ABSTRACT OF TITLE:
A condensed history or summary of all transactions affecting a particular tract of land.

ACCESS:
The right to enter and leave a tract of land from a public way. Oftentimes the right to enter and leave over the lands of another. (See Egress, Ingress)

ACCRETION:
An addition to land from natural causes. The slow buildup of lands caused by natural forces such as the ocean, rivers, wind or flow of water.

ACKNOWLEDGMENT:
A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by them and that it is their free and voluntary act.

ACRE:
A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square feet, or a tract about 208.71 feet square.

ADVERSE POSSESSION:
Possession of real property which is actual, hostile, open, notorious, exclusive, uninterrupted and continuous for the prescriptive period stipulated by state law. Possessor usually has some claim or color of title, but does not have good record title.

AFFIDAVIT:
A statement or declaration reduced to writing and sworn to or affirmed before an officer who has authority to administer an oath or affirmation.

AFTER ACQUIRED TITLE:
Real property rights which are acquired by the seller of the property after title to the property has been conveyed. Example: A defect in the chain of title may impair the title held by the apparent owner of a parcel. Subsequent to that owner's conveyance by deed to another, a corrective instrument may be recorded which cures the defect, thereby conveying after acquired title to the former owner (and to the present owner, unless title was acquired by quit claim deed).

AKA:
"Also known as" - if a person has some interest in real property by one name, but also uses another name. Example: MARY JONES aka MARY HARDING JONES. ALTA: American Land Title Association. An Association of title insurers, abstractors, and attorneys specializing in real property law, with headquarters in Washington, D.C., which established standard title policies and procedures for the title insurance and abstracting industry.

ALTA TITLE POLICY (AMERICAN LAND TITLE ASSOCIATION):
A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy to include unrecorded mechanics liens; unrecorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.

AMORTIZATION:
The liquidation or gradual retirement of the financial obligation by means of systematic payments over a specific period of time. Also, recovery, over a period of time, of cost or value.

AMORTIZATION SCHEDULE:
A chart or table which sets out the amount of the payments, interest and principal, and the balance on the loan after the payment has been made.

AMORTIZED LOAN:
A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a level Payments Loan.

ANNUAL PERCENTAGE RATE (APR):
All finance charges, interest, points, and other fees computed over the term of the loan. APR must be disclosed to the borrower as a result of the Federal Government's "Truth In Lending" Laws.

APPRAISAL:
An estimate of the quality or value of property; the process by which conclusions on the value of property are obtained; also refers to the report setting forth the estimate of value together with the basis for such conclusions.

APPURTENANCE:
Improvements, rights and privileges which are not necessarily a part of the actual real property, but which are normally conveyed with the real property, i.e., buildings, rights of way, easements.

ASSESSED VALUE:
The value of real property estimated for the purpose of computing real property taxes.

ASSESSMENT:
The imposition of a tax, charge, or levy, usually according to established rates.

ASSIGNMENT:
A transfer of some right, title or interest by one person or entity (assignor) to another (assignee). Assignments of Deed of Trust, leases, options, contracts, and other items are seen in a chain of title.

ASSIGNMENT OF RENTS:
Additional security taken usually in connection with a mortgage or deed of trust which pledges any income from rent or leases in addition to the actual property.

ASSUMPTION AGREEMENT:
An agreement by one party to assume liability for payment of a debt or obligation primarily resting upon another person. Example: A buyer of real property may assume the existing mortgage previously given by the seller.

ATTORNEY IN FACT:
One who holds a power of attorney from another allowing them to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.

BASE AND MERIDIAN:
Imaginary lines used by surveyors to find and describe the location of private or public lands.

BASELINE:
Imaginary east-west lines which intersect meridians to form a starting point for the measurement of land.

BENEFICIARY:
The person who receives or is to receive the benefits resulting from certain acts; one receiving benefits, profits or advantage; one for whose benefit a trust is created, the title of which is vested in a trustee. The lender on the security of a note and deed of trust.

BONA FIDE:
In good faith, without fraud.

BROKER:
A person employed by another for a fee to carry on any of the activities listed in the license law definition of a Broker, including selling, buying, leasing or negotiating the sale of real property.

BUREAU OF LAND MANAGEMENT (BLM):
The government agency in charge of surveying and administering public lands.

CCR'S:
Abbreviation for covenants, conditions and restrictions.

CERTIFICATE OF SATISFACTION:
A certificate issued by the Clerk of the Court certifying that a judgment has been satisfied.

CERTIFICATE OF TAXES DUE:
A written statement of guaranty of the condition of the taxes on a certain real property, made by the County Treasurer of the County wherein the property is located.

CHAIN:
A unit of measurement used by surveyors. A chain consists of 100 links equal to 66 feet.

CHAIN OF TITLE:
A term applied to the past series of transactions and documents affecting the title to a particular parcel of land. A history of conveyances as far back as records are available.

