Administrator

The Administrator is the person assigned to handle the Estate of a deceased person
who does not have a Will, because no Executor(s) have been appointed. They will
mainly handle financial aspects of their life, such as ensuring bills are paid, closing
credit card accounts, utility, bank accounts, and distributing gifts.

Asset

These are items of value you own, such as a savings account, fine jewellery,
vehicle, condominium or house. They are separate from debts and must be free of
liens that are held until a loan has been paid off.

Attestation

The writer of the will must validate that the Will they have written is theirs and
that it is the latest version. The writer of the Will must sign it to confirm this is
true.

Beneficiary / Beneficiaries

One person or a group of people who will receive money, property, or other items
designated in a Will. These may involve friends, family, colleagues, an
organization, or a charitable association.

Bequest

A bequest is the process of gifting something in a Will to another person,

organisation or charity. It may involve money, real Estate, jewellery, valuables, or
even items that may only have personal worth to someone, such as photographs or
trophies.

Capital

Capital is in reference to the current value of the assets. It does not pertain to any
future income, such as interest or income that may be earned from them.

Codicil

A codicil is a legal document that is added to a current Will. It makes alterations or

additions to the Will. It must also be legally witnessed, and must be kept with your
Will.

Conveyance
This the process where the ownership of a property, house, land, or buildings is
transferred from one person to another. It is often done when a person purchases
the property, or when someone dies and passes the property onto their children.

Deed

A deed differs from a Will in that it transfers an interest in property or land to

another person. It is also a legal document that must be legally witnessed.

Deed of Gift

This occurs as a gift that is transferred from one person to another. It can involve
property, a share of the property, land, or other buildings. There is no recompense
involved.

Donor

The donor is the person who requires the services of the LPA or EPA. They are
considered the owner or donor, and are authorising the other to work on their
behalf.

Epitaph

An Epitaph is a short written description about a person, usually featuring on their

tombstone or grave, describing their life. Often chosen by the family of the
deceased or by the person prior to the death.

Estate

Your Estate is the total value of your assets when you die. It can involve fine art
and jewellery, property, buildings, and financial assets. The total amount is minus
the amount of any loans, debts, or liabilities that you may have.

Executor

This is the person or people who you will appoint in your Will to administer your
Estate upon your death. They will be the ones who deal with your financial affairs,
and be responsible for disposing of your assets, after they have been validated by
the Probate court.

Family Trust

A person with a family can create a family trust in advance that will not necessitate
any need for formal administration after death. It may also include generation
skipping or protection measures. There are tax benefits that may be of benefit to
setting up a family trust in advance.

Grant of Probate

The Court will give a Grant of Probate after a Will has been filed with the Probate
Registry or Sub-Registry. The Executor(s) can then dispose of the assets and
property of the deceased.

Guardian

This is a person that can be designated by a Testator so that children or their

dependents are property cared for in the event of their death. The Guardian will
have all parental responsibilities for these children.

Inheritance Tax

Inheritance tax is a tax that must be paid on an Estate before it passes on to the
beneficiaries. If the Estate is valued at under £325,000 then no tax is due. There are
ways of reducing the potential inheritance tax bill through things such as charitable
donations and legacy gifts.

Intellectual Property

Intellectual property are real or imaginary items that you have created, and which
have been protected by law. You may have done this by filing for a patent or
copyright through a patent or copyright office.

Intestacy

This is when a person has died without having written a Will. To distribute their
Estate or assets, certain laws will have to be followed. An administrator will also
need to be assigned.

Intestacy (Partial)

This occurs when a person has written a Will but it has failed to cover all aspects
of their Estate. This may occur when they have purchased real Estate since writing
the Will, or have had children since then. It may also occur if there is no Executor
appointed.

Intestacy (Rules of)

If a person passes away without a Will, there are rules that must be followed,
particularly if the person has left assets or an Estate behind. The rules may pertain
to what level of relationship the survivors had to that person.

Irrevocable

This is a process where the Will cannot be changed or cancelled. The Will is final.
This is so that beneficiaries or other people cannot attempt to make changes when
they may be unhappy after the reading of the Will.

Joint Tenancy

This is when more than two people own a single property. Even if one of the
people dies in the joint tenancy, the other person will automatically inherit their
portion. Even if that person has designated another owner of the property in their
own Will, the original joint tenancy agreement will hold.

Lasting Power of Attorney (LPA) (Property and Financial Affairs)

An LPA can be assigned through a document by a person or their family in the

event that the person can no longer manage their affairs. It may be because of
mental incapacitation, illness or accident, and is permanent. A friend, relative, or
lawyer may be assigned.

Lasting Power of Attorney (LPA) (Health & Welfare)

This is similar to the above, but may also be designated when a person can no
longer make healthcare or welfare decisions for themselves. This is also assigned
by a document.

Legacy

This is the actual gift that is left to a person, organisation or charity in a Will. A
person can bequeath a legacy to someone in their Will. A legacy can be given to
someone of their own choosing, and does not have to be a descendent.

Letter of Wishes

A letter of wishes is separate from your Will. It states your wishes for your smaller
assets, but that the Executor(s) or trustees do not have to necessarily legally follow.
This may include those smaller household items you may own that have little
value, or photographs, or papers.

Liabilities
Liabilities are separate from assets. These are debts, bills, or loans that will be paid
from that person’s Estate after they die. From there, the remainder of the Estate
will be distributed to the beneficiaries.

Lifetime Gift

A lifetime gift is given before a person passes away. It is not designated in the
Will. Generally, it is given from parents to children, or at the point when a person
may have a terminal illness but wishes to see their lifetime gift benefit their loved
ones while they’re still living.

Literary Estate

The literary Estate pertains to writers or authors who are the testator. It
encompasses their current published works and unpublished works. It needs to be
covered in the Will because there could be royalties or future royalties associated
with their work.

Literary Executor

A literary Executor may be designated by the testator who has written books or
other literary works. This literary Executor will continue to manage their literary
Estate into the future.

Mirror Will

These are a set of two Wills that are extremely similar to each other. They are
normally written for a married couple, with only the names reversed.

Mutual Wills

Mutual Wills involve two or more people who are a part of a contract. This means
that they cannot be amended or changed, even if one of the testators has died
during this time.

Next of Kin

Next of Kin usually refers to the closest blood relative of a person, but this not a
legal term or one that is purely limited to a blood relative. If someone dies
intestate, then the Next of Kin is often the beneficiary of the deceased’s Estate.

Obituary
Often a news article documenting the life and story of someone who has recently
passed away, the Obituary may also pass on details of the up coming funeral for
local residents and friends who may not otherwise be informed.

Pecuniary legacy

A pecuniary legacy pertains to the giving of money in a Will. It’s extant from other
types of legacies. The money may be given to friend, family, organisation, or
charity.

Personal Chattels

Personal chattels are items that have been owned by the testator, but that exclude
money, securities, investments, business assets, or property. These items may
include jewellery, art, household items, etc.

Power of Attorney

An attorney is appointed to another person by a living person who can no longer

manage their own finances, or make healthcare decisions. Power of Attorney is one
designation. They are appointed with a Lasting Power of Attorney or Enduring
Power of Attorney document.

Probate

This is the legal procedure that occurs after a person has died. It authorises the
administration of an Estate according to what has been laid out in the Will. It must
be done for every person upon their death.

Probate Registry

This is a legal office, often located at the courthouse, where the Executor(s) must
apply for permission to administer a deceased person’s Estate. It operates a lot like
a court.

Protective Property Trust

This is done to protect a property in the event that one of the owner’s dies. Instead
of the property passing to the survivor, such as in a joint trust, instead it is passed
to a protective property trust rather than the surviving owner. Often it’s done for
ancient or heritage properties.

Residual Beneficiaries
These are the beneficiaries that will benefit after all other gifts have been made, all
debts, taxes, probate fees, administrative fees, and court costs have been made.
They will benefit from any residual property that remains.

Residue/Residuary Estate

This is the property or assets that will remain in your Estate after all gifts have
been done, and all debts, taxes, and fees have been paid.

Revoked

These are items that have been cancelled. They differ from items that have been
altered. It means that an end may have been placed on certain items or decisions.

Settlement

This is in reference to a business trust. A business trustee will administer or control

a trust that contains business assets. It may also involve a resolution between two
or more disputing parties.

Settlor

This is the person who creates a trust. It may be so that their survivors can avoid
paying Estate taxes in the future. They are doing it for the beneficiaries in a Will.
Can also be known as a Trustor.

Severance of Tenancy (SOT)

When there are two or more joint tenants who own a property, they may be able to
convert this form of property ownership to a tenancy in common. This means that
each of the joint tenants will be able to leave their portion of the property to a
designated beneficiary in their Wills.

Specific Legacy

There may be a specific legacy that is given to one particular beneficiary, rather
than a generic legacy of all items. This is generally done when there are several
beneficiaries in a Will, and the Testator wishes that each person gets a specific gift.

STEP Provisions

STEP is in reference to the Society of Trust and Estate Practitioners. This is a

provision that has a standard wording and has been approved by STEP. It is
basically a guide of best practices for those who draft up Wills in England or
Wales.
Survivor

A survivor is the last person within a marriage or a family who survives their
relative dying. It can be a spouse, child, or other type of relative. Usually this
designation is made within a Will.

Tenancies in Common

This is one of two ways that two or more people can own one property. The other
is a joint tenancy. In a tenancy in common, each owner has an equal share of the
property. Should one of them die then it will be left to the beneficiaries that they
have designated in their Will.

