Elite Realty NTX

ATerms Beginning With A

Abstract of Title

A condensed history or summary of all transactions affecting a particular tract of land.

Access

The legal right to enter and leave a tract of land from a public way. It can also include the right to cross another person’s land.

Accretion

The gradual buildup of land through natural forces such as wind or water.

Adjustable Rate Mortgage (ARM)

A residential mortgage with an interest rate that may change at agreed intervals during the life of the loan.

Administrator

A person appointed by a probate court to settle the affairs of an individual who dies without a will. Also see Personal Representative.

Adverse Possession

A claim made against another person’s land based on open, continuous, and notorious possession of that land.

Affidavit

A written statement made under oath.

Agent

A person or company authorized to act on behalf of another or to transact business for another.

Air Rights

The ownership rights associated with the space above the physical surface of land.

ALTA

The American Land Title Association, a national association of title insurers, abstractors, and attorneys specializing in real property law.

Annual Percentage Rate (APR)

A percentage expressing the relationship between total finance charges and the amount financed, as required by federal Truth-in-Lending rules.

Appraisal

A written opinion of market value based on a factual analysis of relevant market information.

Appurtenance

Something attached to or used with land that transfers with the conveyance of the land.

Assessment

The imposition of a tax, charge, or levy, usually according to established rates.

Assessor

A public official who evaluates property for taxation purposes.

Assignee

A person or entity to whom a transfer of interest is made.

Assignor

A person or entity that transfers an interest to another.

Assumable Mortgage

A mortgage that allows a qualified new owner to take over the existing loan obligations.

Attachment

A legal seizure of property intended to compel payment of a debt.

Attorney in Fact

A person authorized through a power of attorney to execute legal documents on behalf of another.

BTerms Beginning With B

Balloon Mortgage

A mortgage amortized over a stated period but requiring a large lump-sum payment before the end of that amortization period.

Bankruptcy

A federal court proceeding in which debtors may obtain relief from certain debts after nonexempt assets are administered by a court-appointed trustee.

Bureau of Land Management

The federal agency responsible for surveying and managing designated public lands.

CTerms Beginning With C

CC&Rs

Covenants, Conditions, and Restrictions.

Changed Circumstance

Under TRID, an event that may permit a creditor to revise a Loan Estimate or Closing Disclosure, including unexpected events, inaccurate information, consumer-requested changes, expiration of a Loan Estimate, or a rate lock.

Chain of Title

The historical series of transactions and documents affecting ownership of a particular parcel of land.

Cloud on Title

A possible claim, irregularity, or encumbrance that may affect or impair title.

Closing

The process of executing legally binding documents associated with a real estate purchase, sale, or financing transaction.

Closing Costs

Expenses associated with a real estate transaction, including loan, title, appraisal, commission, and other settlement-related charges.

Closing Disclosure

A five-page disclosure describing the costs and terms of a mortgage transaction, generally delivered before consummation.

Closing Statement

A settlement balance sheet showing the debits and credits allocated to each party.

Clouded Title

A title affected by an encumbrance or unresolved claim.

Coinsurance

Title insurance shared by two or more insurers under separate policies covering proportional portions of the same risk.

Common Interest Community

A form of ownership involving shared ownership or association control of common areas, such as a condominium, townhome, or planned development.

Condemnation

The legal taking of private property for public use. Also see Eminent Domain.

Condition

A provision in a deed, will, or other instrument that may limit, enlarge, change, or terminate an ownership interest.

Conditions and Restrictions

Limitations placed on the use and enjoyment of land, often found in condominium and planned-development documents.

Condominium

Individual ownership of a unit combined with shared ownership of common areas and elements.

Conservator

See Guardian.

Consummation

The point when a consumer becomes legally obligated to the creditor on a loan. It is not necessarily the same as closing.

Consumer’s Intent to Proceed

A consumer’s communication that they wish to proceed with a loan after receiving the Loan Estimate.

