustee's Sale - A notice recorded to show that a sale is to take place by a trustee under a Deed of Trust at auction pursuant to foreclosure proceedings.
Open-End Mortgage or Trust Deed - A mortgage or Trust Deed permitting the mortgagor to borrow additional money under the same mortgage with certain conditions usually as to the assets of the mortgagor.
Option - A right which acts as a continuing offer given for consideration to purchase or lease property at an agreed upon price and terms within a specified time.
Ownership - Rights to the use, employment and alienation of property to the exclusion of others. Concerning real property, absolute rights are rare being restricted by zoning laws, restrictions, liens, etc.
Owner's Policy - Title insurance for the owner of property rather than a lien holder.
Owner's Title Insurance - A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against or other conditions rendering the owner's title to the property unmarketable.
Parcel - A general term meaning any part of portion of land containing within a single description.
Partial Reconveyance - See PARTIAL RELEASE.
Partial Release - A release of a portion of property covered by a Mortgage. A sub divider will obtain a partial release as each lot is sold upon payment of an agreed amount. In areas where the sub divider is not usually the builder it may be necessary to sell groups of lots to obtain a partial release. In areas where Deeds of Trust are used instead of Mortgages a "Partial Reconveyance" is the document used.
Partition - Any division of real or persona property between co-owners resulting in individual ownership of the interests of each.
Patent - A document issued for the purpose of granting public lands to an individual.
Persona Property - Any property which is not designated by law as real property.
Plaintiff - The party bringing a civil action against a defendant.
PLATT – PLAT MAP - A map dividing a parcel of land into lots as in a subdivision.
Point - 1% (one percent). When referring to Mortgages or Deeds of Trust, the term is used to describe the percentage of discount rather than interest (for which the word "percent" is used). The points are paid by the seller in F.H.A. and V.A. insured loans and by either buyer or seller (or both) in conventional loans.
Policy of Title Insurance - A contract indemnifying against loss resulting from a defect in title to the interest or lien in real property insured.
Power of Attorney - An authority by which one person (principal) enables another (attorney-in-fact) to act for him.
(1) General Power authorizes sale, mortgaging, etc. of all property of the principal. Invalid in some jurisdictions.
(2) Special Power specifies property, buyers, price and terms.
How specific it must be varies in each state.
Power of Sale - Clause in a Mortgage or Deed of Trust giving the mortgagee or trustee the power to sell the property in the event of default. There are laws which govern the sale which must be at public auction but there is no court action necessary (judicial foreclosure).
Preliminary Title Report - A report showing the condition of title before a sale or loan transaction. After completion of the transaction a title insurance policy is issued.
Prepayment Penalty - Penalty to the mortgagor for payment of the mortgage debt before if becomes due.
Principal - Amount of debt not including interest. The face value of a Note, Mortgage, etc.
Priority - That which comes first in time or importance. In regards to Liens, the time of recording establishes priority.
Promissory Note - A promise in writing and executed by the maker to pay a specified amount during a limited time, or on demand or at sight, to a named person, or on order, or to bearer.
Property - Anything which is owned by someone. Property is classified a either real property or personal property.
Property Address - A way of naming a parcel of improved property. Place where mail or other communication reach a person.
PIF – Property in Question and OP – Other Property - Phrase used to designate that document referring to affects property in addition to the parcel in question that has been described by the specific legal description for the property address indicated on a report of title.
Property Tax - Generally a tax levied on both real and personal property. The amount of the tax is dependent on the value of the property.
Public Records - Usually at a county level, the records of all documents which are necessary to give notice. The records are available to the public. All transactions for real estate sales should be recorded.
Purchase Agreement - An agreement between a buyer and seller of real property setting forth the price and terms of the sale.
Purchase Money Trust Deed - A Deed of Trust given by the buyer to the seller as part of the purchase consideration as opposed to a hard money Deed of Trust.
Quiet Title - See ACTION TO QUIET TITLE.
Quitclaim Deed - A deed operating as a release intended to pass any title, interest or claim which the grantor may have in the property but not containing any warranty of a valid interest or title in the grantor.
Range - A division of a state in the government survey being a six-mile wide row of townships running North and South and used in legal descriptions.