Trust

It is an arrangement where the legal interest in the property is owned by trustees

for someone else’s benefit. For example, a parent can set up a trust for a child in
the event that the parent dies. The trustee will look after the child until they are an
adult.

Trust Period

The is the period that the Trust can be active. At the end of the Trust period it must
be wound up and distributed. For example, if it’s for a child, it may be paid out
when they read the age of majority. A private trust has a maximum of 125 years.

Trustees

This can be one person, people, or an organisation that manages the trust. At the
appropriate time they will pass the assets to the beneficiaries.

Will (Last Will and Testament)

Officially called the Last Will and Testament, it can also be shortened to just Will.
This is a legal document that tells the Probate Court exactly how the deceased’s
assets are to be distributed upon their death.

Will Witnesses

After the Testator has completed their Will, they must have two independent
people who are required to witness and sign it. This is to confirm that they have
also seen the Testator sign it. These two witnesses must be not benefit from the
Will at all, nor be married or in a civil partnership with any person who will be
benefiting from the Will.
A Loan Or A Paper
a credit rating where the FICO score is 660 or above. There have been no
late mortgage payments within a 12-month period. This is the best credit
rating to have when entering into a new loan.
Abstract Of Title
:a summary statement of the successive conveyances and other facts on
which a title to a piece of land rests
Acceleration
the right of the lender to demand payment on the outstanding balance of a
loan.
Acceptance
the written approval of the buyer's offer by the seller.
Additional Principal Payment
money paid to the lender in addition to the established payment amount used
directly against the loan principal to shorten the length of the loan.
Adjustable-Rate Mortgage (Arm)
a mortgage loan that does not have a fixed interest rate. During the life of the
loan the interest rate will change based on the index rate. Also referred to as
adjustable mortgage loans (AMLs) or ...
Adjustment Date
the actual date that the interest rate is changed for an ARM.
Adjustment Index
the published market index used to calculate the interest rate of an ARM at
the time of origination or adjustment.
Adjustment Interval
the time between the interest rate change and the monthly payment for an
ARM. The interval is usually every one, three or five years depending on the
index.
Affidavit
[Medieval Latin, he/she has pledged faith, third singular perfect of affidare
see affiant ] : a sworn statement in writing made esp. under oath or on
affirmation before an authorized magistrate or ...
Amenity
a feature of the home or property that serves as a benefit to the buyer but that
is not necessary to its use; may be natural (like location, woods, water) or
man-made (like a swimming pool or garden).
American Society Of Home Inspectors
the American Society of Home Inspectors is a professional association of
independent home inspectors. Phone: (800) 743-2744
Annual Mortgagor Statement
yearly statement to borrowers detailing the remaining principal and amounts
paid for taxes and interest.
Annual Percentage Rate (Apr)
 a measure of the cost of credit, expressed as a yearly rate. It includes interest
as well as other charges. Because all lenders, by federal law, follow the same
rules to ensure the accuracy of the ...
Application
: a request for action or relief [most s request bail…or an extension of time
to file "W. J. Brennan, Jr."] ;also : a form used to make such a request [an
insurance ]
Application Fee
a fee charged by lenders to process a loan application.
Appraisal
: a valuation of property by the estimate of an authorized person: as a : the
determination of the fair value of a corporation's stock by a judicial
proceeding that a dissenting shareholder is ...
Appraisal Fee
fee charged by an appraiser to estimate the market value of a property.
Appraised Value
an estimation of the current market value of a property.
Appraiser
a qualified individual who uses his or her experience and knowledge to
prepare the appraisal estimate.
Appreciation
an increase in property value.
Arbitration
[Latin arbitratio, from arbitrari to judge, arbitrate, from arbiter onlooker,
arbitrator] : the process of resolving a dispute (as between labor and
management) or a grievance outside of the court ...
Arm
Adjustable Rate Mortgage; a mortgage loan subject to changes in interest
rates; when rates change, ARM monthly payments increase or decrease at
intervals determined by the lender; the change in ...
As-Is Condition
the purchase or sale of a property in its existing condition without repairs.
Asking Price
a seller's stated price for a property.
Assessed Value
the value that a public official has placed on any asset (used to determine
taxes).
Assessments
the method of placing value on an asset for taxation purposes.
Assessor
1 : one appointed or elected to assist a judge or magistrate ;esp : one with
special knowledge of the subject to be decided see also master 2 : one that
assesses ;specif : one that is authorized ...
Assets
any item with measurable value.
Assumable Mortgage
when a home is sold, the seller may be able to transfer the mortgage to the
new buyer. This means the mortgage is assumable. Lenders generally
require a credit review of the new borrower and may ...
Assumption Clause
a provision in the terms of a loan that allows the buyer to take legal
responsibility for the mortgage from the seller.
Automated Underwriting
loan processing completed through a computer-based system that evaluates
past credit history to determine if a loan should be approved. This system
removes the possibility of personal bias against the ...
Average Price
determining the cost of a home by totaling the cost of all houses sold in one
area and dividing by the number of homes sold.
B Loan Or B Paper
FICO scores from 620 - 659. Factors include two 30 day late mortgage
payments and two to three 30 day late installment loan payments in the last
12 months. No delinquencies over 60 days are allowed. ...
Back End Ratio (Debt Ratio)
a ratio that compares the total of all monthly debt payments (mortgage, real
estate taxes and insurance, car loans, and other consumer loans) to gross
monthly income.
Back To Back Escrow
arrangements that an owner makes to oversee the sale of one property and
the purchase of another at the same time.
Balance Sheet
: a statement of financial condition at a given date
Balloon Loan Or Mortgage
a mortgage that typically offers low rates for an initial period of time
(usually 5, 7, or 10) years; after that time period elapses, the balance is due
or is refinanced by the borrower.
Balloon Payment
the final lump sum payment due at the end of a balloon mortgage.
Biweekly Payment Mortgage
a mortgage paid twice a month instead of once a month, reducing the
amount of interest to be paid on the loan.
Borrower
a person who has been approved to receive a loan and is then obligated to
repay it and any additional fees according to the loan terms.
Bridge Loan
see loan
Broker
: an agent who negotiates contracts of sale (as of real estate or securities) or
other agreements (as insurance contracts or mortgages) between the parties
for a fee or commission compare dealer, ...
Budget
a detailed record of all income earned and spent during a specific period of
time.
Building Code
based on agreed upon safety standards within a specific area, a building code
is a regulation that determines the design, construction, and materials used in
building.
Buy Down
the seller pays an amount to the lender so the lender provides a lower rate
and lower payments many times for an ARM. The seller may increase the
sales price to cover the cost of the buy down.
C Loan Or C Paper
FICO scores typically from 580 to 619. Factors include three to four 30 day
late mortgage payments and four to six 30 day late installment loan
payments or two to four 60 day late payments. Should be ...
Callable Debt
a debt security whose issuer has the right to redeem the security at a
specified price on or after a specified date, but prior to its stated final
maturity.
Cap
a limit, such as one placed on an adjustable rate mortgage, on how much a
monthly payment or interest rate can increase or decrease, either at each
adjustment period or during the life of the ...
Capacity
pl: -ties 1 : a qualification, power, or ability (as to give consent or make a
testament) created by operation of law 2 : an individual's ability or
aptitude ;esp : mental ability as it relates to ...
Capital Gain
see gain
Capital Improvements
property improvements that either will enhance the property value or will
increase the useful life of the property.
Capital Or Cash Reserves
an individual's savings, investments, or assets.
Cash Reserves
a cash amount sometimes required of the buyer to be held in reserve in
addition to the down payment and closing costs; the amount is determined
by the lender.
Cash-Out Refinance
when a borrower refinances a mortgage at a higher principal amount to get
additional money. Usually this occurs when the property has appreciated in
value. For example, if a home has a current value ...
Casualty Protection
property insurance that covers any damage to the home and personal
property either inside or outside the home.
Certificate Of Title
1 : a certificate of ownership stating that the title to the specified property is
free and clear except for any encumbrance (as a mortgage) listed on it: as a :
a certificate issued by a motor ...
Chapter 13 Bankruptcy
this type of bankruptcy sets a payment plan between the borrower and the
creditor monitored by the court. The homeowner can keep the property, but
must make payments according to the court's terms ...
Chapter 7 Bankruptcy
a bankruptcy that requires assets be liquidated in exchange for the
cancellation of debt.
Charge-Off
the portion of principal and interest due on a loan that is written off when
deemed to be uncollectible.
Clear Title
see title
Closing
: the fulfillment or performance of a contract esp. for the sale of real
estate ;also : a meeting at which the closing of a contract takes place
[represented us at the ] NOTE: At the closing for the ...
Closing Costs
fees for final property transfer not included in the price of the property.
Typical closing costs include charges for the mortgage loan such as
origination fees, discount points, appraisal fee, ...
Cloud On The Title
any condition which affects the clear title to real property.
Co-Borrower
an additional person that is responsible for loan repayment and is listed on
the title.
Co-Signed Account
an account signed by someone in addition to the primary borrower, making
both people responsible for the amount borrowed.
Co-Signer
a person that signs a credit application with another person, agreeing to be
equally responsible for the repayment of the loan.
Collateral
1 a : accompanying as a secondary fact, activity, or agency but subordinate
to a main consideration b : not directly relevant or material [a evidentiary
matter] [a issue] 2 : belonging to the same ...
Collection Account
an unpaid debt referred to a collection agency to collect on the bad debt.
This type of account is reported to the credit bureau and will show on the
borrower's credit report.
Commission
 1 : a formal written authorization to perform various acts and duties [a
