Archives: Glossary Terms

The “to have and to hold” clause which may be found in a deed that describes the extent of the interest conveyed such as fee or life estate which is no longer an essential part of a deed

The ability to live in according to the interpretations of the courts which is broader than “tenantability” which complies with the Civil Code.

A room in a home that contains a toilet and sink but no facilities such as a bathtub or shower stall.

Direct costs.

The cash including the cash proceeds from a loan as distinguished from credit extended by a seller. See Soft money.

A debt that is taken on in exchange for cash.

A form of insurance that protects against certain risks such as from fires or storms.

A type of contaminant regulated under CERCLA.

A title defect that is not apparent for an examination of the public records

A home equity refinancing loan typically at 125% of the market value of a home which makes it inherently high-risk and reserved for only the lowest-risk borrowers since a portion of the loan is unsecured and where the lender is gambling on the borrower’s integrity. Example: When the Dawsons refinanced their old $90,000 mortgage, they were able to get a high loan-to-value loan of $125,000, despite the fact that their home was worth only $100,000. They used the $35,000 cash proceeds of the transaction (minus transaction costs) to remodel and retire other existing debts