A change – either to alter, add, or correct – part of an agreement without changing principle idea or essence.
APPRAISAL: An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
BENEFICIARY: The recipient of benefits, often from deed of trust; usually the leader.
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, and title insurance becomes effective.
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.
DEED RESTRICTIONS: Limitations in the deed to parcel of real property that dictates certain uses that may or may not be made of real property.
EARNEST MONEY DEPOSIT: Down payment made by purchaser of real property as evidence of good faith; a deposit or partial payment.
EASEMENT: A right, privilege or limited to specific purpose that one party has in the land of another.
RECORDING: Filling documents affecting real property with County Recorder as a matter of public record.
HAZARD INSURANCE: Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon policy. Buyer often adds liability insurance and extended coverage of person property.
IMPOUNDS: Trust type account established by lender for 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. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
LIEN: A form of encumbrance that usually makes a specific parcel of real property the security for the payment of debt or discharge of an obligation. For example: judgments, taxes, mortgage, and deed of trust.
PITI: A payment that combines Principle, Interest, Taxes, and Insurance.
POWER OF ATTORNEY: A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes 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 release, intending to pass any title, interest, or claims which the grantor may have in the property, but not containing any warranty of valid interest or title by the grantor.