Estate Insurance Terms - A
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SOIL - A soil with an acid rather than an alkaline base. This
can determine its suitability for farming.
- A written declaration by a person executing an instrument, given
before an officer authorized to give an oath (usually notary public),
stating that the execution is of his own volition.
APPRAISAL - An appraisal to determine market value of a property
to be taken by eminent domain, in order to justly compensate the
COSTS - Costs of acquiring property other than purchase price:
escrow fees, title insurance, lenders fees, etc.
- A measure, usually of land. Equal to 160 square rods (43,560
sq ft.) in any shape.
- Any parcel of land which may be measured in terms of acres.
Usually qualified by its zoning or usage, such as residential
acreage, industrial acreage, etc.
TO QUIET TITLE - A court action to establish ownership to
real property. Although technically not an action to remove a
cloud on title, the two actions are usually referred to as "Quiet
OF GOD - Damage caused by nature (floods, winds, etc.) rather
than destruction by man.
- Something added. A list or other material added to a document,
letter, contractual agreement, escrow instructions, etc.
- (1) A portion of a building added to the original structure;
(2) a synonym for subdivision in certain legal descriptions.
DEPOSIT - A buyer of real property will generally give a small
deposit in an offer, and a more substantial deposit after the
offer has been accepted. The second deposit is the "additional
HOC - Latin meaning "for this". For a single purpose
- Close to. May or may not be contiguous (touching).
- Touching or contiguous to.
- A judgment or decision by a court.
ADJUSTABLE MORTGAGE LOANS - Mortgage loans under which
the interest rate is periodically adjusted to more closely coincide
with current rates. The amounts and times of adjustment are agreed
to at the inception of the loan. Also called: Adjustable Rate
Loans, Adjustable Rate Mortgages (ARMs), Flexible Rate Loans,
Variable Rate Loans.
- A person given authority by a proper court to manage and distribute
the estate of a deceased person when there is no will.
DEED - A deed issued by the administrator of an estate.
- One old enough to legally act without the consent of a parent
or guardian. One over 18 years old, except in some states for
the purchase of alcohol, which is limited to those over 21 years
VALOREM - "According to value". A method of taxation
using the value of the thing taxed to determine the amount of
tax. Taxes can be either "Ad Valorem" or "Specific".
Example: a tax of $5 per $1000 of value of house is "Ad Valorem";
a tax of $5 per house ( irrespective of value") is "Specific".
FEE - A fee charged by a broker to a seller to cover all or
a portion of the broker's costs of promoting the property. The
fee is generally credited against commissions but is not refunded
if no commissions are received. Most frequently used in connection
with large offerings which require a substantial outlay of funds
LAND USE - A use which causes surrounding property to lose
value, such as an industrial development in a residential area.
POSSESSION - A method of acquiring title by possession under
certain conditions. Generally possession must be actual, under
claim of right, open, continuous, notorious, exclusive and hostile
(knowingly against the rights of the owner). Exact time (years)
of possession and specific requirements (such as payment of property
taxes) vary with the statutes of each state.
- One who makes an affidavit. Also called a deponent, although
technically not the same.
- A written statement or declaration, sworn to before an officer
who has authority to administer an oath.
- A substitution for an oath when a person objects to taking an
oath (Quakers, atheists, etc.). A lie after an affirmation is
- The growing of a forest where none previously existed, as opposed
to reforestation (the replanting of a harvested or destroyed forest).
- A type of construction usually found in resort areas. The exterior
framing of the building is shaped like the letter A.
ACQUIRED PROPERTY - As applied to a judgment lien, it means
that the lien will attach to property of the debtor acquired after
ACQUIRED TITLE - Legal doctrine by which property automatically
vests in a grantee when the grantor acquires title to the property
after the deed has been executed and delivered
- Relating to land, or to a division or distribution of land.
LIEN - A lien against crops (only), to secure money or payment
for materials used to grow the crop.
PROPERTY - (1) Land which is zoned agricultural; (2) Land
used for growing of agricultural products or raising of livestock.
RIGHTS - The right to the uses of the air space above property
without the right to use the surface of the property. However,
air rights may restrict surface rights, especially height of improvements.
- A recessed part or addition to a room.
- Latin for "otherwise". Commonly meaning that a person
is known by more than one name. In some states, indicated by the
letters AKA (also known as).
- Transfer of property from one owner to another.
CLAUSE - A type of acceleration clause, calling for a debt
under a mortgage or deed of trust to be due in its entirety upon
transfer of ownership of the secured property. Also called a "due-on-sale"
- The chemical opposite of acid. Heavy concentrates of alkaline
salts in soil may damage crops.
SOIL - Soil which has an alkali, rather than an acid base.
- The assertion or statement of a party to an action, setting
forth that which he expects to prove.
- A narrow right of way, either public or private, used for access
(usually to garages, loading platforms, etc.)
- Land owned by individuals, as opposed to the feudal system of
ownership of all land by a king or ruler.
ALLOTMENT - A small parcel of land, sold or given to a
farm worker for cultivation as a supplementary source of income.
Popular in the 1900s before World War II.