notary's ] 2 a : authority to act for, in behalf of, or in place of another b : a
task or matter entrusted to one as the ...
Common Stock
see stock
Comparative Market Analysis (Comps)
a property evaluation that determines property value by comparing similar
properties sold within the last year.
Compensating Factors
factors that show the ability to repay a loan based on less traditional criteria,
such as employment, rent, and utility payment history.
Condominium
pl: -ums [New Latin, joint dominion, from Latin com- with, together +
dominium rule, ownership] 1 : ownership of real property that is
characterized by separate ownership of portions of the property ...
Conforming Loan
is a loan that does not exceed Fannie Mae's and Freddie Mac's loan limits.
Freddie Mac and Fannie Mae loans are referred to as conforming loans.
Consideration
: something (as an act or forbearance or the promise thereof) done or given
by one party for the act or promise of another see also contract compare
motive NOTE: Except in Louisiana, consideration is ...
Construction Loan
a short-term, to finance the cost of building a new home. The lender pays the
builder based on milestones accomplished during the building process. For
example, once a sub-contractor pours the ...
Contingency
pl: -cies 1 : the quality or state of being contingent 2 : a contingent event or
condition: as a : an event that may but is not certain to occur [a that made
performance under the contract ...
Conventional Loan
see loan
Conversion Clause
a provision in some ARMs allowing it to change to a fixed-rate loan at some
point during the term. Usually conversions are allowed at the end of the first
adjustment period. At the time of the ...
Convertible Arm
an adjustable-rate mortgage that provides the borrower the ability to convert
to a fixed-rate within a specified time.
Cooperative (Co-Op)
residents purchase stock in a cooperative corporation that owns a structure;
each stockholder is then entitled to live in a specific unit of the structure and
is responsible for paying a portion of ...
Cost Of Funds Index (Cofi)
 an index used to determine interest rate changes for some adjustable-rate
mortgages.
Counter Offer
a rejection to all or part of a purchase offer that negotiates different terms to
reach an acceptable sales contract.
Covenants
legally enforceable terms that govern the use of property. These terms are
transferred with the property deed. Discriminatory covenants are illegal and
unenforceable. Also known as a condition, ...
Credit
1 : recognition see also full faith and credit 2 a : the balance in an account
which may be drawn upon and repaid later compare loan b : the use of
resources (as money) in the present obtained by ...
Credit Bureau
: a private business that compiles information on consumers'
creditworthiness and provides this information to lenders
Credit Counseling
education on how to improve bad credit and how to avoid having more debt
than can be repaid.
Credit Enhancement
a method used by a lender to reduce default of a loan by requiring collateral,
mortgage insurance, or other agreements.
Credit Grantor
the lender that provides a loan or credit.
Credit History
a record of an individual that lists all debts and the payment history for each.
The report that is generated from the history is called a credit report. Lenders
use this information to gauge a ...
Credit Loss Ratio
the ratio of credit-related losses to the dollar amount of MBS outstanding
and total mortgages owned by the corporation.
Credit Related Expenses
foreclosed property expenses plus the provision for losses.
Credit Related Losses
foreclosed property expenses combined with charge-offs.
Credit Repair Companies
Private, for-profit businesses that claim to offer consumers credit and debt
repayment difficulties assistance with their credit problems and a bad credit
report.
Credit Report
a report generated by the credit bureau that contains the borrower's credit
history for the past seven years. Lenders use this information to determine if
a loan will be granted.
Credit Risk
a term used to describe the possibility of default on a loan by a borrower.
Credit Score
a score calculated by using a person's credit report to determine the
likelihood of a loan being repaid on time. Scores range from about 360 -
840: a lower score meaning a person is a higher risk, ...
Credit Union
: a cooperative association that makes small loans to its members at low
interest rates and offers other banking services (as savings and checking
accounts)
Creditworthiness
the way a lender measures the ability of a person to qualify and repay a loan.
Debt Security
see security
Debt-To-Income Ratio
a comparison or ratio of gross income to housing and non-housing expenses;
With the FHA, the-monthly mortgage payment should be no more than 29%
of monthly gross income (before taxes) and the mortgage ...
Deed
1 : something done : act [my free act and ] 2 : a written instrument by which
a person transfers ownership of real property to another see also deliver,
grantee, grantor, recording act, registry, ...
Deed-In-Lieu
to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to
fulfill the obligation to repay the debt; this process does not allow the
borrower to remain in the house but helps ...
Delinquency
pl: -cies 1 a : the quality or state of being delinquent b : juvenile delinquency
[contributing to the of a minor] 2 : a debt on which payment is overdue
[consumer loan delinquencies]
Deposit (Earnest Money)
money put down by a potential buyer to show that they are serious about
purchasing the home; it becomes part of the down payment if the offer is
accepted, is returned if the offer is rejected, or is ...
Derivative
: a contract or security that derives its value from that of an underlying asset
(as another security) or from the value of a rate (as of interest or currency
exchange) or index of asset value (as a ...
Disclosures
the release of relevant information about a property that may influence the
final sale, especially if it represents defects or problems. "Full disclosure"
usually refers to the responsibility of the ...
Discount Point
normally paid at closing and generally calculated to be equivalent to 1% of
the total loan amount, discount points are paid to reduce the interest rate on a
loan. In an ARM with an initial rate ...
Document Recording
 after closing on a loan, certain documents are filed and made public record.
Discharges for the prior mortgage holder are filed first. Then the deed is
filed with the new owner's and mortgage ...
Down Payment
the portion of a home's purchase price that is paid in cash and is not part of
the mortgage loan. This amount varies based on the loan type, but is
determined by taking the difference of the sale ...
Due On Sale Clause
a provision of a loan allowing the lender to demand full repayment of the
loan if the property is sold.
Duration
the number of years it will take to receive the present value of all future
payments on a security to include both principal and interest.
Earnest Money (Deposit)
money put down by a potential buyer to show that they are serious about
purchasing the home; it becomes part of the down payment if the offer is
accepted, is returned if the offer is rejected, or is ...
Earnings Per Share (Eps)
a corporation's profit that is divided among each share of common stock. It
is determined by taking the net earnings divided by the number of
outstanding common stocks held. This is a way that a ...
Easements
the legal rights that give someone other than the owner access to use
property for a specific purpose. Easements may affect property values and
are sometimes a part of the deed.
Eem
Energy Efficient Mortgage; an FHA program that helps homebuyers save
money on utility bills by enabling them to finance the cost of adding energy
efficiency features to a new or existing home as part ...
Eminent Domain
: the right of the government to take property from a private owner for
public use by virtue of the superior dominion of its sovereignty over all
lands within its jurisdiction see also condemn, ...
Encroachments
a structure that extends over the legal property line on to another individual's
property. The property surveyor will note any encroachment on the lot
survey done before property transfer. The person ...
Encumbrance
also in·cum·brance [in-kəm-brəns] n : a claim (as a lien) against
property ;specif : an interest or right (as an easement or a lease) in real
property that may diminish the ...
Equal Credit Opportunity Act (Ecoa)
a federal law requiring lenders to make credit available equally without
discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income from public ...
Escape Clause
: a clause in a contract that allows a party to avoid liability under the
contract for specified reasons ;esp : a provision in an insurance policy that
denies coverage when other insurance covers ...
Escrow
[Anglo-French escroue deed delivered on condition, literally, scroll, strip of
parchment, from Old French escroe] 1 : an instrument and esp. a deed or
money or property held by a third party to be ...
Escrow Account
a separate account into which the lender puts a portion of each monthly
mortgage payment; an escrow account provides the funds needed for such
expenses as property taxes, homeowners insurance, ...
Estate
[Anglo-French estat, literally, state, condition, from Old French, from Latin
status, from stare to stand] 1 : the interest of a particular degree, nature,
quality, or extent that one has in land or ...
Exclusive Listing
a written contract giving a real estate agent the exclusive right to sell a
property for a specific timeframe.
Fair Credit Reporting Act
federal act to ensure that credit bureaus are fair and accurate protecting the
individual's privacy rights enacted in 1971 and revised in October 1997.
Fair Housing Act
a law that prohibits discrimination in all facets of the home buying process
on the basis of race, color, national origin, religion, sex, familial status, or
disability.
Fair Market Value
: a price at which buyers and sellers both having reasonable knowledge of
the property and being under no compulsion are willing to do business
Familial Status
HUD uses this term to describe a single person, a pregnant woman or a
household with children under 18 living with parents or legal custodians
who might experience housing discrimination.
Fannie Mae
Federal National Mortgage Association (FNMA); a federally-chartered
enterprise owned by private stockholders that purchases residential
mortgages and converts them into securities for sale to ...
Fee Simple
pl: fees simple [simple without limitation (as to heirs) and unrestricted (as to
transfer of ownership)] : a fee that is alienable (as by deed, will, or intestacy)
and of potentially indefinite ...
Fha
Federal Housing Administration; established in 1934 to advance
homeownership opportunities for all Americans; assists homebuyers by
providing mortgage insurance to lenders to cover most losses that ...
Fico Score
FICO is an abbreviation for Fair Isaac Corporation and refers to a person's
credit score based on credit history. Lenders and credit card companies use
the number to decide if the person is likely to ...
First Mortgage
see mortgage
Fixed Expenses
payments that do not vary from month to month.
Fixed-Rate Mortgage
a mortgage with payments that remain the same throughout the life of the
loan because the interest rate and other terms are fixed and do not change.
Fixture
