Acceleration Clause - A clause in trust deed or mortgage giving the lender the right to call all sums owing him to be immediately due and payable upon the happening of a certain stated event.

Acceptance - A legal term referring to the acceptance of an offer. A buyer offers to buy and the seller accepts the offer.

Accounts Payable - A running record of business transactions showing the amounts of money owed. They are considered liabilities.

Accretion - An addition to land from natural causes as, for example, from gradual action of the ocean or river waters.

Acknowledgment - A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is his act and deed.

Ad Valorem - ``According to value.`` A method of imposing a tax on the ownership of real property.

Adjusted Gross Income - Total income including your salary and bonuses, and any rental or seasonal income.

Administrator - A person appointed by the probate court to administer the estate of a deceased person.

Advance Fee - A fee claimed, demanded, charged, received, collected or contracted for a listing, advertisement or offer to sell or lease property, other than in a newspaper of general circulation, issued primarily for the purpose of promoting the sale or lease of business opportunities or real estate or for referral to real estate brokers or salespeople, or both, or soliciting borrowers or lenders for, or to negotiate loans on, business opportunities or real estate.

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 - The open and notorious possession and occupancy under an evident claim or right, in denial or opposition to the title of another claimant.

Affidavit - A statement or declaration reduced to writing and sworn to or affirmed before some officer who has authority to administer an oath or affirmation.

Affirm - To confirm, to aver, to ratify, to verify.

Affirmation - A solemn declaration made under the penalties of perjury by a person who conscientiously declines taking an oath. This is equivalent to an oath.

Agency - The relationship between an agent and principal. One who represents another from whom he has derived authority.

Agreement of Sale - A written contract between seller and buyer in which they reach a meeting of minds on the terms and conditions of the sale.

Alienation - transfer of property and possession of lands, or other things from one person to another.

Alluvium - Deposits of earth made by the natural action of water.

Amortization - When you reduce a loan or financial obligation on an installment basis; also recovery, over a period, of cost or value.

Annual Percentage Rate - Also referred to as APR. A measurement of different loans offered by competing lenders, which takes into account both the closing fees and interest rate.

Annuity - A sum of money received at fixed intervals, such as series of assured equal or nearly equal payments to be made over a period of time, or it may be a lump sum payment to be made at some time in the future. The installment payments due to a landlord under the terms of a lease are an example of an annuity. The installment payments due to a lender on a note are another such example.

Appraisal - An estimate of value of property resulting from an analysis of facts about the property prepared by a qualified appraiser. An opinion of value.

Appraisal Report - A written report by an appraiser containing his opinion as to the value of a property and the reasoning leading to this opinion. The factual data supporting the opinion, such a comparables, appraisal formulas, and qualifications of the appraiser, will also be set forth.

Appraiser - This is a certified professional who estimates the value of your property.

Appreciation - An increase in the value of a property due to changes in the market conditions or other reasons.

Appropriation of Water - The taking, impounding or diversion of water flowing on the public domain from its natural course and the application of the water to some beneficial use personal and exclusive to the appropriator (taker).

Appurtenance - Something belonging to the land and transferred with it, such as buildings, fixtures, rights.

APR - A measurement of different loans offered by competing lenders, which takes into account both the closing fees and interest rate.

ARM - Adjustable Rate Mortgage is a mortgage that changes interest rate periodically based upon the changes in a specified index.

Assemblage - Putting together two or more lots to form a large parcel.

Assessed Value - A value placed upon property by the tax assessor.

Assessment - The valuation of property for the purpose of levying a tax, or the amount of the tax levied.

Assessor - One appointed to assess property for taxation.

Asset - Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others(including bank accounts, stocks, mutual funds, and so on).

Assignment - A transfer or making over to another of the whole of any property, real or personal, or of any estate or right therein. To assign - to transfer or make over to another. The one who owns the property being assigned is called the assignor; the one who receives the property being assigned is the assignee.

Assumption - The transfer of the seller`s existing mortgage to the buyer.

Assumption Clause - A provision in a mortgage that lets a buyer assume responsibility for the mortgage from the seller.

Assumption Fee - The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

Assumption of Mortgage - When a grantee takes a title to real property and the deed contains an assumption agreement, or grantee executes a separate assumption agreement, the grantee becomes the principal guarantor for unpaid portions of the note and is primarily liable for the amount of any deficiency judgment.

Attachment - Seizure of property by court order, usually done to have it available in event a judgment is obtained in a pending suit.

Attorney-in-Fact - One who is authorized to perform certain acts for another under a Power of Attorney; may be limited to a specific act or acts, or be general.

Avulsion - The sudden tearing away or removal of land by action of water flowing over or through it.

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Bailment - A contract where personal property is delivered by one party to another, held for a purpose, and later returned (such as a pawnbroker).

Bailor - One who delivers goods or money to another in trust.

Balance Sheet - A financial statement made to show the true condition of a business as of a particular time. Discloses assets, liabilities and net worth.

Balloon Mortgage - A balloon mortgage is a loan with a fixed interest rate and monthly payment that are due in full, usually after 5 to 7 years. A balloon mortgage has lower interest rates than fixed rate mortgages, and can save you money at the beginning.

Balloon Payment - Where the final installment payment on a note is greater than the preceding installment payments and it pays the note in full, such final installment is termed a balloon payment.

Bankrupt - A person, firm, or corporation that, through a court proceeding, is relieved from payment of all debts after the surrender of all assets to a court-appointed trustee.

Bankruptcy - A proceeding in a court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.

Base and Meridian - Imaginary lines used by surveyors to find and describe the location of private or public lands.

Before Tax Income - Income that is before taxes are deducted.

Bench Mark - A fixed marker form which differences in elevation are measured by surveyors.

Beneficiary - (1) One entitled to the benefit of a trust; (2) One who receives profit from an estate, the title of which is vested in a trustee; (3) The lender on the security of a note and deed of trust.

Beneficiary - A person designated to receive the income from a estate, trust, or a deed of trust.

Bequeath - To give or leave personal property by a will.

Bequest - The personal property which is given by the terms of a will.

Bill of Sale - A written instrument given to pass title of personal property from vendor to vendee.

Binder - A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

Biweekly Payment Mortgage - A mortgage that requires payments to reduce the debt every two weeks (instead of the normal monthly payment schedule). The 26(or perhaps 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30 year fixed-rate mortgage, and they are usually drafted from the borrower`s bank account. The result for the borrower is substantial savings in interest.