CLEAR TITLE:
One which is not encumbered or burdened with defects.

CLOSING STATEMENT:
An accounting of funds made to the buyer and seller separately. Required by law to be made at the completion of every real estate transaction. Itemizes all funds received from or credited to and all payments made or debited to the party for whom the statement is prepared.

CLOUD IN TITLE:
An outstanding claim or encumbrance which, if valid, would affect or impair the title of the owner of the real property.

COLORADO ASSOCIATION OF REALTORS (CAR):
That state association of real estate sales personnel whose goal is the professional advancement of the real estate industry and whose membership is comprised of the local real estate boards.

COMMITMENT TO INSURE:
A report issued by a title insurance company, or its agent, showing the condition or the title and committing the title insurance company to issue a form policy as designated in the commitment, upon compliance with and satisfaction of requirements set forth in the commitment.

COMPARABLE SALES:
Sales prices of properties which have similar characteristics to the subject property and which are used for analysis in the appraisal process.

CONVENTIONAL MORTGAGE OR DEED OF TRUST:
A mortgage or deed of trust securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. (See Deed of Trust)

CONVEY:
The act of deeding or transferring title to another.

CONVEYANCE:
An instrument in writing by which some estate, interest, or title in real estate is transferred from one person to another, such as a deed or mortgage or deed of trust.

COMPOUND INTEREST:
Interest paid on original principal and also on the accrued and unpaid interest which has accumulated.

CONDEMNATION:
In real property law, the process by which property of a private owner is taken for public use, with just compensation to the owner, under the right of eminent domain.

CONDITIONS AND RESTRICTIONS:
A common term used to designate the uses to which land may not be put under and providing penalties for failure to comply. Commonly used by land subdividers on newly platted areas.

CONDOMINIUM:
A system of individual fee ownership of units in a multi-unit structure, combined with joint ownership of common areas of the structure and the land.

CONDOMINIUM DECLARATION:
A declaration describes condominium ownership. It commits the property to condominium development, defines the complex and the air spaces, the general common elements and limited common elements and establishes the basic rights and obligations of the owners. In addition, it provides for the creation of a management association with the authority to collect common expenses and otherwise act for the benefit of all owners. It makes it possible for the assessor to tax each unit separately.

CONSERVATOR/CONSERVATRIX:
A person appointed by the court to protect and preserve the lands and property of an individual physically incapacitated or otherwise not able to handle his/her own affairs.

CONSTRUCTION MORTGAGE OR DEED OF TRUST:
A short-term mortgage or deed of trust used to finance the building of a structure. (See Deed of Trust)

CONSTRUCTIVE NOTICE:
Often called "legal notice" the conclusive presumption that all persons have knowledge of the contents of an instrument recorded in the office of the county clerk and recorder. (See Notice)

CONTRACT:
An agreement, enforceable by law, between two or more competent persons, having for its object a legal purpose, wherein the parties agree to act in a certain manner.

CONTRACT FOR DEED:
An agreement to sell and purchase, under which title is withheld for the purchaser until such time as the required payments to the seller have been completed. Commonly referred to as an Installment Land Contract.

COOPERATIVE OWNERSHIP:
A form of apartment ownership. Ownership of share in a cooperative venture which entitles the owner to use, rent, or sell a specific apartment. The corporation usually reserves the right to approve certain actions such as sale or improvement. (Distinguish condominium ownership)

COVENANTS:
An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.

DEBTOR:
This is the party who "owns" the property which is subject to the Security Interest. Previously he/she was known as the mortgagor or the pledgor, etc.

DECREE OF FORECLOSURE:
Decree by a court in the completion of foreclosure of a mortgage, contract, deed of trust or other lien.

DEED:
A legal instrument in writing, duly executed, and delivered, whereby the owner of real property (grantor) conveys to another (grantee) some right, title or interest in real estate. A written document by which the ownership of land is transferred from one person to another.

DEED IN LIEU OF FORECLOSURE:
A deed for a debtor to a lender conveying title to real property given by the debtor as collateral to secure a mortgage or deed of trust for the benefit of the lender, on which obligation the debtor is in default. The deed is given in consideration of the lender's cancellation of the debtor's obligation in lieu of statutory or judicial foreclosure proceedings.

DEED OF TRUST:
The recorded document which secures a loan to the owner of the property. In Colorado given to the Public Trustee (second party) of the county in which the property is located for the benefit of the lender (secured party.) Similar to a mortgage.

DEED RESTRICTION:
A provision in a deed controlling or limiting the use of the land.

DELIVERY:
The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by seller. A necessary requisite to the transfer of title.

DISPOSSESS:
To deprive one of the use of real estate.

DOCUMENTARY FEE:
A Colorado state law requiring a fee of one cent for each one hundred dollars of consideration paid by the person recording an instrument of conveyance to the Clerk and Recorder.

