Abstract of Title Condensed history of a title to a particular parcel of real estate, consisting of  a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. Acceleration Clause the clause in a mortgage or deed of […]

Capital the money and or property comprising the wealth owned or used by a person or enterprise Capital Gain the taxable profit derived from the sale o a capital asset.  The capital gain is the difference between the sales price and the basis of the property after making appropriate adjustments for closing cost, capital improvement, […]

Debt Coverage Ratio the ratio of annual net income to annual debt service. Debt Service the amount of money needed to meet the periodic payments of principal and interest on a loan or debt that is being amortized. Debt to Equity Ratio the relationship of the total loan owed to the lender and the invested […]

Habendum Clause is the part of the deed beginning with the words “to have and to hold,” following the granting clause and defining the extent of ownership the grantor is conveying Heir is a person who inherits under a will or a person who succeeds to an interest under the state laws of descent if […]

Facilitator a real estate broker who assists a buyer and seller in reaching an agreement in a real estate transaction but does not have an agency relationship with that party. Fair Housing Act the federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, or familial status, and national origin. Fair […]

Walk Through is a final inspection of a property right before closing. Warranty is a promise that certain stated facts are true. Warranty Deed is a deed in which the grantor fully warrants good clear title to the premises, also called a general warranty deed. Water Rights are common law rights of owners of land […]