Blanket Encumbrance/Mortgage - A single mortgage or trust deed which covers more than one piece of real estate.

Blighted Area - A declining area in which real property values are seriously affected by destructive economic or natural forces.

Bona Fide - In good faith, without fraud or deceit; authentic; sincere.

Bond - An interest bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is written obligation usually secured by a mortgage or a deed of trust.

Breach - Violation of an obligation in a contract.

Broker - A person who, for a commision, brings parties together and assists in negotiating contracts between them.

Building Line - A line set by law or deed restriction a certain distance from the street line, in front of which an owner cannot build on his lot. (Also called a setback line.)

Bundle of Rights - Beneficial interests of rights.

Business - A commercial or industrial enterprise.

Business Opportunity - Includes the sale or lease of the business and goodwill of an existing business enterprise or opportunity.

Buydown Mortgage - A temporary buydown is a mortgage on which an initial lump sum payment is made by a party to reduce a borrower`s monthly payment during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire lfe of a mortgage.

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Cap - A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for an whatever reason they deem fit.

Capital Improvement - Any structure or component erected as a permanent improvement to real property that adds to its value.

Capitalization - In appraising it is a method of determining the value of property by interpreting the property`s net income with a percentage which represents a reasonable return on invested capital.

Capitalization Rate - The rate of interest which is considered a reasonable return on the investment. It is used in the process of determining value based upon net income.

Cash Flow - Income generated by a property which is determined by subtracting vacancy allowances and collection costs, operating expenses and debt-servicing costs from the property`s scheduled gross income.

Cash Out Refinance - This is when a home owner applies for a new, bigger loan with the purpose of paying off their present loan and pocketing the difference. Cash-out refinancing lets you take advantage of the equity that you've built over the years and also allows you to free up some cash.

Caveat Emptor - ``Let the buyer beware.`` The buyer must examine the goods or property and buy at his own risk.

Certificate of Eligibility - A document issued by the federal government certifying a veteran`s eligibility for Department of Veterans Affairs Mortgage.

Certificate of Reasonable Value (CRV) - A document issued by the Department of Veterans Affairs that establishes the maximum value and loan amount for a Veterans Affair mortgage.

Certificate of Title - A statement given by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.

Chain of Title - A history of conveyances and encumbrances affecting the title from the time it passed from government ownership, or as far back as records are available.

Chattel Mortgage - A mortgage on personal property.

Chattels - Goods of every species of property movable or immovable which are not real property. Personal property.

Chattels Real - An interest in real estate less than freehold such as estates for years, at will and by sufferance which are personal. A lease of real estate for a term of years constituting an estate less than a freehold estate is called a chattel real which passes a present interest in real property.

Chose in Action - A personal right not reduced to possession, but recoverable by an action at law.

Clear Title - A title that is free of liens or legal questions as to ownership of the property.

Closing - A meeting during which the sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs.

Closing Cost Item - A fee that a home buyer must pay at closing for a single service, tax, or product. Closing costs are made up individual closing cost items such as origination fees and attorney`s fees.

Closing Costs - Expenses (in addition to the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing Costs normally include an origination fee, an attorney`s fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey.

Closing Statement - The written statement provided by the escrow company to each of the parties to the loan transaction showing the amounts received and the amounts paid out for various items.

Cloud on Title - Any conditions revealed by a title search which affect the title to property; usually relatively unimportant items but which cannot be removed without a quitclaim deed or court action.

Co-maker - A person who signs a promissory note along with the borrower. A co-maker`s signature guarantees that the loan will be repaid, because the borrower and the co-maker are both equally responsible for the repayment.

Codes - A systematic collection of laws in writing.

Collateral Security - A separate obligation attached to another contract to guarantee performance of the contract.

Collusion - An illegal agreement between two or more persons to defraud another of his rights by the forms of law, or to obtain an object forbidden by law.

Color of Title - That which appears to be good title but which is not title in fact.

Commercial Acre - A term applied to the remaining portion of a full acre of newly subdivided land after allowances for dedicated public street, roads, and alleys.

Commingling - The broker`s unauthorized and improper mixing of office funds, which are personal or business monies, with trust funds, which are client customer monies.

Commission - A payment for the performance of specific duties in real estate; a percentage of the selling price of property, percentage of rentals, etc.

Commitment - The act of promising or pledging to do a certain thing, as a lending institution would commit itself to lend money.

Commitment Letter - A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. Also known as the ``loan commitment``.

Common Areas - Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium prjoect`s homeowners` association that are used by a group of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings or parking areas.

Comparables - An abbreviation for ``comparable properties``, used for comparative purposes in the appraisal process. Comparables are properties similar to the one under consideration for appraisal.

Compound Interest - Interest paid on the original principal and on interest accrued from time it became due.

Condemnation - The act of taking private property for public use by the sovereign powers; a declaration that a structure is unfit for use.

Condominium - A building or housing development where each person owns their unit and shares the common areas of the building.

Condominium - A real estate project in which each owner has title to a unit in a building, and financial responsibility in maintaining the common areas of the building.

Conforming Mortgage Loan - The current confirming loan limit is $240,000 and below.

Construction Loan - Short term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals work progresses.

Consumer Reporting Agency - An organization that creates reports that are used by lenders to help determine a potential borrower`s history. The agency gets this information from many sources.

Contingency - A condition that must be met before a contract is legally binding. For instance, home buyers often include a contingency requires that the contract is not binding until the buyer obtains a satisfactory home inspection report from a qualified home inspector.

Contract - A written or oral agreement stating both parties with do or not do something.

Convenants - Agreements written into deeds and other instruments promising performance or non-performance of certain acts or stipulating certain uses or non-uses of the property.

Conventional Mortgage Loan - A loan that`s neither guaranteed nor insured by Federal Housing Administration (FHA) or Veterans` Administration (VA).

Convertible ARM - This is an adjustable rate mortgage (ARM) that can be changed to a fixed rate mortgage during a specific period.

Conveyance - The transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.

Cooperative (co-op) - A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative cooperation that owns the property, and decide who can live in the units.

Covenant - A clause ina mortgage that obligates or restricts the borrower and that if broken, can result in a foreclosure.

Credit - A agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later specified date.

