|
Payment
#
|
Total
Payment
|
Interest
|
Principal
|
Balance
|
|
0
|
-
|
-
|
-
|
$23,000.00
|
|
1
|
$250.00
|
$210.83
|
$39.17
|
22,960.83
|
|
2
|
250.00
|
210.47
|
39.53
|
22,921.30
|
|
3
|
250.00
|
210.11
|
39.89
|
22,881.41
|
|
4
|
250.00
|
209.75
|
40.25
|
22,841.16
|
Appurtenance
- Something that is outside the property itself but
is considered a part of the property and adds to
its greater enjoyment such as the right to cross
another's land.
Assessments
- The amount of tax or special payment due to a
municipality or association.
Assignee -
The person or corporation to whom an agreement or
contract is assigned; one to whom real property or
an interest in real property is transferred or set
over.
Assignment
- A transfer from one party to another.
Assignor -
A party who assigns or transfers an agreement or
contract to another.
B
Balance
Due - The amount currently owed on a debt; the
principal balance due.
Balloon -
The final payment on a mortgage, deed of trust or
real estate contract when that payment is greater
than the preceding installment payments and/or pays
the loan in full.
Bankruptcy
- The financial inability to pay one's debts when
due. The debtor seeks relief through court action
that may work out or erase debts.
Breach of
Contract - A violation of the terms of a legal
agreement.
C
Certificate of
Title - A written statement furnished by an
abstract or title company or an attorney stating
that the title to a piece of property is legally
vested in the present owner. (Not commonly used in
Alaska.)
Certification
- The act of showing evidence of ownership or
debt.
Chain of
Title - The history of all the documents
transferring title to a parcel of real estate,
starting with the earliest existing document and
ending with the most recent.
Clear
Title - Title not encumbered or burdened with
defect such as mortgages, unpaid taxes, or
underlying liens.
Cloud on
Title - Any condition revealed by a title
search that adversely affects the title to a
property. Usually cloud on title cannot be removed
except by a quit claim deed, release, or court
action.
Collateral
- Property pledged as security for a
debt.
Commit
Waste - To neglect property or allow it to be
used in a way that lessens its value.
Consideration
- A legal right or promise exchanged for the act,
promise, or property of another person. For
example, in a contract for the purchase of a piece
of property, the property itself and the money paid
(or promised to be paid) are the considerations
made by the property seller and the new property
owner, respectively.
Convey -
To deed or transfer title to another
Conveyance
- The document, such as deed, lease, or mortgage,
used to effect a transfer of property.
Convenant
- A legally enforceable promise or restriction in a
contract. For example, a Buyer on a mortgage, deed
of trust or real estate contract may covenant to
keep the property in good repair and adequately
insured against fire and other casualties. The
breach of a covenant usually creates a default and
can be the basis for foreclosure.
D
Deed - A
written document that conveys or transfers title
from one party to another. There are various types
of deeds; however, the two most commonly used are
warranty and quit claim.
Deed of
Trust - An instrument used in many states
(including Alaska) in place of a mortgage. Legal
title to the property is vested in one or more
trustees to secure the repayment of the
loan.
Default -
A failure to perform on one or more of the terms of
a note or of the covenants of a mortgage, deed of
trust or real estate contract.
Delinquent
Payment - A payment that is not paid on a
specified payment date. For example, if a payment
is due on the first day of every month and it is
not received until the fifth day of the month, then
that payment is delinquent. If a mortgage, deed of
trust, or real estate contract has a 10 day grace
period, then a payment would not be considered
"delinquent" until the eleventh day after the due
date.
Devise - A
gift of real estate by a will or last
testament.
Dispossess
- To obtain physical possession of property from
another by due process of law.
Dower -
Under common law, the legal right of a wife or
child to a part of a deceased husband's or father's
estate, regardless of the provisions in his
will.
Down
Payment - The amount of money paid at the
execution of a mortgage or deed of trust. This lump
sum of money is subtracted directly from the
original sales price. The remaining principal
balance then begins to accrue interest at the
specified interest rate.
Due On Sale
Clause - A clause set forth in some mortgages
and deeds of trust whereby the Lender or Seller has
the right to "call in" the balance upon the sale or
transfer of the property by the Buyer or Purchaser
to a third party.
E
Earnest
Money - A deposit made by a Purchaser to
demonstrate good faith; a down payment.
Easement -
A right created by grant, reservation, agreement,
pre-scription, or necessary implication, which one
has in the land of another. For example, the right
of public utility companies to lay their lines
across other's property is a utility
easement.