Real Estate - (1) Land and anything permanently affixed to the land such as buildings, fences and those things attached to the buildings such as light fixtures, plumbing and heating fixtures or other such items which would be personal property if not attached. The term is generally synonymous with real property although in some states a find distinction may be made.
(2) May refer to rights in real property, as well as the property itself.
Real Property - See REAL ESTATE.
Re-conveyance - An instrument used to transfer title from a trustee to the equitable owner of real estate. When title is held as collateral security for a debt. Most commonly used upon payment in full of a Trust Deed. Also called a Deed of Re-conveyance or Release.
Record Title - The aspects of title, which appear in the public records, as distinguished from unrecorded title aspects and interests.
Recorded Map - A map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.
Recorder's Office - The governmental office where instruments are recorded giving public notice.
Recording - Filing documents affecting real property as a matter of public record giving notice to future purchasers, creditors or other interest parties. Recording is controlled by stature and usually requires the witnessing and notarizing of an instrument to be recorded.
Redemption - The process of canceling a defeasible title to land such as is created by a mortgage foreclosure or tax sale.
Redemption Period - A time period during which a Mortgage, Land Contract, Deed of Trust, etc. can be redeemed. Usually set by statute and after judicial foreclosure.
Reinsurance - The act of an insurer transferring a portion of the risk to other insurers. The original insurer is sole insurer for a portion of the risk and shares the risk in the excess amount with the re-insurers. The first portion of the loss risk retained by the ceding company as its sole liability is called the "primary liability."
Re-issue Rate - A reduced rate of title insurance premium applicable in cases where the owner of the land has been previously insured in an owner’s policy by the insurer within a certain time.
Release - An instrument releasing property from the lien of the Mortgage, Judgment, etc. When a Trust Deed is used the instrument is called a reconveyance. In some areas a "discharge" is used instead of a release.
Release Clause - A clause in a blanket encumbrance allowing for the "release" of certain parcels upon payment of a specified amount. For example, a builder mortgages an entire subdivision under one loan. As he sells each house the lender releases the lien upon that house upon a specified payment by the builder.
Remainder - (1) An estate which vests in one other than a grantor after the termination of an intermediate estate. For example, "A" grants land to "B" for life then the remainder to "C", his heirs or assigns. If "A" grants to "B" for life then back to "A" it is not a remainder but reversion.
(2) The portion of a property remaining after a taking under eminent domain.
Release of Inheritance Tax Lien - Document recorded most often when right of survivorship exists thus giving notice that the property is not inherited. Therefore no lien can be place on the property.
Remainder - An interest or estate in land in a person other than the grantor in which the right of possession and enjoyment of the land is postponed until the termination of some other interest or estate in that land.
Request for Notice of Default - A recorded request by a mortgagee or beneficiary under a Deed of Trust for notification of a recorded Notice of Default on a prior lien.
Request for Reconveyance - A request by a beneficiary under a Deed of Trust to the trustee requesting the trustee to reconvey the property (release the lien) to the trustor usually upon payment-in-full.
Restriction - Most commonly used to describe a use or used prohibited to the owner of land. Restrictions are set forth by former owners in Deeds or in the case of a subdivision. A declaration of restrictions is recorded by the developer. A limitation on use of the property by law (zoning ordinances) may also be termed a restriction.
Reversion - The right to possession of the residue of an estate in a grantor or successors of a grantor or testator commencing upon the termination of a particular estate, granted or devised.
Right of Survivorship - The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.
Right of Way - A strip of land which is used as a roadbed either for a street or railway. The land is set aside as an easement or in fee either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.
Riparian Rights - Rights of an owner to water on, under or adjacent to his land.
Rod - A unit of linear measure equal to 16-1/2 feet.
Sale and Leaseback - A financial device which an owner of land may employ to raise money and still have the use of the land by selling the land to his financier and immediately leasing it back for the period he wishes to use it.
Satisfaction - Discharge of an obligation by payment o f the amount due as on a Mortgage, Trust Deed, Contract or payment of a debt awarded such as satisfaction of a judgment. Also the recorded instrument stating said payment has been made.
Search - Exploration of public records in an effort to find all recorded instruments related to a particular chain of title.
Second Mortgage - A mortgage ranking in priority immediately below a first mortgage.
Secondary Financing - A loan secured by a Mortgage or Trust Deed which lien is junior (secondary) to another Mortgage or Trust Deed.
