Mortgage: A legal document that provides security for repayment of a promissory note.
Mortgagee's Title Policy: Required by lender to ensure that lender has a valid lien. It does not protect the buyer. Also required for second mortgages.
Owner's Title Policy: Insures the buyer against loss due to any defect in the title not excepted to or excluded from the policy.
Points: Payed by the buyer or seller. One point is equal to one percent of the loan amount.
Principal: The employer of an agent in an agency relationship.
Recording Fee: Charged by the County Clerk to record documents in the public records. Charges are based on the number of pages recorded.
Seller Agency: See TREC Disclosure Form "If the Broker Represents the Owner"
Septic Well Inspection: The septic system must have a certificate by the city or county Health Department.
Survey: Survey of property required by lender; shows lot size, easements, any encroachments, locations of improvements, etc.
Tax Certificate: Charged by taxing authorities to present certification showing that the current year's taxes were paid.
Tax Service Fee: Required by the lender for collection and disbursement of tax escrow by a servicing company. Termite Inspection: Required by the lender to show property free and clear of active termites.
Time Is Of The Essence: Demands punctual performance in a binding contract.
Title Policy: Insurance policy on the ownership of real property against defects in title.
Title: In dealing with Real Property, "title" means ownership.
Underwriting Fee: Charge by a lender to underwrite the loan.
VA Funding Fee: Veteran's Administration fee for originating a VA loan.
Warehouse Fee: Charged by the lender to hold the loan locally before selling it in the secondary mortgage to an investor.
Zoning: Act of city authorities specifying type of use for which property may be used.