Quiet Title: (See: Action to Quiet Title).
Quit Claim Deed: A deed operating as a release; intended 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 in the grantor.
Reconveyance: An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.
Recorded Map: A map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.
Recorded Plat: A subdivision map filed as a matter of public record.
Release: An instrument releasing property from the lien of the mortgage, judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a "discharge" is used instead of a release.
Rescission: To void or cancel in such a way as to treat the contract or other object of the recision as if it never existed.
Restriction: Most commonly used to describe a use or uses prohibited to the owner of land. Restrictions are set forth by former owners in deeds or in the case of a subdivision, a declaration of restrictions is recorded by the developer. A limitation on the use of the property by law (zoning ordinances) may also be termed a restriction.
Reversionary Interest: An interest held in a reversion (future right to property in possession of another).
Right of Survivorship: The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.
Right of Way: A strip of land which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.
Secondary Mortgage Market: The buying and selling of first mortgages or trust deed by banks, insurance companies, government agencies, and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (par) or above, but are usually sold at a discount. The secondary mortgage market should not be confused with second mortgage.
Setback Ordinance: Part of a zoning ordinance. Regulates the distance from the lot line to the point where improvements may be constructed.
Settlement Statement: A statement prepared by broker, escrow, or lender, giving a complete breakdown of costs involved in a real estate sale. A separate statement is prepared for the seller and the buyer.
Simultaneous Issue: A simultaneous issuance by a title insurance company of policies insuring both an owner and a lender. The lender's policy is issued at a reduced rate.
Single Family House: A general term originally used to distinguish a house designed for use by one family from an apartment house. More recently, used to distinguish a house with no common area from a planned development or condominium.
Slander of Title: The making of malicious, untrue statements, regarding one's title or interest in property. The statements must be made to a third party and must cause injury to the party against whom the statements are made.
Statutory Lien: An involuntary lien (created by law rather than by contract). Includes tax liens, judgment liens, mechanic's liens, etc.
Subdivision: Commonly, a division of a single parcel of land into smaller parcels (lots) by filing a map describing the division, and obtaining approval by a governmental commission (city or county). The exception is a condominium, which is sometimes called a "one lot subdivision".
Subject to Clause: A clause in a deed, stating that the grantee takes title "subject to" an existing mortgage. The original mortgagor is alone responsible for any deficiency, should there be foreclosure of the mortgage. Differs from an "assumption" clause, whereby the grantee "assumes" and agrees to pay the existing mortgage.
Subordination Agreement: An agreement by which an encumbrance is made subject (junior) to a junior encumbrance. For example: A loan on vacant land is made subject to a subsequent construction loan.
Survey: The measurement of the boundaries of a parcel land, its area, and sometimes its topography.
Tax Deed: Deed from tax collector to governmental body after a period of non-payment of taxes according to statute.
Tenancy in Common: An undivided ownership in real estate by two or more persons. The interests need not be equal, and, in the event of the death of one of the owner, no right of survivorship in the other owner exists.
Term Mortgage: See Straight Term Mortgage
Timesharing: A concept of ownership increasing in popularity as real estate prices rise. The purchase of an undivided interest (usually in a resort area condominium) for a fixed or variable time period. For example: Fifty-two different purchasers buy one condominium; each agrees to possession for one week per year. Costs (taxes, insurance, maintenance, etc. ) are shared equally. Possession may be fixed, or by reservation, by lease, license, etc.
Title Company: An agency issuing the policy of a title insurance company.
Title Insurance: Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances.
Title Search: A review of all recorded documents affecting a specific piece of property to determine the present condition of title.
Torrens Title: A system by which title to land is registered with a registrar of land titles, instead of being recorded. Originally established by Sir Robert Torrens in Australia in 1858.
Townhouse: Originally a house in a city as opposed to a country estate. More recently the term is applied to a certain types of row houses, whether planned unit developments or condominiums.
Transfer Tax: State tax on the transfer of real property. Based on purchase price or money changing hands. Check statutes for each state. Also called documentary transfer tax.
Treble Damages: Three times the amount of actual damages. Given when damages were caused by a deliberate or grossly negligent act of the defendant.
Trust: A fiduciary relationship under which one holds property (real or personal) for the benefit of another. The party creating the trust is called the settlor, the party holding the property is the trustee, and the party for whose benefit the property is held is called the beneficiary.
Truth in Lending: Also referred to as Regulation Z. Part of the Consumer Credit Protection Act. Federal legislation designed to protect borrowers by requiring lenders to furnish information regarding the cost of the loan. The law required interest to be expressed as the annual percentage rate (APR) to the nearest 1/8 of one percent. The APR must include charges such as loan fees, discount points, servicing fees, etc., as well as interest. The law applies to 1 to 4 family residential property only. Also applies to other consumer loans.
Undivided Interest: A partial interest by two or more people in the same property, whether the interest of each is equal or unequal.
Unmarketable Title: Not saleable. A title which has serious defects.
Unrecorded Instrument: A deed, mortgage, etc., which is not recorded in the county recorder's office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.
Unsecured: Generally referring to an obligation which has only a promise as security. A note would be unsecured, a note and mortgage would be secured.
Vacate: To move out
Valuation: The estimating of value. Appraisal.
Variance: Change of a portion of zoning requirements without changing the zoning.
Vendee: Purchaser or buyer, especially on a land contract.
Vendor: The person who transfers property by sale. Another word for "seller". Commonly used in land contract sales.
Warranty: A legal, binding, promise, given at the time of a sale, whereby the seller gives the buyer certain assurances as tot he condition of the property being sold. Warranties as to real property have taken on a lesser role with the increase of the use of title insurance.
Warranty Deed: A deed used in many states to convey fee title to real property. Until the widespread use of title insurance, the warranties by the grantor were very important to the grantee. When title insurance is purchased, the warranties become less important as a practical means of recovery by the grantee for defective title.
Working Capital: Cash, or assets which are readily convertible to cash, used to carry on a business.
Zoning Ordinance: A law (generally at the city or county level) controlling the use of land and construction of improvements in a given area (zone).
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