Sellers Guide - Cliff Bakemeier

T ERMS YOU S HOU L D KNOW

LEGAL DESCRIPTION: A descr ipt ion of land recognized by law, based on government surveys , spel l ing out exact boundar ies of the ent i re piece of land. I t should so thoroughly ident i fy a parcel of land that i t cannot be confused wi th any other.

LIEN: A form of encumbrance that usual ly makes a speci f ic property the secur i ty for the payment of a debt or di scharge of an obl igat ion. For example: judgements , taxes , mortgages , deeds of trust .

LOAN-TO-VALUE RATIO: The relat ionship between the amount of the mortgage and the apprai sed value of the property, expressed as a percentage of the apprai sal value.

PITI: A payment that combines Pr incipal , Interest , Taxes , and Insurance.

PURCHASE AGREEMENT: A wr i tten document in which the purchaser agrees to buy certain real estate and the sel ler agrees to sel l under stated terms and condi t ions . I t i s usual ly completed by the real estate agent and s igned by the Buyer and Sel ler. QUIT-CLAIM DEED: A deed operat ing as a release, intending to pass any t i t le, interest or claim which the grantor may have in property, but not containing any warranty of a val id interest or t i t le by the grantor.

REAL PROPERTY: Land and bui ldings as opposed to personal property.

RECORDING: Fi l ing documents af fect ing real property wi th the County Recorder to make them a mat ter of publ ic record.

REGULATION Z: The set of rules governing consumer lending i ssues by the Federal Reserve Board of Governors in accordance wi th the Consumer Protect ion Act .

TITLE: Evidence of a person’s r ight or the extent of hi s interest in property.

TITLE INSURANCE POLICY: A pol icy that protects the puchaser, mortgagee or other party against losses .

WARRANTY DEED: A document used to convey fee t i t le to real property f rom the grantor (usual ly the Sel ler) to grantee (usual ly the Buyer) .

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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 .