Protecting Pennsylvania Property Since 1984
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| Abstract (of title) - A history of all transactions shown in the public records affecting a particular tract of land. |
Acceleration clause - A provision in a promissory note that specifies conditions under which the lender may advance the time when the entire debt which is secured by the mortgage becomes due. |
Accommodator - Same as intermediary, accommodator or facilitator. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules. |
Acknowledgment - A formal declaration before an authorized officer (usually a notary public) by a person who has signed an instrument that such signing is the individual’s act. |
Adjustable Rate Mortgage (ARM) - Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. See also graduated payment mortgage. |
Adjusted Basis - The cost of the property adjusted for any capital improvements or depreciation. To calculate the adjusted basis, take the basis (the cost of the property) and add the cost of any capital improvements made to the property during the taxpayer's ownership, and subtract any depreciation taken on the property during the same period. |
Administrator - A person appointed by a court to take possession of the property of a person who died without leaving a will, to pay debts and to distribute the property to those entitled to it according to law. |
Adverse possession - The possession, by one party, of land belonging to another in a manner deemed adverse to the interest of the record owner. |
Affiant - One who swears to or affirms the statement in an affidavit. |
Affidavit - A written statement made under oath before a notary public or other judicial officer. |
Affirmative coverage - Provisions in title insurance policies by which the insurer agrees to indemnify against loss due to specific risks generally not covered by policies. |
Agreement - A legally binding contract made between two or more persons. |
"Alderson" Simultaneous Exchange (1963) - This method of completing the transaction utilizes the cash buyer (Party C) of the relinquished property as the accommodator. On the day of closing, C will buy the replacement property from B with cash. B has what they want (cash), however, C does not want the replacement property; C wants the relinquished property. Here, Party A exchanges the relinquished property with C for the replacement property. |
All-inclusive rate - A premium for title insurance that includes the cost of title search and title examination, as well as the risk premium. In some localities, title insurance is priced with an all-inclusive rate, in others, the policy is priced with a risk rate, and the cost of search and examination is separately priced. |
ALTA (American Land Title Association) - The trade association of the title insurance industry, which has adopted certain insurance policy forms to standardize coverage on a national basis. |
Amortization (amortize) - Reduction of the principal of a debt in regular, periodic installments. |
Appraisal - A report from an independent third party detailing the estimated value of real estate. |
Approved attorney - An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the preparation of title insurance policies. |
Appurtenance - A right or privilege that is attached to another property and is conveyed with it. See also easement and encroachment. |
Assessed valuation - The valuation placed upon land for purposes of taxation. |
Assessment - The valuation of real estate for the purpose of taxes or special improvement charges. Special improvement charges are usually for the costs of streets, sidewalks, sewers, etc. |
Assignment - The act of transferring certain interests in real estate from one party to another, like a mortgage or leasehold interest. |
Assumption of mortgage - An obligation undertaken by a new purchaser of land to be liable for payment of an existing note secured by a mortgage. |
Attorney in fact - A person who holds a power of attorney from another to execute specified documents on behalf of the seller of the power. |
Attorney’s opinion - A statement by an attorney as to the validity of a title, arrived at after investigation of the history of the title as recorded in the public records. |
