Robert Farnsworth

Abstract of title A condensed history or summary of all transactions affecting a particular tract of land.
Acceleration Clause Allows a loan to become due and payable immediately if certain requirements are not met, such as making payments, maintaining the physical condition of the property or paying the taxes and insurance.
Acre Tracts of land 208.71 feet square containing 43,560 square feet of land.
Administrator A person appointed by a probate court to settle the affairs of a person that died without a will.
Affidavit A sworn statement in writing.
Agency An agreement between two parties wherein the principal is contracting for the services of the other person to represent him.
Agent A person or company that has the right to act on behalf of another, e.g. a tile agent etc.
Alta Policy The lender's title insurance policy, which offers coverage in the amount of the loan, and includes a site visit to discover, unrecorded encumbrances.
Appurtenance Anything so annexed to land or used with it that will pass with conveyance of the land.
ARM An adjustable - variable rate mortgage.
Assessed Value A percentage of the appraised value as determined by law, upon which the tax rate will be levied to determine the property tax.
Assessment The imposition of a tax charged or levied.
Assessor An official who evaluates property for taxation.
Assignee One to whom a transfer of interest is made.
Assignor One who makes an assignment.
Assumable Mortgage A mortgage that allows a new owner to takeover its obligations per it's terms.
Balloon Payments Payments larger than the regular payment. These payments are often made at the end of the loan, retiring the loan early; but large payments can be made other times during the loan.
Beneficiary The legal term given to one who accepts property as security for a debt or loan when a Trust Deed and Note have been used as the security documents.
Buy Down A financing technique in which a borrower is able to obtain a lower interest rate by paying loan discount points (1 point = 1% of the loan amount) at the time the loan is closed.
Capital Gain The taxable profit derived from the sale of a capital asset, such as real property.
Capitalization Rate The ratio created when the net operating income is divided by the value of the property. It is also called the rate of return.
Chain of title A term applied to the past series of transactions & documents affecting title.
Clouded title An encumbered title.
Commitment to insure A report issued committing a title ins. Co. to insure.
Condemnation Action A legal action initiated by the government to seek the right to purchase land from a private individual through eminent domain.
Conditions A provision in a deed or will that may affect the title.
Condominium A system of ownership of units in a multi- unit structure & joint areas.
Cooperative A residential multi-unit building owned & operated for the benefit of owners.
Convenant An agreement written into deeds & other instruments promising performance of certain acts or stipulating use or non-use.
Cost Basis The price the owner paid when he originally purchased the property, sometimes referred to simply as basis.
Cost Recovery, Depreciation An income tax deduction. Though it is similar in some respects to depreciation, it is different because it is not dependent on the actual or projected physical life and salvage value of the property. The government simply allows the owner of investment property to treat the improvements as through they will waste away in 27.5 years; and, therefore, can be deducted using straight-line depreciation.
Counter Offer A response to an offer wherein the offeree changes one or more of the terms of the contract, becomes the offeror, and sends the contract back. It is simply a modification of the original offer.
Debt Service Mortgage payments on investment property.
Deed A written document by which