Contract for Deed

An agreement in which the seller retains title as security until the buyer completes the required payments.

Convey

The act of transferring title to another party.

Conveyance

An instrument used to transfer title, or the act of transferring title itself.

Covenant

A written agreement in a deed or other instrument promising performance, nonperformance, or a specific use of property.

Cul-de-Sac

The closed end of a street, often designed with a circular turnaround.

DTerms Beginning With D

Deed

A written document used to transfer ownership of land from one party to another.

Deed of Trust

A security instrument in which property is transferred to a trustee for the benefit of a lender until the debt is paid.

Devise

The transfer of real property through a will.

Due-on-Sale Clause

A loan provision requiring repayment when the property is sold or transferred.

ETerms Beginning With E

Earnest Money

A deposit made to demonstrate a buyer’s good-faith commitment to a contract.

Easement

A limited right to use another person’s land for a specific purpose, such as access or utilities.

Egress

The legal right to leave a tract of land.

Eminent Domain

The governmental power to take private property for public use upon payment of just compensation.

Encroachment

A structure, fence, wall, or other improvement that crosses onto another person’s property.

Encryption

The conversion of data into a secured form that cannot be easily read by unauthorized parties.

Encumber

To burden property with a lien, charge, or other claim.

Encumbrance

A lien, liability, easement, or charge affecting a parcel of land.

Escheat

The transfer of property to the state when an owner dies without heirs or other lawful successors.

Escrow

A process in which an independent third party holds documents or funds until transaction conditions are satisfied.

Estate

A person’s possessions or the extent of a person’s interest in real property.

Examination of Title

The investigation and interpretation of the recorded title to real property.

Exception

A portion excluded from a legal description or a matter excluded from title-insurance coverage.

Executor

A person appointed to carry out the terms of a will. Also see Personal Representative.

FTerms Beginning With F

Fannie Mae

The Federal National Mortgage Association, a federally chartered corporation that purchases mortgage loans to support housing liquidity.

Fee Simple Estate

The broadest form of ownership in land, generally held without conditions or limitations.

Financing Statement

A public filing giving notice that a creditor may have a security interest in a debtor’s personal property.

Fixed Rate Mortgage

A mortgage with an interest rate that remains unchanged for the life of the loan.

Fixtures

Personal property attached to real estate in a way that causes it to become part of the real property.

Flood Certification

A determination of whether property is located within a Special Flood Hazard Area for flood-insurance purposes.

Forfeiture of Title

A deed provision causing title to transfer if specified conditions occur.

Freddie Mac

The Federal Home Loan Mortgage Corporation, a congressionally chartered corporation that purchases mortgage loans.

GTerms Beginning With G

Ginnie Mae

The Government National Mortgage Association, a federal corporation that guarantees certain mortgage-backed securities.

Graduated Payment Mortgage

A mortgage with lower initial payments that gradually increase over time.

Grantee

A person who receives an interest in land through a deed, grant, or other written instrument.

Grantor

A person who transfers an interest in land through a written instrument.

Guardian

A person appointed by a court to administer the affairs of someone unable to manage their own affairs.

HTerms Beginning With H

Harbor Line

A boundary established by authorities beyond which certain waterfront structures may not be built.

Hazard Insurance

Insurance covering specified risks such as fire, windstorm, lightning, hail, or other property damage.

Heir

A person who may inherit property from someone who dies without a valid will.

Home Equity Conversion Mortgage

A federally insured reverse mortgage that allows qualifying homeowners to convert equity into loan proceeds.

Home Equity Line of Credit

A revolving loan secured by the borrower’s equity in a home.

Homeowners Insurance

Insurance covering damage to a home, personal property, and certain liability risks.

HUD-1

A settlement statement previously used for many federally related mortgage transactions and still used in certain transactions.

ITerms Beginning With I

Improvements

Additions to land, such as buildings, streets, utilities, or infrastructure, that may increase value or utility.

Indemnify

To compensate for a loss or protect another party from loss.

