rels.info glossary
ALTA (American Land Title Association)
Organization composed of title insurance firms which sets standards for the title industry, including title insurance policy forms used on a national basis.
Assessed Value
The estimated value of property for tax purposes usually determined by the tax assessor for the particular county.
Appraisal
An opinion of the value of real property, usually it’s Market Value. A real estate appraisal is performed by a licensed or certified appraiser using a standardized form. For residential property the Uniform Residential Appraisal Report is used.
Closing
Often referred to as “settlement”. The process of completing a real estate transaction during which deeds, mortgages, leases or other required instruments are signed or delivered. Additionally, the accounting between parties is made, monies disbursed and recording of all pertinent documents prepared.
Conveyance
The transfer of title to property from one person to another.
Credit Report Supplement
The Credit Report Supplement only addresses issues in an existing report and does not affect credit scores. The Credit report stays the same and the information is added via the supplement.
Deed
An instrument by which title to real estate is conveyed from one party to another.
Easement
A right held by a person to enjoy or make limited use of another’s real property.
Eminent Domain
The right of a government to take privately owned property for public purposes under condemnation proceeding upon payment of its reasonable value.
Encumbrance
A claim, right, or lien upon the title to real estate held by someone other than the real estate owner.
Endorsement
Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.
Escrow
The depositing of money or documents from a real estate transaction with an impartial third party (escrow agent), to be disbursed to the rightful party when all conditions of the transaction have been met.
FICO
The most widely used credit scores are FICO scores, the credit scores created by Fair Isaac Corporation.
HUD
A summary of the financial portion of the real estate transaction required by the Department of Housing and Urban Development.
HUD-1 Settlement Sheet
The settlement sheet itemizes the services provided and lists the charges to the buyer and the seller. It is filled out by your closing agent and must be signed by both you and the seller. You should have been allowed to review this form on the business day before your closing meeting so that you will be able to know your closing costs in advance.
Legal Description
A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
Lender’s Title Insurance
An insurance policy, which protects the lender against claims, and losses that may arise if the title is unmarketable or defective.
Lien
The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage or by operation of law, such as a mechanic’s lien.
Marketable Title
A title, which a court of equity considers to be so free of material defects and liens that it will force acceptance by a purchaser. Also known as a merchantable title.
Owner’s Title Insurance
A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against or other conditions rendering the owner’s title to the property unmarketable.
Quit Claim Deed
A deed, which surrenders and gives to the grantee any possible interest or rights which the grantor may have in the property.
Recording
Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.
Residential Mortgage Credit Report (RMCR)
A comprehensive credit report offered for complex credit histories that require verification. The RMCR provides fully researched tradelines, credit data, public records data and employment and residence records from all three bureaus.
Restrictions
Often called restrictive covenants. Provisions in a deed or other instrument whereby an owner of land prohibits or restricts certain use, occupation and improvement of the land.
Title
A legal right to own, posses, use, control, enjoy and dispose of real estate or an inheritable right or interest therein.
Title Insurance
Insured statement of the condition of title or ownership of real property. For a one-time-only premium, the named insured and their heirs are protected against title defects, liens and encumbrances existing as of the date of the policy and not specifically excluded from it. In the event of a claim, the title company provides legal defense from the policyholder and pays any covered losses incurred as a result of such claim. an instrument in the chain of title.
Trade (or Trade line)
A trade line is an account listed on a credit report. Each separate account is a different trade line.
Truth-in-Lending (TIL) Statement
Within three business days of applying for a loan to purchase a home, your lender should have given you this document, which outlines the costs of your loan. You receive it at that time so you can review any changes to the annual percentage rate (APR), added points, and certain other costs of credit. The TIL statement also discloses other terms of the loan, including the finance charge, the amount financed, the payment amount, and the total payments required.
USPAP
The Uniform Standards of Professional Appraisal Practice (USPAP) are the generally accepted standards for professional appraisal practice in North America. USPAP contains standards for real estate, personal property, business and mass appraisal.
Vesting
The names, status and manner in which title of ownership is held with a fixed or determinable interest in a particular parcel of real property; also that portion of a title report or policy setting forth the above.