Encumbrance
- Any right to or interest in land that effects its
value including outstanding loans, unpaid taxes,
easements, or deed restriction; a cloud on
title.
Equity -
The difference between fair market value and
current indebtedness (balance due). For example, if
a person owes $50,000 on his home and the market
value is now $100,000 and he now has 50% equity in
his home ($50,000 out of $100,000).
Escrow -
An agreement between two or more parties providing
that certain instruments or property be placed with
a third party for safekeeping, pending the
fulfillment or performance of a specified act or
condition.
Escrow
Account - An account in which a prescribed
amount of money is deposited each time a payment is
collected to be used for purposes provided in the
escrow agreement. The most common is the collection
escrow to administer payments made by a Buyer to a
Seller.
F
Fee Simple
- The highest and best form of ownership recognized
by law. Owner is entitled to the entire property
with unconditional power to sell it.
First Mortgage
or First Deed of Trust - A real estate loan
that creates a primary lien against real property.
(Must be recorded prior to a Second or
Third).
Fixtures -
Improvements or personal property so attached to
the land as to become part of the real estate. For
example, a porch would be considered a fixture,
whereas a ceiling fan may just be personal
property.
Foreclosure
- A termination of all rights of a mortgagor or
Trustor in the property covered by a Mortgage or
Deed of Trust. Statutory foreclosure is effected
without recourse to courts but must conform to
applicable laws.
Free and Clear
Title - Title to a property without
encumbrances. It is generally used to refer to a
property free of debt.
G
Grace
Period - The period during which one party may
fail to perform without being considered in
default.
Grantee -
The person to whom an interest in properties
conveyed. For example, in a real estate sale the
Grantee is most often referred to as the
Buyer.
Grantor -
The person conveying an interest in property. For
example, in a real estate sale the Grantor is most
often referred to as the Seller.
Guaranty -
A written promise by one party to pay a debt or
perform an obligation contracted by another in the
event that the original obligor fails to pay or
perform as contracted. For example, a parent may
guarantee payments owed by a son or
daughter.
H
Hazard
Insurance - A type of insurance bought to
insure property against any losses due to fire,
theft, vandalism, etc. Most Deeds of Trust require
the Buyer to carry hazard insurance at all times in
order to protect the Seller from insurable
losses.
Heir - One
who inherits property.
Hereditaments
- Any property, whether real or personal, tangible
or intangible, that may be inherited.
Homeowner's
Policy - An insurance policy designed
especially for homeowners. Usually protects an
owner for losses by common disasters, theft,
etc.
I
Improvements
- Those additions to undeveloped land such as
buildings, streets, sewers, etc., that tend to
increase its value.
Installments
- Parts of the same debt, payable at successive
periods as agreed; payments made to reduce a
Note.
Insurance
Premium - The amount paid for the purchase of
insurance.
Interest
Rate - The percentage of money charged for its
use. For example, a Seller may charge a Buyer 10%
interest on the unpaid balance of a
Note.
J
Judgment -
A decree of a court stating that one individual is
indebted to another for a certain fixed
amount.
Judgment
Lien - A lien upon the property of a debtor
resulting for the decree of a court.
Judicial
Foreclosure - Having a defaulted debtor's
property sold at a price the court approves. This
can result in a deficiency judgment against the
Payor if the property value is less than the
debt.
L
Late
Charge - An additional fee charged to person
for a payment that is delinquent. The most common
methods of charging late fees are to charge a fixed
dollar amount or a percentage of the
payment.
Lease - A
contract in which, for a payment called rent, the
one entitled to the possession of real property
transfers those rights to another for a specified
period.
Legal
Description - A property description recognized
by law which is sufficient to locate and identify
the property. A typical legal description will
identify the recording district where the land is
located.
Legatee -
One who receives property by a will.
Lessee -
One who receives property by a lease.
Lessor -
One who leases property to a lessee.
Liability
- A debt or financial obligation.
Liable -
Responsible or obligated. For example, one who
borrows on a Note generally becomes personally
liable for its repayment.
Lien - A
charge against property making it security for the
payment of a debt, judgment, mortgage, or taxes. A
lien is a type of encumbrance. A specified lien is
against certain property only. A general lien is
against all of the property owned by the
debtor.
M
Maturity -
The date on which an instrument of indebtedness,
such as a Note, become due and payable.
Mortgage -
A pledge of real property as security for the
payment of a debt. With a mortgage, the Borrower
retains possession and use of the property. A
mortgage is typically signed simultaneously with a
note.
Mortgagee
- The party lending the money and receiving the
mortgage.