Ingress

The legal right to enter a tract of land.

Insurance

A contract providing financial protection against specified losses or risks.

Interim Financing

Temporary or short-term financing often used during construction or before permanent financing is obtained.

Intestate

The condition of dying without a valid will.

JTerms Beginning With J

Joint Tenancy

Ownership held jointly by two or more people, often with a right of survivorship.

Judgment

A court decree that may create a lien or charge against a debtor’s property.

Judgment Docket

A public record in which a judgment is entered so it may become a lien against a debtor’s property.

Judgment Lien

A claim against property resulting from a properly entered court judgment.

LTerms Beginning With L

Land Contract

See Contract for Deed.

Lease

An agreement granting the use of land or property for a stated period in exchange for rent.

Lender’s Policy

A title-insurance policy protecting the validity, enforceability, and priority of a lender’s lien.

Lessee

A person who occupies land or property under a lease.

Lessor

A person who grants possession of property under a lease.

Lien

A legal claim or charge against property to secure payment of a debt.

Life Estate

A right to use, occupy, or possess property for the duration of a specified person’s life.

Lis Pendens

A recorded notice indicating that litigation is pending and may affect title to property.

Loan Estimate

A disclosure describing key terms, costs, and risks of a proposed mortgage loan.

Loan Policy

See Lender’s Policy.

Loss Payable Clause

An insurance provision directing payment of a covered loss to two or more parties according to their interests.

Lot

A defined parcel within a subdivision or block, identified by a plat, survey, or legal description.

MTerms Beginning With M

Marketable Title

A title free from reasonable doubt or significant defects that would expose the owner to litigation.

Mechanic’s Lien

A lien granted by law to contractors, laborers, or suppliers for unpaid work or materials.

Metes and Bounds

A legal description of land using courses, directions, and distances.

Mortgage

A legal instrument securing repayment of a debt with real property.

Mortgage Banker

A lender specializing in real-estate loans secured by mortgages.

Mortgage Broker

A person or company that arranges mortgage financing between borrowers and lenders.

Mortgage Insurance

Insurance protecting a lender against certain losses caused by a borrower’s default.

Mortgagee

The mortgage lender.

Mortgagee’s Policy

See Lender’s Policy.

Mortgagor

The mortgage borrower.

NTerms Beginning With N

Non-Public Personal Information

Personally identifiable financial information obtained or used by a financial institution in connection with a consumer transaction or service.

Notary

A person authorized to witness signatures, administer oaths, and take acknowledgments.

Note

A written instrument evidencing a debt, often secured by a mortgage or deed of trust.

OTerms Beginning With O

Origination Fee

A lender fee charged for processing and originating a mortgage loan.

Owner’s Policy

A title-insurance policy protecting an owner against covered title defects, liens, and encumbrances.

Ownership

The legal right to possess, use, and control property, subject to applicable laws and restrictions.

PTerms Beginning With P

Patent

The original grant by which a federal or state government transfers public land to an individual.

Personal Representative

A person appointed to administer a deceased person’s estate.

Plat or Plot

A map showing the division of land into lots, streets, and other features.

Private Mortgage Insurance

Insurance protecting a lender against certain losses if a borrower defaults.

Points

Upfront loan charges expressed as a percentage of the mortgage amount.

Policyowner

The insured party named in a title-insurance policy.

Power of Attorney

A legal instrument authorizing another person to act on one’s behalf.

Power of Sale

A clause authorizing the sale or transfer of property under stated conditions.

Pre-Settlement Inspection

See Walk Through.

Prepayment Penalty

A charge imposed when a loan is paid off earlier than allowed under its terms.

Premium Tax

A tax imposed in certain jurisdictions on title-insurance premiums.

Privacy Rule

Federal requirements governing how financial institutions disclose and protect customer information.

Prorate

To allocate an expense or obligation between parties according to their proportional share.

QTerms Beginning With Q

Quiet Title

A court action used to resolve title defects or competing claims to property.

