| Affinity Moving Services Glossary of Terms |
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A summary listing of the documents registered in the local land registry office and which affect title (ownership) of a particular property.
ACCEPTANCE A buyer's or seller's agreement to enter into a contract and be bound by the terms of the offer.
ACCESS The right to enter a property. Access may be restricted to certain times, to certain persons and to certain purposes (i.e. access for the purpose of inspection).
ACCOUNT TERMINATION FEE A fee that is often charged if you pay in full and terminate your home equity line of credit during the first five years. Payment down to a zero balance does not count as termination. See also definition of prepayment penalty.
ACCRUED An adjective describing something that has come into existence but has not yet been claimed by or distributed to its rightful owner.
ACRE An imperial measure for land. Equals 43,560 square feet; 4,047 square meters; or 0.047 hectares.
With reference to an agent or representative. The limits of the power the agent or representative has to bind her principal to an agreement or to a statement.
AD VALOREM Latin meaning "according to value." Taxes that are said to be ad valorem are assessed according to the value of the property.
ADDENDUM An addition to a document that forms part of it. Similar to a Schedule to an Agreement of Purchase and Sale . May be used to add specific and detailed information material to the contract or upon which contractual terms are based.
ADDITIONAL PRINCIPAL PAYMENT A payment made by a borrower of more than the scheduled principal amount due, in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and/or pay off the loan early.
ADJUSTABLE RATE MORTGAGE (ARM) A home loan that permits the lender to adjust its interest rate periodically during the life of the loan on the basis of changes in a specified financial index.
ADJUSTMENT DATE The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
ADJUSTMENT PERIOD The period that elapses between the adjustment dates for an adjustable rate mortgage (ARM), typically 6 months or 1 year for the most popular ARMs.
A method of acquiring or claiming title (ownership) to a piece of land owned by another by occupying it in defiance of the other's title. Most jurisdictions have statutes that set out a certain period of time throughout which the person claiming adverse possession must occupy the land before title passes to that person by operation of law.
AFFIANT One who swears an affidavit .
A sworn statement setting out facts which the affiant states are true. Sworn before a Commissioner for swearing Oaths, Notary Public or other public official.
AFFORDABILITY ANALYSIS ( PRE-QUALIFICATION ) A preliminary analysis of a borrower's ability to afford the purchase of a home. An affordability analysis takes into consideration factors such as income, liabilities, and available funds, along with the type of home loan, the likely taxes and insurance for the home, and the estimated closing costs.
AGENCY The relationship between a person (the Principal ) and another person (the Agent ) who was appointed, selected, empowered, given authority by the Principal to represent the interests of the Principal in dealings with third parties and to bind the Principal to statements, warranties or contracts.
A person empowered by a Principal to act on behalf of the Principal in dealings with third parties. The third party is entitled to rely upon the agreement, assurances or statements of the Agent as being binding on the Principal.
Also known as Purchase Agreement, Agreement of Purchase and Sale , Land Agreement etc. A legal contract in which one party agrees to buy and another agrees to sell a property or chattel. Contains terms and conditions of the transaction and is signed by the parties.
AGREEMENT A legally binding contract between two or more people, representing a meeting of minds on one or more issues.
ALIENATION CLAUSE A term of a mortgage which allows the creditor to demand payment in full of principal and interest due upon the sale of the property.
AMENITY A feature of real property that enhances its attractiveness and increases the occupant's or user's satisfaction, although the feature is not essential to the property's use. Natural amenities include a pleasant or desirable location near water, scenic views, etc. Man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.
AMERICAN LAND TITLE ASSOCIATION (ALTA) Trade association of American title insurance companies, with a view to standardizing the policies nationwide.
AMERICAN SOCIETY OF APPRAISERS A Professional Society, for persons involved in the appraisal of both real and personal property.
AMERICAN SOCIETY OF HOME INSPECTORS, INC. (ASHI) A Professional Trade Organization, for persons specializing in the inspection of the physical condition of homes.
The gradual repayment of a home loan by periodic installments.
AMORTIZATION SCHEDULE A timetable for payment of a home loan. An amortization schedule shows the amount of each payment applied to interest and principal and the remaining balance after each payment is made.
AMORTIZATION TERM (PERIOD) The amount of time it takes to pay off the loan. The amortization term is expressed as a number of months. For example, for a 30 year fixed rate loan, the amortization term is 360 months.
AMORTIZE To repay a loan with regular payments that cover both principal and interest .
ANNUAL MAINTENANCE FEE An amount that is charged each year for having a line of credit made available by your lender. It is charged regardless of whether or not the credit line is used. For some programs and in some states, an annual fee is not charged.
ANNUAL PERCENTAGE RATE (APR ) The effective cost of a home loan stated as a yearly rate taking into account such items as interest, mortgage insurance, most closing costs, discount points and loan origination fees. Disclosure of APR is required by the Truth-In-Lending Law .
Where an agent compels, by actions, omissions or statements, a third party to believe the agent has the authority to bind a principal. The authority to bind is apparent due to the behavior of the agent but may not actually exist.
