Seb Frey the Real Estate Guy
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Real Estate & Finance Glossary
ACCELERATION CLAUSE: A provision in a mortgage, trust deed, promissory note
or contract for deed (agreement of sale) that, upon the occurrence of a specified
event, gives the lender (payee, obligee or mortgagee) the right to call all sums due
and payable in advance of the fixed payment date.
ACRE: A measure of land equal to 43.560 square feet, 4,840 square yards, 4,047
square meters, 160 square rods or 0.4047 hectares
AD VALOREM TAX: A tax levied according to value, generally used to refer to real
estate tax. Also called the general tax.
ADJUSTABLE RATE MORTGAGE (ARM): Adjustable-rate mortgage loan featuring
an interest rate that moves up and down as market conditions change. ARMs
generally offer a lower initial interest rate, but your mortgage payments may
change (usually semiannually or annually). Rate changes are based on an index
such as the one-year Treasury Index or the cost-of-funds index (COFi). Some ARMs
can be converted to fixed rate.
AFFIDAVIT OF TITLE: A written statement, made under oath by a seller or grantor
of real property and acknowledged by a notary public, in which the grantor: (1)
identifies him - or herself and indicates marital status; (2) certifies that since the
examination of the title on the date of the contract no defects have occurred in the
title; and (3) certifies that he or she is in possession of the property (if applicable).
ALIENATION: The act of transferring ownership, title, interest, or estate in real
property from one person to another. Property is usually sold or conveyed by
voluntary alienation, as with a deed or assignment of lease. Involuntary alienation
takes place when property is sold against the owner's will, as in a foreclosure sale
or a tax sale
ALTA (American Land Title Association ): Since any lending institution funding a
loan for the acquisition of property wants assurance of good title on the property,
there is a special policy prepared for the benef