Credit History - A record of a person`s opena and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts on-time.

Credit Report - A report of a peron`s credit history prepared by the credit bureau and used by a lender to determine whether a loan applicant has creditworthiness.

Credit Repository - An organization that gathers, records, updates, and stores financial and public records payment information about individuals who are being considered for credit.

Curtesy - The right which a husband has in a wife`s estate at her death.

Debt - An amount owed to another.

Deciduous - Shedding leaves annually; as opposed to evergreen.

Dedication - The giving of land by its owner for the use of the public and sometimes accepted for such use by authorized officials on behalf of the public.

Deed - A written instrument which, when properly executed and delivered, conveys title to real property.

Deed in Lieu of Foreclosure - A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.

Default - Failure to fulfill a duty or promise or to discharge an obligation, or to perform any act in an instrument in writing, that has been agreed upon.

Defeasance - A clause in a deed, lease or other written instrument, the legal effect of which is to defeat, cancel or annul the instrument in whole or in part.

Deferred Maintenance - Existing but unfulfilled requirements for repairs and rehabilitation.

Deficiency Judgment - A judgment given when the security pledged for a loan does not satisfy the debt upon its default.

Delinquency - Failure to make mortgage payments when mortgage payments are due.

Demise - The transfer of a right to, or title in an estate; to lease.

Deposit - A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan.

Depreciation - Loss of value in real property brought about by age, physical deterioration or functional or economic obsolescence. Broadly, the loss in value from any cause.

Depth Table - A statistical table that may be used to estimate the value of the added depth of a lot.

Deterioration - Reflecting the loss in value brought about by wear and tear, disintegration, use in service, and the actions of the elements.

Devise - A gift of real property in a last will and testament.

Devisee - One who receives real property by will.

Devisor - One who gives real property by a will.

Directional growth - The trend of development of a city; the direction in which new stores, residences, etc., are being erected.

Discount Fee - Sometimes referred to as ``points,`` a fee charged by the lender in order to obtain a higher earning than the interest stated in the mortgage note. Very common on FHA and GI loans, since the interest rate is restricted.

Documentary Transfer Tax - A state enabling act allows cities and counties to adopt a documentary transfer tax to apply on all transfers of real property located within their jurisdictions. Notice of payment is entered on the face of the deed or on a separate paper filed with the deed.

Donee - A person to whom a gift is made.

Donor - A person who makes a gift.

Dower - The right which a wife has in her husband`s estate at his death.

Down Payment - The part of the purchase price of a property that the buyer pays up front in cash and does not finance with a mortgage.

Down-Zoning - A public action in which local government authority reduces the allowable density for subsequent development, e.g., fewer houses, fewer stores, or changes the allowable use from high use to low use, e.g., multifamily residential to single family residential.

Due-on-Sale Provision - A provision in a mortgage that allows the lender to demand repayment in full if a borrower sells the property that serves as security for the mortgage.

Duress - Unlawful constraint exercised upon a person whereby he is forced to do some act against his will.

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Earnest Money - This is sum of money that a buyer gives to the seller when making an offer on a home.

Easement - Created by grant or agreement for a specific purpose, an easement is the right privilege or interest which one party has in the land of another. (Example: right of way.)

Economic Life - The period over which a property will yield a return on the investment, over and above the economic or ground rent due the land.

Economic Rent - The rental warranted to be paid in the open real estate market based upon current rentals being paid for comparable space.

Effective Gross Income - Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source.

Effective Rate - This is the total cost of a loan over the number of years that you will have it. The effective rate assumes that most people don't stay in a home for the full length of a loan's term, which is usually 30 years.

Eleemosynary - Relating to the giving of alms or to charitable works.

Emblements - Crops produced annually by labor and industry as distinguished from crops that grow naturally on the land.

Eminent Domain - The right of the government to acquire private property for public use by condemnation. The owner must be compensated fully.

Encroachment - Trespass; the building of a structure or construction of any improvements partly or wholly on the property of another.

Encumbrance - Anything which affects or limits the fee simple title to property, such as mortgages, trust deeds, easements or restrictions of any kind which do not prevent alienation of the fee title by the owner. Liens are special encumbrances which make the property security for the debt. ``A right in a person who does not own title.``

Endorse - To make over to another party the value represented in a check, bill, note or the like, by inscribing one`s name on the back of the document.

Endorsement - The signature on the back of a check, bill, note or the like required on negotiable instruments.

Enforceable - That which can be made to effective; to cause to take effect. An agreement or contract between persons in which one or other party can legally compel the performance of another or other parties.

Equal Credit Opportunity Act (ECOA) - A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equity - The interest or value which an owner has in real estate over and above the liens against it.

Erosion - Condition caused by the gradual wearing away of soil by action of the elements or by running water.

Escalator Clause - A clause in a lease requiring the tenant to pay extra sums for increases in lessor`s operating costs (i.e. taxes, etc.). Usually tied to fluctuations in the Cost of Living Index.

Escheat - The reverting of property to the state in the absence of heirs or other claimants.

Escrow - The deposit of instruments and funds with instructions to a third party to carry out the provisions of an agreement or contract; when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.

Escrow Collections - Funds collected by the servicer and set aside in an escrow account to pay the borrower`s property taxes, mortgage insurance, and hazard insurance.

Escrow Disbursements - Using escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses when they are due.

Escrow Payment - The part of a mortgagor`s monthly payment that is held by the servicer to pay for taxes, mortgage insurance, hazard insurance, lease payments, and other items as they become due.

Estate - The degree, quantity, nature and extent of interest which a person owns in real property.

Estate For Life - A possessory, freehold estate in land held by a person (called the life tenant) only for the duration of his or her life or the life or lives of another or others.

Estate For Years - An interest in real property by virtue of a contract, possession of which is for a definite and limited period of time. A lease.

Estate of Inheritance - An estate which may descend to heirs. All freehold estates are estates of inheritance, except estates for life.

Estoppel - A legal theory under which a person is barred from asserting or denying a fact because of the person`s previous acts or words.

Et Ux - A Latin term meaning ``and wife.``

Exchange - A means of trading equities in two or more real properties, treated as a single transaction through a single escrow or as a deferred exchange through two or more escrows.

Exclusive Agency Listing - A written instrument giving one agent the right for a specified time to sell a property, but reserving the right of the owner to sell the property himself without payment of a commission to the agent.

