Glossary for real estate investors
Terms are defined as they are commonly understood in the mortgage and real estate industry. The same terms may have different meanings in other contexts. The definitions are intentionally general, nontechnical, and short.
State laws, as well as custom and use in various states or regions of the country, may in fact modify or completely change the meanings of certain terms. Before signing any documents or depositing any money preparatory to entering into a real estate contract, purchasers should consult with an attorney to ensure that their rights are properly protected.
Abstract of title
A summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects that must be cleared before a buyer can purchase clear, marketable, and insurable title.
Condition in a mortgage that may require the balance of the loan to become due immediately in the event regular mortgage payments are not made or other conditions of the mortgage are not met.