In adjustable rate mortgages, the limit on how much the interest rate or monthly payment can change.
Certificate of Title
A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.
Home Buyer's written authorization to add, delete or change an item specified in a building contract.
Meeting to sign documents that transfer title from a seller to a buyer (also referred to as settlement).
Charges paid at settlement for obtaining a mortgage loan and transferring a real estate title.
The statement which lists the financial settlement between buyer and seller, and also the costs each must pay.
Cloud (on Title)
An outstanding claim or encumbrance which adversely affects the marketability of title.
Agent's fee for negotiating a real estate or loan transaction, often expressed as percentage of the sales price.
The taking of private property for public use by a government unit, against the will of the owner, but with payment of just compensation under the government's power of eminent domain. Condemnation may also be a determination by a governmental agency that a particular building is unsafe or unfit for use.
Individual ownership of a dwelling unit and an individual interest in the common areas and facilities which serve the multi-unit project.
Contract of Sale
Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a 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.
In the construction industry, a contractor is one who contracts to build homes or portions of them. There are also contractors for each phase of construction: heating, electrical, plumbing, air conditioning, road building, and others.
A mortgage loan not insured by HUD or guaranteed by the Veterans' Administration. It is subject to conditions established by the lending institution and State statutes. The mortgage rates may vary with different institutions and between States.