DURABLE POWER OF ATTORNEY:
A power of attorney which is not affected by the disability of the person giving the power to his attorney in fact. (Must be specifically recited in the power of attorney.)

DURESS:
Unlawful constraint exercised upon a person whereby he is forced to do an act against his will.

EARNEST MONEY:
Advance payment of part of the purchase price to bind a contract for the sale and purchase of property. It is an evidence of good faith on the part of the purchaser.

EASEMENT:
An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or underground utilities, or crossing the property. The right to use another's land for a specific purpose such as a right of way. Created by grant or agreement for a specific purpose.

EGRESS:
The right to leave a tract of land. Often used interchangeably with access. (See access)

EMINENT DOMAIN:
The power of the state to take private property for public use upon payment of just compensation. The right of a governmental entity or other agency authorized by law to take private property for public use upon the payment or just compensation. The legal proceeding by which the government exercises this right is called "condemnation proceedings." The right of the government to do this, and the right of the private citizen to get paid, are set out in the Fifth Amendment to the United States Constitution.

ENCROACHMENT:
The intrusion of a structure, part of a building, or obstruction over or upon a highway, sidewalk, easement, or the property of another.

ENCUMBER:
To burden a parcel of land with a lien or charge such as a mortgage or deed of trust.

ENCUMBRANCE:
A claim, lien, charge, or liability attached to and binding upon real property, such as a judgment, mortgage, deed of trust, mechanics lien, lien for unpaid taxes, or right-of-way.

ENDORSEMENT:
A written change or modification of a commitment or policy. Also, writing one's name, either with or without additional words, on a negotiable instrument or on an attachment thereto.

EQUITY:
The interest or value which an owner has in real estate over and above the liens against it.

EQUITY OF REDEMPTION:
The right to redeem property during the foreclosure period such as a mortgagor's right to redeem prior to foreclosure.

EROSION:
The wearing away of land by the action of water, wind or glacial ice.

ESCROW:
A procedure whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer. In real estate, a deed, monies, or other documents which are conditionally held by a third party, called the escrow agent, pending the performance or fulfillment of some act or condition. Generally upon written instructions called "an escrow agreement."

ESCROW AGREEMENT:
A written agreement between two or more parties whereby the grantor, promisor or obligor delivers certain instruments into the hands of a third party until the happening of a contingency or performance of a condition, and then to be delivered to the grantee, promisee or obligee. When everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.

ESTATE:
A person's possessions. In real estate, it refers to the degree, quantity, nature and extent of interest which a person has in real property; such as a fee simple absolute estate, or an estate for years.

ET AL.:
An abbreviation for et alias, meaning "and another" or "and others."

EVICTION:
Dispossession by process of law; the act of depriving a person of the possession of lands, pursuant to the judgement of a court.

EXCEPTIONS:
A list of flaws, clouds, encumbrances, uncertainties, or other interests that title insurance will not guarantee that our insured has a priority over.

EXECUTE:
To complete, to make, to perform, to do, to follow out; to execute a deed, to make a deed, including especially signing, sealing and delivery. To execute a contract is to perform the contract, to follow out to the end, to complete.

EXECUTION:
A writ issued by a court to the sheriff directing him to seize and sell property to satisfy a debt.

EXECUTOR:
See Personal Representative.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC):
Agency of the federal government which insures deposits at commercial banks and savings banks.

FEDERAL HOUSING ADMINISTRATION (FHA):
An agency of the federal government that insures mortgage loans.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA):
"Fanny Mae", a quasi-public agency being converted into a private corporation whose primary function is to buy and sell FHA and VA mortgages in the secondary market. It provides a market for government secured mortgages held by primary lenders and provides them with a ready market so as to permit a greater turnover of money for loans.

FEE:
An estate of inheritance in real property.

FEE SIMPLE ABSOLUTE:
Often called a fee or fee simple; the most comprehensive ownership of real property known to the law; the largest bundle of ownership rights possible in real estate. In modern estates, the terms "Fee" and "Fee Simple" are substantially synonymous. The term "Fee" is of Old English derivation. "Fee Simple Absolute" is an estate in real property, by which the owner has the greatest power over the title which it is possible to have, being an absolute estate. In modern use, it expressly establishes the title of real property in the owner, limitation or end. He may dispose of it by deed or trade or will, as he/she chooses. It is also defined as the most complete ownership in land or as the most complete bundle of rights one can have in land.

F.H.A. INSURED MORTGAGE:
A mortgage under which the Federal Housing Administration insures loans made according to its regulations by approved lenders.

FIDUCIARY:
A trusted person or agent - someone in whom confidence has been placed. Noun - A person who is in a position of trust in relation to another party; or a person in a confidential or trust position. Adjective - Confidential, such as a confidential relationship. Fiduciary refers to the relationship of an agent to his principal.

