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Understanding the language of Title & Escrow( part 4)

By
Title Insurance with Stewart Title of California

Legal Description:

A description by which property can be definitely

located by reference to surveys or recorded maps. Sometimes referred to

simply as the legal.

Lien:

A recorded document which claims an interest in real property as

security for a debt owed. Such liability may be created by contract, such as

a deed of trust, or by a court judgement.

Lis Pendens

: Legal notice that a lawsuit is pending. Also called a notice of

action.

Loan-to-Value Ratio:

The ratio of the mortgage loan's principal to the

property's appraised value or its sales price, whichever is lower.

Marketable Title:

Title which is free from defects which would allow a

purchaser to be released from his obligation to purchase.

Market Value:

An appraisal term denoting the highest price that a buyer,

willing but not compelled to buy, would pay, and the lowest a seller, willing

but not compelled to sell, would accept.

Mechanic's Lien:

A lien on real estate which secures the payment of debts

due to persons who perform labor or services or furnish materials incident

to the construction of buildings and improvement on real estate.

Metes and Bounds:

A form of land description in which boundaries are

described by courses, directions, distances and monuments.

Mortgage:

A legal document used to secure the performance of an

obligation.

Notarization:

The certification by a Notary Public that a person signing a

document has been properly identified. Notarization does not certify the

content of a document, only validity of signature.

Perfecting Title:

Process involving the elimination of any adverse claims

against a title.

PITI:

Refers to principal, interest, taxes and insurance, the four major

components of a usual monthly mortgage payment.