: an item of movable property so incorporated into a real property that it may
be regarded as legally a part of it
Float
1 : an amount of money represented by checks outstanding and in process of
collection 2 : the time between a transaction (as the writing of a check or a
purchase on credit) and the actual withdrawal ...
Flood Insurance
insurance that protects homeowners against losses from a flood; if a home is
located in a flood plain, the lender will require flood insurance before
approving a loan.
Forbearance
also fore·bear·ance [fȯr-bar-əns] n : a refraining from the enforcement of
something (as a debt, right, or obligation) that is due
Foreclosure
1 : a legal proceeding that bars or extinguishes a mortgagor's equity of
redemption in mortgaged real property see also deficiency judgment at
judgment, redeem, right of redemption, statutory ...
Freddie Mac
Federal Home Loan Mortgage Corporation (FHLM); a federally chartered
corporation that purchases residential mortgages, securitizes them, and sells
them to investors; this provides lenders with funds ...
Front End Ratio
a percentage comparing a borrower's total monthly cost to buy a house
(mortgage principal and interest, insurance, and real estate taxes) to monthly
income before deductions.
Fsbo (For Sale By Owner)
a home that is offered for sale by the owner without the benefit of a real
estate professional.
Ginnie Mae
Government National Mortgage Association (GNMA); a government-owned
corporation overseen by the U.S. Department of Housing and Urban
Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans ...
Global Debt Facility
 designed to allow investors all over the world to purchase debt (loans) of
U.S. dollar and foreign currency through a variety of clearing systems.
Good Faith Estimate
an estimate of all closing fees including pre-paid and escrow items as well as
lender charges; must be given to the borrower within three days after
submission of a loan application.
Graduated Payment Mortgages
mortgages that begin with lower monthly payments that get slowly larger
over a period of years, eventually reaching a fixed level and remaining there
for the life of the loan. Graduated payment loans ...
Grantee
: one to whom a grant is made ;specif : one to whom a grant by deed is made
Grantor
: one that makes a grant: as a : one that conveys property or a right in
property by deed b : settlor c : one (as an organization) that provides aid in
the form of grants (as for education)
Gross Income
: all income derived from any source except for items specifically excluded
by law NOTE: Section 61 of the Internal Revenue Code lists fifteen
nonexclusive items that should be included in gross ...
Gse
abbreviation for government sponsored enterprises; a collection of financial
services corporations formed by the United States Congress to reduce
interest rates for farmers and homeowners. Examples ...
Guaranty Fee
payment to FannieMae from a lender for the assurance of timely principal
and interest payments to MBS (Mortgage Backed Security) security holders.
Hazard Insurance
protection against a specific loss, such as fire, wind etc., over a period of
time that is secured by the payment of a regularly scheduled premium.
Hecm (Reverse Mortgage)
the reverse mortgage is used by senior homeowners age 62 and older to
convert the equity in their home into monthly streams of income and/or a
line of credit to be repaid when they no longer occupy ...
Help
Homebuyer Education Learning Program; an educational program from the
FHA that counsels people about the home buying process; HELP covers
topics like budgeting, finding a home, getting a loan, and ...
Home Equity Line Of Credit
:home equity loan at loan
Home Equity Loan
see loan
Home Inspection
 an examination of the structure and mechanical systems to determine a
home's quality, soundness and safety; makes the potential homebuyer aware
of any repairs that may be needed. The homebuyer ...
Home Warranty
offers protection for mechanical systems and attached appliances against
unexpected repairs not covered by homeowner's insurance; coverage extends
over a specific time period and does not cover the ...
Homeowner's Insurance
: insurance that covers primarily a person's residence and that also covers the
owner for liability resulting from his or her personal acts
Homeownership Education Classes
classes that stress the need to develop a strong credit history and offer
information about how to get a mortgage approved, qualify for a loan,
choose an affordable home, go through financing and ...
Homestead Credit
property tax credit program, offered by some state governments, that
provides reductions in property taxes to eligible households.
Housing Counseling Agency
provides counseling and assistance to individuals on a variety of issues,
including loan default, fair housing, and home buying.
Hud
the U.S. Department of Housing and Urban Development; established in
1965, HUD works to create a decent home and suitable living environment
for all Americans; it does this by addressing housing ...
Hud1 Statement
also known as the "settlement sheet," or "closing statement" it itemizes all
closing costs; must be given to the borrower at or before closing. Items that
appear on the statement include real estate ...
Hvac
Heating, Ventilation and Air Conditioning; a home's heating and cooling
system.
Indemnification
1 a : the action of indemnifying b : the condition of being indemnified 2 :
indemnity
Index
: a numerical measure or indicator (as of inflation or economic performance)
see also consumer price index
Inflation
the number of dollars in circulation exceeds the amount of goods and
services available for purchase; inflation results in a decrease in the dollar's
value.
Inflation Coverage
endorsement to a homeowner's policy that automatically adjusts the amount
of insurance to compensate for inflationary rises in the home's value. This
type of coverage does not adjust for increases in ...
Inquiry
pl: -ries 1 : a request for information [such doubt as would cause a
reasonable person to make an ] 2 : a systematic official investigation often of
a matter of public interest esp. by a body (as a ...
Insurance
1 : the action, process, or means of insuring or the state of being insured
usually against loss or damage by a contingent event (as death, fire,
accident, or sickness) 2 a : the business of ...
Interest
[probably alteration of earlier interesse, from Anglo-French, from Medieval
Latin, from Latin, to be between, make a difference, concern, from inter-
between, among + esse to be] 1 : a right, title, ...
Interest Rate
the amount of interest charged on a monthly loan payment, expressed as a
percentage.
Interest Rate Swap
a transaction between two parties where each agrees to exchange payments
tied to different interest rates for a specified period of time, generally based
on a notional principal amount.
Intermediate Term Mortgage
a mortgage loan with a contractual maturity from the time of purchase equal
to or less than 20 years.
Joint Tenancy (With Rights Of Survivorship)
two or more owners share equal ownership and rights to the property. If a
joint owner dies, his or her share of the property passes to the other owners,
without probate. In joint tenancy, ownership of ...
Joint Tenants
A tenancy with two or more co-owners who take identical interests. Joint
tenants have a right of survivorship to the other's share.
Jumbo Loan
or non-conforming loan, is a loan that exceeds Fannie Mae's and Freddie
Mac's loan limits. Freddie Mac and Fannie Mae loans are referred to as
conforming loans.
Late Payment Charges
the penalty the homeowner must pay when a mortgage payment is made
after the due date grace period.
Lease
[Anglo-French les, from lesser to grant by lease, from Old French laisser to
let go, from Latin laxare to loosen, from laxus slack] 1 a : a contract by
which an owner of property conveys exclusive ...
Lease Purchase (Lease Option)
assists low to moderate income homebuyers in purchasing a home by
allowing them to lease a home with an option to buy; the rent payment is
made up of the monthly rental payment plus an additional ...
Lender
 A term referring to an person or company that makes loans for real estate
purchases. Sometimes referred to as a loan officer or lender.
Lender Option Commitments
an agreement giving a lender the option to deliver loans or securities by a
certain date at agreed upon terms.
Liabilities
a person's financial obligations such as long-term / short-term debt, and
other financial obligations to be paid.
Lien Waiver
A document that releases a consumer (homeowner) from any further
obligation for payment of a debt once it has been paid in full. Lien waivers
typically are used by homeowners who hire a contractor to ...
Life Cap
a limit on the range interest rates can increase or decrease over the life of an
adjustable-rate mortgage (ARM).
Life Estate
see estate
Line Of Credit
:an agreement specifying the maximum amount of credit allowed a borrower
Liquid Asset
a cash asset or an asset that is easily converted into cash.
Listing Agreement
: listing
Loan
1 a : money lent at interest b : something lent usually for the borrower's
temporary use 2 : a transfer or delivery of money from one party to another
with the express or implied agreement that the ...
Loan Acceleration
an acceleration clause in a loan document is a statement in a mortgage that
gives the lender the right to demand payment of the entire outstanding
balance if a monthly payment is missed.
Loan Fraud
purposely giving incorrect information on a loan application in order to
better qualify for a loan; may result in civil liability or criminal penalties.
Loan Officer
a representative of a lending or mortgage company who is responsible for
soliciting homebuyers, qualifying and processing of loans. They may also be
called lender, loan representative, account ...
Loan Origination Fee
a charge by the lender to cover the administrative costs of making the
mortgage. This charge is paid at the closing and varies with the lender and
type of loan. A loan origination fee of 1 to 2 ...
Loan Servicer
 the company that collects monthly mortgage payments and disperses
property taxes and insurance payments. Loan servicers also monitor
nonperforming loans, contact delinquent borrowers, and notify ...
Loan To Value (Ltv) Ratio
a percentage calculated by dividing the amount borrowed by the price or
appraised value of the home to be purchased; the higher the LTV, the less
cash a borrower is required to pay as down payment.
Lock-In
since interest rates can change frequently, many lenders offer an interest rate
lock-in that guarantees a specific interest rate if the loan is closed within a
specific time.
Lock-In Period
the length of time that the lender has guaranteed a specific interest rate to a
borrower.
Loss Mitigation
a process to avoid foreclosure; the lender tries to help a borrower who has
been unable to make loan payments and is in danger of defaulting on his or
her loan
Mandatory Delivery Commitment
an agreement that a lender will deliver loans or securities by a certain date at
agreed-upon terms.
Margin
1 : the difference between net sales and the cost of the merchandise sold
from which expenses are usually met or profits derived 2 : the amount by
which the market value of collateral is greater ...
Market Value
1 : the price at which a buyer is ready and willing to buy and a seller is ready
and willing to sell 2 : market price
Maturity
: termination of the period that a note or other obligation has to run : state or
