CLOSING – The process of completing a real estate transaction during which deeds, mortgages, or leases are signed, and monies disbursed.
DEED – An instrument of various forms and types, by which title to real property is conveyed from on party to another.
CLOUD ON TITLE – An irregularity or claim or emcumberance which, if valid, would adversely affect or impair the title.
OWNERS POLICY – A policy issued of title insurance, to insure an owner of real estate against loss brought about by defects in, liens against, or unmarketability of the owners title.
WARRANTY DEED – Any deed containing one or more title covenants. Property is usually conveyed using this type of deed. Another could be a Trustee attorney deed.
CLOSING STATEMENT – A summation, in the form of a balance sheet, compiled at closing, showing the amounts of debits and credits to which each party to a real estate transaction is entitled.
FEE SIMPLE – The highest degree of property ownership, which a person can have in real estate. An interest in real estate which gives the owner unqualified ownership and full power of disposition.
HOMESTEAD – 1] Property designated as a persons primary residence, which is protected by law from being forced to sell in order to pay off debts. 2] Land claimed by a settler under the National Homestead Act.
JOINT TENANTS WITH RIGHT OF SURVIVORSHIP – Each tenant has an equal, undivided interest in the whole property. As with tenants in common, each joint tenant may enter into the common property, take possession of the whole, occupy and utilize every portion of the property at all times, and in all circumstances. If income is derived from the property, each joint tenant is entitled to their proportionate share of the income. Upon the death of one ot the tenants, the title held by the deceased passes automatically to the surviving joint tenant, not to the heirs of the deceased person or the persons named in that persons will or trust. The right of survivorship continues till the last joint tenant dies.
TENANTS IN COMMON – Two or more persons in whom title to a single piece of real estate is vested in such a manner that they have a common or equal right to possession and enjoyment of the property. Each owner may sell or dispose of it by will, and if they die without leaving a will, their heirs inherit the undivided interest.
RIPARIAN RIGHTS – The many rights of a person in, to, and over the banks, beds, shallows, shore, and water of a stream or body of water upon which his land borders.
QUIET TITLE SUIT – A lawsuit brought by an owner of real estate for the prupose of cancelling, wiping out, and putting a quietus upon supposedly immaterial, inconsequential, and unenforceable claims and interest which cloud their title.
FIDELITY BOND – A bond placed on officers of an Home Owners Association or Condo Association against the risk of mishandled association funds. It covers embezzlement by any officer on the board of directors, authorized to handle funds coming in and out of the Association bank accounts.
QUIT CLAIM DEED – A deed which does not imply that the grantor holds title, but which surrenders and gives to the grantee any possible interest or rights which the grantor may have in the property. Do not confuse with a bill of sale.
ESTOPPEL LETTER – A document providing legal restraint that stops, prevents a person from reversing their prior position or previous assertions or committments. This usually applies to Home Owner Associations and Condo Associations, asserting in a sales transaction that all fees are current or that the past due amounts are accurate and true.
REO – Real Estate Owned. It is the short abbreviation for a bank owned foreclosure file.
LIS PENDENS – A pending law suit against a piece of real estate. Court acquired jurisdiction over real property involved in a suit. Generally the first step in any bank foreclosure process.
SHORT SALE – A situation where a homeowner owes more on the home than the properties current market value. A real estate professional or attorney endeavors to get the mortgage holder to forgive all or part of the mortgage amount difference, when a sale of the home has taken place. The short sale process begins with an executed contract being presented to the mortgage holder. The success of a short sale by the debtor depends on the hardship letter that is attached to the contract for sale and purchase. This is a critical step in the process.
CHAPTER 7 BANKRUPTCY – A debtor seeks 100% relief from their debts, and contains no provision for any work-out or partial payments toward the debt. It allows the debtor to stop and halt collection agency calls, harrassment, threats, from creditors.
CHAPTER 13 BANKRUPTCY – A debtor seeks relief from their debts with a provision that allows a 5 year work-out, [pay back plan] for all or an agreed upon part of the debt. It allows the debtor to be free of collection calls, harrassments, threats from creditors. Its typically referred to as a restructuring type of bankrupty.
Please feel free to contact me with any questions regarding these and any other type of real estate terms. These above seem to me to be the most commonly asked ones on a consistent basis..