Archives: Glossary Terms

The municipal ordinances that establish subdivision and development requirements.

The property under consideration and being appraised.

See Subject to mortgage.

To execute a lease by a lessee to a third party that conveys his or her estate to a “sub” estate for part or all of the lessee’s remaining term.

The leasing of a premise by a lessee to a third party for part or all of the lessee’s remaining term. See Assignment.

An agreement by the holder of an encumbrance against real property to permit his or her claim to take an inferior position to other encumbrances against the property often such as with construction loans.

A clause in a first trust deed that permits it to be subordinated to subsequent liens such as construction loan liens and sometimes in a junior or a second lien permitting it to hold priority over prior liens.

A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. Although the additional percentage may seem small, for mortgages and other large loans, this translates to thousands of dollars worth of additional interest payments.

The replacing or substituting of one person with another in regard to a legal right or obligation such as in place of the creditor to whose rights he or she succeeds in relation to the debt. The doctrine is used when one person agrees to stand to guarantee another person’s performance of a contract or the payment of an insurance contract claim.

The housing for low- and moderate-income families in which rentals are paid in part by the government or in which the government pays a portion of the developer’s loan interest costs so that he or she can charge lower rentals.