condition of having become due
Median Price
the price of the house that falls in the middle of the total number of homes
for sale in that area.
Medium Term Notes
unsecured general obligations of Fannie Mae with maturities of one day or
more and with principal and interest payable in U.S. dollars.
Merged Credit Report
raw data pulled from two or more of the major credit-reporting firms.
Mitigation
term usually used to refer to various changes or improvements made in a
home; for instance, to reduce the average level of radon.
Modification
when a lender agrees to modify the terms of a mortgage without refinancing
the loan.
Mortgage
[Anglo-French, from Old French, from mort dead (from Latin mortuus) +
gage security] 1 a : a conveyance of title to property that is given to secure
an obligation (as a debt) and that is defeated ...
Mortgage Acceleration Clause
a clause allowing a lender, under certain circumstances, demand the entire
balance of a loan is repaid in a lump sum. The acceleration clause is usually
triggered if the home is sold, title to the ...
Mortgage Banker
a company that originates loans and resells them to secondary mortgage
lenders like Fannie Mae or Freddie Mac.
Mortgage Broker
a firm that originates and processes loans for a number of lenders.
Mortgage Insurance
a policy that protects lenders against some or most of the losses that can
occur when a borrower defaults on a mortgage loan; mortgage insurance is
required primarily for borrowers with a down payment ...
Mortgage Insurance Premium (Mip)
a monthly payment -usually part of the mortgage payment - paid by a
borrower for mortgage insurance.
Mortgage Interest Deduction
the interest cost of a mortgage, which is a tax - deductible expense. The
interest reduces the taxable income of taxpayers.
Mortgage Life And Disability Insurance
term life insurance bought by borrowers to pay off a mortgage in the event
of death or make monthly payments in the case of disability. The amount of
coverage decreases as the principal balance ...
Mortgage Modification
a loss mitigation option that allows a borrower to refinance and/or extend the
term of the mortgage loan and thus reduce the monthly payments.
Mortgage Note
a legal document obligating a borrower to repay a loan at a stated interest
rate during a specified period; the agreement is secured by a mortgage that is
recorded in the public records along with the ...
Mortgage Qualifying Ratio
Used to calculate the maximum amount of funds that an individual
traditionally may be able to afford. A typical mortgage qualifying ratio is 28
Mortgage Score
a score based on a combination of information about the borrower that is
obtained from the loan application, the credit report, and property value
information. The score is a comprehensive analysis of ...
Mortgage-Backed Security (Mbs)
a Fannie Mae security that represents an undivided interest in a group of
mortgages. Principal and interest payments from the individual mortgage
loans are grouped and paid out to the MBS holders.
Mortgagee
: a party (as a business or individual) to whom or in whose favor property is
mortgaged
Mortgagor
: a person who mortgages property
Multifamily Housing
a building with more than four residential rental units.
Multiple Listing Service (Mls)
within the Metro Columbus area, Realtors submit listings and agree to
attempt to sell all properties in the MLS. The MLS is a service of the local
Columbus Board of Realtors. The local MLS has a ...
National Credit Repositories
currently, there are three companies that maintain national credit - reporting
databases. These are Equifax, Experian, and Trans Union, referred to as
Credit Bureaus.
Negative Amortization
amortization means that monthly payments are large enough to pay the
interest and reduce the principal on your mortgage. Negative amortization
occurs when the monthly payments do not cover all of the ...
Net Income
: the balance of gross income remaining after all allowable deductions and
exemptions are taken
No Cash Out Refinance
a refinance of an existing loan only for the amount remaining on the
mortgage. The borrower does not get any cash against the equity of the
home. Also called a "rate and term refinance."
No Cost Loan
there are many variations of a no cost loan. Generally, it is a loan that does
not charge for items such as title insurance, escrow fees, settlement fees,
appraisal, recording fees or notary fees. It ...
Non-Conforming Loan
is a loan that exceeds Fannie Mae's and Freddie Mac's loan limits. Freddie
Mac and Fannie Mae loans are referred to as conforming loans.
Nonperforming Asset
an asset such as a mortgage that is not currently accruing interest or which
interest is not being paid.
Notary Public
pl: no·ta·ries public or: notary publics [Latin notarius stenographer, from
nota note, shorthand character] : a public officer who certifies and attests to
the authenticity of writings (as ...
Note
1 a : a written promise to pay a debt ;specif : promissory note in this entry
bank note : a promissory note issued by a bank payable to bearer on demand
but without interest and circulating as ...
Note Rate
 the interest rate stated on a mortgage note.
Notice Of Default
a formal written notice to a borrower that there is a default on a loan and that
legal action is possible.
Notional Principal Amount
the proposed amount which interest rate swap payments are based but
generally not paid or received by either party.
Offer
1 : a proposal, promise, or other manifestation of willingness to make and
fulfill a contract or to bargain under proposed terms with another party that
has the power to accept it upon receiving it ...
Original Principal Balance
the total principal owed on a mortgage prior to any payments being made.
Origination
the process of preparing, submitting, and evaluating a loan application;
generally includes a credit check, verification of employment, and a property
appraisal.
Origination Fee
see fee
Owner Financing
a home purchase where the seller provides all or part of the financing, acting
as a lender.
Owner's Policy
the insurance policy that protects the buyer from title defects.
Ownership
: the state, relation, or fact of being an owner ;also : the rights or interests of
an owner [reduced their by one third] absolute ownership : ownership esp.
by a single person that is free of any ...
Partial Claim
a loss mitigation option offered by the FHA that allows a borrower, with
help from a lender, to get an interest-free loan from HUD to bring their
mortgage payments up to date.
Partial Payment
a payment that is less than the total amount owed on a monthly mortgage
payment. Normally, lenders do not accept partial payments. The lender may
make exceptions during times of difficulty. Contact ...
Payment Cap
a limit on how much an ARM's payment may increase, regardless of how
much the interest rate increases.
Payment Change Date
the date when a new monthly payment amount takes effect on an adjustable-
rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally,
the payment change date occurs in the month immediately ...
Payment Due Date
 Contract language specifying when payments are due on money borrowed.
The due date is always indicated and means that the payment must be
received on or before the specified date. Grace periods prior ...
Perils
for homeowner's insurance, an event that can damage the property.
Homeowner's insurance may cover the property for a wide variety of perils
caused by accidents, nature, or people.
Personal Property
see property
Piti
Principal, Interest, Taxes, and Insurance
Piti Reserves
a cash amount that a borrower must have on hand after making a down
payment and paying all closing costs for the purchase of a home. The
principal, interest, taxes, and insurance (PITI) reserves must ...
Planned Unit Development (Pud)
a development that is planned, and constructed as one entity. Generally,
there are common features in the homes or lots governed by covenants
attached to the deed. Most planned developments have ...
Pmi
Private Mortgage Insurance; privately-owned companies that offer standard
and special affordable mortgage insurance programs for qualified borrowers
with down payments of less than 20% of a purchase ...
Points
a point is equal to one percent of the principal amount of your mortgage. For
example, if you get a mortgage for $95,000, one point means you pay $950
to the lender. Lenders frequently charge points ...
Power Of Attorney
Learn the definition of power of attorney on FindLaw.com, including the
types of powers of attorney and examples.
Pre-Approval
a lender commits to lend to a potential borrower a fixed loan amount based
on a completed loan application, credit reports, debt, savings and has been
reviewed by an underwriter. The commitment ...
Pre-Foreclosure Sale
allows a defaulting borrower to sell the mortgaged property to satisfy the
loan and avoid foreclosure.
Pre-Qualify
a lender informally determines the maximum amount an individual is
eligible to borrow. This is not a guaranty of a loan.
Predatory Lending
abusive lending practices that include a mortgage loan to someone who does
not have the ability to repay. It also pertains to repeated refinancing of a loan
charging high interest and fees each time.
Predictive Variables
 The variables that are part of the formula comprising elements of a credit-
scoring model. These variables are used to predict a borrower's future credit
performance.
Preferred Stock
see stock
Prepayment
payment of the mortgage loan before the scheduled due date; may be Subject
to a prepayment penalty.
Prepayment Penalty
a fee charged to a homeowner who pays one or more monthly payments
before the due date. It can also apply to principal reduction payments.
Prepayment Penalty Mortgage (Ppm)
a type of mortgage that requires the borrower to pay a penalty for
prepayment, partial payment of principal or for repaying the entire loan
within a certain time period. A partial payment is generally ...
Price Range
the high and low amount a buyer is willing to pay for a home.
Prime Rate
: an interest rate formally announced by a bank to be the lowest available at
a particular time to its most creditworthy customers called also prime prime
interest rate
Principal
1 : being the main or most important, consequential, or influential [their
place of business] [the obligor] 2 : of, relating to, or constituting principal or
a principal [the amount of the loan]
Principal, Interest, Taxes, And Insurance (Piti)
the four elements of a monthly mortgage payment; payments of principal
and interest go directly towards repaying the loan while the portion that
covers taxes and insurance (homeowner's and mortgage, ...
Private Mortgage Insurance (Pmi)
insurance purchased by a buyer to protect the lender in the event of default.
The cost of mortgage insurance is usually added to the monthly payment.
Mortgage insurance is generally maintained until ...
Promissory Note
see note
Property (Fixture And Non-Fixture)
in a real estate contract, the property is the land within the legally described
boundaries and all permanent structures and fixtures. Ownership of the
property confers the legal right to use the ...
Property Tax
: a tax levied on real or personal property (as by a municipality) compare
excise, income tax
Property Tax Deduction
the U.S. tax code allows homeowners to deduct the amount they have paid
in property taxes from there total income.
Public Record Information
Court records of events that are a matter of public interest such as credit,