Mortgagor
- The party borrowing money secured by real estate
and giving a mortgage.
N
Notary
Public - One who is authorized by the state or
federal government to administer oaths and attest
to the authenticity of signatures.
Notice of
Default - A letter sent to a defaulting party
as a reminder of the default. Such a notice may
state a grace period and the penalties for failing
to cure the default.
O
Opinion of
Title - A certificate, generally from an
attorney, as to the validity of the title of
property being sold.
Outstanding
Balance - The amount currently owed on a
debt.
P
Parcel - A
piece of property under one ownership; a lot in a
subdivision.
Parcel
Number - A number given to a piece of property
by the borough for tax purposes.
Payment -
An agreed upon dollar amount paid in regular
installments by a Buyer. The most common
installment method for Notes is monthly payments,
but can be quarterly, semi-annual, annual or any
mutually agreeable schedule.
Personal
Property - Any property that is not real
property. For example, the following are personal
property: appliances, cash, securities, Notes,
furniture, and mobile homes not permanently affixed
to a site.
Plat - A
plan or map of a specific land area.
Plat Book
- A public record containing maps of land and
showing the division of the land into streets,
blocks, and lots and indicating the measurements of
the individual parcels.
Power of
Attorney - An instrument authorizing a person
to act as the agent of the person granting
it.
Premises -
Land; an estate; the subject matter of a
conveyance.
Principal
- The original amount of the total due on a Note;
the principal portion of a payment is that portion
which is not interest. (See "Amortization" for an
example of a payment having both principal and
interest portions.)
Principal
Balance - The unpaid balance owed on a
Note.
Principal and
Interest Payment - A periodic payment, usually
paid monthly, that includes the interest charges
for the period plus an amount applied to the
amortization of the principal balance.
Purchase Money
Mortgage or Deed of Trust - A mortgage or deed
of trust given by the Buyer of real property to the
Seller as part of the consideration in the sales
transaction.
Q
Quit Claim
Deed - A deed that transfers only such
interest, title, or right as a Grantor may have at
the time the conveyance is executed; a deed without
representations or warranties as to the nature of
the rights conveyed.
R
Real
Estate - Land and everything attached to it.
Real Property.
Representations
- Descriptions as to the quality or character of
something. For example, a building may be
represented as being free from structural
defects.
S
Sales
Price - The mutually agreed upon dollar amount
to be paid for a particular piece of
property.
Section -
One square mile in a government rectangular survey.
There are 36 sections in a six mile square
township.
Security -
Something given as a pledge for payment.
Seller -
Individual who has sold real estate; also referred
to as Vendor.
Subordinate
- One who moves to a lower priority, as a lien
would if it changes from a First Mortgage to a
Second Mortgage.
Successor
- One that receives title to property.
T
Tenements
- Possessions that are permanent and fixed;
structures attached to land.
Term - The
amount of time (usually computed in months) until
the balance of a Note is due and payable. For
example, a Note may fully amortize over a 10 year
period (120 months). However, the Note may also
call for a balloon payment to be made at the end of
the fifth year (60th month). In this case, the term
of the Note would be 60 months or five
years.
Title -
Evidence that the owner of the land is in lawful
possession thereof.
Title
Insurance - A form of insurance purchased to
protect against any losses or defects in the title
of a particular piece of property.
Title
Search - An examination of public records, law,
and court decisions to disclose the past and
current facts regarding ownership of real
estate.
Township -
A six mile square tract delineated by a government
rectangular survey.
Trust Deed
- A claim against real estate similar to a mortgage
but title is held by a third party called a Trustee
for the Beneficiary. (Same as a Deed of
Trust)
Trustee -
One who holds property in trust for another to
secure performance of an obligation. (In Alaska
this is usually a title company.)
U
Underlying
Debt - An original loan that is still in
existence. This loan may be owed on a mortgage,
deed of trust, or real estate contract.
Use
Restrictions - A clause in a deed which places
limitations or restrictions on the property's use.
For example, "this property can never be used to
sell liquor" or "this property can never be used to
raise farm animals". These limitations "run with
the land" and are therefore binding on the
subsequent owners.
W
Warranties
- Promises contained in a contact. For example, a
Seller may warrant that a property sold is
structurally sound.
Warranty
Deed - A deed that conveys or transfers title
from one party to another with covenants assuring
that the title transferred is free from all
encumbrances.
Y
Yield -
The rate of return on an investment. For example,
if one invests $100 and receives $15 after the
first year, one's yield is 15% on the invested cash
for the first year.
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