Title Insurance and Closing Services Since 1954
The Real Estate Industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. Wayne County Title Agency, Inc. has compiled the following Definition of Terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
The voluntary and intentional relinquishment of a known right, claim or privilege.
See Lien waiver.
A legal, binding, promise, given at the time of a sale, whereby the seller gives the buyer certain assurances as to the condition of the property being sold.
A deed in which the grantor warrants or guarantees that the property conveyed is free of encumbrances, that the grantor is lawfully seized of the fee simple title, has a good right to sell the property and that the grantor will defend the property against the lawful claims of all persons.
A written expression of the desire of a person as to the disposition of that person’s property after death. Must follow certain procedures to be valid.
A mortgage which secures a debt which includes the balance due on an existing senior mortgage and an additional amount advanced by the wraparound mortgagee. The wraparound mortgagee thereafter makes the amortizing payments on the senior mortgage. An example: A landowner has a mortgage securing a debt with an outstanding balance of $2,000,000. A lender now advances the same mortgagor a new $1,000,000 and undertakes to make the remaining payments due on the $2,000,000 debt. A $3,000,000 wraparound mortgage on the land is taken to secure this new $3,000,000 wraparound note.