bankruptcy, foreclosure and tax liens. The presence of public record
information on a credit report is regarded negatively ...
Punch List
a list of items that have not been completed at the time of the final walk
through of a newly constructed home.
Purchase Offer
A detailed, written document that makes an offer to purchase a property, and
that may be amended several times in the process of negotiations. When
signed by all parties involved in the sale, the ...
Qualifying Ratios
guidelines utilized by lenders to determine how much money a homebuyer is
qualified to borrow. Lending guidelines typically include a maximum
housing expense to income ratio and a maximum monthly ...
Quitclaim Deed
see deed
Radon
a radioactive gas found in some homes that, if occurring in strong enough
concentrations, can cause health problems.
Rate Cap
a limit on an ARM on how much the interest rate or mortgage payment may
change. Rate caps limit how much the interest rates can rise or fall on the
adjustment dates and over the life of the loan.
Rate Lock
a commitment by a lender to a borrower guaranteeing a specific interest rate
over a period of time at a set cost.
Real Estate Agent
an individual who is licensed to negotiate and arrange real estate sales;
works for a real estate broker.
Real Estate Mortgage Investment Conduit (Remic)
a security representing an interest in a trust having multiple classes of
securities. The securities of each class entitle investors to cash payments
structured differently from the payments on the ...
Real Estate Property Tax Deduction
a tax deductible expense reducing a taxpayer's taxable income.
Real Estate Settlement Procedures Act (Respa)
a law protecting consumers from abuses during the residential real estate
purchase and loan process by requiring lenders to disclose all settlement
costs, practices, and relationships
Real Property
see property
Realtor
a real estate agent or broker who is a member of the NATIONAL
ASSOCIATION OF REALTORS, and its local and state associations.
Recorder
1 : a judge of a municipal court 2 : a public officer charged with making a
record of writings or transactions (as conveyances) [a of deeds]
Recording
the recording in a registrar's office of an executed legal document. These
include deeds, mortgages, satisfaction of a mortgage, or an extension of a
mortgage making it a part of the public record.
Recording Fees
charges for recording a deed with the appropriate government agency.
Refinancing
paying off one loan by obtaining another; refinancing is generally done to
secure better loan terms (like a lower interest rate).
Rehabilitation Mortgage
a mortgage that covers the costs of rehabilitating (repairing or Improving) a
property; some rehabilitation mortgages - like the FHA's 203(k) - allow a
borrower to roll the costs of rehabilitation and ...
Reinstatement Period
a phase of the foreclosure process where the homeowner has an opportunity
to stop the foreclosure by paying money that is owed to the lender.
Remaining Balance
the amount of principal that has not yet been repaid.
Remaining Term
the original amortization term minus the number of payments that have been
applied.
Repayment Plan
an agreement between a lender and a delinquent borrower where the
borrower agrees to make additional payments to pay down past due amounts
while making regularly scheduled payments.
Respa
Real Estate Settlement Procedures Act; a law protecting consumers from
abuses during the residential real estate purchase and loan process by
requiring lenders to disclose all settlement costs, ...
Return On Average Common Equity
net income available to common stockholders, as a percentage of average
common stockholder equity.
Reverse Mortgage (Hecm)
the reverse mortgage is used by senior homeowners age 62 and older to
convert the equity in their home into monthly streams of income and/or a
line of credit to be repaid when they no longer occupy ...
Right Of First Refusal
:
Right Of Way
1 : an easement or servitude over another's land conferring a right of passage
2 a : the area over which a right of way exists b : the strip of land over which
is built a public road c : the land ...
Risk Based Capital
an amount of capital needed to offset losses during a ten-year period with
adverse circumstances.
Risk Based Pricing
Fee structure used by creditors based on risks of granting credit to a
borrower with a poor credit history.
Risk Scoring
an automated way to analyze a credit report verses a manual review. It takes
into account late payments, outstanding debt, credit experience, and number
of inquiries in an unbiased manner.
Sale Leaseback
when a seller deeds property to a buyer for a payment, and the buyer
simultaneously leases the property back to the seller.
Second Mortgage
see mortgage
Secondary Mortgage Market
the buying and selling of mortgage loans. Investors purchase residential
mortgages originated by lenders, which in turn provides the lenders with
capital for additional lending.
Secured Loan
a loan backed by collateral such as property.
Security
pl: -ties 1 a : something (as a mortgage or collateral) that is provided to
make certain the fulfillment of an obligation [used his property as for a loan]
b : surety see also security for costs 2 ...
Seller Take Back
an agreement where the owner of a property provides second mortgage
financing. These are often combined with an assumed mortgage instead of a
portion of the seller's equity.
Serious Delinquency
a mortgage that is 90 days or more past due.
Servicer
a business that collects mortgage payments from borrowers and manages the
borrower's escrow accounts.
Servicing
the collection of mortgage payments from borrowers and related
responsibilities of a loan servicer.
Setback
the distance between a property line and the area where building can take
place. Setbacks are used to assure space between buildings and from roads
for a many of purposes including drainage and ...
Settlement Statement
a document required by the Real Estate Settlement Procedures Act
(RESPA). It is an itemized statement of services and charges relating to the
closing of a property transfer. The buyer has the right to ...
Special Forbearance
a loss mitigation option where the lender arranges a revised repayment plan
for the borrower that may include a temporary reduction or suspension of
monthly loan payments.
Stockholders' Equity
the sum of proceeds from the issuance of stock and retained earnings less
amounts paid to repurchase common shares.
Stripped Mbs (Smbs)
securities created by "stripping" or separating the principal and interest
payments from the underlying pool of mortgages into two classes of
securities, with each receiving a different proportion of ...
Sub-Prime Loan
"B" Loan or "B" paper with FICO scores from 620 - 659. "C" Loan or "C"
Paper with FICO scores typically from 580 to 619. An industry term to used
to describe loans with less stringent lending and ...
Subordinate
1 : placed in or occupying a lower rank, class, or position 2 : submissive to
or controlled by authority
Survey
a property diagram that indicates legal boundaries, easements,
encroachments, rights of way, improvement locations, etc. Surveys are
conducted by licensed surveyors and are normally required by the ...
Sweat Equity
using labor to build or improve a property as part of the down payment
Tenants By The Entirety
A joint tenancy between husband and wife. At the death of one spouse, the
property passes to the other spouse.
Tenants In Common
A tenancy by two or more persons, in divided shares. At the death of one
tenant, the property passes to his/her estate.
Terms
The period of time and the interest rate agreed upon by the lender and the
borrower to repay a loan.
Third Party Origination
a process by which a lender uses another party to completely or partially
originate, process, underwrite, close, fund, or package the mortgages it plans
to deliver to the secondary mortgage market.
Title
[Anglo-French, inscription, legal right, from Old French, from Latin titulum
inscription, chapter heading, part of the law that sanctions an action] 1 a : the
means or right by which one owns or ...
Title 1
an FHA-insured loan that allows a borrower to make non-luxury
improvements (like renovations or repairs) to their home; Title I loans less
than $7,500 don't require a property lien.
Title Company
a company that specializes in examining and insuring titles to real estate.
Title Defect
an outstanding claim on a property that limits the ability to sell the property.
Also referred to as a cloud on the title.
Title Insurance
: insurance that compensates for loss from title defects or encumbrances (as
liens) that were unknown but should have been discovered at the time the
policy was issued
Title Search
: a search of public records to determine the condition of title to real
property usually that is the subject of a transaction (as a purchase or
mortgage) [the borrower was required to pay for a ...
Transfer Agent
see agent
Transfer Of Ownership
any means by which ownership of a property changes hands. These include
purchase of a property, assumption of mortgage debt, exchange of
possession of a property via a land sales contract or any other ...
Transfer Taxes
State and local taxes charged for the transfer of real estate. Usually equal to
a percentage of the sales price.
Treasury Index
can be used as the basis for adjustable rate mortgages (ARMs) It is based on
the results of auctions that the U.S. Treasury holds for its Treasury bills and
securities.
Truth-In-Lending
a federal law obligating a lender to give full written disclosure of all fees,
terms, and conditions associated with the loan initial period and then adjusts
to another rate that lasts for the term of ...
Two Step Mortgage
an adjustable-rate mortgage (ARM) that has one interest rate for the first five
to seven years of its term and a different interest rate for the remainder of the
term.
Underwriting
the process of analyzing a loan application to determine the amount of risk
involved in making the loan; it includes a review of the potential borrower's
credit history and a judgment of the property ...
Up Front Charges
the fees charged to homeowners by the lender at the time of closing a
mortgage loan. This includes points, broker's fees, insurance, and other
charges.
Va (Department Of Veterans Affairs)
 a federal agency, which guarantees loans made to veterans; similar to
mortgage insurance, a loan guarantee protects lenders against loss that may
result from a borrower default.
Va Mortgage
a mortgage guaranteed by the Department of Veterans Affairs (VA).
Variable Expenses
Costs or payments that may vary from month to month, for example,
gasoline or food.
Variance
1 : a disagreement between two documents or positions ;esp : a disagreement
between allegations (as in an indictment or complaint) and proof offered at
trial that warrants an appropriate remedy (as ...
Vested
1 : fully and absolutely established as a right, benefit, or privilege : not
dependent on any contingency or condition ;specif : not subject to forfeiture
if employment terminates before retirement ...
Walk Through
the final inspection of a property being sold by the buyer to confirm that any
contingencies specified in the purchase agreement such as repairs have been
completed, fixture and non-fixture property ...
Warranty Deed
see deed
Zoning
: municipal or county regulation of land use effected through the creation
and enforcement of zones under local law

