Chapter 5
Security Instrument
A contract whereby a debtor agrees to use property as security or collateral for the repayment of debt.
Mortgage
A contract whereby a mortgagor agrees to use real property as security for the repayment of debt.
Deed in Lieu of Foreclosure
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
Lien
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation (ex: judgments, taxes, mortgages, deeds of trust, etc..).
Easement by Voluntary Grant
A grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress.
Mechanic's 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 property.
Involuntary Lien
A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal income tax liens, etc..).
General Lien
A lien on all the property of a debtor.
Specific Lien
A lien that attaches to one specific property only.
Adverse Possession
A method of acquiring title to real property by conforming to statutory requirements; a form of involuntary alienation of title.
Vendee
A purchaser, buyer.
Easement Appurtenance
A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.
Easement
A right, privilege or interest limited to a specific purpose which one party has in the land of another.
Vendor
A seller.
Package Loan
A type of loan used in home financing covering real property, improvements, and movable equipment/appliances.
Real Property Sales Contract
An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract.
Encumbrance
Any charge, claim, right, burden (otherwise called a cloud on title), and/or interest in real property other than the owners, including but not limited to, any restriction upon the title to real property, affecting and/or limiting any interests or its use.
Voluntary Lien
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.
Easement by Necessity
Exists when a landowner has no access to roads and is landlocked.
Promissory Note
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 payment. The evidence of the debt.
Dominant Tenement
Land benefiting from an easement appurtenant.
Servient Tenement
Land encumbered by an easement.
Easement by Prescription
Obtained by use of the land of another for the legally prescribed length of time.
Trustor
One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.
Trustee
One who holds property in trust for another to secure the performance of an obligation. Third party under a deed of trust.
Debt
That which is due from one person or another; obligation, liability.
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it.
Foreclosure
Procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms.
Judgment Lien
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.
Easement in Gross
A right of use in the land of another without the requirement that the holder of the right own adjoining land.