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An exterior wall of a building or house.
Slang term for cosmetic changes to the appearance
of a property which may improve the selling price.
The rate of interest chargeable on a loan
as set out in the loan document.
The value of an item as set out in the instrument
creating it or representing it.
A law which standardizes the form and rules
of disclosure of credit reports created by consumer/credit reporting
agencies and establishes procedures for the correction of errors
on a person's credit report.
The value of an item as established by a
consideration of how much an independent buyer would pay to an independent
seller in a completely free transaction for the item.
The U.S.'s largest supplier of mortgages
to home buyers and owners, a corporation established by Congress.
The Federal National Mortgage Association (FNMA).
A mortgage secured against agricultural land.
U. S. Department of Agriculture agency providing
financing for farmers, residents of rural areas, etc.
A category of land for zoning or other legal
purposes, denoting property used for agricultural purposes.
A U.S. Government agency providing insurance
to depositors of money into financial institutions up to a certain
amount.
U.S. board that regulates federal savings
and loan associations.
Division of the Department of Housing and
Urban Development, sets standards for the underwriting of private
mortgages. Also insures residential mortgages made by private lenders.
Local banks providing long-term mortgages
to farmers and owners of agricultural lands.
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See "Fannie Mae".
One of a set of twelve banks servicing one
of twelve reserve districts in the U.S.A.
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The central bank of the United States, controls
supply of money, credit availability and benchmark interest rates.
Made up of the twelve Federal Reserve Banks.
Stamp affixed to deeds evidencing payment
of the tax on the transfer of land required to be paid up until
January 1, 1968.
An encumbrance registered on title to a property
securing a tax debt owed by the property owner to the national government.
A person who estimates the value of a property
for a fee.
The best title to property available, representing
the absolute ownership of a parcel of land.
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An estate in land where the owner's title
to a property in fee simple is dependent on the occurrence (or non-occurrence)
of a particular event. Usually represented by the inclusion of "As
long as" in the deed.
An estate in land where the owner's title
in fee simple may be terminated by the former owner or her heir's
upon the occurrence of a particular event. The termination must
be carried out by the former owner and is not automatic upon the
occurrence of the event.
An estate in land where the owner's title
in fee simple may be terminated by the occurrence or non-occurrence
of a particular event, at which time title passes to a named third
party.
An archaic form, an estate in land where
title to the property was limited to the owner and his descendants
with no power to transfer. Usually created by a transfer to the
person "and the heirs of his body".
1) The money required at the outset by a
lender from the borrower or held back from the mortgage advance.
2) The amounts charged by a professional for services rendered.
A person charged by law and equity with a
higher duty of care for another person. A person who, as a result
of a relationship with another person, is required by law to place
the other person's interests equal to or ahead of his own in all
dealings involving that other person. The relationship is often
created when the other person approaches the fiduciary to use the
fiduciary's special skills and knowledge, for a fee, to benefit
the other person. Real estate agents, lawyers, trustees, investment
brokers etc. are often fiduciaries.
A relationship of trust and confidence between
two people in which one person (the fiduciary) holds much more power,
knowledge or skill than the other and is, therefore, held by the
law to a higher standard of conduct.
A loan with payments amortized over a fifteen-year
period, rather than the usual twenty-five-year amortization period.
The gradual decline in the value of a property,
whether due to market forces, changes in desirability of neighborhood
or deterioration of condition of the home, such that a property
once owned by a high-income family might eventually be owned by
a low-income family.
The product of a real estate appraiser's
completed work, an assessment of the value of a property based on
all factors and taking into consideration the different evaluation
methods available.
The total cost, in dollars, of a loan or
mortgage over its life, including appraisal/application/commitment
fees, financing insurance, interest paid over the life of the loan.
A generic term for banks, trust companies,
credit unions, and perhaps other investment companies that deal
with money, hold money, invest money and lend money.
An assessment of the possibility that a given
investment or loan will fail to bring a return and may result in
a loss of the original investment or loan.
A document which sets out the assets, income,
expenses and debts of a person or company to allow a third person
to assess that person or corporation's financial health (i.e. when
considering lending money to that person or corporation).
The manner in which a proposed purchaser
intends to make up the difference between cash on hand and the purchase
price.
A form of lien filed by a lender or creditor
and registered against the personal property (all or specific items)
of a debtor. Generally filed when a loan is secured against personal
property.
Commission paid to a mortgage broker for
placing a mortgage with a specific institution.
A promise issued by a registered insurance
company to compensate the owner of a particular property for losses
as a result of specified risks (i.e fire, flood, storms, vandalism,
etc.).
Description of a legal contract once all
conditions have been removed. It is now legally enforceable by the
parties to it.
A promise from a lender to lend a specific
borrower a specified amount of money on specified terms to be secured
against a specific property.
An offer to purchase delivered to the potential
Vendor by a potential Purchaser who will not negotiate any changes
to the offer.
An indication in a real estate advertisement
that the price asked for the property is not open for negotiation.
The registered legal claim which stands first
in line to enjoy the proceeds of a sale of the property. Liens generally
are ordered according to time or registration but various statutes
allow some liens (realty taxes) to jump to the head of the line.
