AFFIDAVIT: A sworn, notarized statement that’s signed by the affiant before witnesses.
AGREEMENT OF SALE: Also known as an agreement to convey. A signed, written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) under certain specific terms and conditions.
ALIENATION: The transfer of an interest in or title to property to another.
ALL-INCLUSIVE DEED OF TRUST (AITD): A junior trust deed that includes in its balance the amounts of the senior included trust deeds. Interest is charged on the over-all total of the AITD, invariably at a higher rate than that charged on the included trust deeds. The interest rate differential accrues to the benefit of the beneficiary of the AITD, boosting the effective yield on their equity in the all-inclusive. Also known as a “wrap-around”, or over-riding T.D.
ALTA: Refers to a type of title insurance adopted by the American Land Title Insurance Association and is used nationwide. It usually refers to a loan policy, but can also insure an owner.
AMORTIZATION: The gradual repayment of a debt in a series of equal periodic amounts until the total debt, including interest, is paid in full. Senior loans are typically amortized over 30 years, whereas junior loans are generally amortized over a much shorter time period.
APPRAISAL: Statement of value as of a certain date. It is commonly prepared by a licensed and/or credentialed expert who has complied with the training requirements of the state and/or one of several recognized appraisal institutes.
APPRECIATION: Increase in value or worth. The difference between the increased value of property and the original sales price.
ARREARS: Generally, being overdue in an installment payment.
ASSESSMENT: A bonded tax imposed to pay for public improvements (e.g. street/alley paving, curbs, sidewalks, etc.) beneficial to a limited area . Paid semi-annually over a 10 year period to the Bond Division of the city or county treasurer’s office where the property is located.
ASSIGNEE: One to whom a transfer of an interest is made (i.e. assignee of a deed of trust).
ASSIGNMENT: Written document by which property, other than real property, is transferred from one person to another. Assignment of mortgage, assignment of deed of trust, assignment of lease, assignment of rentals, etc. are common assignments. The “”assignee”” receives the property assigned.
ASSIGNMENT OF RENTS CLAUSE: An additional clause in a deed of trust wherein the trustor agrees to let the beneficiary collect the rents generated by the secured property in the event of a foreclosure action. Actually accomplished by getting a court appointed receiver installed.
ASSIGNOR: One who transfers property by assignment.
ASSUMPTION OF MORTGAGE: A formal agreement with a lender in which a new property owner agrees to be personally liable for the repayment of a pre-existing lien. Generally entails paying the lender an assumption fee and sometimes a higher interest rate. Doesn’t release the original borrower from further liability unless the agreement specifically provides for it.
ATTACHMENT: The seizing (by a Sheriff or other authorized officer) of property belonging to the defendant as security for any judgment the plaintiff may get in a court action.
ATTORNEY-IN-FACT: An agent authorized to act for another. Commonly evidenced by a recorded Power of Attorney. Holder of the power can exercise it only as long as it has not been revoked and the grantor remains alive and competent enough to act on their own behalf if need be.