sale-leaseback
A real estate transaction in which the buyer leases back the property to the seller for a specific period of time. Also called seller rent-back.
second mortgage
A mortgage that has a lien position subordinate to the first mortgage.
secondary market
The buying and selling of existing mortgages.
secured loan
A loan that is backed by collateral.
security
The property that will be pledged as collateral for a loan.
seller carry-back
An agreement in which the seller provides financing for a home purchase.
servicing
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
settlement statement
Form used by the settlement agent to itemize all charges for a real estate transaction. It gives each party a complete list of their incoming and outgoing funds. Also known as a HUD-1 Form.
subdivision
The process in which the owner of a large piece of property divides it into smaller parcels.
subordinate financing
A second mortgage on a property that is not paid off when the first
mortgage is refinanced. The second mortgage lender must allow subordination of the second to the new
first mortgage.
survey
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
sweat equity
The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.
tenancy in common
With tenancy in common, each owner (called a "tenant") has an undivided interest in the possession of the property. Each tenant’s interest is salable and transferable. Each tenant can convey his interest by deed, mortgage or by a will. Joint ownership is presumed tenants in common if nothing further is stated on the deed.
third-party origination
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.
title
A legal document evidencing a person's right to or ownership of a property.
title company
A company that specializes in examining and insuring titles to real estate.
title insurance
An insurance policy that protects against losses arising from title defects such as forged or misfiled documents.
title search
A title search is a close examination of all public records that involve title to a specific property. The search is conducted to verify that there are no liens or other claims against the property (other than those scheduled to be erased at closing if done for a purchase). Performed by an attorney in New Hampshire.
transfer of ownership
Any means by which the ownership of a property changes hands.
transfer tax
State or local tax payable when title passes from one property owner to another.
Treasury index
An index used to determine interest rate changes for adjustable rate mortgages.
Truth-in-Lending
A requirement that lenders fully disclose credit terms and conditions, the annual percentage rate and other mortgage financing charges in writing to the borrower within three business days of application.
two-step mortgage
An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.
trustee
A fiduciary who holds or controls property for the benefit of another.
under improved land
A piece of land which has been improved, but not to the full extent of its potential.
unencumbered property
Any property which has no outstanding claims or liens against it.
Uniform Standards of Professional Appraisal Practice (USPAP)
Developed in 1986 by the Ad Hoc Committee on Uniform Standards and copyrighted in 1987 by The Appraisal Foundation, USPAP forms the guidelines followed by every licensed and certified real estate appraiser in the United States. The purpose of these Standards is to establish requirements for professional appraisal practice, which includes appraisal, appraisal review, and appraisal consulting. The intent of these Standards is to promote and maintain a high level of public trust in professional appraisal practice.
Useful Life
The span of time over which a property can be used or can provide benefits to its owner.
