Loans
A lien against real property received by a lender from the borrower that functions as security for money borrowed.
What is a mortgage?
A person who identifies a beneficial real estate investment opportunity and passes information about the deal on to another investor for a fee.
What is a bird dog?
An illegal fee or rebate paid to someone in order to gain that person's decision or recommendation for the award of business.
What is a kickback?
A written document that conveys a real property’s title to a certain party. This document must be properly signed, sealed, and delivered.
What is a deed?
A statement of permission, in writing, from a local government or agency allowing the recipient to build a particular structure at a particular site.
What are building permits?
The fee charged for paying off a loan early within a specified period of time after the loan has closed
What is a pre-payment penalty?
A cross between a corporation and a partnership, the LLC must be created by documents filed in the same place as corporations. This entity enjoys most of the same tax benefits as partnerships, but the same liability protection as corporations.
What is a Limited Liability Company (LLC)?
An account from which funds can be withdrawn only for specific reasons stated in a contract. In lending, these accounts are usually used to hold and disburse real estate taxes and hazard insurance premiums which are paid in advance by the borrower.
What is an escrow account?
A deed that has a covenant that; the grantor will protect the grantee against any and all claims. It usually contains covenants ensuring good title, freedom from liens and encumbrances, and quiet enjoyment.
What is a warranty deed?
Permission to use a property in a manner that does not meet current zoning requirements.
What is a variance?
A loan underwritten with the value and condition of the property as the most important criteria for approval.
What is a hard money loan?
An agreement between two persons or more who are investing in a single property or business.
What is a joint venture?
A violation of a legal agreement or contract. Also, a default on a loan or other payment.
What is breach of contract?
A lien placed upon a building or other improvement that functions as security for the payment of labor and materials furnished for improvement.
What is a mechanic's lien?
A legal doctrine that states that landlords must offer and maintain livable premises for their tenants. If a landlord does not provide this, tenants in most states may legally withhold rent or take other measures, including hiring someone to fix the problem or moving out.
What is an implied warranty of habitability?
Is a loan provision which allows the lender to declare the loan due immediately in full and payable if another specific loan provision is violated. This is also referred to as the Due on Sale Clause.
What is an Acceleration Clause?
The person who binds themselves to another.
What is an obligor?
A document executed by one person(the principal) authorizing another person to act on their behalf for any legal purposes or for specifically defined tasks.
What is a Power of Attorney (POA)?
A history of conveyances and encumbrances that are applied to a title. May reach back to the original granting of the patent, or as far back as available records allow.
What is a chain of title?
One party’s privilege, right, or interest in the land of another party.
What is an easement?
The title to a mortgaged real property is transferred to the buyer but the buyer is not personally liable for the payment of the amount due. However, the buyer must continue to make payments in order to keep the property.
What does subject-to mean?
An individual that works with a borrower to start a loan. Typically the employee of a financial institution, the employee of a broker or an independent contractor affiliated with multiple brokers. Helps determines the type of loan a borrower most-likely qualifies for, complete an accurate application, gathers the documents necessary to get an approval and acts as an intermediary between the borrower and the underwriter.
What is an originator?
A Latin term meaning "suit pending." The recorded notice of a lawsuit’s filing. The outcome of the lawsuit may affect title to a real property.
What does Lis Pendens mean?
An outstanding claim or other obstacle that would affect or impair the owner's title if it were valid.
What is a cloud on a title?
A legal proceeding that a lessor (landlord) must carry out in order to recover a property from a tenant occupying it.
What is an eviction?