Glossary

An estimate of value of property resulting from analysis of facts about the property; an opinion of value.

The recipient of benefits, often from deed of trust; usually the leader.

Generally the date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner, and title insurance becomes effective.

Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps”

An instrument used in many states in place of a mortgage.

Limitations in the deed to parcel of real property that dictates certain uses that may or may not be made of real property.

Down payment made by purchaser of real property as evidence of good faith; a deposit or partial payment.

A right, privilege or limited to specific purpose that one party has in the land of another.

Filling documents affecting real property with County Recorder as a matter of public record.

Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon policy. Buyer often adds liability insurance and extended coverage of person property.

Trust type account established by lender for accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.

A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.

A form of encumbrance that usually makes a specific parcel of real property the security for the payment of debt or discharge of an obligation. For example: judgments, taxes, mortgage, and deed of trust.

A payment that combines Principle, Interest, Taxes, and Insurance.

A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes an “Attorney-in-Fact”.

The purchase contract between the Buyer and Seller. It is usually completed by the real estate agent and signed by the Buyer and Seller.

A deed operating as release, intending to pass any title, interest, or claims which the grantor may have in the property, but not containing any warranty of valid interest or title by the grantor.