REAL ESTATE TERMINOLOGY Continued
DEED OF TRUST
An instrument conveying a security interest to the public trustee of the county in which the borrower agrees to pay the debt or obli- gation of a promissory note. The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in a trust by a third party. Upon closing, the money will generally be applied to the down payment or closing costs. Created by grant or agreement for a specific purpose, such as an electrical line by a power company, or a shared driveway. An ease- ment is the right, privilege or interest which one party has in the land of another. A claim, right, or lien upon the title to real estate, held by someone other than the real estate owner. Addition to or modification to a part of the insurance policy, ex- panding or limiting coverage. The deposit of instruments and funds with instructions to a third neutral party (the escrow) to carry out the provisions of an agree- ment or contract. A mortgage that is financed through a private lender and insured by the Federal Housing Administration, often requiring a lower down payment and income to. A liability of real estate as security for payment of a debt. Examples of this are a mortgage or a mechanics lien. The instrument by which real property is pledged as security for repayment of a loan. A policy of title insurance that typically insures an owner of real estate against loss by defects in, liens against, or unmarketability of the owner’s title. A legal and written instrument authorizing one to act as another’s agent or attorney, sometimes called an “Attorney-in-Fact.”
EARNEST MONEY
EASEMENT
ENCUMBRANCE
ENDORSEMENT
ESCROW
FHA
LIEN
MORTGAGE
OWNER’S POLICY
POWER OF ATTORNEY
TITLE
A legal document proving current and proper ownership of the property. Also referred to as a Title Deed, this document highlights the history of the property ownership and transfers.
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