Conversion clause : A provision that enables some homebuyers to change to a fixed rate mortgage, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed rate mortgages. This conversion feature may involve an extra charge.
Cooperative : A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means impropriety leases or similar arrangements.
CRB for real certified residential broker : to be certified, a broker must be a member of the national Association of realtors, have five years of experience as a licensed broker and have completed required residential division courses. Debt ratios : The comparison of a buyers housing costs or his or her gross or net affective income and the comparison of a buyers total long-term debt to his or her gross or net affective income. The first ratio is the house in ratio and the second is the total debt ratio.
Deed : A document which, when properly executed and deliver, conveys title of real estate property.
Disclosure : Space to make known or public. By law, a seller of real estate property must disclose facts which affect the value or desirability of the proper. Discount points : A negotiable fee paid to the lender to secure financing to the buyer. Discount points are interest charges paid upfront to reduce the interest rate on the loan over the life or a portion of the term.
Due on sale clause : A clause that requires a full payment of a mortgage or deed of trust when the secured property changes ownership.
Earnest money : The portion of the down payment delivered to the seller or escrow agent by the purchaser, with a written offer as evidence of good faith. Easement : A right to use all or part of the land owned by another for a specific purpose. For example, an easement may entitle the holder to install and maintained sewer or utility lines. Encumbrance : Anything that affects or limits the ownership of real property, such as mortgages, liens, easements or restrictions of any kind. Escrow : A procedure in which a third-party acts as a stakeholder for both the buyer and the seller, carrying out both parties instructions and assuming responsibility for handling all of the paperwork and distribution of funds. An escrow fee, typically paid by the buyer, is charged by the title company to service the transaction and to escrow money and documents.
Equity : The difference between what is owed on the amount for which the property could be sold.
FHA loan : A loan insured by the Federal housing administration of the department of housing and urban development.
Fee simple : An estate in which the owner has unrestricted power do dispose of the property as he or she wishes, including leaving by will or inheritance.
Fixed rate mortgage : A conventional loan with the same interest rate for the life of the loan.
Fixtures : Personal property that is attached to real property and is legally treated as a real property while it is attached. Such as light fixtures, window treatments and medicine cabinet.
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