Page 21 - FNTA Sellers Guide_2020

TERMS YOU SHOULD KNOW
LEGAL DESCRIPTION: A description of land recognized by law, based on government surveys, spelling out exact boundaries of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
LIEN: A form of encumbrance that usually makes a specific property the security for the payment of a debt or discharge of an obligation. For example: judgements, taxes, mortgages, deeds of trust.
LOAN-TO-VALUE RATIO: The relationship between the amount of the mortgage and the appraised value of the property, expressed as a percentage of the appraisal value.
PITI: A payment that combines Principal, Interest, Taxes, and Insurance.
PURCHASE AGREEMENT: A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. It is usually completed by the real estate agent and signed by the Buyer and Seller.
QUIT-CLAIM DEED: A deed operating as a release, intending to pass any title, interest or claim which the grantor may have in property, but not containing any warranty of a valid interest or title by the grantor.
REAL PROPERTY: Land and buildings as opposed to personal property.
RECORDING: Filing documents affecting real property with the County Recorder to make them a matter
of public record.
REGULATION Z: The set of rules governing consumer lending issues by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.
TITLE: Evidence of a person’s right or the extent of his interest in property.
TITLE INSURANCE POLICY: A policy that protects the puchaser, mortgagee or other party against
losses.
WARRANTY DEED: A document used to convey fee title to real property from the grantor (usually the Seller) to grantee (usually the Buyer).
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