Exclusive Right to Sell Listing - A written agreement between an owner and an agent giving the agent the right to collect a commission if the property is sold by anyone during the term of his agreement.

Exculpatory Clause - A clause often included in leases that clears or relieves the landlord of liability for personal injury to tenants as well as for property damages. it does not always protect him, however, against injury to a third party.

Execute - To complete, to make, to perform, to do, to follow out. To execute deed is to make a deed, including especially the signing, sealing, and delivery; to execute a contract is to perform the contract, to follow it out to the end, to complete it.

Executed Contract - A contract that is fully performed.

Execution of Contract - To sign a contract.

Executor - A person named in a will to carry out its provisions as to the disposition of the estate of a deceased person.

Executor`s Deed - A legal deed to real property given by an executor of an estate.

Executory Contract - A contract not yet fully performed.

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Fair Credit Reporting Act - A consumer protection law that regulates the disclosures of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one`s credit report.

Fair Market Value - The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest the seller willing but not compelled to sell, would accept.

Fannie Mae - A private corporation dealing in the purchase of first or second mortgages, at discounts.

Feasibility Study - An analysis of the cost/benefit ratio of an economic endeavor.

Fee - An estate of inheritance in real property.

Fee Simple - In modern estates, the terms ``fee`` and ``fee simple`` are substantially synonymous. The term ``fee`` is of old English derivation. ``Fee simple absolute`` is an estate in real property by which the owner has the greatest power over the title which it is possible to have, being an absolute estate. In modern use, it expressly established the title of real property in the owner, without limitation or end. He may dispose of it by sale, or trade or will, as he chooses.

FHA 235 Loan - An FHA loan where the government subsidizes part of the borrower`s interest payment. Used only for low and moderate income purchasers, and subject to a specific formula as to the maximum cost, amount of the borrower`s earning, and so forth.

FHA Loan - A loan that is analyzed by the Federal Housing Administration, which grants approval of the loan and insures the lender against financial loss.

FHA Loan - A loan that is guaranteed by the Federal Housing Administration with certain restrictions.

Fiduciary - A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under rules of agency.

Finder`s Fee - A fee paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

First Mortgage - A mortgage that is the primary lien against a property.

Fixed Rate Mortgage - A loan with the same interest rate and payment for the life of the loan. When you lock in the interest rate for a fixed rate loan, you'll have the same rate and monthly payment for the loan's full term.

Fixtures - Appurtenances affixed to buildings or land, usually in such a way that they cannot be moved without damage to themselves or the property; plumbing, electrical fixtures, fences, trees, shrubbery, etc. Fixtures are real property.

Flat Lease - (Also called a Fixed Lease or Straight Lease) - A lease which requires that the same amount of rent be paid periodically for the entire term of the lease.

Flood Insurance - Insurance that would provide reimbursement for physical property damage resulting from flooding. It is required for properties that are located in federally deisgnated flood areas.

FNMA (Fannie Mae) - A private corporation dealing in the purchase of first or second mortgages, at discounts.

Foreclosure - procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.

Forfeiture - Loss of money or anything of value due to failure to perform, such as a deposit given to insure performance.

Fraud - The intentional and successful employment of cunning, deception, collusion; or artifice used to cheat or deceive another person whereby that person acts upon it to the loss of his property and to his legal injury.

Freddie Mac - Shareholder-owned government sponsored enterprise established by Congress to provide a continuous flow of funds to mortgage lenders through the purchase of mortgage loans. Offers and sells its securities to investors directly and through selected dealers.

Freehold Estate - A quality of ownership indicating the holding of title. All other interests in real property are less than freehold.

Front Foot - Property measurement for sale or valuation purposes; the property measured by the front foot on its street line - each foot extending the depth of the lot.

Front Ratio - This is a calculation of your total monthly housing expenses divided by your income. Lenders use a front ratio as a guideline to see if you qualify for a loan.

Fully Amortized ARM - An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amoritization term.

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General Plan - A comprehensive, long-range official plan that guides the physical growth and development of a community combined with the basic regulatory and administrative controls needed to attain the physical objective. Also called Master Plan, City Plan, or Comprehensive Community Plan.

GI Loan - Analyzed by - and approval granted by - Veterans` Administration. Also called VA loan. Only eligible veterans may apply. Veterans` Administration guarantees a portion of the loan to the lender against loss.

Gift Deed - A deed for which the consideration is love and affection and where there is no material consideration.

Good Faith - This is an estimate of the total costs to get a loan when buying or refinancing a home. When you apply for a loan, a lender is required by law to give you a Good Faith Estimate within 3 days.

Good Faith Estimate - An estimate of charges which a borrower will most likely incur in connection with a settlement.

Goodwill - An intangible but saleable asset of a business derived from the expectation of continued public patronage.

Graded (``Set-up``) Lease - A type of long-term lease in which one or more increases in rent are provided for the rental then becoming a fixed sum each year for the remainder of the term.

Graduated Lease - A type of long-term lease agreement which provides for a fixed rental fee during the initial period of the lease with increases and/or decreases in rental amount at stated times during the balance of the contract term. (Such agreements are sometimes called ``step-up leases`` or ``step-down leases.``)

Grant Deed - A technical legal term in a deed of conveyance bestowing an interest in real property on another. The words ``convey`` and ``transfer`` have the same effect.

Grantee - The purchaser; the person to whom a grant is made.

Grantor - Seller of property; one who signs a deed.

Grid - A chart used in rating the borrower risk, property and the neighborhood.

Gross Income - Total income from property before any expenses are deducted.

Gross Lease - A lease which obligates the lessor to pay all or part of the expenses of the leased property, such as utilities, fire insurance, maintenance, real property taxes, etc.

Ground Rent - Earnings of improved property credited to earnings of the ground itself after allowance is made for earnings of improvements.

Guarantee of Title - The opinion of a title company backed by its assets as to the true condition of the title to a certain piece of land at a particular time, as shown by the public records in the recording office.

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Hazard Insurance - This insurance policy protects home owners against property damage.

Hazard Insurance - Insurance protecting against loss to property caused by fire, some natuarl cuases, vandalism, etc, depending on the term of the policy.

Holder in Due Course - One who has taken a note, check, or bill of exchange in due course, (1) before it was overdue, (2) in good faith for value, (3) without knowledge that it has been previously dishonored, (4) without notice of any defect at the time it was negotiated to him.

