Annual Percentage Rate (APR) : An expression of the percentage relationship of the total finance charges to the total amount to be financed, as required under the federal Truth-in-Lending Act.

Appraisal : An opinion of the value of property resulting from an analysis of facts affecting market value.

Assumable : A mortgage loan which can be transferred to another person without a change in the terms of the loan.

Bill of Sale : An instrument by which title personal property is transferred or conveyed.

Bona Fide Purchaser (BFP) : One who buys property in good faith, for fair value, and without notice of any adverse claim or right of third parties.

Broker : A person licensed to act as an agent for another in negotiating the sale or purchase or real property in return for a fee or commission.

Chain of Title : A chronological list of recorded instruments tracing title to land, from the original owner to the present owner.

Clear Title : Title to property which is free from liens, defects or other encumbrances.

Closing : The process of completing a real estate transaction during which the seller delivers title to the buyer in exchange for payment of the purchase price. Called a "settlement" in some areas.

Closing Costs : Expenses, beyond the selling price, such as loan fees, title fees, etc. Paid when documents are executed and/or recorded and the sale is complete.

Closing Statement : A summary, in the form of a balance sheet, showing the amounts of debits and credits to which each party to a real estate transaction is entitled upon closing.

Commission : Compensation due a real estate broker for acting on behalf of the principal.

Documentary Transfer Tax : The tax, based on sales price, less loans which are being assumed, which is charged by the county and/or state on the transfer of real property.

Earnest Money : The cash deposit paid by a prospective buyer as evidence of good faith to bind a sale of real estate.

Escrow : The process in which a disinterested third party holds money and documents for delivery to the respective parties in a transaction on performance of established conditions.

Grantee : One to whom a grant is made. The purchaser of real property.

Grantor : One who has made a grant. The seller of real property

Marketable Title : Title which is free from defects which would allow a purchaser to be released from his obligation to purchase.

Mortgage : A legal document used to secure the performance of an obligation.

PITI : Refers to principle, interest, taxes and insurance, the four major components of a usual monthly mortgage payment.

Recordation : Involves filing for record in the office of the county recorder for the purpose of giving constructive notice of title, claim or interest in real property.

Statement of Information : A confidential information statement completed by the buyer, seller and borrower in every transaction where a policy or policies of title insurance are requested. Allows the title company to competently search documents affecting the property to be insured, documents which may not refer to said property. Allows title companies to differentiate between parties with similar names when searching matters such as liens and court decrees.

Unmarketable Title : Title which contains defects that would allow a purchaser to be released from his obligation to purchase.

Vesting : Denotes the manner in which title is held. Examples of common vestings are: Joint Tenants with Full Rights of Survivorship,Tenancy by the Entirety, Joint Tenancy and Tenants in Common.