Abstract of Title A schedule listing the documents which set out the history
of ownership of a property.

Acting for both sides The same firm is used by the seller and buyer which
usually speeds up the transaction. The same conveyancer
cannot act for both, but a different conveyancer in the same
firm can act for the other party.

Adopted Highway A road maintained by the local authority.

Adult Occupier See Occupier’s consent

Advance The payment of mortgage monies by the lender.

Agreement Often used as a word for contract.

Apportionment This term is used most often in relation to Leasehold

property where rent and service charges will need to be
apportioned between the seller and buyer. The act of
 apportioning the rent/service charge is generally required
because the rent/service charge is due for a particular
period i.e. six months and the liability for that the period
has to be spilt between the seller and the buyer.

APR Annual Percentage Rate. A yardstick to help compare

interest rates among lenders. It takes into account extra
items such as booking fees.

Assent The formal document required to transfer ownership of a

property to a person entitled following the death of the
owner.

Assignment The transfer of a lease.

Assured Shorthold A special form of tenancy agreement designed to simplify

Tenancy the process of obtaining vacant possession of the property
at the end of the agreed tenancy period.

Attorney Someone appointed formally to act on behalf of another

either generally or for a specific purpose.

Bankruptcy Search A search of the Land Charges Register to see if any

bankruptcy proceedings are pending or established against
a person.

Base Rate The basic rate of interest upon which other interest rates are
based.

Basic fee The fee charged by the solicitor for their time and skills.
This is most often calculated as a percentage of the
property’s sale price, although it can also be calculated as a
fixed-fee or on a per-hour basis.

Borrower See mortgagor.

Boundaries Boundaries define the extent of the property in question

and are usually marked with fencing, hedging or walls.
They are usually shown explicitly on the deeds plan.

Breach of Contract once contracts have been exchanged, if either party pulls
out and does not complete the conveyancing process they
are in breach of contract and the non-defaulting party can
legally seek reparations.

Bridging loan A short term loan.

Brine Search A search to establish if a property might be affected as a
result of salt workings near the property.

Building insurance once contracts have been exchanged, you will in most cases
become responsible for the new property’s building
insurance. This must cover the cost of rebuilding the entire
property if it is destroyed. Your mortgage lender may want
to see proof of this insurance.

Building Regulation Approval by the local authority on the design, structure and
Consent materials used in building work.

Buyer Someone who buys a property.

Capped Rate A mortgage interest rate which is a variable rate but capped
at a maximum upper limit usually for a limited period.

Cashback A sum of money usually paid by the lender on completion

of a mortgage.

Caveat Emptor this literally translates to ‘let the buyer beware’ and means
the buyer is responsible for finding out the condition of a
property using a surveyor.

Chain where the success of one purchase depends on the sale and
purchase of another. Several ‘links’ in the chain can make
the conveyancing process particularly complicated.

Charge A debt secured on the property. Monies borrowed from a

building society for the purchase of a house are usually
secured against the property

Chattels items of personal property left over at a house and included

in the purchase price, such as furniture. These are described
on the Fixtures, Fittings and Contents form.

Client care letter Conveyancers will send a client care letter for you to sign
and return. This is a formal contract and should be read
thoroughly. It will detail what services will be provided and
a breakdown of the cost, in addition to the Conveyancers
complaints procedure.

Coal mining search if the property is situated in a coal mining area this search
will be conducted by the property lawyer to find out if coal
mining activities will affect the property in the future.

Collateral Security pledged for repayment of a loan

Commons A search at the local authority to check the property is not
Registration Search registered as common land or part of a village green which
may therefore mean there are third party rights over the
property (e.g. grazing) resulting in the enjoyment of the
property being limited.

Completion The moment when the buyer becomes the new owner of the
seller's house and the seller must have left the property.

Completion date the legal end of the conveyancing process – the point at
which full payment has been made and the title deeds
transfer from one party to another. In everyday usage it
refers to handing over keys and physically moving into the
new property.

Completion A written calculation of all the receipts and payments due

Statement in respect of the transaction.

Condition of sale A legal term of the contract governing the purchase.

Conservation area if the property to be bought lies in a conservation area

protected by a local authority, it may be subject to exterior
planning restrictions to preserve the look of the area.

Contaminated Land Land affected by contamination which could arise from a

past use of a property (e.g. oil refinery) or by things stored
on the property in the past (e.g. petrol station).

Contract The form of legal agreement prepared in duplicate for

signature by the seller and buyer setting out all the legal
rights and obligations agreed between them.

Conveyance a common name for the legal document that officially

confirms the sale or purchase of a property or piece of land.
Nowadays the transfer is conducted using a Transfer
deed/document although in some cases a conveyance may
be used.

Conveyancer conveyancers are those who have undertaken the

conveyancing process. Traditionally they are solicitors, but
in recent years specialists have appeared who solely offer
conveyancing as a dedicated service. These may be
solicitors who have decided to specialise, or licensed and
regulated firms that are not qualified as solicitors.

Conveyancing the legal and administrative process of transferring

 property title from one party to another. This is most often
undertaken by solicitors or licensed conveyancers and is a
necessity for most property sales taking place within the
United Kingdom.

Council for the governing body that licenses and regulates

Licensed conveyancers. You should always ensure your conveyancer
Conveyancers is a full member.
(CLC)

Covenant obligations and restrictions, known as ‘positive’ and

‘negative’ covenants respectively, that can be attached to a
property. Obligations require you to maintain something
within your boundaries whilst restrictions prevent the
construction of specific structures.

Creditor Someone who is owed money.

Deed of covenant A document stating that someone will comply with the
rules and conditions affecting a property.

Deed of Gift A document transferring the ownership of property from

one person to another without any payment being made for
it.

Deed of Guarantee A document used where one person agrees to be

responsible for someone else's debt or mortgage obligations
if that person fails to carry out their own obligations.

Deed of Where a mortgagee agrees to their mortgage ranking after

Postponement or another lender's mortgage.
Priority

Deed of Variation A deed which changes the terms of a lease or other

document.

Deeds official documentation outlining the owner of a property

which is in possession of the owner or mortgagees in the
event the property is mortgaged.

Deposit The agreed amount to be paid on exchange of contracts

usually forfeited if the buyer fails to complete.

Disbursements disbursements are fixed costs incurred by a conveyancing

provider undertaking the conveyancing process on your
behalf, which are then passed on to you. Examples include
 local authority and bankruptcy searches.

Discount Rate A mortgage interest rate which will rise and fall with the
variable rate but which will always be the discounted
amount below the variable rate.

DIY conveyancing most people appoint a solicitor or conveyancer when

buying or selling a property but some choose to undertake
the process themselves. This can be very risky in some
cases, such as when dealing with leasehold properties.

Drainage search a check carried out during the conveyancing process that
ensures a property is connected to both fresh and foul water
sewers.

Early Redemption See Redemption Penalty

Penalty (ERP)

Easement A right granted over another’s property (such as a right of

way).

Encumbrance A (usually unfavourable) feature affecting a property.

Endowment A mortgage where you pay the interest on the mortgage

Mortgage only and a premium towards an endowment policy. The
policy is then intended to pay off the original amount
borrowed at the end of the mortgage term.

Endowment Policy Assurance providing for the payment of a lump sum on

death or maturity.

Engrossment A final version of a document to be signed by all relevant

parties.

Environmental A search against a property to check whether there is any

Search record kept to suggest that the property may be affected by
contamination or other environmental issues.

Equity the difference between the value of a property and the

figure owed to the mortgagee.

Exchange of contracts are signed and exchanged through your property

contracts lawyers. At this point the process becomes legally binding.
Past this point neither buyer nor seller can pull out of the
transaction without possible legal consequences.

Fixed Rate A mortgage interest rate where the mortgagee agrees to

Mortgage charge a fixed rate of interest over a given period whether
or not the variable rate changes.

Fixtures Fittings & A standard form where the seller sets out all those items in
Contents Form the property which they have agreed to leave as part of the
sale price and which is attached to and forms part of the
contract.

Flying/Creeping This arises when part of one property is built on top of part
Freehold of another property and so the upper property owner does
not own the building or land underneath the "flying" part.
Consequently the lower property is known as the
"creeping" part.

Freehold a freehold property involves a permanent change in

ownership of land or a building that is not time-sensitive
and will not revert to another owner unless a new sale is
agreed. Compare with leasehold.

Freeholder The person who owns the freehold title.

Full Title Guarantee An assurance by the owner of unfettered ownership.

Further Advance An additional amount lent to the mortgagor under the terms
of the original mortgage.

Ground rent Annual payments made to a landlord. This applies only to

leasehold properties

High Loan to Value This is sometimes charged by a mortgagee where a

Fee borrower borrows more than a certain percentage of the
value of a property to insure the mortgagee only against
loss arising if the property is sold by them due to the
borrower's failure to pay the mortgage.

HM Land Registry the government body that deals with ownership of property
and land throughout England and Wales, but not Scotland
and Northern Ireland.

