Glossary of Terms
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A clause in a listing protecting the broker from having buyer and seller wait until the listing expires to make a deal, thereby avoiding the payment of commission. The clause states that if the property is sold during a specified period after the expiration of the listing (or any extension thereof) to a buyer provided during the listing period by the broker, the commission shall be paid.
A Lake Michigan waterfront town located in West Michigan. Saugatuck is know for its arts and crafts and fine dinning facilities.
SAVINGS AND LOAN ASSOCIATION
Originally an association chartered to hold savings and make real estate loans. Federally insured and regulated. Active in long term financing rather than construction loans. Recent changes in federal controls have enabled these associations to offer checking accounts, consumer loans, and other services traditionally offered by banks.
A loan secured by a mortgage or trust deed, which lien is junior (secondary) to another mortgage or trust deed.
SECONDARY MORTGAGE MARKET
The buying and selling of first mortgages of trust deeds by banks, insurance companies, and government agencies. and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (par) or above, but are usually sold at discount. The secondary mortgage market should not be confused with second mortgage.
A mortgage, which ranks after a first mortgage in priority. Properties may have two, three, or more mortgages, deeds of trust, or land contracts, as liens at the same time. Legal priority would determine whether they are called a first, second, third, etc. lien.
SEQUESTRATION. WRIT OF
The taking custody of one's property (real or personal) to force compliance with a court order.
The gaining or retaining of equity in a property by someone other than the buyer. For example: the seller retains a 25% interest in the property. This makes the buyer responsible for only 75% of the purchase price and, therefore, lowers the necessary financing by 25%. This obviously makes the property more affordable. By agreement, expenses are shared as well as any increase in value when the property is sold.
"SUBJECT TO" CLAUSE
A clause in a deed, stating that the grantee takes title "subject to" an existing mortgage. The original mortgagor is alone responsible for any deficiency, should there be foreclosure of the mortgage. Differs from an "assumption" clause, whereby the grantee "assumes" and agrees to pay the existing mortgage.
The rights (easements) to use the surface of land, including the right to drill or mine through the surface when subsurface rights are involved.
A program which allows a purchaser to do work on the property in place of all or part of the down payment and other costs of purchase.
The measurement of the boundaries of a parcel of land, its area, and sometimes its topography.
An association of individuals, formed for the purpose of carrying on some particular business venture in which the members are mutually interested.
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