Real Estate Glossary

ABSTRACT OF TITLE: compilation of the recorded documents relating to a particular property. From where an attorney may give an opinion as of the condition of title (Not used in IN)

AMERICAN LAND TITLE (ALTA) POLICY: a title insurance that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan.

APPRAISAL: an opinion of the quantity, quality or value of something based upon factual analysis.

ASSESSMENT: The estimating of value of property for tax purposes.

BINDER: Deposit of money as evidence of the purchaser to complete the transaction.

BOUNDARY SURVEY: corner markers of the property are set prior to closing

BREACH OF CONTRACT: Violation of any terms or condition in a contract without legal excuse, for example: failure to make payment when it’s due.

CONVEY: transfer title of a property

DEED: A written instrument that, when executed and delivered, conveys title to or interest in real estate.

EASEMENT: The right to use the land of another for a specific purpose, such as the right-a-way or utilities.

ENCUMBRANCE: A claim, lien, charge, or liability attached to and binding real property.

EXECUTE: To complete; to fulfill a purpose, meaning to sign, seal and deliver.

FIXTURES: an item of personal property what has been converted to real property by being permanently affixed to the realty.

FREE AND CLEAR TITLE: Real property against which are no liens, especially voluntary liens (mortgage)

HOME WARRANTY PROGRAM: Private insurance insuring the buyer against defects (i.e. pluming, electrical, heating) in the home he has purchased. The time period of the insurance varies. Both old and new homes are insurable.

LIQUIDATED DAMAGES: pre-determined amounts by the parties to a contract as a total compensation to an injured party should the other party breach the contract.

PERSONAL PROPERTY: any movable property

PRE-APPROVAL: Is a firm loan commitment from the mortgage company in a form of a letter, pending appraisal of the property. Based on the processing of the completed mortgage application and the information of the property you are buying.

PRE-QUALIFICATION: A pre-qualification lets you know how much house you can afford before you even begin shopping. Based on the initial information you give a mortgage person.

REALTY- REAL ESTATE: land and anything what is permanently affixed to the land, such as buildings, fences, and such things what are attached to the buildings like light fixtures, pluming and heating fixtures.

RESTRICTIONS: A limitation on use of the property by law. Recorded restriction by the developer or previous owners.

WARRANTY DEED: A deed is used in many states to convey fee title to real property.