The assurance that no encumbrances other than those specified in the deed exist.
Covenant Against Encumbrances
A promise that the grantor will perform further acts reasonably necessary to correct any defects in the title or in the deed instrument
Covenant of Further Assurance
A promise that no one has superior or paramount title to that of the grantor; assures the grantee of peaceful possession without fear of being ousted by a person with a superior claim to the property.
Covenant of Quiet Enjoyment
Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it.
Covenant of Seisin
Depreciation is considered curable if the cost of the repair is less than what the repair adds to the value of property.
Money owed. (Debt) The opposite of a credit.
A written instrument, usually under seal, which contains an agreement to transfer some property interest from a grantor to a grantee.
Used by the mortgagor (borrower) who is in default to convey the property to the mortgagee (lender) in order to eliminate the need for a foreclosure.
Deed in Lieu of Foreclosure
Given by lien holders, remainder-men or mortgages to relinquish their claims on the property
Deed of Release
A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
Deed of Trust
A necessary mortgage clause in title theory states. When the debt is satisfied, this clause causes title to pass automatically back to the borrower. Satisfaction of mortgage; release from records
Or FEE SIMPLE DEFEASIBLE - Ownership with conditional restrictions which, if broken, can result in title to the property reverting back to the grantor or his heirs.
Defeasible Fee Simple
Any lien, claim or encumbrance, on a particular piece of real estate, that has been properly recorded in the public records. Recorded defects impair clear title and may result in the title being unmarketable.
Defect in Title
A personal claim based on a judicial order against the debtor. This occurs when the property fails to bring in a price at the foreclosure sale which covers the mortgage amount.
A decrease in value due to physical deterioration, functional or economic obsolescence.
Refers to any passage of title to property, upon intestacy to those heirs, related by blood or marriage, whom the law designates
Transferring title to real property by means of a will.
A clause, included in many mortgages, permitting the lender to require the borrower to repay the outstanding balance when the property is sold. Prevents loan assumption.
Involves the use of force or improper actions, against a person or property, in order to induce a party to enter into a contract.
A right to limited use or enjoyment by one or more persons in the land of another.
An easement created to benefit adjacent land
Occurs because of necessity, such as the conveyance of a land-locked property.
Easement by Implication
A personal right to use the land of another.
Easement in Gross
The time period over which an improvement to land earns more income than the cost incurred in generating the income. Profitability.
A loss in value due to factors outside the subject property, such as changes in competition or surrounding land use. Also referred to as external obsolescence.
The amount of rental which a building would receive, if set by the market, as opposed to contract rent set by the lease
The difference between the theoretical economic life of a structure and its actual remaining economic life. Maintaining the property.
The anticipated income resulting from the estimated potential gross income from a rental property less an allowance for vacancy and bad debts.
Effective Gross Income
The extension of some improvement or object across the boundary of an adjoining tract. (Off sides).
Any interest in or claim on, the land of another, which in some manner burdens or diminishes the value of the property.
A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction.
Equal Credit Opportunity Act. (ECOA)
Created when justice and fairness would require a court of equity to declare such a lien exists or when conduct of parties would imply that a lien was intended.
value of real estate less any liens against it.
1) in finance, permits the lender to raise the interest rate upon the occurrence of certain stipulated condition, (2) in leasing, permits the lessor to raise lease payments upon the occurrence of certain stipulated condition.
The right of government to ownership of property, which is left by a deceased property owner who leaves no will, and dies without descendants.
A legally recognized interest in the use, possession, control and disposition that a person has in land, and defines the nature, degree, extent and duration of a person's ownership in land.
Retention of possession without the consent of the landlord after the lease has expired; also referred to as tenancy at sufferance.
Estate at Sufferance
An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will
Estate at Will
A conveyance of realty for a definite stated period of time. The term may be one year, one month, one week or even one day. No notice needed to terminate.
Estate for Years
A leasehold, which is automatically renewed for the same term as in the original lease; also referred to as a periodic tenancy or an estate from period to period. Month to month rental. Notice needed to terminate.
Estate from Period to Period
The maximum possible estate one can possess in real property; also referred to as fee simple or fee simple absolute.
Estate in Fee
The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated
Exclusive Agency Listing
Under this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period. (Even the Seller)
Exclusive Right to Sell Listing
One in which the obligations have been performed on both sides of the contract and nothing is left to be completed. (Closed Deal)
A person appointed in the will to carry out the instructions of the testator, pay the debts of the estate, and dispose of the property as instructed.
An agreement formed through the oral or written words of the parties
The price negotiated for a parcel of real estate in a competitive market where both buyer and seller are free to act and under no undue pressure.
Fair Market Value
A federal agency established to insure the deposits in member commercial banks. The current maximum insurance per account is $100,000.00