FINANCING STATEMENT:
An encumbrance; one method of securing an indebtedness, a pledging or security. A document prepared for filing with the Clerk and Recorder or Secretary of State indicating that personal property or fixtures is or are encumbered with a debt. This is the instrument which is filed in order to give public notice of the security interest and thereby protect the interest of the secured parties in the collateral. (See Security Interest and Secured Party.)

FIXTURES:
Articles of personal property which have been installed in or attached to land or a building thereon, of a permanent nature, so that is is now considered to be a part of the real estate.

FORECLOSURE:
The act of selling by legal proceeding real property to satisfy the obligations of the land owner to a third party. Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.

FORECLOSURE CERTIFICATE:
A list of the instruments affecting any interest in property subsequent to the recording of the encumbrance being foreclosed. Usually used to determine who must be notified before foreclosure can be completed.

FORECLOSURE GUARANTEE:
Guarantees the accuracy, a report listing all interests in real property which are subordinate to the encumbrance to be foreclosed for purposes of a foreclosure.

FRONT MONEY:
The minimum amount of money necessary to initiate a real estate venture.

GENERAL LIEN:
A lien on all the property of a debtor.

GIFT DEED:
A deed which the consideration is love and affection and where there is not material consideration.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA):
Often called "Ginny Mae." A government investor in mortgage secured debt.

GRANT:
A technical term made use of in deeds of conveyance of lands to impart a transfer.

GRANTEE:
A person who acquires an interest in land by deed, grant or other written instrument. The purchaser; a person to whom a grant is made.

GRANTOR:
A person who, by a written instrument, transfers to another an interest in land. Seller of property; one who signs a deed.

GUARDIAN:
One appointed by the court to administer the affairs of an individual not capable of administering his own affairs, e.g. a minor.

HOMESTEAD EXEMPTION:
Often called "homestead" or "homestead right"; a right given by statute to a householder or head of a family to designate real estate as his/her homestead. Said homestead is exempt, up to a state amount, from execution by creditors.

IMPROVEMENT LOCATION CERTIFICATE:
A drawing which shows the location of improvements and easements upon a parcel of property and any encroachments by improvements located on the parcels, or on adjoining parcels. It is based on the surveyor's general knowledge of land boundaries and monuments and is not a survey.

IMPROVEMENTS:
Those additions to raw lands tending to increase value such as buildings, streets, sewer, etc.

INCOMPETENT (PROTECTED PERSON):
One who is mentally incompetent or incapable; any person who, though not insane, is by reason of old age, disease, weakness of mind, or any other cause, unable to properly manage and care for himself/herself or his/her property without assistance and by reason thereof would be likely to be deceived or imposed upon by artful or designing persons.

INDEMNIFY:
To secure; to secure against loss. To make payment for a loss.

INDENTURE:
A formal agreement between a group of bondholders and a debtor as to the terms of the debt.

INGRESS:
The right to enter a tract of land. Often used interchangeably with "access" (See access)

INJUNCTION:
A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding for doing an act which is deemed to be inequitable or unjust or which may cause irreparable harm to the rights of some other party or parties in the suit or proceeding.

IN LIEU OF:
In place of, instead of.

INSTALLMENT LAND CONTRACT:
Often called land contracts or an installment contract; an agreement for the purchase of real estate upon an installment basis. The deed to the property is not given to the purchaser until all or a specified portion of the purchaser price is paid. This type of contract is also know as Contract for Deed or Conditional Sales Contract.

INSURANCE OF TITLE:
Insurance that title to a designated parcel of real property is vested as shown in the policy, subject to those items shown therein as exceptions to coverage, such as taxes, easements, prior encumbrances or reservations of rights by others.

INTEREST:
The charge in dollars for the use of money for a period of time. In a sense, the "rent" paid for the use of money.

INTEREST RATE:
The percentage of a sum of money charged for its use.

INTESTATE:
A person who dies having made no will, or one which is defective in form in which case his estate descends to his heirs at law or next of kin.

INVOLUNTARY LIEN:
A lien against property without the consent of an owner. Examples: Taxes, special assessments, federal income tax liens, judgments, mechanics liens.

IRREVOCABLE:
Incapable of being recalled or revoked; unchangeable.

JOINT VENTURE:
Two or more individuals or firms joining together on a single project. Similar to a partnership, with some variations.

JUDGMENT:
The official and authentic decision of a court of justice concerning the respective rights and claims of the parties to an action or suit. Upon recording, the judgment becomes a lien or charge upon the property of the judgment debtor. Money judgments provide for the payment of claims presented to the court, or are awarded as damages, etc.

JUDGMENT LIEN:
The charge upon the lands of a debtor resulting from the recording of a decree of a court properly entered in the judgment docket. A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.

