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N
Negative Amortization - An actual increase in the principal
amount of real estate loan because of the addition of matured
but unpaid interest to the loan balance. Usually the result
of monthly payments which a re temporarily set at a lower
than needed level.
Notary
- One authorized to take acknowledgments. See "Acknowledgment."
Note -
The instrument evidencing the indebtedness secured by a security
instrument such as a mortgage or deed of trust.
O
Ownership - The right to possess and use property to the exclusion
of others.
P
Patent - A document or grant by which the federal or state
government originally transferred title to public lands to
an individual. The first in the series of transfers by which
title comes down to present owners.
Personal
Representative - A person appointed by the probate court to
administer a decedent's estate. See also "Executor"
or "Administrator."
Plat or
Plot - A map representing a piece of land subdivided into
lots with streets shown there on.
P.M.I.
- Private Mortgage Insurance. An insurance contract which
insures that the named lender will re cover a specific percentage
of the loan amount from the insurer in the event the loan
goes bad. Many lenders require this on higher percentage loans.
Points
- A one-time special fee or extra charge paid to a lender
in order to secure a loan. Expressed as a percentage of face
amount of mortgage.
Policy
- A written contract of title insurance.
Policyowner
- The insured on a title insurance policy.
Power
of Attorney - An instrument authorizing another to act on
one's behalf as his or her agent or attorney.
Power
of Sale - A clause in a will, mortgage, deed of trust or trust
agreement authorizing the sale or transfer of land in accordance
with the terms of the clause.
Prorate
- To allocate between seller and buyer their proportionate
share of an obligation paid or due. For example, a proration
of real property taxes or fire insurance premiums.
Q
Quiet Title - An action in a proper Court to remove record
defects or possible claims of other parties named in the action.
R
Range - A part of the government survey, being a strip of
land six miles in width, and numbered east or west of the
principal meridian.
Real Property
- Land, together with fixtures, improvements and appurtenances.
Realtor?
-A federally registered collective membership mark which identifies
a real estate professional who is a member of the National
Association of Realtors ? and subscribes to its strict Code
of Ethics.
Realty
- A brief term for real property.
Redeem
- Literally "to buy back." The act of buying back
lands after a mortgage foreclosure, tax foreclosure, or other
execution sale.
Registered
Land - See "Torrens Title."
Reinsurance
- To insure again by transferring to another insurance company
all or part of an assumed liability, thus spreading the loss
risk any one company has to carry.
REIT -
Real Estate Investment Trust. A product of federal tax legislation
formed as a business trust, under a special state REIT statute
or as a corporation for the purpose of investing in real estate
or mortgages on real estate.
REMIC
- Real Estate Mortgage Investment Conduit. A product of 1986
federal tax legislation in which a business entity such as
a corporation, partnership, or trust in which substantially
all of the assets consist of qualified mortgages and permitted
investments, elects to be treated as a REMIC. Qualification
avoids treatment as a corporation for tax purposes.
Reverse
or Reverse Annuity Mortgage - A mortgage for which the borrower
pledges home equity in return for regular (monthly) payments,
rather than a lump sum distribution of loan proceeds. Repayment
is usually not required until the home is sold or the borrower's
estate is settled, provided the borrower continues to live
in the home and keeps current all taxes and insurance. See
also "Home Equity Conversion Mortgage."
Right
- of - Way - The right which one has to pass across the lands
of another. An easement.
Riparian
- Rights to use of water and waterways in adjoining lakes
or rivers.
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An
Agent of Chicago Title Insurance Company