Archives: Glossary Terms

A right that an owner or another person holding a right, such as a tenant, has to control, take custody of and use property.

A written instrument whereby a principal authorizes an agent who is sometimes called an attorney in fact to perform specified acts on his or her behalf.

The power that an instrument such as a trust deed grants to a trustee or mortgagee to sell the secured property without judicial proceedings if a borrower defaults in payment of the promissory note or otherwise breaches the terms of the mortgage or trust deed.

A lending practice whereby a borrower can demonstrate to a seller and broker that they can qualify for an identified loan amount which permits a prospective buyers to shop with condidence that a loan will be approved.

A rehearsal of the closing whereby instruments are prepared and signed by some or all parties to the contract which is used when a closing is expected to be complicated.

A report used as a basis for title insurance on the quality of the title which searches the public land records to determine the extent to which someone has legal interest in a parcel and also for encumbrances and liens or any other items of record that might affect ownership.

An estate of land and its improvement often the subject matter of a conveyance.

The interest paid before it has accrued or due, or paid before the funds are available to the borrower.

A loan payment that is greater than the amount due or in advance of the due date.

A clause in a loan contract that gives a borrower the right to make loan payments that are greater than the amount due or in advance of the due date.