LAND:
Real property; the surface of the earth and that which is affixed to it permanently, that which is below it, and the space above it; synonymous with "real property", "realty", and "real estate". Sometimes used to mean only the unimproved surface of the earth.

LAND CONTRACT:
A contract ordinarily used in connection with the sale of property in cases where the seller does not wish to convey title until all or a specified portion of the purchase price is paid by the buyer; often used when property is sold on a small down payment. Also known as an Installment Land Contract.

LANDMARK:
Any conspicuous object that helps establish land boundaries.

LEASE:
A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental. An agreement under which a tenant receives the possession and use of real property for a certain period of time and the landlord received the payment of rent and/or the performance of other conditions.

LEASEHOLD ESTATE:
A tenant's right to occupy real estate during the term of the lease. This is a personal property interest.

LEGAL DESCRIPTION:
A description recognized by law which is sufficient to locate and identify the property without oral testimony. Often called the "Legal." A description recognized by law; a description by which property can be definitely located.

LESSEE:
The party who conveyed a right or estate in realty to the lessee under a lease; commonly referred to as the landlord. An owner who enters into a lease with a tenant.

LIEN:
A charge or claim which one person has upon the property of another as security for a debt or obligation. A form of encumbrance which usually makes property security for the payment of a debt or discharge of an obligation. Example: Judgments, taxes, mortgages, deeds of trust, etc.

LIFE ESTATE:
An interest in real property reserved or granted by or to an individual for the duration of his or her life.

LIS PENDENS:
"Suit Pending", A document recorded to give constructive notice that there is a lawsuit pending that may affect the title to specific lands.

LINK:
A term of land measurement being 1/100th of a chain or 66/100 of a foot.

LOT:
A measured parcel of land having fixed boundaries.

LOAN ADMINISTRATION:
Also called "loan servicing." Mortgage bankers not only originate loans, but also "service" them from origination to maturity of the loan.

LOST INSTRUMENT BOND:
Surety Bond issued to the Public Trustee by an insurance company as a substitute for the lost original note.

MARKET VALUE:
The price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. As defined by the courts, it is the highest price estimated in terms of money which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a purchaser with knowledge of the property's use and capabilities for use.

MARKETABLE OF MERCHANTABLE TITLE:
Title free and clear of objectionable liens or encumbrances; a title which is free from reasonable doubt of defect, which can be readily sold or mortgaged to a reasonably prudent purchaser or mortgagee; a title free from material defects and reasonably free from possible litigation. A good title about which there is no reasonable doubt.

MECHANICS LIEN:
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real estate. A lien allowed by statute to contractors, laborers, and materialmen on buildings, or other structures upon which work has been performed or material supplied.

MERIDIANS:
Imaginary north-south lines which intersect base lines to form a starting point for the measurement of land.

METES AND BOUNDS:
A method of describing or locating real property; metes are measures of length and bounds are boundaries. This description starts with a well-marked point of beginning and follows the boundaries of the land until it returns once more to the point of beginning.

MODIFICATION AGREEMENT:
An instrument which changes or modifies a mortgage or deed of trust from the original document as the terms.

MORTGAGE:
A conditional conveyance of property as security for the payment of a debt or the fulfillment of some obligation. Upon payment of the debt or performance of the obligation the mortgage becomes void. An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation. The procedure for foreclosure of a mortgage in event of default is established by statute. A lien upon real property similar to a Deed of Trust; but upon final payment of the debt, the mortgagee (secured party) releases the mortgage with a "satisfaction of mortgage." An instrument used to encumber land as security for a debt.

MORTGAGEE:
The party to whom the property is conveyed under a mortgage as security for the repayment of a loan or fulfillment of some obligation. One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation; a lender (See definition of Secured Party.)

MORTGAGOR:
The party who, by a mortgage, conveys his interest in the property as security for the obligation to repay a loan or fulfill some obligation. A designation for the mortgage borrower on lands. One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation; a borrower. (See definition of Debtor.)

MORTGAGEE POLICY:
A title insurance policy containing a written guaranteed statement of facts showing the mortgagee, the priority of its loan, and the status of all other interests in the property.

NAR:
National Association of Realtors.

NOTARY PUBLIC:
An official authorized by law to attest and certify certain documents by his hand and official seal.

NOTE:
Promissory Note; A written instrument acknowledging a debt and promising payment.

NOTICE:
Knowledge of a factor or occurrence. Acquired directly through information received or personal experience (actual knowledge) or constructively through publication of the information in the public record (constructive notice).

NOTICE OF ELECTION AND DEMAND:
The document filed in the public record which demands that the real property given as security for a loan be sold by the Public Trustee to satisfy the delinquent debt.

OFFER:
A promise by one party to act in certain manner provided the other party will act in the manner requested.

