Abstract (of Title)
A summary of the public records relating to the title to a particular piece of land. Precise Title will examine the abstract of title to determine whether there are any title problems or defects which must be cleared before you as a buyer can purchase clear, marketable, and insurable title.

Agreement of Sale
Also known as the contract of sale. This is the legal document in which the seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.

A payment plan which allows the borrower to reduce his or her debt gradually thorough monthly payments of principal.

Annual Percentage Rate (APR)
Not to be confused with your interest rate. This is the cost of a mortgage stated as a yearly rate that includes such items as interest, mortgage insurance, and loan origination fees and discount points.

An expert judgment or estimate of the value or quality of real property as of a certain date.

A person qualified by education, training, and experience to estimate the value of real property.

Attorney in Fact
One who holds a power of attorney for another to execute documents on behalf of the grantor of the power. An attorney at Atlantic Title can prepare this document in the rare instance that you are unable to attend settlement.

Balloon Mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

Biweekly Payment Mortgage
A mortgage that requires payments to reduce the debt every two weeks instead of the normal monthly payment schedule. The twenty-six biweekly payments are each equal to one half of the monthly payment that would be required if the loan were a standard thirty year fixed rate mortgage. Most lenders require this type of mortgage to be taken directly out of the borrower's bank account. This type of mortgage has the result of reducing the amount of interest one would pay over the life of the loan.

Building Line or Setbacks
Distances from the ends and sides of a lot beyond which construction may not extend. These lines may be established by building codes, zoning ordinances, subdivision plats or restrictive covenants in deeds

Cash Out Refinance
A refinance transaction in which the amount of money received from the now loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding mortgage liens.

Certificate of Title
A statement by one of the lawyers at Atlantic Title Company stating that the title to real estate is legally held by the current owner.

Another name for personal property.

Clear Title
Title that is free of liens or legal questions as to ownership of the property.

The formal meeting between the parties in the transaction that takes place at the offices of Atlantic Title Company wherein the sale of the property is finalized by the buyer signing the mortgage documents and paying closing costs and the seller signing the Deed conveying ownership of the property to the buyer.

Closing Costs
The expenses which buyers and sellers have to pay to complete a transaction in the transfer of the ownership of the property.

Cloud On Title
Any conditions that are discovered by a title search that adversely affect the title to real estate.

The fee charged by a real estate agent for negotiating a real estate transaction. A commission is generally a percentage of the price of the property, usually between 6 to 7 percent on houses, and 10 percent on unimproved land.

The taking of private property for public use by a government entity, against the will of the owner, but with payment of just compensation under the government's power of eminent domain. Property can also be condemned by a governmental agency if a building is unsafe or unfit for habitation.

Construction Loan
A short term loan for financing the cost of construction.

A condition that must be met before a contract is legally binding. For example, home inspection, financing or sale of home contingencies.

Conventional Mortgage
A mortgage that is not insured or guaranteed by the federal government.

Convertibility Clause
A provision in some adjustable rate mortgages (ARMS) that allows the borrower to change the adjustable rate to a fixed rate mortgage under certain specified conditions.

A clause in a mortgage that obligates or restricts the borrower and that if, violated, can result in the lender accelerating the payment, also known as foreclosure.

Credit Report
A lender prior to loaning a borrower money will require a report of the buyer's credit history.

The legal document conveying title to a property.

Deed of Trust
A security instrument whereby real property is given as security for a debt. This is the document that is recorded at the court house to show that the owners of the property do not own the property free and clear but that there is a lien or mortgage on the property.

Failure to make mortgage payments on a timely basis or to comply with other requirements of the mortgage or deed of trust.

Documentary Stamps
A tax in the form of stamps, required to be paid on deeds and mortgages or deeds of trust. In Maryland documentary stamps vary depending on the county in which the property is located.

Earnest Money Deposit
The amount of money paid by the purchaser to the seller (typically held by the real estate agent) upon the signing of the contract of sale.

