Category: Glossary

Alienation Clause | A term of a mortgage which requires that the borrower pay in full the principal and interest due upon the sale of the property. ( See Acceleration or Due-on-Sale Clause)

Alienation | The transfer of property from one person to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.

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.

Agent | A licensed representative of the state to conduct real estate transactions.

Adjustable Rate Mortgage (Arm) | A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.

Addendum | Any addition or change to a contract.

Accrued | On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.

Acceptance | The written approval made by the seller from a buyer’s offer.

Acceleration Clause | The clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.

Abstract Plant | A collection of information and documents relating to title of a particular property. Also known as “title plant”.