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Glossary of Mortgage Terms
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ABSTRACT
The notes made by a title examiner based on his examination of the land records. These notes are a concise summary of the transactions affecting the property. The title agency produces a BINDER from the information in the abstract.
ABSTRACT OF TITLE
A condensed history or summary of all transactions affecting a particular tract of land.
ACCESS
The right to enter and leave a tract of land from a public way. "Oftentimes the right to enter and leave over the lands of another."
ACCRETION
The slow build up of lands by natural forces such as wind, wave or water.
ACKNOWLEDGEMENT
The act by which a party executing a legal document goes before an authorized officer or notary public and declares the same to be his voluntary act and deed.
ACRE A tract of land 208.71 feet square and containing 43,560 square feet of land.
ADJUSTABLE-RATE MORTGAGE (A.R.M)
A mortgage whose interest rate changes over time based on an index and a margin. Rate changes are made at prescribed times and within prescribed limits as defined in the mortgage agreement.
ADMINISTRATOR A person appointed by a probate court to settle the affairs of an individual dying without a will. The term is administratrix if such a person is a woman.
ADVERSE POSSESSION
A claim made against the lands of another by virtue of open and notorious possession of said lands by the claimant.
AFFIDAVIT
A sworn statement in writing.
AGENCY
A legal relationship between two or more persons whereby one person(the agent) is authorized to act on behalf of the other(s).
AGENT Generally, someone who acts on behalf of another for a fee. In real estate, the term refers to a person with a real estate license who works under the authority of a real estate broker.
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AMORTIZATION
Gradual debt reduction. Normally, the reduction is made according to a predetermined schedule for installment payments.
ANNUAL PERCENTAGE RATE
A term used in the Truth-in-Lending Act to represent the full cost of a loan including interest and loan fees.
ANNUITY
The return from an investment of capital, with interest, in a series of regular payments. An entity that lends money collects an annutiy from the borrower, while the borrower is amortizing the loan.
APPRAISAL
A formal, written estimation of the current market value of a property.
APPRECIATION
An increase in value, the opposite of depreciation.
APPURTENANCE
Anything attached to the land or used with it passing to the new owner.
ASSESSED VALUE
The value that a taxing authority places upon personal property for the purposes of taxation.
ASSESSMENT
Tax or charge levied against a property by the government, typically to pay for local improvement, e.g. sidewalks, curbs, sewers, etc.
ASSESSOR
A public official who evaluates property for the purpose of taxation.
ASSIGNEE
One to whom a transfer of interest is made. For example, the assignee of a mortgage or contract.
ASSIGNMENT CLAUSE
A sales contract with an assignment clause allows the buyer to transfer the interest in the property(e.g. the right to buy it at the given rates and terms) to another party.
ASSIGNOR
One who makes an assignment. For example, the assignor of a mortgage or contract.
ASSUMABLE MORTGAGE
A mortgage that can be taken over ("assumed") by a buyer when a home is sold. This type can either be a qualified or a non-qualified assumption.
ASSUMABLE MORTGAGE
A mortgage, which by its terms, allows a new owner to take over its obligations.
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ASSUMED MORTGAGE
A loan in which the buyer assumes the obligations of an already existing mortgage on a property.
ASSUMPTION
Taking over a loan and becoming personally liable for the repayment.
ATTACHMENT
Seizure of property through Court process to repay a debt.
ATTORNEY IN FACT
One who holds a power of attorney from another allowing him to execute legal documents such as deeds, mortgages, etc. on behalf of the grantor of the power.
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