P

PITI
Abbreviation for principal, interest, taxes and insurance, all of which are lumped together in your

monthly mortgage payment.

Prepayment
Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. The Federal Housing Administration does not permit such restrictions in FHA insured mortgages.

Principal
The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.
 

Q

Quitclaim Deed
A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has. (See deed.)
 

R

Real Estate Broker
A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission  basis. The broker does not have title to the property, but generally represents the owner.
 

Recording

The act of entering documents affecting or conveying interests in real estate in the recorder's office established in each county. Until it is recorded, a deed or mortgage generally is not effective against subsequent purchasers or mortgages.

Refinancing
The process of the same mortgagor paying off one loan with the proceeds from another loan.

S

Survey

The process by which boundaries are measured and land areas are determined; the onsite measurement of lot lines, dimensions and disposition of a house on a lot, including the determination of any existing encroachments or easements.

T

Title
As generally used, the rights of ownership and possession of particular property. In real estate usage, title  may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate.

Title Insurance
Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to a "mortgagee's title policy." Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an "owner's title policy", if he desires the protection of title insurance.
 

Title Search or Examination
A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.
 

Title Report

An examination of the public records to determine what, if any, defects in the chain of title.

Trustee
A party who is given legal responsibility to hold property in the best interest of or "for the benefit of"

another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. (See deed of trust.)

U, V, W, X, Y, Z