Homestead - A home upon which the owner or owners have recorded a Declaration of Homestead, as provided by California statutes; protects home against judgments up to specified amounts.

House Ratio - The ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income.

HUD - The U.S. Department of Housing and Urban Development.

HUD-1 - A document that gives a breakdown of the costs that the seller and buyer may pay at closing.

Hundred Percent Location - A city retail business location which is considered the best available for attracting business.

Hypothecate - To give a thing as security without the necessity of giving up possession of it. To mortgage real property.

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Implied - Not expressed in writing; presumed or inferred.

Impound Account - Monies held in trust by lender for payment of taxes and insurance.

Income Property - Property which produces income from residential or commercial rentals and profits attributable to real estate other than rent.

Incompetent - One who is mentally incompetent, incapable; any person who, though not insane, is, by reason of old age, disease, weakness of mind, or any other cause, unable unassisted to properly manage and take care of himself or his property.

Indemnity Agreement - An agreement by which one party agrees to repay another for any loss or damage the latter may suffer.

Index - A published interest rate to which the interest rate on an Adjustable Rate Mortgage (ARM) is tied. Commonly used indices include the 1 Year Treasury Bill, the 11th District Cost of Funds, and the 6 Month Libor.

Injunction - A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties to the suit.

Installment Note - A note which provides that payments of a certain sum or amount be paid on the dates specified in the instrument.

Instrument - A legal document in writing to create, alter, modify or terminate a right.

Intangible Value - A value not imputable to any part of the physical property, such as the excess value of a favorable lease, or the value attributable to good will.

Interest Rate - The percentage of a sum of money charged for its use. Rent or charge paid for the use of money, expressed as a percentage, usually per year, of the sum borrowed.

Interim Loan - A short-term, temporary loan used until permanent financing available, e.g., a construction loan.

Intestate - A person who dies without having made a will, or one which is defective in form, in which case his estate descends to his heirs at law or next of kin.

Inventory - An itemized list of the stock in trade and/or the fixtures used in a business.

Investment - Money put in property or other ventures with the expectation of making a profit, with sufficient security to return and protect the capital; not speculation.

Involuntary Conveyance - Sheriff`s deed; tax deed; an instrument against the will of the owner.

Involuntary Lien - A lien imposed against property without consent of owner. Examples: taxes, assessments, federal income tax liens, judgments, etc.

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Joint and Several Note - A note signed by two or more persons, the makers of which may be sued either jointly or individually for the full amount of the note.

Joint Note - A note signed by two or more persons with equal liability for payment.

Joint Tenancy - Joint ownership by two or more persons with right of survivorship.

Judgment - Final decision, determination, decree or sentence of a court of law.

Jumbo Mortgage - The current jumbo loan limit is $240,000 and above.

Jurat - The certificate of an officer before whom a writing was sworn to, such as a notary public, or that part of an affidavit stating where, when, and before whom, the affidavit was sworn.

Jurisdiction - The authority by which judicial officers take cognizance of and decide causes; the power to hear and determine a cause; the right and power which a judicial officer has to enter upon the inquiry.

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Laches - Delay or negligence in asserting one`s legal rights.

Land Contract - An agreement for the purchase or sale of real property. (See agreement of sale, conditional sales contract.)

Late Charge - The amount charged, in addition to the regular payment, by a lender if the borrower is delinquent in making the mortgage payment.

Lease - A contract between the owner of real property, called the lessor, and another person, called the lessee, covering conditions under which the lessee may occupy and use the property.

Legacy - A gift of personal property by will; usually money.

Legal Description - A written description by which property can be located definitely by reference to government surveys or approved recorded maps.

Legatee - One to whom personal property is given by will.

Lessee - one who contracts to rent property under a lease agreement.

Lessor - An owner who enters into a lease with a tenant.

Leverage - The use of a small amount of cash to control a large amount of property values.

Lien - A charge or encumbrance upon property for the payment or discharge of a debt.

Lien - An encumbrance against property for money that is due, either voluntary or involuntary.

Life Estate - An interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person.

Life Tenant - The holder of a life estate.

Lifetime Cap - A provision of an ARM that limits the highest rate that can happen during the life of the loan.

Liquidate - Disposal of property or settlement of debts.

Liquidity - The ability of property to be exchanged for cash.

Lis Pendens - A notice recorded for the purpose of warning all persons that the title or right of possession of certain real property is in litigation. Gives constructive notice of such litigation.

LIS Pendens - A legal notice recorded to show pending litigation relative to real property, and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.

Listing - An employment contract between owner and broker authorizing broker to perform services involving the principal`s property.

Listing - Oral or written employment of a broker by the owner to sell or lease real estate; the written description of a loan available for placement with a lender.

Loan Application - A request to a lender for loan approval, giving a personal financial statement, income and debts.

Loan Commitment - Approval by lender of loan application, stating loan amount, interest rate, number of years on the loan and the amount of monthly payment.

Loan Costs - The actual expense for services rendered in obtaining a loan. Includes appraisal fees, attorney fees, survey fees, loan commissions. Usually itemized for the benefit of the borrower.

Loan to Value Ratio - Also called LTV. A percentage that shows how much equity a borrower will have in a home. The LTV will affect programs available to the borrower.

Lock Period - The period of time that a lender will guarantee a loan's interest rate.

Locked-in-Clause - A clause in a trust deed or mortgage prohibiting its prepayment before a specified time.

Loss Payable Clause - A clause in a fire insurance policy, listing the priority of claims in the event of destruction of the property insured. Generally, a mortgagee, or beneficiary under a deed of trust, is the party appearing in the clause, being paid the amount owing under the mortgage or deed of trust before the owner is paid.

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M.A.I. - Designates a person who is a member of the American Institute of Real Estate Appraisers of National Association of Realtors.

Margin - The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period. A representative margin would be 2.75%.

Marginal Land - Land which barely pays the cost of working or using it.

Market Price - The price the property brings in a given market.

Market Value - The price a willing buyer would pay and a willing seller would accept, both being fully informed and property exposed for a reasonable time period.

Marketable Title - Merchantable title; one free and clear of objectionable liens or encumbrances.

Mechanic`s Lien - A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

Megalopolis - A heavily populated continuous urban area including any number of cities.

Metes and Bounds - A legal designation used in describing the boundary lines of a parcel of land.