OPINION OF TITLE:
An attorney's evaluation of the condition of the title to a parcel of land after his examination of the abstract of title to the land.

OPTION:
A right given for consideration to purchase or lease a property upon specified terms within a specified time.

ORAL CONTRACT:
A verbal agreement; one which is not reduced to writing.

OWNER:
One who holds legal fee simple title to real property; including right to possess use and deal with the property to the exclusion of others.

PARTY WALL:
A wall erected on the line between two adjoining properties, which are under different ownership, for the use of both. A common wall dividing two properties and shared by both.

PATENT:
A document issued for the purpose of granting public lands to an individual. An exclusive right and title to property granted by the United States of America. Conveyance of title to government land.

PERSONAL PROPERTY:
Any property which is not real property; also called Personalty. Generally, all things which are not real property; things of a temporary or movable nature.

PERSONAL REPRESENTATIVE:
One appointed by a probate court to administer the estate of a deceased person.

POWER OF ATTORNEY:
A legal instrument authorizing one to act as another's agent or attorney. A power of attorney may be limited to a specific act or acts, or it may be a general Power of Attorney.

PROMISSORY NOTE:
A written instrument acknowledging a debt and promising payment. Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment.

PROPERTY:
The rights of ownership. The right to use, possess, enjoy and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is generally classified into two groups, personal property and real property.

PUBLIC TRUSTEE:
The public official in each county whose office has been created by statute, to whom title to real property is conveyed by Deed of Trust for the use and benefit of the beneficiary, who usually is the lender.

QUIET ENJOYMENT:
Right of an owner to the use of the property without interference of possession.

QUIET TITLE:
A court action brought to establish title; to remove a cloud on the title. An action in court to remove a defect, cloud or suspicion regarding the legal rights of the owner to the parcel of real estate.

QUIT CLAIM DEED:
A deed in which the grantor warrants nothing. It conveys only the grantor's present interest in the real estate, if any. It is often used to correct technical defects in a title. A deed by which the grantor conveys whatever interest Grantor has, if any. It does not convey after acquired title and contains no warranties.

RANGE:
A component of the U.S. Government survey system for determining the location of real property, being a strip of land 6 miles wide numbered east or west of the principal meridian.

REAL PROPERTY:
Land and that which is affixed to it. Land; the surface of the earth and whatever is erected, growing upon, or affixed to the land; including that which is below it and the space above it; synonymous with "land", "realty", and "real estate".

REALTOR®:
A real estate broker holding active membership in a real estate board affiliated with the National Association of Realtors.

REALTY:
A brief term for real property.

RECONVEYANCE:
The transfer of the title of land from one person to the immediate preceding owner. This particular instrument of transfer is commonly used when the performance or debt is satisfied under the terms of a deed of trust, when the trustee conveys the title he has held on condition back to the owner. (Not generally used in Colorado.)

RECORDING:
Filing a document with a designated public official who is authorized to receive such documents for the purpose of establishing a public record. This public official is usually a county officer known as the Clerk and Recorder. The recorder places a stamp upon each document received indicating the time of day and the date when it was officially filed. Documents filed with the Clerk and Recorder are considered to provide open notice to the general public of that county. Claims against property usually are accorded priority on the basis of the time and the date they are recorded with the highest priority assigned.

REDEEM:
Literally, to buy back. The act of buying back lands after a mortgage or Deed of Trust foreclosure, tax foreclosure or other execution sale.

REQUIREMENTS:
Conditions which must be satisfied before a title insurance policy will be issued insuring marketable title to a parcel of real property.

RESPA:
Real Estate Settlement Procedures Act. Federal Law first enacted in 1974 to standardize real estate settlement procedures in the United States.

RESTRICTION:
A limitation on or prohibition of certain uses of real property. Restrictions may be found in public documents such as zoning ordinances or in private instruments such as deeds or declarations of covenants. They may apply to individual parcels (as in deed restrictions), to whole subdivisions (as in declarations of covenants appearing on or accompanying plats), or to entire incorporated areas (as in city or county zoning ordinances). Matters covered by restrictions include such things as type of development permitted (e.g., quality, design and location of improvements), and privileges and duties of property owners (e.g. property maintenance, landscaping or keeping of animals).

RESTRICTIVE COVENANT:
A clause in a deed or other instrument limiting the use to which the property may be put.

REVERSION:
The right to future possession or enjoyment by the person who created the present estate, or by his heirs.

REDEMPTION:
The right of an owner to redeem or reclaim the real estate by paying the debt or charge (such as a Deed of Trust or tax lien) after default, together with interest and costs. More correctly, equity of redemption refers to the right to redeem the property after default but before foreclosure; the statutory right of redemption refers to the right to redeem the property after foreclosure, or other enforcement action, during a certain period of time specified by statute. Example: in Colorado, the mortgagor has the statutory right to redeem his property any time within six months for agricultural property or 75 days for platted residential properties after a Deed of Trust foreclosure or three years after a sale for delinquent property taxes.