RTerms Beginning With R

Range

A six-mile-wide strip of land used in the government survey system.

Real Property

Land together with fixtures, improvements, and appurtenances.

REALTOR®

A real estate professional who is a member of the National Association of REALTORS® and subscribes to its Code of Ethics.

Realty

A shorter term for real property.

Redeem

To buy back property following certain foreclosure or execution proceedings.

Redisclosure

A revised Loan Estimate or Closing Disclosure delivered under specific permitted circumstances.

Registered Land

See Torrens Title.

Reinsurance

The transfer of all or part of an insurer’s assumed risk to another insurer.

Reverse Mortgage

A loan allowing qualifying homeowners to convert home equity into payments or proceeds, generally repaid when the home is sold or the borrower’s estate is settled.

Right of Way

A right to travel across another person’s land. A form of easement.

Riparian Rights

Rights associated with the use of water adjoining lakes, rivers, or other waterways.

STerms Beginning With S

Second Mortgage

A subordinate loan secured by property already subject to a first mortgage.

Section of Land

A parcel in the government survey system containing approximately 640 acres.

Setback Lines

Required distances between property boundaries and structures.

Subsurface Rights

Ownership rights associated with minerals or other resources beneath the surface of land.

Survey

The measurement and mapping of land to determine location, boundaries, size, and physical characteristics.

TTerms Beginning With T

Tax Lien

A lien imposed against property for unpaid real property taxes.

Tenancy by the Entirety

A form of ownership available in some jurisdictions to married persons, often including survivorship rights.

Tenancy in Common

Ownership by two or more people, each holding an undivided interest without automatic survivorship.

Tenant

A person occupying real property with the owner’s permission.

Testament

Another term for a will.

Testate

The condition of dying with a valid will.

Testator

A person who makes or has made a will.

Three-Day Review Period

The period during which a consumer generally must receive and review a Closing Disclosure before loan consummation.

Title

Legal ownership of real property or evidence of the right to own and possess it.

Title Agent

A person or company authorized to perform certain title-related services.

Title Defect

A legal claim, irregularity, or right held by another party that may affect ownership.

Title Commitment

A title-company report agreeing to issue a specified title policy after listed requirements are satisfied.

Title Examination

The review of instruments in the chain of title to determine the status of ownership.

Title Insurance Underwriter

An insurance company authorized to issue title-insurance policies.

Title Insurance

Insurance protecting against covered losses arising from defects in title.

Title Insurance Policy

A written contract of title insurance.

Title Plant

An organized system of records and resources used to research title information.

Title Search

An examination of public records, laws, and court decisions affecting ownership of real estate.

Torrens Title

A land-registration system in which a court-approved certificate establishes the extent of a person’s ownership interest.

Total Interest Percentage

The total interest a consumer is expected to pay over the life of a loan, expressed as a percentage of the principal.

Total Loan Costs

Lender and third-party charges associated with obtaining a mortgage loan.

Township

A government-survey division measuring approximately six miles square.

Tract

A particular parcel of land.

Trust

A property interest held by one party for the benefit of another.

Trustee

A person or entity holding property in trust for the benefit of another.

VTerms Beginning With V

Variable Rate Mortgage

A loan with an interest rate that may change based on a stated index or funding cost.

Variances

Differences between estimated and final loan charges, or, in another context, authorized deviations from zoning or land-use requirements.

Vendee

A purchaser of real property under a land contract.

Vendor

A seller of real property under a land contract.

Vest

To pass an immediate legal right or ownership interest to a person.

WTerms Beginning With W

Walk Through

A pre-closing inspection used to confirm property condition, completion of agreed repairs, and the absence of new damage.

Warranty

A limited promise by a property owner concerning title or another represented condition.

Will

A written document directing the distribution of a person’s property after death.

ZTerms Beginning With Z

Zoning

Municipal regulation of the location, character, density, and use of land and improvements.

Texas Real Estate Definitions