by Craig E. Buck and Teri L. Anderson, Attorneys at Law
Copyright ©1997, Craig E. Buck and Teri L. Anderson All Rights Reserved.
No part of this material may be reproduced, transmitted or stored in any
manner, in any form or by any means without the express written permission
of the author. Permission is granted to reproduce and distribute this text
in its entirety with attribution to the authors and, if by electronic media,
by inclusion of a link to the URL http://members.aol.com/ReaLawBuck.
ABOUT THE AUTHORS: Craig E. Buck and Teri L. Anderson are partners in the
law firm of Buck, Anderson & Associates, P.C., specializing in real estate,
and real estate closings with offices at:
6088 D Franconia Rd. Alexandria, Va 22310 (703) 921-0809
8101 Hinson Farm Rd. Alexandria, Va. 22310 (703) 360-1100
3174 Golansky Blvd. Suite 101 Woodbridge, Va. 22192. (703) 680-0800
233 Garrisonville Rd. Stafford, Va. 22554 (540) 720-5505
E-Mail to Internet:
ReaLawBuck@AOL.com
Craig E. Buck was 1993 and 1994 Chairman of the Northern Virginia Association
of REALTORS Standard Forms Committee and is author of The Real Estate Contracts
Handbook. He was named the 1993, Affiliate of the Year by the Northern Virginia
Association of REALTORS.
Teri Anderson received the 1994, Affiliate of the Year Award from the Prince
William Association of REALTORS.
Defined words are in bold print.
Abstract - A title abstract is the notes made by a title examiner
based on his examination of the land records. These notes are a concise summary
of the transactions affecting the property. The title agency produces a Binder
from the information in the abstract.
Accretion - The buildup of land from natural forces such as wind or
water.
Acknowledgment - As a verb, the confirmation by a party executing
a legal document that this is his signature and voluntary act. This confirmation
is made to an authorized officer of the Court or notary public who signs
a statement also called an acknowledgment.
Acre - 43,560 square feet of land.
Administrator - A person appointed by the Court to settle the estate
of a person who dies without a will. The feminine form is Administratrix.
Compare, Executor.
Adverse Possession - A claim made against land titled in another person
based on open, notorious and hostile possession and use of the land to the
exclusion of the titled owner.
Amortization - The periodic principal paydown of a loan.
Approved Attorney - An attorney authorized by a title insurance company
to handle closings and render opinions on their behalf.
Appurtenance - Anything attached to the land or used with it that
will pass to the new owner on conveyance of the land.
Assignee - One who receives an assignment or transfer of rights. An
assignment of a contract transfers the right to buy property.
Assignor - The one who assigns to another person.
Assumption - Taking over a loan and becoming personally liable for
the repayment. Compare, Subject To.
Attachment - Seizure of property through Court process to repay a
debt.
Attorney in Fact - A type of agency relationship where one person
holds a Power of Attorney allowing him to execute legal documents on behalf
of another. Decisions made by the attorney in fact are binding on the
principal.
Augmented Estate - To prevent a party from purposely disinheriting
a spouse, the surviving spouse can claim a portion of the decedent's augmented
estate. The augmented estate includes property given away during life and
property sold under terms that were not bone fide and supported by
consideration.
Bankruptcy - A provision of Federal Law whereby a debtor surrenders
his assets to the Bankruptcy Court and is relieved of the future obligation
to repay his unsecured debts. A Trustee in Bankruptcy administers the assets,
selling them to pay as much of the debt as possible. If your seller is in
bankruptcy, the Trustee in Bankruptcy owns the property and is the party
to sign the contract and make decisions.
After bankruptcy, the debtor is discharged and his unsecured creditors may
not pursue further collection efforts against him. Secured creditors, those
holding deeds of trust or judgment liens, continue to be secured by the property
but they may not take other action to collect from the debtor.
Beneficiary - A person named to receive a benefit from a Trust. A
contingent beneficiary has conditions attached to this rights, usually that
someone else must die first.
Binder A title insurance binder is the written commitment of a title
insurance company to insure title to the property subject to the conditions
and exclusions shown on the binder. The binder is delivered to the lender
and the settlement attorney.
Bond - An amount of money, often posted with the Court, to guarantee
against loss as a result of a possible claim. For example, if there is a
Mechanic's Lien against the property, the owner may post a bond and the lien
is removed from the property and the parties argue over the money rather
than the property.
Building Restriction Line - A required set-back within which no building
may take place. This restriction may appear in the original plat of subdivision,
restrictive covenants or by building codes and zoning ordinances.
Caveat Emptor - Buyer beware. The buyer must inspect the property
and satisfy himself it is adequate for his needs. The seller is under no
obligation to disclose defects but may not actively conceal a known defect
or lie if asked.
Certificate of Satisfaction - A document signed by the Noteholder
and recorded in the land records evidencing release of a Deed of Trust or
other lien on the property.
Certificate of Title - A written opinion by an attorney setting forth
the status of title to the property. Certificates of title are no longer
in common use.Chain of Title - The series of transactions from Grantor to
Grantee as evidenced in the land records.
Coinsurance - When more than one insurance company shares the risk
of a particular transaction or series of transactions. Lenders may require
co-insurance on large commercial projects.Collateral - Property pledged to
secure a loan.
Condemnation - Taking of private property for a public use through
exercise of the power of Eminent Domain. The Constitution protects against
taking without fair compensation.
Condominium - A system of individual Fee Simple ownership of portions
(units) in a multi-unit structure, combined with joint ownership of common
areas. Each individual may sell or encumber his own unit. Compare,
Cooperative.
Conservator - Also called a Commitee or Guardian, a person designated
by the Court to protect and preserve the property of someone who is not able
to manage their own affairs. Examples include the mentally incompetent, minors
and incarcerated persons.
Contract for Deed - A method of financing where title remains in the
Seller's name until the Buyer has paid the full purchase price. A Contract
for Deed will normally trigger the Due on Sale Clause in a Deed of Trust
but Veterans Administration regulations specifically allow Contracts for
Deed without invoking the Due on Sale Clause.
Cooperative - A system of individual ownership of stock in a corporation
that in turn, owns the structure. Each owner has an exclusive right to use
his individual unit and must pay his portion of the debt encumbering the
entire building. Compare, Condominium.
Cotenancy - Ownership in the same land by more than one person. See,
Tenancy in Common, Joint Tenants, Tenancy by the Entireties.
Covenant - A written agreement or restriction on the use of land or
promising certain acts. Homeowner Associations often enforce restrictive
covenants governing architectural controls and maintenance responsibilities.
However, land could be subject to restrictive covenants even if there is
no homeowner's association.
Click ReaL Estate
Dictionary D-Z for the remainder of the Dictionary