Archives: Glossary Terms

An agreement where money is held by a third party to be delivered to a seller of real estate upon the receipt of the deed to the property sold..

A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it.

A deed of trust is a special kind of deed that is recorded in public records, where it tells everyone that there is a lien on your property. It is used in place of a mortgage.

A deed of trust involves three parties. You as the debtor/mortgagor, the lender as the beneficiary, and a neutral third party as the trustee, who you can think of as someone who holds temporary (but not full) title until the lien is paid.

The deed of trust is canceled when the debt is paid. Until then, the trustee has the power to foreclose if the debt is not paid, without going through the court system, making it easier and quicker than foreclosing on a mortgage.

The limitations in the deed to a property that dictate specific ways that a property must or must not be used.

The failure to fulfill a duty or promise or to discharge an obligation or the failure or omission to perform an act.

A court order resulting from the failure of a defendant to answer a complaint in a lawsuit.

A clause in a mortgage that gives the mortgagor the right to redeem his or her property upon the payment of the mortgagor’s obligations to the mortgagee.

A title which would be impaired if an outstanding claim proved to be valid.

The imperfections that cast a reasonable doubt on the marketability of a title.

A transfer of authority by one party to another