Amendments
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A change—either to alter, add to, or correct—part of an agreement without changing the principal idea or essence.
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Appraisal
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An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
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Assumption
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Taking over another person’s financial obligation; taking title to a parcel of real property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the real property.
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Beneficiary
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The recipient of benefits, often from a deed of trust; usually the lender.
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Close of Escrow
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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.
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Comparable Sales
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Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”
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Deed of Trust
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An instrument used in many states in place of a mortgage.
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Deed Restrictions
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Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.
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Earnest Money Deposit
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Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.
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Easement
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A right, privilege or interest limited to a specific purpose that one party has in the land of another.
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Hazard Insurance
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Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.
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Impounds
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A trust type of account established by lenders for the 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.
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Legal Description
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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.
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Lien
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A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.
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Mortgage
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The instrument by which real property is pledged as security for repayment of a loan.
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PITI
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A payment that combines Principal, Interest, Taxes, and Insurance.
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Power of Attorney
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A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”
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Purchase Agreement
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The purchase contract between the Buyer and Seller. It is usually completed by the real estate agent and signed by the Buyer and Seller.
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Quitclaim Deed
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A deed operating as a release, intending 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 by the grantor.
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Recording
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Filing documents affecting real property with the County Recorder as a matter of public record.
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