TERMS YOU SHOULD KNOW
AMENDMENTS
A change - either to alter, add to, or correct - part of an agreement without changing the principal idea or essence
APPRAISAL
An estimate of value of property resulting from analysis of facts about the property; an opinion of value
CLOSE OF ESCROW
Generally the date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner
COMPARABLE SALES
Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called "comps."
DEED OF TRUST
An instrument used in many states in place of a mortgage
EARNEST MONEY DEPOSIT
Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment
EASEMENT
A right, privilege or interest limited to a specific purpose that one party has in the land of another
ESCROW
A contractual agreement in which a third party (escrow agent) manages and handles the coordination of a real estate transaction
HAZARD INSURANCE
Real estate insurance protecting against fire, natural causes, vandalism, etc., depending upon the policy
IMPOUNDS
A trust type of account established by lenders for the accumulation of borrower's funds to meet periodic payments of taxes, mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security
LEGAL DESCRIPTION
A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land.
LIEN
A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt
MORTGAGE
The instrument by which real property is pledged as security for repayment of a loan
PITI
A payment that combines Principal, Interest, Taxes, and Interest
POWER OF ATTORNEY
A written instrument whereby a principal gives authority to an agent. The agent acting under such a grand is sometimes called an "Attorney-in-Fact"
PURCHASE AGREEMENT
The purchase contract between the Buyer and Seller. It is usually completed by the real estate agent and signed by the Buyer and Seller
QUITCLAIM DEED
A deed operating as a release, intending to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title by the grantor
RECORDING
Filing documents affecting real property with the County Recorder as a matter of public records