Common Real Estate Terms & Mortgage Terms Explained - Part 12

More definitions for commonly used real estate terms and mortgage terms:

Title
The actual legal document conferring ownership of a piece of real estate.

Title Company
Companies that ensure that the title to a piece of property is clear and provide title insurance.

Title Insurance
This is paid at closing and is to protect your ownership rights (title) from claims against it. Title insurance may be the responsibility of the buyer, the seller, or both, depending on where you live and what is the norm.

Waiver
A voluntary relinquishing of certain rights or claims.

Warranty
Covers either most of the house in a new home. In an older home a warranty may cover selected items such as the water heating or air conditioning/heating system. Warranties can vary widely and are optional in used homes (paid for by either the buyer or the seller).

Wraparound mortgage
A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.

Zoning
Laws that govern specifically how a zoned area can be used. For example, an area may be zoned for single family residential, condominiums, commerical or retail, or a mix of two or more uses.

Zoning Variance
A one-time modification of existing zoning law.