Easement Rights A right of way granted to a person or
company authorizing access to or over the owner's land. An electric company obtaining a right of way across private property is a typical example.

An improvement that intrudes illegally on another's property.

Anything that affects or limits the fee simple title to a property, such as mortgages, easements and restrictions.

Funds paid by one party to another (the escrow agent/usually the lender) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due.

Fee Simple
The greatest possible interest a person can have in real estate.

First Mortgage
A mortgage that is the primary lien against a property.

Fixed-Rate Mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.

The legal process by which a borrower in default under a mortgage or deed of trust is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

The person to whom an interest in real property is conveyed.

The person conveying an interest in real property.

Ground Rent
The amount of money that is paid for the use of land when title to a property is held as a leasehold estate rather than as a fee simple estate.

Hazard Insurance
Insurance coverage that compensates for physical damage to property from fire, wind, vandalism, or other hazards.

Home Equity Line of Credit
A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in a property.

Home Inspection
A thorough inspection of real property that evaluates the structural and mechanical condition of a property.

Homeowner's Insurance
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

A charge paid for borrowing money.

Interest Rate
The percentage rate at which interest accrues on the mortgage or deed of trust.

Joint Tenancy
A form of co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship.

A claim by one person on the property of another as security for money owed.

Loan to Value (LTV) Percentage
The relationship between the principal balance of the mortgage and the appraised value (or sales price if its is lower) of the property. For example, a $100,000.00 home with an $80,000.00 mortgage has a LTV percentage of 80 percent.

Lock In
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock in also usually specifies the number of points, if any, to be paid at closing.

Lock In Period
The time period during which the lender has guaranteed an interest rate to a borrower.

Marketable Title
A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.

Mortgage Commitment
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.

Mortgage Insurance
A contract that insures the lender against loss caused by a mortgagor's default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency such as the Federal Housing Administration (FHA). Not to be confused with Mortgage Life Insurance.

Mortgage Insurance Premium
The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions.

Mortgage Life Insurance
A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds.

Mortgage Note
A written agreement to repay a loan. The agreement is secured by a mortgage or deed of trust, and serves as proof of the indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.

The Lender in a mortgage agreement.

The borrower in a mortgage agreement.

A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

Notice of Default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Origination Fee
A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is one percent of the mortgage amount.

Sometimes called discount points. A point is one percent of the amount of the mortgage loan.

Power of Attorney
A legal document that authorizes another person to act on one's behalf.

Any amount which is paid by a borrower to reduce the principal balance of a loan before the date in which it becomes due.

A determination by the borrower's lender regarding whether the borrower will be eligible to borrow before he or she is actually applies for a loan.

The process of the same mortgagor paying off one loan with the proceeds from another loan.

Restrictive Covenants
When Atlantic Title Company searches the Land Records we will determine if there are any private restrictions limiting the use of the property. These covenants are created by deed and may be binding on all subsequent purchasers of the land, or may be personal and binding only between the original seller and buyer. Restrictive covenants may regulate size, style, use or price range of buildings to be erected.

The property that will be used as collateral for a loan.

Subordinate Financing
A mortgage or lien that has a priority that is lower than that of the first mortgage.

A drawing or plat made by a licensed surveyor depicting the legal boundaries of a property, and locating the house and its improvements, as well as easements and building restriction lines. A survey is usually required by the lender to assure the lender that the property is within the property lines.

Tenancy by the Entireties
A type of joint ownership of property that provides a right of survivorship and is only available to a husband and wife.

Tenants in Common
A type of joint tenancy in a property without a right of survivorship.

Title Insurance
Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against legal defects in the property.

Title Search
A review of the title records at the county courthouse where the property is located to ensure that the seller can convey marketable title to the buyer.

Truth in Lending
The disclosure, in writing, of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.

The process taken by the lender in evaluating the borrowers loan application to determine the risk involved for the lender. This process usually involves the lender ordering a credit report on the borrower to determine their credit worthiness.

Precise Title, Inc.
201 Sixth Ave.
Indialantic, FL 32903

Website hosted & maintained by