(AMERICAN LAND TITLE ASSOCIATION) - An organization, composed
of title insurance companies, which has adopted certain insurance
policy forms to standardize coverage on a national basis.
- Changes in the interior or exterior of a building, but without
changing the exterior dimensions.
- A change, either to correct an error or to alter a part of an
agreement without changing the principal idea or essence.
- Those settings or improvements to property which increase the
desirability or enjoyment rather than the necessities of the residents.
For example, a pool, a view, etc.
BANKERS ASSOCIATION - A national organization formed in 1875
as a professional association for banks and other financial institutions.
INSTITUTE OF REAL ESTATE APPRAISERS - A professional institute
to promote the quality of the appraisal industry through education
of its members. The institute is associated with the National
Association of Realtors.
-- Payment of debt in regular, periodic installments of principal
and interest, as opposed to interest only payments.
SCHEDULE - A schedule showing each payment of a loan to be
amortized and breaking down the payment into the amount applied
to principal and the amount applied to interest.
- To reduce a debt by regular payments of both principal and interest,
as opposed to interest only payments.
- A measure of electrical current equal to the current produced
by the force of one volt through a resistance of one ohm.
TENANT - The most reliable, and usually the largest, tenant
in a shopping center. The strength of the anchor tenant greatly
effects the availability of financing for the shopping center.
The term may also be used to describe a tenant in an office building,
industrial park, etc.
- Permanently affixing to real property, such as a city adding
additional land to increase its size.
ANNUAL PERCENTAGE RATE (A.P.R.) - The yearly interest percentage
of a loan, as expressed by the actual rate of interest paid. For
example: 6% add-on interest would be much more that 6% simple
interest, even though both would say 6%. The A.P.R. is disclosed
as a requirement of federal truth in lending statutes.
- (1) A payment of money yearly for life or a given period of
years; (2) A fixed amount given or left by will, paid periodically,
not necessarily yearly.
- Appraisal method using the principle that value is created by
anticipated future benefits.
BREACH - One party to a contract informing the other of his
or her intent not to perform before performance is due. A legal
action may be brought even though the original contract (not yet
due for performance) has not been breached. Example: The buyer
informs the seller before the closing date of his or her intent
not to buy.
- One or more rooms of a building used as a place to live, in
a building containing at least one other unit used for the same
purpose. Usually has, at least cooking facilities, a bathroom
and a place to sleep. Those who live in these units pay rent for
their use usually on a monthly basis.
LENGTH - Legal slang meaning that there existed no special
relationship between the parties involved in any matter which
would taint the result.
- (1) Payment made after it is due is in arrears; (2) Interest
is said to be paid in arrears since it is paid to the date of
payment rather than in advance, as is rent. Example: A rental
payment made July 1 pays the rent to August 1. An interest payment
made July 1 pays the interest to July 1.
HIGHWAY - Any major highway or thoroughfare.
WELL - A well bored in to a subterranean body of water, which,
being under pressure, rises naturally to the surface without artificial
OF INCORPORATION - Documentation filed with the state which
sets forth general information about a corporation. More specific
rules of the corporation would be contained in the by-laws.
- A fire and heat resistant material used in insulation, roofing,
(ASHLER) - A stone which is cut in squares and used both as
a facing for masonry walls and in foundations.
IS" CONDITION - Premises accepted by a buyer or tenant
in the condition existing at the time of the sale or lease, including
all physical defects.
PRICE - The price at which the seller is offering property
for sale. The eventual selling price may be less after negotiation
with a buyer.
ASSESSED VALUE - Value placed upon property for property
tax purposed by the tax assessor.
- (1) The estimating of value of property for tax purposes: (2)
A levy against property in addition to general taxes. Usually
for improvements such as streets, sewers, etc.
- Everything owned by a person or corporation which can be used
for the payment of debts.
- To transfer property, or an interest in property.
- One who receives an assignment.
- A transfer to another of any property, real or personal, or
of any rights or estates in said property. Common assignments
are of leases, mortgages, deeds of trust, but the general term
encompasses all transfers of title.
-One who makes an assignment.
FEE - Lender's charge for paperwork involved in processing
records for a new buyer assuming an existing loan.
- An act of seizing persons or property by judicial order to bring
them within the custody of the court. Most commonly the seizure
of property to furnish security for a debt in connection with
a pending action.
- To witness, to affirm to be true or genuine; to certify
- The space under the roof of a structure but before the top story.
May be simply an air space or improved and used.
NUISANCE - Anything on a property which may attract small
children and is dangerous to them. Reasonable care must be used
to prevent injury to the children.
- A public sale of land or goods to the highest bidder.
LANE - A paved shoulder of a highway, usually designed for
- Originally, a broad passageway bordered by trees. Now synonymous
with street or road and of no special significance.
- A sudden and substantial tearing away of land by water and the
deposit of said land as an addition to the land of another owner.
The original boundaries apply and ownership of the land in question
remains in the original owner.
- In condemnation, the amount paid for the property taken.
- Distance in degrees from North to an object, or, in the Southern
hemisphere, from South to an object. A surveying term.