REFINANCE:
To pay off an existing obligation and assume a new obligation in its place.

RELEASE:
The relinquishment or surrender of a right, claim or interest.

RELEASE CLAUSE:
This is a stipulation that upon the payment of a specific sum of money to the holder of a Deed of Trust or mortgage, the lien of the instrument as to a specific described lot or area shall be removed from the blanket lien on the whole area encumbered.

RELEASE OF DEED:
An instrument executed by the mortgagee or the trustee reconveying to the mortgagor the real estate which secured the mortgage loan after the debt has been paid in full. Upon recording, it cancels the mortgage lien created when the mortgage was recorded.

RELEASE OF LIEN:
The discharge or release of specific property from the charge or lien of a mortgage, note or mechanics liens.

RECISION OF CONTRACT:
The abrogation or annulling of a contract; the revocation or repealing of a contract by mutual consent of the parties to the contract.

RIGHT OF FIRST REFUSAL:
The right to have the first opportunity either to purchase or lease real property. The holder of a right of first refusal cannot exercise the right until the owner actually offers the property for sale.

RIGHT OF SURVIVORSHIP:
Right to acquire the interest of a deceased joint owner; distinguishing feature of a joint tenancy. A characteristic of a joint tenancy; upon the death of one of the joint tenants, his rights in the property pass automatically to the surviving tenant or tenants.

RIGHT OF WAY:
An easement or right of passage over another's land; the strip of land used as a roadbed by a railroad or used for a public purpose by other public utilities. The right or privilege to pass over a designated portion of the property of another. A privilege operating as an easement upon land, whereby the owner, by grant, or by agreement, gives to another the right to access over his land, to construct a roadway, or use as a roadway a specific part of his land, or the right to construct through and over his land, telephone, telegraph or electric power lines, or the right to place underground water mains, gas mains, or sewer mains.

SALES CONTRACT:
A contract by which buyer and seller agree to the terms of a sale.

SATISFACTION:
Payment of a debt or other obligation.

SECURED PARTY:
The party holding a security interest. Thus, the mortgagee, the conditional seller, the pledgee, etc., are all now referred to as the secured party.

SECURITY INTEREST:
A term designating the interest of the creditor in the property of the debtor in all types of credit transactions. It thus replaces such terms as the following; Chattel mortgage; pledge; trust receipt; chattel trust; equipment trust; conditional sale; inventory sale; inventory lien, etc.

SECTION:
A parcel of land approximately one mile square, containing 640 acres, which is located within a township, as established by U.S. Government Survey.

SETBACK LINES:
Lines which identify the required distances for the location of improvements for the perimeter of the property.

SETBACK ORDINANCE:
An ordinance prohibiting the erection of a building structure between the curb and the set-back line.

SEVERALTY OWNERSHIP:
Owned by one person only. Sole ownership.

SHERIFF'S DEED:
Deed given by court order in connection with sale of property to satisfy a judgment.

SPECIAL ASSESSMENT:
Legal charge against real property by a public authority to pay the cost of public improvements such as street lights, sidewalks, streets improvements, etc.

SPECIAL PROTECTION:
Extended coverage provided to the insured party under a title insurance policy in the form of a written endorsement for which there is an extra charge. An endorsement increases the risk assumed by the company by "insuring over" existing or potential defects in title. Examples: Form 100, mechanics lien protection, mineral protection or deletion of printed exceptions.

SPECIAL WARRANTY DEED:
A deed in which the grantor warrants or guarantees the title only against defects arising during his ownership of the property and not against defects existing before the time of his ownership. A deed wherein the grantor warrants that he is conveying the title to the property "as good as he got it."

STATUTORY WARRANTY DEED:
A short form warranty deed authorized by statute which warrants by inference that the seller is the undisputed owner and has the right to convey the property and that he will defend the title if necessary. This type of deed protects the purchaser in that the conveyor covenants to defend all claims against the property. If he fails to do so, the new owner can defend claims and sue the former owner.

SUBORDINATE:
To make subject to, or junior to. Example: a prior deed of trust agreement may be subordinated in priority to a subsequent junior deed of trust.

SUBORDINATION CLAUSE:
Clause in a junior or a second lien permitting retention of priority for prior liens. A subordination clause may also be used in a first deed of trust permitting it to be subordinated to subsequent liens as, for Example: the liens of future construction loans.

SUBORDINATION AGREEMENT:
An instrument or agreement that makes a loan or mortgage inferior or subordinate to one that was recorded after it.

SUBDIVISION:
Any number of lots or plots broken down out of a larger piece that has an organized map plan or plat to define it.

SUB-SURFACE RIGHT:
The ownership or right of use of some portion of the ground underlying the surface of a parcel of land.