Secondary Mortgage Market - The buying and selling of first Mortgages or Trust Deeds by banks, insurance companies, government agencies and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (part) or above but are usually sold at a discount. The secondary mortgage market should not be confused with second Mortgages.
Second Deed of Trust - A Deed of Trust which ranks after a first Trust Deed in priority. Properties may have two, three or more Mortgages, Deeds of Trusts or Land Contracts as liens at the same time. Legal priority would determine whether they are called a First, Second, Third, etc. lien.
Section - A division of parcel of land on a government survey comprising one square mile (640 acres). Thirty-six sections comprise a township.
Security - Real or personal property pledged or hypothecated by a borrower as additional protection for the lender's interest.
Separate Property - Property owned by a husband or wife in which the other has no legal ownership interest.
Servient Tenement - An estate burdened with a servitude. Most commonly a parcel of land burdened by an easement for the benefit of another parcel (DOMINANT TENEMENT).
Set Back Lines - Those lines which delineate the required distances for the location of structure in relation to the perimeter of the property.
Severalty - An estate in severalty is property held by one person alone.
Sheriff's Deed - Deed given at sheriff's sale in foreclosure of a Mortgage. The giving of said Deed beings a statutory redemption period. Also given at court ordered sale pursuant to the execution of a judgment.
Single - One who has never been married as differentiated from "unmarried" which means had been married.
Situs - Location, place.
Special Assessment - Lien assessed against real property by a public authority to pay costs of public improvements (sidewalks, sewers, street lights, etc.) which directly benefit the assess property.
Special Warranty Deed - A deed containing a covenant whereby the seller agrees to protect the buyer against being dispossessed because of and adverse claims to the land by the seller, or anyone claiming through him.
Starter - A copy of the last policy issued by a title insurer which describes the condition of title to land upon which a new policy is to be written. In some states, this is furnished to an attorney for his opinion as to the condition of title and is called a Back Title letter or Back Title certificate.
Statement of Identity – S.I. - A confidential form filled out by buyer and seller to help a title company determine if any liens are recorded against either. Very helpful when people with common names are involved.
Straight Note - A promise to repay a loan signed by the debtor and containing the date executed, amount owing and to whom, date due (or on demand), rate of interest and how it is payable. A straight note is not amortized.
Subdivision - Commonly a division of a single parcel of land into smaller parcels (lots) by filing a map describing the division and obtaining approval by a governmental commission (city or county). The exception is a condominium which is sometimes called a "one lot subdivision".
"Subject To" Clause - A clause in a Deed stating that the grantee takes title "subject to" an existing Mortgage. The original mortgagor is alone responsible for any deficiency should there be foreclosure of the Mortgage. Differs from an "assumption" clause whereby the grantee "assumes" and agrees to pay the existing Mortgage.
Subordination Agreement - An agreement by which an encumbrance is made subject (junior) to a junior encumbrance. For example, a loan on vacant land is made subject to a subsequent construction loan. Also used to make junior a previously recorded encumbrance to one that is recording presently.
Substitution of Trustee - A document which the beneficiary may change the trustee under an existing Deed of Trust.
Subsurface Right - The right to ownership of everything beneath the physical surface of the property.
Survey - The process of measuring land to determine its size, location and physical description.
Tax Deed - (1) Deed from tax collector to government body after a period of non-payment of taxes according to statute.
(2) Deed to a purchaser at a public sale of land taken for delinquent taxes. The purchaser receives only such title as the former owners had and strict procedure must be followed to prevent attachment of prior liens.
Tax Delinquencies - Property taxes owed that if not paid after a redemption period could force a tax sale.
Tax Lien - (1) A lien for non-payment of property taxes. Attaches only to the property upon which the taxes are unpaid.
(2) A federal income tax lien. May attach to all property of the one owing the taxes.
Tax Parcel Number - See ASSESSOR’S PARCEL NUMBER.
Tax Roll - A list usually published by a county containing the descriptions of all parcels in said county, the names of the owners (or those receiving the tax bill), the assessed value and tax amount.
Tax Sale - Public sale of property at auction by governmental authority after a period of non-payment of property tax.
Tax Search - A part of a title search which determines if there are any unpaid taxes or assessments which may be a lien against the property being searched.
