| Amortization : |
Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years).
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| Boundary : |
The dividing line between two adjacent properties.
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| Breach of contract : |
The failure to perform provisions of a contract without a legal excuse.
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| Building code : |
A comprehensive set of laws that controls the construction or remodeling of a home or other structure.
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| Closing : |
Also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller.
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| Cloud on title : |
An invalid encumbrance on real property.
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| Community property : |
Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states.
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| Conveyance : |
The transfer of title of property.
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| Deed of trust : |
A document that gives a lender the right to foreclose on a piece of property if the borrower defaults on the loan.
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| Down payment : |
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.
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| Escrow account : |
A separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.
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| Fee simple : |
This type of ownership, also called fee simple absolute, is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.
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| Foreclosure : |
Legal process by which a lender ends the borrower's interest in a property after a loan is defaulted. The lender may sell the property and keep the proceeds for mortgage and legal costs, using excess proceeds to satisfy other liens or return to the borrower.
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| Interest rate : |
The amount of interest charged on a monthly loan payment; usually expressed as a percentage.
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| Joint tenancy : |
Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.
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| Liquidated damages : |
A sum of money specified in the purchase contract to be paid by one party to the other in the event of a breach of contract.
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| Lien : |
A legal claim against property that must be satisfied When the property is sold.
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| Mortgage : |
A lien on the property that secures the Promise to repay a loan.
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| Principal : |
The amount borrowed from a lender; doesn't include interest or additional fees.
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| Property line : |
The official dividing line between properties.
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| Real property : |
Land and any permanent fixtures on it, including buildings, trees, and other fixtures.
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| Tenancy by the entirety : |
Ownership by a husband and wife in which they together hold title to the whole property with right of survivorship.
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| Title: |
The legal document conferring ownership of a piece of real estate.
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| Title company : |
A firm that ensures that the property title is clear and provides title insurance.
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| Title search : |
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.
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| Zoning : |
Regulations that control the use of land within a jurisdiction.
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