Vocabulary – Lesson 1
Sometimes in a busy world we tend to forget some of the simplest things we have already learned. Sometimes the same words mean different things or there are different words that have the same meaning.
1. Earnest Money “a.k.a” Escrow Deposit
– an advanced payment of part of the purchase price to bind a contract for property.
2. Mechanics Lien
– a lien allowed by statute to contractors/laborers and materials supplied on buildings or other structures which work has been performed.
3. Tax Lien
– a lien for annual real property taxes. Attaches only to the property upon which the taxes are due. It may be foreclosed for non-payment.
4. Title Insurance
– insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.
5. Title Search
– an examination of public records, laws and court decisions to disclose the current facts regarding ownership of real estate.
6. Closing (also known as “escrow” or “settlement”)
– the process of executing legally-binding documents, such as deeds and mortgages, most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase.
7. REO (Real Estate Owned)
– a class of property owned by a lender, typically a bank, after unsuccessful sale at a foreclosure auction.
– to allocate between buyer and seller their proportionate share of an obligation paid or due. For example, a proration of real estate property taxes or association dues.
Just when you thought you were done with school!! Look for lesson 2 coming soon…
Posted on May 4, 2012, in Title and tagged Closing, Earnest Money Deposit, Escrow, Escrow Deposit, Jennifer Ferri, Mechanics Lien, Proate, REO, Settlement, Tax Lien, Title Insurance, Title Junction, Title Search, Title Work. Bookmark the permalink. Leave a comment.