Abstract of Title
A summary prepared by a licensed abstractor of all documents
recorded in the public records of the county where the land is located.
An abstract is reviewed by an attorney or other experienced title examiner
to determine the status of title.
A reduction or decrease. Usually applies to a decrease of assessed
valuation of ad valorem taxes after the assessment, and levy.
Clause in a mortgage, which accelerates, or hastens, the time when the indebtedness
becomes due. For example, some mortgages contain a provision (an acceleration
clause) stating that the note shall become due immediately upon the sale
of the land or upon failure to pay interest or an installment of principal
Recording of instruments with the county recorder by a title company merely
as a convenience to a customer and without assumption of responsibility for
correctness or validity.
A formal declaration before a duly authorized officer (such as a notary public)
by a person who has executed an instrument that such execution is his own
act and deed. An acknowledgment is necessary to entitle an instrument (with
certain specific exceptions) to be recorded, to impart constructive notice
of its contents and to entitle the instrument to be used as evidence without
further proof. The certificate of acknowledgment is attached to the instrument
or incorporated therein.
Adjustable Mortgage Loans ( AML 'S)
Mortgage loans under which the interest rate is periodically adjusted up or
down depending on an indicator (e.g. Treasury Bill rate, LIBOR, Prime). The
amounts and times of adjustment are agreed to at the inception of the loan.
Also called: Adjustable Rate Loans, Adjustable Rate Mortgages ( ARM 'S),
Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate Index).
A person appointed by the probate court to carry out the administration of
a decedent's estate when the decedent has left no will. If a woman is appointed,
she is called an administratrix.
A process of acquiring title to real property by possession for a certain (statutory)
period of time, in addition to fulfilling other conditions.
A written statement or declaration, sworn to before an officer who has authority
to administer an oath.
One who has authorization, either expressed or implied, to act for or represent
another party, usually in business matters, such as issuing title insurance
policies on behalf of a title insurer for a portion of the premium.
(American Land Title Association) Organization composed of title insurance
firms which sets standards for the industry, including title insurance policy
forms used on a national basis.
Changes to alter, add to, or correct part of an agreement without changing
the principal idea or essence.
A loan that is paid off, both interest and principal, by regular payments that
are equal or nearly equal.
Annual Percentage Rate (A.P.R.)
The yearly interest percentage of a loan, as expressed by the actual rate of
interest paid. For example: 6% add-on interest would be much more than 6%
simple interest, even though both would say 6%. The A.P.R. is disclosed as
a requirement of federal truth in lending statutes.
An estimate of value of property resulting from analysis of facts about the
property; an opinion of value.
An attorney whose opinion is acceptable to a title company as the basis for
issuance of a title insurance policy by the insurer. The insurer, rather
than the attorney, executes the policy.
A mortgage that allows a new owner to take over payments. The original borrower
usually remains liable on the mortgage note.