Minor - Any person under the age of 18; any person under the age of 21 in regard to the use of alcoholic beverages.

Monument - A fixed object and point established by surveyors to establish land locations.

Moratorium - Temporary suspension, usually by statute, of the enforcement of liability for an obligation.

Mortgage - An instrument by which property is hypothecated to secure the payment of a debt.

Mortgage Broker - One who, for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security. Also called loan broker.

Mortgage Disability Insurance - An insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a set period of time.

Mortgage Insurance - This is an insurance contract that protects the lender against loss if a borrower can't repay a loan.

Mortgage Warehousing - Placing a number of trust deeds or mortgages with a lender as security on a loan.

Mortgagee - A person or company that receives a mortgage as a pledge for repayment of the loan.

Mortgagor - One who borrows money on his property and gives a mortgage as security.

Mutual Water Company - A water company organized by or for water users in a given district with the object of securing an ample water supply at a reasonable rate; stock issued to users.

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Negotiable - Capable of being negotiated; assignable or transferable in the ordinary course of business.

Net Lease - A lease requiring the tenant to pay, in addition to a stipulated rental, all or part of the expenses of operating and maintaining the property.

Net Listing - A listing which provides that the agent may retain, as compensation for his services all sums received over and above a net price to the owner.

Net Worth - Value remaining after subtracting the liabilities from the assets of a company or an individual.

Non-conforming Loan - Also referred to as a Jumbo Loan. Conventional home mortgages that are not eligible for sale and delivery to either Fannie Mae or Freddie Mac because of various reasons, including loan amount, loan characteristics, or underwriting guidelines. Non-conforming loans usually incur a rate and origination fee premium. The current non-conforming loan limit is $240,000 and above.

Nonconforming Use - A use that was lawfully established and maintained, but no longer conforms to the use regulations of the zone in which it is located because of a subsequent change in a zoning ordinance.

Notary Public - An official authorized by law to witness or attest to an acknowledgment by a person who has executed an instrument.

Note - A signed written instrument acknowledging a debt and promising payment.

Notice of Bulk Transfer - A notice required by law to be recorded at least 12 business days prior to the sale or mortgage of a business.

Notice of Default - A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on the payments).

Notice of Non-Responsibility - A notice provided by law designed to relieve a property by law designed to relieve a property owner from responsibility for the cost of improvements ordered by another person.

Notice of Rescission - A recorded notice to rescind a notice of default of a mortgage or deed of trust.

Novation - The substitution of a new obligation for an old one.

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Obligatory Advances - Installment payments of a loan from lender to a contractor.

Obsolescence - Loss in value due to reduced desirability and usefulness of a structure because it has become old fashioned and not in keeping with modern needs or because of adverse social or economic influences.

Offer and Acceptance - A contract used in the sale of real property; a deposit receipt or exchange agreement.

Offer to Buy - An agreement between owner and purchaser as to the price, terms, conditions and date of occupancy. Usually prepared by a Realtor or attorney.

Offset Statement - Statement by owner of property or owner of lien against property, setting forth the present status of liens against said property.

Open Listing - An authorization given by a property owner to a real estate agent wherein said agent is given the non-exclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer.

Open Space Land - Land used for agriculture, recreation, scenic beauty, natural resources, water shed or wild life, and so designated on a map.

Open-End Mortgage - One which provides that the outstanding balance can be increased in order to advance additional loan funds to the borrower, up to the original sum of the note.

Option - A right given for a consideration to purchase or lease a property upon specified terms within a specified time.

Oral Contract - A verbal agreement; one which is not reduced to writing.

Original Payee - The person to whom a check or promissory note is originally payable.

Origination Fee - A service fee charged by a lender/ broker that the borrower pays on the closing date.

Owner Financing - A property purchase transaction where the property seller provides all or part of the financing.

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Package Trust Deed - Covers real and personal property. Partnership - A contract of two or more persons to unite their property, labor or skill, or some of them, in the prosecution of some joint or lawful business, and to share the profits in certain proportion.

Party Wall - A wall erected on the line between two adjoining properties which are under different ownership for the use of both properties.

Patent - Conveyance of title to government land.

Percentage Lease - Lease on property, the rental for which is determined by the amount of business done by the lessee; usually a percentage of gross receipts from the business with a provision for a minimum rental.

Percolation - The seepage of water through soil; the soil`s ability to absorb to water or other liquid.

Personal Property - Any property which is not real property.

Planned Development - Five or more individually owned lots where one or more other parcels are owned in common or there are reciprocal rights in one or more other parcels. A subdivision.

Plat - A map or plan of a certain parcel of land.

Plat Book - A book showing the lots and legal subdivisions of an area.

Pledge - The depositing of personal property by a debtor with a creditor as security for a debt or engagement.

Pledge Agreement - The contract under which a pledge is given as security to a creditor.

Pledgee - One who receives a pledge or a security.

Pledgor - One who owns the thing given as a pledge or security.

Pocket Listing - A trade term. An open listing that a real estate salesperson ``pockets`` or keeps hidden from his/her associates.

Points - Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan.

Police Power - The right of the State to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.

Possessory Interest - Right to possess.

Power of Attorney - An instrument authorizing a person to act as the agent of the person granting it.

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 - The percentage a lender may require to be paid in addition to the unpaid principal balance when a loan is paid off ahead of schedule.

Prepayment Privilege - The amount the lender will permit the borrower to pay on the principal above the regular monthly payments.

Prescription - Obtaining title to property by adverse possession by occupying it for the period determined by law to bar action for recovery.

Prima Facie - Presumptive on its face; true, valid, or sufficient at first impression.

Principal - The employer of an agent.

Principal, Interest, Taxes and Insurance (PITI) - The four major costs that a home owner's mortgage payment covers.

Private Mortgage Insurance (PMI) - An insurance contract that protects the lender against loss if a buyer can't repay a loan.

Privity - A mutual relationship to the same rights of property. A relationship between two or more contracting parties. A bond or union of interest.

Promissory Note - The document signed by the borrower promising repayment of the loan showing the amount of monthly payments, interest rate, first payment date, last payment date, and the late charge and prepayment provisions.

Proprietary Lease - A lease by a ``cooperative apartment`` corporation to a tenant shareholder.

Proration of Taxes - To divide or prorate the taxes equally or proportionately to time of use.

