Real Estate Glossary

The mortgage insurance premium collected by the FHA for insuring the mortgage.

A mandate, procuration, or letter of attorney is an act by which one person gives power to another to transact for him and in his name, one or several affairs.

The price a property brings in a given market.

The highest price a ready, willing and able buyer, not forced to buy, will pay to a ready, willing and able seller, not forced to sell, allowing a reasonable time for exposure in the open market.

Title free and clear of objectionable encumbrances; title which is free from reasonable doubts or defects, which can be readily sold or mortgaged.

A lien which exists against real property in favor of persons who have performed work or furnished materials for the improvement of real estate.

The absorption of one estate into another.

A method of describing or locating real property; metes are measures of length and bounds are boundaries; a description starting with a well-marked point of beginning and following the boundaries of the land until it returns once more to the point of beginning.

A linear measurement of distance equal to 1,760 yards, or 5,280 feet, or 1,608 meters.

One-tenth of one cent. Used in some states to compute property taxes.

The rights of ownership of all minerals appearing in solid state beneath the surface of land to which one has title and the exclusive right to explore and develop the property for the production of fugitive or liquid state minerals and to reduce them to possession, hence ownership. May be reserved for 10 years in Louisiana unless activity occurs.

A person who is under the legal age of competence; under 18 years of age.

A crime of lesser consequences than a felony which is subject to minor jail terms, fines, or both.

A false statement made with the intent to induce some action by another party.

Errors regarding the facts of a contract.

Errors regarding the legal implications of the facts of a contract.

A fixed object and point established by surveyors to establish land locations; includes not only artificial objects such as posts and fences, but natural objects such as trees, mountains and water courses.

An instrument in writing which, when recorded, creates a lien upon property pledged as security for the repayment of a debt or obligation.

A corporation or firm which makes, delivers, and services mortgage loans.

A person or firm which acts as an intermediary between borrower and lender.

A private corporation specializing in buying and selling mortgages; "Maggie Mae".

The party who lends money and accepts a mortgage to secure the payment of the debt.

The party who borrows money and gives a mortgage on the property as security for his obligation to repay the debt.

Donations mortis causa refer to donations of disposable property by a legal will in any form. Must not impinge upon the legitime of forced heirs.

An arrangement among brokers whereby they share their listings.