san diego california guide

Glossary of Real Estate Terms - San Diego, California - Page 3

Real Estate Terms You Will Want To Know
The following terms and phrases are used in Real Estate transactions. A basic understanding of these will help make the process of buying or selling your home a bit easier.

| Real Estate Terms - Page One | Page Two | Page Three |

Point - An amount equal to one percent of the principal amount of the investment or note. The lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.

Pre-Payment Penalty - A fee charged to a mortgagor who pays a loan before it is due. Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI) - Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage (A requirement if down payment on subject property is less than 20 percent).

Promissory Note - Following a loan commitment from the lender, the borrower signs a note promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment.

Property Taxes - Each year on March 1 the lien of the following year’s taxes attaches to the land pursuant to California law. Property taxes are assessed on the July 1 through June 30 fiscal year.

Purchase Agreement - A written document in which the purchaser agrees to buy certain real estate and seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.

Real Estate Agent - a person that is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Real Estate Agents must work in association with a real estate broker or brokerage company.

Real Property - Land and whatever by nature or artificial annexation is a part of it.

REALTOR® - A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors®. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Regulation Z - The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.

Waiver - Giving up of certain rights or privileges. The relinquishment may be voluntary and knowing, or it may occur involuntarily through action of the parties. The action resulting in the waiver is unilateral, and requires no action or reliance by the other party.

Warranty Deed - A deed used to convey real property which contains warranties of title and quiet possession where the grantor agrees to defend the premises against the lawful claims of third persons.

Zone - The area set off by the proper authorities in which the real property can be used for only specific purposes.

Zoning - Act of city or county authorities specifying the type of use to which property may be put in specific areas. A government's division of a city or other geographic area into districts, and the regulation of property uses within each district.

Special Assessment - Legal charge against real estate by a public authority to pay cost of public improvements such as: street lights, sidewalks, street improvements, etc.

Subdivision - A parcel of land that has been divided into smaller parts (lots, blocks or tracts).

Tenancy in Common - A type of joint ownership of property by two or more persons with no right of survivorship.

Term of Mortgage - The period during which a mortgage must be paid.

Title Insurance Policy - A policy that protects the purchaser, mortgagee or other party against losses.

Trust Account - An account separate and apart and physically segregated from broker’s own funds in which broker is required by law to deposit all funds collected for clients.

VA Loan - A loan that is partially guaranteed by the Veterans Administration and made by a private lender.

Variable Interest Rate - An interest rate that fluctuates in a set proportion to changes in an economic index, such as the cost of money. Extensive regulations cover use of VIRs in loans on residential property.

Venue - The location in which a cause of action occurs; it determines the court having jurisdiction to hear and decide the case. For real estate, the court having proper venue is one in the county in which the property is located.

Vested - Bestowed upon someone, such as title to property. Absolute, not contingent or subject to being defeated.

Waiver - Giving up of certain rights or privileges. The relinquishment may be voluntary and knowing, or it may occur involuntarily through action of the parties. The action resulting in the waiver is unilateral, and requires no action or reliance by the other party.

Warranty Deed - A deed used to convey real property which contains warranties of title and quiet possession where the grantor agrees to defend the premises against the lawful claims of third persons.

Zone - The area set off by the proper authorities in which the real property can be used for only specific purposes.

Zoning - Act of city or county authorities specifying the type of use to which property may be put in specific areas. A government's division of a city or other geographic area into districts, and the regulation of property uses within each district.



SAN DIEGO CALIFORNIA REAL ESTATE

Copyright © 2014 - Joseph A. Tyson - San Diego California Guide - All Rights Reserved
San Diego California Guide.com is a division of Tyson Promotions Inc

San Diego, California - Last Revision - 26 November 2006 - jat