SURVEY:
The process by which a parcel of land is measured and its area ascertained. The process of measuring land to determine its size, location, and physical description. An Improvement Survey is the drawing done by a registered land surveyor showing the dimensions of a particular piece or real property which shows the improvements located on the property in relationship to the property itself. (See also Improvement Location Certificate)

TAX CERTIFICATE:
A written statement by the County Treasurer of the taxes due on a particular property.

TAX DEED:
A conveyance by the County Treasurer of property for which the taxes were not paid by the owner, and which was sold at tax sale at least three years previously.

TAX-FREE EXCHANGE:
An exchange of one income property for another, thereby avoiding, at the time of the exchange, capital gains liability to the extent that the values of the properties exchanged are equivalent.

TAX SALE:
Sale of property by the County Treasurer for the nonpayment of general or special property taxes.

TENANCY IN COMMON:
Ownership by two or more persons who hold undivided interests, without right of survivorship; interests need not be equal. A type of co-ownership of real property; a holding of an estate in land by two or more persons, each being entitled to possession of the property according to his proportionate share; distinct from a joint tenancy in that there is no right of survivorship in a tenancy in common.

TENANT:
Any person in possession of real property with the owner's permission.

TESTATE:
When a person dies leaving a will. The estate or condition of leaving a will at death; "To die testate."

TESTATOR:
One who makes or has made a testament or will. One who leaves a will in force at his death.

TITLE:
The evidence of rights which a person has to the ownership and possession of land. Commonly considered as a bundle or history of rights. Evidence that an owner of land is in lawful possession thereof, and instrument evidencing such ownership.

TITLE DEFECT:
Any legal or asserted right held by others to claim property or to make demands upon the owner.

TITLE INSURANCE:
A policy of insurance which indemnifies the holder against loss sustained by reason of a defect in the title, provided the loss does not result from a defect excluded by the policy provisions. Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.

TITLE REPORT:
A report which discloses the condition of the title to a parcel of real property, made by a title company prior to issuance of title insurance.

TITLE SEARCH:
An examination of public records to disclose the current facts regarding ownership of real estate.

TOWNSHIP:
A division of territory 6 miles square, containing 36 sections or 36 square miles.

TRACT:
An area of land.

TREASURER'S DEED:
see Tax Deed

TRUST:
A property right held by one for the benefit of another. The concept of transferring title to a fiduciary or entrusted person to administer property for the benefit of another.

TRUST ACCOUNT:
An account separate and apart and physically segregated from a broker's own funds, into which the broker is required by law to deposit all funds collected for clients.

TRUSTEE:
Public Official or private party who holds a Deed of trust as security for payment of the note secured, and thereby for re-delivery of title to the debtor upon payment in full of the obligation. One who holds property in trust for another to secure the performance of an obligation.

TRUSTOR:
One who conveys title to a trustee to be held as security until the trustor has performed his obligation to a lender under the terms of a deed of trust.

UTILITIES:
Refers to services rendered by public utility companies, such as water, gas, electricity and telephone.

VALUATION:
Estimated worth or price. The act of valuing by appraisal.

VENDEE:
A purchaser.

VENDOR:
A seller.

VEST:
To own or indicate ownership in lands. "Title may be said to "vest" in John Brown."

VESTED:
Bestowed upon someone; rights to which one is entitled.

VOLUNTARY LIEN:
Any lien placed on property with the consent of, or as a result of, the voluntary act of the owner. Examples: Mortgages and Deeds of Trust.

WAIVE:
To relinquish, or abandon; to forego a right to enforce or require performance by another.

WAIVER:
Abandonment of some claim or right.

WARRANTY:
An agreement and assurance by the grantor of real property which is binding upon himself and his heirs, to the effect that he is the owner and will defend the title granted to another.

WARRANTY DEED:
A deed used to convey real property which contains warranties of title and quiet possession, by which the grantor agrees to defend the premises against the lawful claims of third persons. Often called a general warranty deed; a deed in which the grantor warrants or guarantees the title to real property against defects existing before the grantor acquired title or arising during the grantor's ownership.

WRAP AROUND MORTGAGE:
A second mortgage, for an amount larger than the remaining balance on the existing first mortgage, usually payable to the debtor under the first mortgage who is also the seller of the property which secures the mortgage. The buyer makes payments to the seller, who is obligated under the law of the wrap around mortgage to make payments on the first mortgage. A wrap around mortgage may be used where the interest rate on the existing first mortgage is much lower than current interest rates available on new loans, for which the buyer may be unable or unwilling to qualify. "Also known as All-Inclusive Deed of Trust."

WRIT OF EXECUTION:
A writ or court order, authorizing and directing an officer of the court, usually the sheriff, to carry into effect the judgment or decree of the court.

ZONING:
Act of city or county authorities specifying type of use to which property may be put in specific areas.

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