Question Answer
A condensed history of the title to a property, consisting of a summary of the original grant and all subsequent conveyances and encumbrances relating to the particular parcel of real estate Abstract of title
Expresss information or fact: that which is known: direct knowledge Actual notice
A estimate of value. An appraisal of real property value is based on a comparsion of real estate prices as well as the current market for real estate Appraisal
All things of value owned by a person or corporation, whether encumbered or not Assets
An opinion of real estate vaulu commissioned by a bank or attorney and provided by a broker Broker price opinion (BPO)
The rate of return, based on purchase price, that would attract capital Capitalization rate
A final account of all costs of a mortgage loan: it replaces the HUD-I Settlement Statement Closing Disclosure
Any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim dead or suit to quiet title Cloud on the title
Notice given to the world by recorded documents Constructive notice
The process of appraising the value of a property by adding to the esitmated value of the land the appraiser's calcutions of the replacement cost of the building, less depreciation. Cost approach
A itemization of the status of an individual's credit history Credit report
An objective method of assessing credit risk based on the statistical probability of debt repayment. Credit score
In appraisal, the loss of value due to physical deterioration, functional obsolescence, or economic obsolescence. In accounting, the allowable deduction for the recapture of the investment. Depreciation
The process of estimating the value of a property by examining and comparing actual sales of comparable properties. Direct sales comparison approach
Appraiser only observes exterior of the property, with no interior inspection Drive-by apprasial
System for determining credit score developed by Fair, Isaac & Company. FICO
A standardized form listing all of an applicant's assets and liabilities. financial statement
The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value gross rent multiplier (GRM)
A process of estimating the value of an income-producing property by capitalization of its net operating income Income Approach
Debt incurred Liabilities
the required disclosure of all costs of obtaining a mortgage loan; it replaces the GFE and TILA Loan Estimate
The highest price for which a property would sell, assuming a reasonable time for the sale and knowledgable buyer and seller acting without duress Market Value
Assets less liabilities Net worth
the final step in the appraisal process, in which the appraiser combines the estimates of value received fro the sales comparison, cost, and income approaches to arrive at a final estimate of market value for the subject property Reconciliation
A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title Suit to quiet title
The process by which boundaries are measured and land areas are determined; the on site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachment or easements. Survey
A policy insuring an owner or mortgage agaist loss by reason of defects in the title to a parcel of real estate Title insurance
A search of public records to determine all interests in the property Title report
Includes the state as guarantor of the title in case of a claim. Torrens Certificate
combines information from Experian, Equifax, and Trans-Union; required by most lenders tri-merge credit report
The process of evaluating borrower credit, collateral value, and the risks involved in the making a loan. Underwriting
When its power to purchase other objects defines a property's value Value in exchange
Value on use

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