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- Appraisal: an evaluation of the fair market value of the property. Appraisals are not evaluations of the physical condition of the property -- even a burned out, falling down house has value!
- Closing: the term closing refers to the final step of a real estate transaction where the parties, usually separately, come to the table to sign the documentation, pay money, deliver the deed etc.
- Deed: a deed is name of the written instrument, signed and delivered, by which one person conveys land to another.
- Deed of Trust: A deed of trust is a written instrument by which legal title to the property is placed in the hands of a neutral third party called a trustee to secure the repayment of the loan. This differs in form from a mortgage, but is its functional equivalent.
- Hazard Insurance: hazard insurance is more commonly known by the lay term "homeowners" insurance, which covers the house against various risks and perils, most notably fire.
- HUD-1: literally Dept. of Housing and Urban Development form number one. This form summarizes the financial terms of the transaction in a consistent format.
- Mortgage: a mortgage is an interest in land created by a written instrument which secures the payment of a debt. It differs in form from a deed of trust, but is its functional equivalent. In Virginia we use deeds of trust to collateralize land, not mortgages, but many people use the terms synonymously.
- Note: a note, also called a promissory note, is a written instrument by which the signer agrees to pay money to a designated person or company on terms expressed in the document. In a real estate transaction, the note is the agreement whereby the buyer agrees to pay the house loan.
- Plat: same as survey.
- Survey: a survey is a map, plat or diagram if you will of the results of a surveyors measurement of a parcel of land for the purposes of establishing its boundaries and contents.
- Title Search: a title search is an examination, or abstract, of courthouse and other public records to ascertain the status of title (ownership) of real estate. Clouds on title, of record, include easements, liens, loans, judgments, covenants, etc. A title opinion is a legal opinion regarding the significance of the facts discovered during the search; for example, whether the seller can convey clear and marketable title. Since title searches do not always uncover certain types of defects, buyers quite often want and are advised to purchase title insurance.
- Title Insurance: a type of insurance offered by specialized (title) insurers who insure or guarantee the state of title to land. Such insurance may be purchased for the benefit of lenders or owners. Such insurance generally only protects the named beneficiary (lender's does not protect the owner, etc.)
- Truth-in-Lending: Truth-in-Lending actually refers to federal law which causes certain disclosures in connection with certain types of loans. In our context, it refers to a disclosure form which sets forth the annual percentage rate of the house loan, the amount of interest to be paid over the life of the loan, the monthly payments of principal and interest, and certain disclosures with respect to lien status, late payment charges, assumability, right to prepay without penalty etc.
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