| Real
Estate Glossary
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| Agency |
A
legal relationship in which someone (principle) hires someone
else (agent) to represent them to a third party. |
| Application
Fee: |
A
fee to cover some of the charges of the loan process. |
| Assessed
Fee: |
A
fee charged by the lender for an appraisal |
| Assessed
Value: |
The
value placed on property by the County Assessor District as
a basis for taxation. |
| Convey
or Conveyance: |
A
written instrument, such as a deed or lease, that transfers
some ownership interest in real property from one person to
another. |
| Deed: |
A
document which, when properly executed and delivered, conveys
title of real property. |
| Disclosure: |
To
make known or public. When dealing with real property, all
disclosures should be made in writing. |
| Discount
Points: |
A
negotiable fee paid to the lender to secure financing for
the ubyer. Discount points are up-front interest charges to
reduce the interest rate on the loan over the life, or portion,
of the loan's term. Once discount point equals one percent
of the loan amount. |
| Earnest
Money: |
Money
deposited by the buyer as evidence of good faith. |
| Encumbrance: |
Anything
that affects or limits the ownership of real property, such
as mortgages, liens, easements or restrictions of any kind. |
| Escrow: |
The
deposit of documents and funds with instructions to a neutral
third party to carry out the provisions of the agreement or
contract. |
| Fair
Market Value: |
The
price at which a willing seller would sell and a willing buyer
would buy, neither being under abnormal pressure. |
| Mortgage: |
A
legal document that provides security for repayment of a promissory
note. |
| Recording
Fee: |
Charged
by the County Recorder to record documents in the public records.
Charges are based on number of pages recorded. |
| Survey: |
Survey
of property required by lender, shows lot size, easements,
any encroachments, locations of improvements, etc. |
| Termite
Inspections: |
Required
by lender to show property free and clear of active termites. |
| Title
Policy: |
Insurance
policy on the ownership of real property, against defects
in title. |
| Title: |
In
dealing with real property, title means ownership. |
| Zoning: |
Act
of city authorities specifying type of use for which property
may be used. |
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