Tenancy in Common - An undivided ownership in real estate by two or more persons. The interests need not be equal and in the event of the death of one of the tenants no right of survivorship in the other owners exists.
Tenant - Any person in possession of real property with the owner’s permission.
Testate - The estate or condition of leaving a will at death. "To die Testate."
Testator - One who makes or has made a testament or will. "Most commonly a man."
Testatrix - A woman who makes or has made a testament or will.
Title - The evidence one has of right to possession of land.
Title Defect - Any legal right held by others to claim property or to make demands upon the owner.
Title Insurance - Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances.
Title Plant - A filing of all recorded information to real property paralleling the records of the county recorder’s office although the filing system may be different.
Title Report - A report of title issued which guarantees the lender against any errors or omissions in the report that will cause him a loss due to his loan.
Title Search - A review of all recorded documents affecting a specific piece of property to determine the present condition of title.
Torrens System - A governmental title registration system wherein title to land is evidenced by a certificate of title issued by a public official know as the registrar of title.
Township - A territorial division of land established by federal survey being six miles square and containing thirty-six sections, each one mile square.
Township Lines - Survey lines which divide townships at their Northern and Southern boundaries. The East and West boundaries are called Range Lines.
Tract - A parcel of land. In some states, synonymous with a subdivision.
Transfer - The act by which the title to property is conveyed from one person to another.
Transfer Tax - See DOCUMENTARY TRANSFER TAX.
Trust - A fiduciary relationship under which one holds property (real or personal) for the benefit of another. The party creating the trust is called the settler. The party holding the property is the trustee. The party for whose benefit the property is held is called the beneficiary.
Trust Deed - See DEED OF TRUST.
Trustee - (1) One who is appointed or required by law to execute a trust.
(2) One who hold title to real property under the terms of a Deed of Trust.
Trustee's Deed - A deed by a trustee under a Deed of Trust issued to a purchaser at auction pursuant to foreclosure.
Trustee's Sale - A sale at auction by a trustee under a Deed of Trust pursuant to foreclosure proceedings.
Trustor - The borrower under a Deed of Trust. One who deeds his property to a trustee as security for the re-payment of a loan.
Undivided Interest - A partial interest by two or more people in the same property whether the interest of each is equal or unequal.
Uniform Commercial Code – U.C.C. - A code (laws) which regulates the transfer of personal property. It took the place of the various state statutes covering chattel mortgages, conditional sales, trust receipts, etc.
Unimproved Land - Most commonly land without buildings. It can also mean land in it’s natural state.
Unit - An apartment, condominium, house in a subdivision, etc.
Unities - The peculiarities necessary to form a valid joint tenancy. Unity of time, title, interest and possession.
Unity of Interest - In joint tenancy, the joint tenants must acquire their interest by the same conveyance and said interest must be equal.
Unity of Possession - In joint tenancy, the joint tenants must have equal rights to possession.
Unity of Time - To have a valid joint tenancy the joint tenants must acquire title at the same time.
Unity of Title - In joint tenancy, the holding by the joint tenants under the same title.
Unmarried - One who had been married as differential from "single" which means never has been married.
Update - A report showing all changes affecting a property since the date of the original report.
Vacant Land - Land without buildings. May or may not have improvements such as grading, sewers, etc.
Vendee - Purchaser or buyer, especially on a land contract.
Vendor - The person who transfer property by sale. Another word for "seller". Commonly used in land contract sales.
Vest - To give an immediate interest as opposed to a contingent or future interest.
Vestee - The present record owner of property.
Veteran's Administration Loans – V.A. Loan - Housing loans to vete4rans by banks, savings and loans or other lenders which are insured by the Veteran's Administration enabling veterans to buy a residence with little or no down payment.
Voluntary Lien - A lien place against real property by the voluntary act of the owner. Most commonly a Mortgage or Deed of Trust.
W.A.T.A. - "Who acquired title as".
Will - A written document property witnessed, providing for the distribution of property owned by the deceased.
Wrap-Around Mortgage or Deed of Trust - See ALL-INCLUSIVE DEED OF TRUST.
Writ of Execution - A writ to carry out the judgment or decree of a court.
Zoning - The division of a city or county by legislative regulations into areas (zones) specifying the uses allowable for the real property in these areas.
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