Archives: Glossary Terms

An interest in land that may not be fee simple ownership but one that a court will take notice of the rights of the interest holder.

The interest or value which an owner has in real property over and above any liens against it.

The increase of owner’s equity in property due to mortgage principal reduction and value appreciation.

Capital invested to gain a residual ownership interest in property.

The amount of the value or total combined worth of a property minus any debts outstanding against it. The amount of the interest may be established through: (a) cash originally put into the property called a down payment, (b) the amortization of any debt against the property or (c) any appreciation in the value of the property.

A contractual provision that parmit one or more of the parties to cancel all or part of the contract if certain events or situations do or do not materialize. Example: Mary agrees to buy Joe’s house for $100,000: the sales contract includes an escape clause that allows Mary to cancel the contract if she cannot obtain approval for a mortgage loan of $80,000 within 60 days.

An intestate condition where property reverts back to the state when no heirs are capable of inheriting the property or the heirs are unknown..

An arrangement for the deposit of instruments and/or the handling of funds with instructions with a neutral third party to carry out the provisions of the agreement or contract when the specified conditions have been met.

See Trust account.

The neutral third party who is holding something of value such as funds from a grantee or a deed from a grantor in trust for another or others until all of the conditions of the contract have been met..