Mortgage Terms

Mortgage Terms Dictionary

Labor Lien Legal Term is a legal document filed and recorded
against a piece of property. This lien is normally filed by a
subcontractor that has provided labor for a project but has not
been paid.
Contract Legal Term is a legally binding
agreement (oral or written) between two or more
persons regarding an exchange of some sort. A
legally binding contract must include consideration
passing between the parties, an intention on the
part of all parties to be bound to the contract, a
meeting of the minds of the parties as to the
contents of the contract, and an element of clarity
such that the terms of the contract may be
interpreted, understood and enforced by a court
Title Insurance Legal Term policies typically insure a home
buyer against any title-search errors or mistakes, and against loss
due to disputes over property ownership. Title Insurance can
additionally offer protection to the lender under similar
circumstances. The cost of title insurance is usually a set value
per thousand of dollars of the total loan amount.
General Contractor Legal Term is a person or company that
enters into a contract with the owner of a project for the
construction and who takes full responsibility for its completion,
although the contractor may enter into subcontracts with others
for the performance of specific parts or phases of the project
Covenants Legal Term is a written agreement between two or
more parties in which a party or parties pledge to perform or not
perform specified acts with regard to property; usually found in
such real estate documents as deeds, mortgages, leases and
contracts for deed.
Easement Legal Term
The right of the owner of one parcel of land to
use all or part of the land of another for a
specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys
the benefit of the easement) and one property to
be in servient position (is subject to the right).
Cost Plus Legal Term is a term referring to how the contractor will
be compensated for his work. In a cost plus contract the contractor
is paid for the material and labor costs plus a flat fee or a
percentage of the total cost.
Legal
Legal Terms
Bankruptcy Legal Term
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
Closing Statement Legal Term
A document which sets out the financial agreement between the
parties, the costs each must pay, and all other similar information
regarding a transaction (may be joint or separate for each party).
Easement Legal Term
The right of the owner of one parcel of land to use all or part of the
land of another for a specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys the benefit of the
easement) and one property to be in servient position (is subject to
the right).
Encroachment Legal Term
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
Free and Clear Legal Term
A description of title to property which is
unencumbered and subject to no competing
claims.
First Lien Legal Term
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
Legal Description Legal Term
A description of a piece of real estate that is
drafted according to legal requirements and
which clearly and adequately establishes the
identity of the property so described. Found in
most instruments for registration on title to land.
Escrow Legal Term
Escrow is usually money held in trust by a third party to be turned over
to the grantee only upon fulfillment of a condition. This could be
proceeds from a loan closing that would be held in escrow until a
particular condition is met.
Encroachment Legal Term
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
Closing Statement Legal Term
A document which sets out the financial
agreement between the parties, the costs each
must pay, and all other similar information
regarding a transaction (may be joint or
separate for each party).
Bankruptcy Legal Term
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
Free and Clear Legal Term
A description of title to property which is
unencumbered and subject to no competing
claims.
First Lien Legal Term
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
Hazard Insurance Legal Term
A type of insurance designed to cover damage
caused by a peril specified in the policy of
insurance (i.e. fire, flood, etc.).
Legal Description Legal Term
A description of a piece of real estate that is drafted according to legal
requirements and which clearly and adequately establishes the
identity of the property so described. Found in most instruments for
registration on title to land.
Homeowners Insurance Legal Term
Liability coverage for property owners
covering both loss/damage to property or
dwelling and personal liability.
Legal Documents Draft legal documents and have them shipped very easily at one low, fixed price
Category Construction Glossary