Prospectus - A brochure presenting for a prospective investor the details of an offering.

Puffing - The superlative, sometimes exaggerated buildup a salesperson or the seller may give to property. It is recognized in law as an opinion and not necessarily representing the facts.

Purchase Money Encumbrance - (1) A trust deed or mortgage given by the buyer to the seller as part or all of the purchase price of the property. (2) A trust deed or mortgage given to a third party as security for the borrowing of money used to purchase less than five residential units, one of which is to be occupied by the purchaser.

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Qualifying Ratios - Guidelines used by a lender to evaluate a home buyer's borrowing potential.

Quantity Survey Method - A method for determining cost or cost of reproducing an improvement.

Quiet Title - A court action brought to establish title; to remove a cloud on title.

Quitclaim Deed - A deed used to remove clouds on title by relinquishing any right, title or interest that the grantor may have.

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R Rating - A system which has been developed by authorities to measure the relative ability of building installation materials to resist cold and/or to retain heat. R9, R15, R19, etc., are examples of these ratings. The higher the number, the greater the protection.

Range - A strip of land six miles wide, determined by a government survey, running in a North-South direction.

Rate Cap - A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.

Rate Lock-in - A written agreement where the lender guarantees the borrower a certain interest rate, provided the loan closes within a set period of time.

Ratification - The adoption or approval if an act performed on behalf of a person without previous authorization.

Real Estate Investment Trust - A special arrangement under Federal and State law whereby investors may pool funds for investments in real estate and mortgages and yet escape corporation taxes; requires one hundred persons or more.

Realtor - A real estate broker holding active membership in a real estate board affiliated with the National Association of Realtors.

Reconveyance - The transfer of the title of land from one person to the immediately preceding owner. This instrument is commonly used in California when the performance or debt is satisfied under a deed of trust and the trustee conveys the title he has held on condition back to the owner.

Redemption - The buying back of one`s property after it has been lost through foreclosure. Payment of delinquent taxes after sale to the State.

Refinancing - The process of paying off one loan with the proceeds from a new loan using the same property as the security.

Release Clause - A stipulation in a blanket encumbrance which provides that, upon payment of a certain agreed upon amount, individual parcels will be released to the trustor, free and clear of the blanket encumbrance, thus permitting a Partial Reconveyance of the encumbered property.

Remainder Estate - An estate which vests title after the termination of the prior estate, such as a life estate.

Rescission of Contract - The annulling, revocation or repealing of a contract by mutual consent of the parties to the contract or for cause by either party to the contract.

Reservation - A right reserved by the grantor in conveying property.

Residential Mortgage Credit Report (RMCR) - A report requested by your lender that utilizes information from at least two of the three national credit bureaus and information provided on your loan application.

Restriction - The tenn, as used in relation to real property, means that the owner of real property is restricted or prohibited from doing certain things relating to the property or using the property for certain purposes.

Reversion - The right to future possession or enjoyment by the person or his heirs, creating the preceding estate.

Reversionary Interest - A type of interest a person may have in lands or other property upon the termination of the preceding estate.

Right of Survivorship - Right to acquire the interest of a deceased joint owner. Distinguishing characteristic of a Joint Tenancy Deed.

Right-of-Way - A privilege operating as an easement upon land, whereby the owner does, by grant or by agreement, give to another the right to pass over his land.

Riparian Rights - The right of a landowner whose land borders on a watercourse to use and enjoy the water which is adjacent to or flows over his land provided he does not injure other riparian owners.

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S.R.E.A. - Designates a person who is a member of the Society of Real Estate Appraisers.

Sales Contract - A contract by which buyer and seller agree to terms of a sale.

Sandwich Lease - A leasehold interest which lies between the primary lease and the operating lease. It is created when the lessee enters into a sublease.

Satisfaction - In real estate practice, an instrument to be recorded on the county recorder`s books when a mortgage has been paid in full. it is signed by the mortgagee and recites that the debt has been satisfied.

Seal - An impression made to attest to the signing of an instrument. A notary seal, a corporation seal.

Seller Carry Back - An agreement in which an owner of a property provides financing, often in combination with a mortgage.

Separate Property - Property owned by a husband or wife which is not community property; property acquired by either prior to marriage or by gift, will or inheritance, and all of the rents, issues and profits thereof.

Set-back Ordinance - An ordinance prohibiting the erection of a building or structure between the property boundary and the set-back line.

Severalty Ownership - Owned by one person only. Sole ownership.

Sheriff`s Deed - Deed given by court order in connection with the sale of property to satisfy a judgment.

Simple Interest - Interest computed on principal alone, as opposed to compound interest.

Sinking Fund - A sum deposited periodically, earning compound interest.

Site Analysis - A study of the area or the place on which anything is, has been, or is to be located.

Situs - Location

Special Assessment - Legal charge against real estate by a public authority to pay cost of public improvements by which the property is benefited.

Specific Performance - An action at law to compel the performance of a contract according to its terms.

Statute of Frauds - State law which provides that certain contracts must be in writing in order to be enforceable at law.

Statutory Law - Rules formulated into law by legislative action.

Step-up Lease - One form of ``graduated lease.`` The amount of the periodic payment increases over the term of the lease.

Stock Cooperative - A corporation formed for the purpose of holding title where the individual shareholders receive a right of exclusive occupancy in a portion of the property held. A subdivision.

Straight Lease - See ``Flat Lease.``

Straight Line Depreciation - Definite sum set aside annually from income to pay cost of replacing improvements without reference to interest it earns.

Strip Development - Commercial development in which the main thoroughfares of a city are bordered by an almost continuous row or strip of retail stores and allied service establishments; also, any shopping area that consists of a row of stores.

Subdivision Interest - Any interest in real property which includes lots, parcels, units or undivided interests subject to regulation under the subdivision laws of the State of California.

Subject to Mortgage - When a grantee takes title to a real property ``subject to mortgage,`` he is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most he can lose in the event of a foreclosure is his equity in the property.`` (See also ``Assumption of Mortgage`` in this section.) The original maker of the note is not released from his responsibility to pay off the obligation.

Sublease - A lease given by a lessee.

Subordination Clause - Used in a first or senior lien permitting it to be subordinated to a subsequent lien, such as a construction loan. it converts a senior trust deed into a junior trust deed (second, third, etc.).

Subornation - The crime of getting another person to commit a crime. The procurement of the commission of an unlawful act.

