Sellers Guide - Adreanne Harris McMillian

T ERMS YOU S HOU L D KNOW ACKNOWLEDGEMENT: A formal declarat ion made before an author ized of f icial (usual ly notary publ ic) by the person who has executed (s igned) a document by hi s or her own act and deed. In most instances , documents must be ackowledged (notar ized) before they can be accepted for recording.

AFFIDAVIT: A sworn statement in wr i t ing, made before an author ized of f icial .

AMENDMENT: A change ei ther to al ter, add to, or correct part of an agreement usual ly doesn’ t change the pr incipal idea or essence.

APPRAISAL : An est imate of value of property resul t ing f rom analys i s of facts about the proper ty; an opinion of value.

ASSESSMENTS : Speci f ic and special taxes ( in addi t ion to normal taxes) imposed on real proper ty for publ ic improvements wi thin a speci f ic geographic area.

BENEFICIARY: As used in a trust deed, the Lender i s des ignated as the Benef iciary, i .e. obtains the benef i t of the secur i ty.

CC&Rs: Covenants , Condi t ions and Restr ict ions . A document that control s the use, requi rements and restr icions of a property.

CLOSING DISCLOSURE: The f inancial di sclosure statement that accounts for al l of the funds received and di sbursed at the clos ing, including depos i ts for taxes , hazard insurance and mortgage insurance.

CONTINGENCY: A condi t ion that must be sat i sf ied before a contract can be completed. For instance, a sales agreement may be cont ingent upon the buyer obtaining f inancing.

DEED OF TRUST: Wr i tten instrument by which t i t le to land i s transferred to a trustee as secur i ty for a debt or other obl igat ion. Used in place of mortgages in many states . Al so cal led Trust Deed.

EARNEST MONEY DEPOSIT: Down-payment made by a purchaser of real estate as evidence of good fai th; a depos i t or par t ial payment .

EASEMENT : A r ight , pr ivi lege or interest l imi ted to a speci f ic purpose that one party has in the land or another.

ESCROW: A procedure in which a thi rd party acts as a stakeholder for both the buyer and the sel ler, car rying out both par t ies ’ inst ruct ions and assuming respons ibi l i ty for handl ing al l of the paperwork and di st r ibut ion of funds . FEE SIMPLE : An estate in which the owner has unrestr icted power to di spose of the property as he or she wi shes , including leaving by wi l l of inher i tance. I t i s the greatest interest a person can have in real estate.

GRANT : A t ransfer of real proper ty f rom the grantor, who makes the grant , to the grantee.

HOMESTEAD EXEMPTION: Automat ic in Ar izona, i t al lows any res ident of Ar izona, 18 years or older, to be exempt f rom attachment , execut ion or forced sale $150,000 of equi ty in a s ingle dwel l ing uni t . Except ions include: ( 1 ) a consensual l ien, i .e. where a deed of trust or equi ty loan i s foreclosed; (2) a forced sale resul t ing f rom a mechanic ’s l ien; and (3) any equi ty beyond the $150,000. You should consul t an at torney to determine i f thi s exempt ion of fers you protect ion in the event of an at tachment , execut ion, or forced sale.

IMPOUND ACCOUNT: Funds retained by a lender to cover such i tems as taxes and hazard insurance premiums .

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Co p y r i g h t 2 0 1 7 S e c u r i t y T i t l e : Co n t e n t c a n n o t b e e d i t e d o r r e p r o d u c e d w i t h o u t w r i tt e n p e r m i s s i o n f r om S e c u r i t y T i t l e . A l l c o n t e n t h e r e i n i s i n f o r ma ti o n a l o n l y a n d n o t i n t e n d e d t o offe r l e g a l o r fi n a n c i a l a d v i c e .