A form to be completed by a home loan applicant with the lender's assistance to provide pertinent information about a prospective borrower's employment, income, assets, debts and other financial information, about the purpose of the home loan, and about the property securing the home loan. Lenders also sometimes call it a 1003-the form number of Fannie Mae's standard application form.
APPLICATION FEE A fee usually paid at the time an application is given to a lender for helping to complete and review an application. Some lenders collect fees for a property appraisal and a credit report, instead of an application fee, at the time of application.
APPRAISAL An estimation of the value of a property on a certain date given by a qualified person, usually after an inspection of the property.
APPRAISAL PRINCIPLES Elements to be considered by an appraiser in appraising the value of a property, such as competition, supply and demand.
APPRAISAL PROCESS A standardized approach to appraising a property, to allow for accuracy and consistency.
APPRAISAL REPORT Documentation to support an appraisal of a property. Varies in length but sets out elements considered, positive and negative aspects of property etc.
APPRAISED VALUE The estimated market value of a property on a given date, given by a qualified person as a result of an inspection of the property and a consideration of other market forces.
APPRAISER A professional who has been trained to assess the value of property.
APPRECIATION An increase in the value of a property due to changes in market conditions or other causes. Inflation, increased demand, home improvement, and sweat equity are all causes of appreciation. The opposite of depreciation.
ARBITRATION An Alternative Dispute Resolution method. Allows an objective third party to settle disputes between parties without resorting to court. Binding arbitration involves the parties agreeing to be bound by the decision of the arbitrator.
"ARM'S LENGTH" TRANSACTION A colloquial description of a transaction where none of the parties are related to each other or have common interests -- they have each other at "arm's length". An arms-length transaction is generally at fair market value; in a "non-arm's-length" transaction, the relationship between the parties may cause one or the other to accept less than they are entitled or pay more than fair market value.
Money which is not paid when due, under a payment plan or amortization schedule. Could lead to enforcement of loan agreement by lender
AS IS Implied in most Agreements of Purchase and Sale , suggests the Purchaser is accepting the property in its current condition and releases the Vendor from any liability for problems found before or after closing.
"AS-IS" AGREEMENT A statement in the Agreement of Purchase and Sale that confirms that the Purchaser shall accept the property and all chattels included in the Purchase in the condition in which they are found at the time the Agreement is signed.
ASKING PRICE The price at which the Vendor advertises a property. When used in the advertisement, may suggest flexibility on the part of the Vendor regarding the price.
ASSESSED VALUE The value used to determine property taxes, based on a public tax assessor's opinion. Contrast with appraised value.
ASSESSMENT The amount of tax due to local government. May also refer to the amount due to local government or to common owners of a property (e.g., a homeowner's association ) for a special payment to cover expenses for improvements or maintenance, such as new sewers or roads.
ASSESSMENT ROLLS A public record of the assessed value of property in the taxing jurisdiction.
ASSESSOR A public official who establishes the value of a property for taxation purposes.
ASSET Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
ASSIGN To transfer interest in a property, contract, right etc.
ASSIGNEE The person to whom an interest is transferred. An assignee of an Agreement of Purchase and Sale may buy the property and enforce the contract in the same fashion as the original party.
ASSIGNMENT The transfer of any right, claim or interest to another person or corporation. Often used to refer to the transfer of a mortgage from one lender to another. Also a noun describing the document which represents the assignment of the right etc.
ASSIGNOR The person who assigns a right or interest to another person.
A mortgage that can be taken over ("assumed") by the buyer when a home is sold. If interest rates have risen, an assumable mortgage at a low rate may prove a selling point for the property.
ASSUMPTION The buyer's acceptance of liability for the seller's existing home loan. See Assumable Mortgage.
ASSUMPTION CLAUSE A provision in an assumable loan that allows a buyer to assume responsibility for the home loan from the seller. The loan does not need to be paid in full by the original borrower (seller) upon sale or transfer of the property.
ASSUMPTION FEE The fee paid to a lender (usually by the buyer) for the lender's agreement to start collecting payment from the buyer instead of the original borrower (seller).
ATTACHMENT The binding by a court of a piece of property (real or personal) as security for a debt.
ATTORNEY AT LAW A person who has met the requirements to practice law in a particular state of the United States .
ATTORNEY IN FACT A person who holds a POWER OF ATTORNEY for another person, which gives the Attorney the power to act on behalf of that other person and bind that other person.
ATTORNEY'S OPINION OF TITLE A statement of a lawyer's conclusions with regard to the state of the legal title of a property, issued after the lawyer has completed the appropriate investigations of title.
ATTRACTIVE NUISANCE "Attractive" refers to the response of children to a feature of land (whether natural or man-made) which has the potential to be harmful (an uncovered well, a swimming pool, a swift moving stream).
AUTHORITY The right of an agent, conferred by his principal, to bind the principal in dealings with third parties. See actual authority , implied authority, apparent authority , ostensible authority , inherent authority.
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