A mortgage that, when registered, is first
in line on the property, giving the lender superior right to the
proceeds of the sale of the property over other, later claimants.
Costs of owning and operating a property
that are not discretionary and, except for occasional increases,
do not change from month to month. Examples are realty taxes, insurance
costs, etc.
The periodic payment made for principal and
interest on a loan.
A loan registered on title to the property
against which it is secured which charges an interest rate that
does not change over the term of the mortgage.
Moneys spent on minor repairs to improve
the marketability of a property
An item which is attached to and forms part
of the buildings or land itself and are, therefore, included in
the sale or property unless specifically excluded in the contract.
Description of the shape of a property,
where access to a road is provided along the long, narrow "flag
pole" and the usable land itself is the rectangular flag at
the tend of the pole.
English term for apartment. A portion of
a building designed to serve as a home for a single family group.
Slang term for a cheap, run-down property.
The rapid turnover of a piece of property
by one person who buys it for a certain price then sells it soon
thereafter for more.
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Rate of interest chargeable on a loan that
is variable according to a specified index or the national prime
rate. The loan rate is said to "float" on top of the specified
index by a set amount: i.e. the loan may be set at Prime Rate plus
2%, meaning if the Prime Rate is 6%, the loan interest rate will
be 8%.
A policy of insurance that specifically covers
damage due to flood waters, required in designated flood areas.
The area around a body of water which may
at times be under water and may at other times be dry land, depending
on the level of the water in the lake, river, pond, etc.
The lowest the interest rate on a variable
or adjustable rate mortgage may go.
The total space covered by all floors in
a building.
A comparison of the total area of the floor
of a building with the total area of the land upon which it stands.
Maximum or minimum FARs may be established by local zoning rules.
FLOOR PLAN:
A sketch of an existing or proposed building
showing the design and layout of the building and the specifications
of each room. May also show doors, windows, stairways and other
features.
The largest single lender on residential
properties in the United States, generally purchases mortgages from
primary lenders.
The page upon which a land instrument is
record in the public record. The Book is the "liber",
the page is the "folio".
Indication that the owner of a property is
attempting to find a tenant for his property on his own, without
employing an agent.
Indication that the owner of a property is
attempting to find a purchaser for her property on her own, without
employing an agent.
Any indulgence a party gives to another party
to a contract who is late in meeting her obligations under the contract.
The marketing of a property as a result of
some outside influence, such as bankruptcy, where the price obtained
might not be optimum.
An enforcement process in which the lender
under a defaulted mortgage takes title to the property for the purposes
of selling it to recoup moneys owed under the mortgage.
The land on a water-side property that lies
between the high-water mark and the low-water mark.
The loss of a right, claim, interest or item
of property as a result of one's failure to meet one's legal obligations.
A document that is false, either as a result
of being signed by someone other than the person represented to
have signed it or as a result of being a false, worthless replica
of a document that has value.
A standardized appraisal document which requires
the appraiser to present her findings in a prescribed form.
A contract under seal.
A lender's promise to make a loan in the
future.
An estimate of the value of one portion of
a property.
A legal claim or right to a portion of a
property.
FRAUD:
The act of leading a person to believe something
which you know to be false in a situation where you know the person
will rely on that thing to their detriment.
Federal Home Loan Mortgage Corporation. A
US agency which purchases first mortgages on residences.
A description of title to property which
is unencumbered and subject to no competing claims.
As opposed to leasehold. A right to or interest
in property.
She who has a freehold interest in a property.
A structure which does not depend on other
structures for support, an independent structure.
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A comparison of a borrower's monthly cost
of housing with that borrower's monthly gross income.
FRONT FOOT:
A measurement of the property line which
runs along the side of a street.
A levy by a local government, usually to
pay for the costs of building and maintaining roads and sidewalks,
which is based on the frontage of each property along the street.
The measurement of a property's boundary
that runs along the side of a particular feature (street, lake,
ocean, river, etc.).
A lender's charges to the borrower for the
costs of the borrower's application for the loan.
The revelation to another party in a contract
or legal dispute of all relevant information in one's possession.
An agent acting for both parties in a real estate purchase must
fully disclose this conflict of interest to all parties.
A proposal by a purchaser to buy a property
at the price and on the terms asked by the vendor in her property
listing.
A periodic mortgage payment which, if paid
consistently throughout the amortization period of the mortgage,
will result in the total principal and interest owing on the loan
being retired at the end of the amortization period.
A land loan that may be transferred to a
new owner without any change to the terms, as long as the new owner
qualifies.
An agreement in which all parties have agreed
and signed to all terms of the agreement.
The interest rate as set out in the variable
or adjustable rate mortgage, equaling the index rate plus the float
of the mortgage.
The loss of use or value of an asset due
to a change in the market demands. A property in Buffalo with no
furnace may be considered to be functionally obsolete and, therefore,
difficult to sell.
The charge paid by the borrower to the VA
for the mortgage insurance provided by the VA on a veteran's mortgage.
Monetary payments under an already registered
mortgage as a result of the occurrence of certain events, as in
a construction loan where more money is advanced once the framing
is completed, etc.
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