Indemnity A policy taken out to protect the owner against problems

Insurance Policy caused by a defect in the legal title.

Index Map A search at Land Registry of the Index Map can be made to
establish if a property is registered or unregistered.

Interest Only A mortgage whereby interest only is paid to the mortgagee

Mortgage and the capital amount of the original loan is repaid at the
 end of the mortgage term either by an endowment policy
maturing or a pension or other savings plan maturing.

Intestate Dying without having made a will.

Joint tenants When property is owned by two people as “joint tenants,”

on the death of the first of those people, the property passes
outright to the survivor. It matters not what is contained in
the deceased’s will.

Land certificate the official certificate issued by the Land Registry when a
property is registered detailing ownership and interest in
the property without any legal charge.

Land Charges If a property is unregistered a search at the land charges

Search registry is made to see if a person has any bankruptcy
proceedings pending or established or to see if there are
any mortgages or interests registered which affect the
property.

Land registry A government department which maintains the national

property register

Land Registry Fee The fee payable to the Land Registry to register any change
affecting the property including a change of ownership.

Land Registry A search at the land registry to check that no undisclosed

Search charges or interests are registered against the property.

Landlord See Lessor

Lease Where a property is leasehold this is the document giving

the lessee the rights to possession of the property for the
lease term and setting out all the rights and obligations.

Leasehold in contrast to a freehold property, a leasehold property is

one where a party buys the right to occupy land or a
building for a given length of time, which may extend into
hundreds of years. Compare with freehold.

Leasehold property an alternative version of the Property Information Form

information form (SPIF) that is used when dealing with leasehold properties

Leaseholder See Lessee

Legal Charge See Mortgage

Lendor See Mortgagee

Lessee Where a property is leasehold the lessee means the current

owner of the leasehold property as opposed to the
freeholder or landlord whose interest is subject to the
lessee's right of occupation until the lease term has come to
an end.

Lessor The person who owns the superior title and is entitled to
the ground rent under the lease and possession of the
property at the end of the lease term.

Licence to assign The formal permission given by a landlord for a buyer to

purchase the leasehold of a property.

Limited Title This is the title guarantee given by a seller where because
Guarantee of their limited knowledge of the property the full title
guarantee cannot be given (e.g. a personal representative of
a deceased owner or a mortgagee in possession).

Local authority these searches are conducted during the early stages of the
searches conveyancing process and are designed to protect you from
council plans that may affect the state of your property
once you’ve moved in.

Local Search A search carried out at the local authority to check whether
there have been any notices registered affecting the use of
the property or any proposals for the neighbourhood which
may directly affect the property.

Management A company formed to comply with a landlord’s obligations

company under a lease.

Mining Search A search to check whether the property may be affected by

coal mining activity which may result in subsidence.

Mortgage A loan secured against a property. In the event of non-

payment, there is usually a right to sell the property.

Mortgage Deed The document signed by the mortgagor to create a legal

charge which the mortgagee can register at the land
registry.

Mortgage Offer The details of the terms upon which the mortgagee is
prepared to make the mortgage loan.

Mortgage Term The length of time agreed for the repayment of the loan.
Mortgaged Where a property has been charged by the owner or
mortgagor to the mortgagee.

Mortgagee A money lender, such as a building society or bank, who

secures the loan against a property

Mortgagor Somebody who takes out a mortgage (a borrower).

Negative equity an issue where the amount of money you owe on the
property, usually via a mortgage, is more than the sale
value of the property.

NHBC National House Builders Council. The NHBC provide a ten

year guarantee for new properties.

Occupier’s consent required when a person lives at a property but will not be
signing the mortgage deed. Consent is asked to allow the
mortgage being taken out by the owner, agreeing to move
out if the mortgagee takes possession due to the default of
the mortgage.

Office Copy Entries the legally permissible document outlining who owns your
property, held by HM Land Registry. It is requested by
your conveyancing provider during the conveyancing
process.

Party Wall A wall owned jointly with a neighbour and repairable at

shared expense.

Personal The person appointed by a will to act for the deceased

representative owner.

Planning Permission Approval by the local authority to the building or change of

use of a property or extension to an existing property.

Power of attorney this document allows a person to act as a legal

representative of somebody else with their consent. These
are often used to protect the financial interests of the ill or
the elderly.

Pre-completion these are searches undertaken by your conveyancing

searches provider before contracts are exchanged. They check to see
if you have been bankrupt and that the property in question
is legally owned by the seller. Also known as priority
searches.

Pre- contract Enquiries made by the buyer’s solicitor about the property
enquiries being sold.

Priority searches see pre-completion searches above

Private Road A road maintained by property owners rather than by the

local authority. The property owners need to have rights
over it as it is not necessarily a public access.

Property sellers are required to fill this form in and return it to their
Information Form conveyancing provider. It asks questions regarding
boundaries, disputes, services, relationships with
neighbours, legal rights, restrictions and other important
information. Failure to provide correct information is an
offence; in cases where you’re unsure your solicitor should
be able to help.

Property A document completed by a seller to give information

Information Form about the property to the buyer (e.g. who maintains
boundaries and whether there have been any disputes).

Purchase The buying of a property.

Purchaser See buyer

Radon Gas A naturally occurring radioactive gas which may if above

certain safety levels require preventative action to be taken
(e.g. more ventilation in a property).

Redemption this is the sum of money transferred to a lender if you

decide to pay back your mortgage early, consisting of the
outstanding lump sum balance in addition to a penalty fee
charged to cover the interest the lender will subsequently
lose out on.

Redemption Penalty A penalty charged by a mortgagee when you redeem a

mortgage within a fixed rate, discounted rate or cashback
period.

Registered land Land which is registered has its ownership details recorded
at the Land Registry.

Remortgage Changing a mortgage from one mortgagee to another.

Rentcharge Some freehold properties are subject to a rentcharge

payable to the rentcharge owner. This may be to ensure
income for the original land owner without the existence of
a lease or it can be to ensure that estate covenants can be
 enforced more easily.

Reparations the compensation or remuneration required in the event of

a breach of contract.

Repayment A mortgage where the mortgagor repays both interest and

Mortgage some of the initial capital borrowed each month.

Report on Title A report required by the lender and supplied by the buyer’s
solicitor containing information about the property.

Requisition on title Queries rose about the ownership of the property and how
that ownership will be transferred.

Reservation Fee An administration fee charged by some mortgagees to

cover the cost of reserving a mortgagor's entitlement to a
loan on certain terms or possibly a fee paid to a builder to
reserve a particular new property.

Retention Monies held back from an advance pending completion of

building work to the property.

Sale The sale of a property.

Seller Someone who sells a property.

Seller’s Property A standard form completed by the seller which contains

Information Form information to assist the buyer’s solicitor to determine
(SPIF) whether his client should proceed with the transaction.

Service Charge A payment required by a lessor or managing agent to cover

the costs of maintaining and running a development (e.g.
gardening and decorating and also insuring a block of
flats).

Smoke Control An order made by the local authority designating an area to

Order be one in which only smokeless fuels may be burnt (i.e. not
coal or wood).

Stamp duty all buyers pay stamp duty based on the purchase price of
the property in question. The money accrues to HMRC.

Structural survey An assessment of the essential framework of a building.

Subject to contract Negotiations which do not become binding until contracts

are exchanged.
Subsidence Where a property moves due to inadequate foundations or
severe change to the underlying ground resulting in
instability in the structure of a building often evidenced by
cracks in walls.

Survey An inspection and report on the property by a surveyor as

to the state of the property and value.

Tenant See Lessee

Tenants in common Where two or more people own a property as ‘tenants in

common’, and one of them dies, the deceased’s share of the
property will pass according to what has been stated in the
deceased’s will (or according to the rules of intestacy, in
the even of no will having been made).

Tenure The type of property: Freehold or leasehold.

Term A period of time, such as the length of a mortgage.

Term Assurance Life insurance which only lasts the term of the mortgage.

The Law Society The Law Society is the representative body for solicitors in
England and Wales.

Third party rights when someone other than the legal owner of a property has
the right to use or control the land of which they have no
ownership.

Tin Search A search to establish whether the property may be affected

by tin mining activity which may result in subsidence.

Title The owner's right to a property.

Title deeds title deeds provide proof of ownership on a particular

property. Mortgage lenders will hold onto title deeds as
they legally own the property until the mortgage is paid
back. Once you have instructed a conveyancer they will
arrange to obtain the title deeds from the lender

Title Deeds See Deeds

Transaction A dealing with property (e.g. sale or purchase).

Transfer deed a document that legally transfers your property into the
name of the buyer. It must be signed by you in the presence
of a witness.
Transfer of Equity A document transferring ownership of a share or interest in
a property from one person to another.

Tree Preservation An order made by the local authority designating a tree or

Order group of trees as protected and requiring the local
authority's permission to lop or fell them.

Unexpired Term The remaining term on a lease (A lease granted for 99

years, 10 years ago will have an unexpired term of 89
years).

Unregistered Title Where the title to a property has not previously been
registered at the Land Registry and ownership is proved by
the production of a complete chain of documents showing
successive ownership.

Vacant Possession Possession of a property free of the presence of any people,

possessions or rubbish.

Valuation A very simple form of survey designed to establish the

market value of the property.

Variable Rate A mortgage interest rate which is variable and which is set
by each individual mortgagee.

Vendor See Seller.

Wayleave A formal agreement entered into with a property owner to

Agreement give a service provider (e.g. Electricity or Telephone
company) a right for their pipe or cable to pass through or
over their property.