Unrecorded Deed:
An instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of change in ownership. Recording is essential to protect one's interest in real estate.

Warranty Deed:
A deed that contains a covenant that the grantor will protect the grantee against any and all claims. It usually contains covenants assuring good title, freedom from encumbrances, and quiet enjoyment.

Discount Points:
Amounts paid to the lender (usually by the seller) at the time of origination of a loan, to account for the difference between the market interest rate and the lower face rate of the note. (They are often required when VA loans are used.)

Encumbrance:
Any right to or interest in land that affects its value. This includes outstanding mortgage loans, unpaid taxes, easements, and deed restrictions.

Equity:
Interest or value that the owner has in real estate over and above the liens against it.

Escrow Account:
A separate bank account segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients.

Grantee:
The party to whom the title to real property is conveyed is the grantee or the buyer.

Grantor:
Anyone who gives a deed is the grantor.

Inspection:
A physical scrutinizing review of property or of documents.

<< Previous    |    Page 2 of 4    |    Continue >>