Subpoena - A process to cause a witness to appear and give testimony.

Subrogation - The substitution of another person in place of the creditor to whose rights he succeeds in relation to the debt. The doctrine is often used when one person agrees to stand surety for the performance of a contract by another person.

Surety - One who guarantees the performance of another. Guarantor.

Survey - A printed diagram made after the lot is measured and boundaries are indicated by markers. A survey shows the dimensions and boundaries of the real estate property, and indicates location of the house in its relation to all lot lines, including walks, and so forth. Prepared by a qualified engineer or surveyor.

Syndicate - An organization of investors, usually in the form of a limited partnership, who have joined together for the purpose of pooling capital for the acquisition of real property interests.

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Take - Out Commitment - (``Letter``) Agreement by a permanent lender to place long-term loan upon completion of construction work.

Take-Out Loan - The final or permanent financing covering real property.

Tax Sale - A sale of property, usually at auction, for non-payment of taxes assessed against it.

Taxes - A forced contribution of wealth to meet the public need for government.

Tenancy at Sufferance - A tenancy which arises when a tenant holds over after the termination of a lease without consent.

Tenancy at Will - A tenancy for an indefinite period which may be terminated at the will of either the lessee or the lessor.

Tenancy in Common - Ownership by two or more persons who hold undivided interests without right of survivorship.

Tender - An offer of money, usually in satisfaction of a claim or demand.

Tenements - All rights in land which pass with a conveyance of the land.

Tentative Map - The Subdivision Map Act requires subdividers to submit initially a tentative map of their tract to the local planning commission for study. The approval or disapproval of the planning commission is noted on the map.

Termites - Ant-like insects which feed primarily on wood.

Testator - A man who leaves a valid will at his death.

Testatrix - A woman who leaves a valid will at her death.

Time Is Of The Essence - A clause in a contract contemplating performance by the date specified therein.

Time-Share Project - A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or same periodic basis for a specified time. Such projects may be either time-share estates or time-share uses.

Title - The rights of ownership.

Title Insurance - Insurance written by a title company to protect the property owner against loss if title is imperfect.

Title Search - A search of public records conducted by a title company to confirm a property's owner and to find out what the claims are on the property.

Topography - nature of the surface of land; topography may be level, rolling, mountainous.

Tort - A wrongful act; wrong; injury; violation of a legal right.

Total Debt Ratio - Housing payments and monthly debt divided by gross monthly income. Also known as Obligations-to-Income Ratio ro Back-End Ratio.

Townhouse - A single family attached dwelling unit with party walls; usually an individual unit in a series of five to ten houses, with common walls between the units and side yards on the end units only; may have one to three stories and all necessary facilities and amenities. Can be a unit in a condominium project, a planned development or an ordinary subdivision. The townhouse is not legally defined in present California law.

Trust Deed - An instrument which transfers (conveys) the bare legal title of a property to a trustee to be held pending fulfillment of an obligation, usually the repayment of a loan to a beneficiary.

Trustee - One who holds bare legal title to a property in trust for another to secure the performance of an obligation.

Trustee`s Sale - A sale at auction by a trustee under a deed of trust, pursuant to foreclosure proceedings.

Trustor - The borrower of money secured by a trust deed. One who transfers his bare legal title to a trustee to be held as security until he has performed his obligation to a lender under terms of a note secured by a deed of trust.

Truth-in-Lending Act - A federal law requiring a disclosure of credit terms using a standard format. This is intended to assist in the comparisons between the lending terms of different financial institutions.

Turn-Key Project (Property) - A building term indicating a complete construction job, from groundbreaking to the final turning over of the key after the last structural detail is completed; the implication being that nothing else need be done but turn the key and move in.

Turn-over - Refers to the turn-over of one average inventory of a business within a specified time.

Twelve-day Escrow Law - Another name for the Bulk Sales Law.

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Underwriting - A lender's process to evaluate whether or not to give a borrower a loan.

Undue Influence - Taking any fraudulent or unfair advantage of another`s weakness of mind, or distress or necessity.

Unearned Increment - An increase in value of real estate due to no effort on the part of the owner.

Unit Cost-in-Place Method - A method for determining cost or cost of reproducing an improvement.

Unlawful Detainer - An action at law to evict a person or persons occupying real property unlawfully.

Urban Property - City property; densely settled property.

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

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Valid - Having force or binding force legally sufficient and authorized by law; enforceable.

Valuation - Estimated worth or price. The act of valuing by appraisal.

Variable Interest Rate - An interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and the amount of fluctuation. Also called ``flexible interest rate.``

Variance - A departure from the general rule, e.g. variance from specific zoning.

Vendee - A purchase; buyer.

Vendor - A seller; one who disposes of a thing in consideration of money.

Verification - Sworn statement before a duly qualified officer as to the correctness of the contents of an instrument.

Vested - Bestowed upon someone; secured by someone, such as title to property.

Veterans Administration (VA) - A government agency guaranteeing mortgage loans with no down payment to qualified veterans.

Void - To have no force or effect; that which is unenforceable.

Voidable - That which is capable of being adjudged void, but is not void unless action is taken to make it so.

Voluntary Lien - Any lien placed on property with the consent of, or as a result of the voluntary act of, the owner.

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Waive - To relinquish or abandon; to forego a right to enforce or require anything.

Walk-up - A building of any kind consisting of two or more stories that does not have an elevator.

Warehousing - The practice, used frequently by mortgage banking institutions, of pledging mortgage and/or trust deed notes to a commercial bank for funds to be used to fund new mortgage loans for clients. It is a means of securing a line of credit.

Warranty Deed - A deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premises against the lawful claims of third persons. It is used commonly in other states but not in California where it has been supplanted by the grant deed. The modern practice of securing title insurance has reduced the importance of express and implied warranty in deeds.

Waste - The destruction or material alteration of, or injury to premises by a tenant for life or years.

Water Table - Distance from surface of ground to depth at which natural water is found.

Wrap-Around Mortgage - (Also called the all-inclusive mortgage or all inclusive trust deed.) The wrap-around mortgage is a purchase money mortgage which is subordinate to, but yet includes the encumbrance or encumbrances to which it is subordinated.

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Zone - The area set off by the proper authorities for specific use; subject to certain restrictions.

Zoning - Act of city or county authorities specifying type of use to which property may be put in specific areas.