Quite Title: A court action brought to establish title; to remove a cloud on the title.
Quitclaim Deed: A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.
Real Property: In the strict legal sense, land appurtenances, that which is affixed to the land, and that which by law is immovable. It usually refers to the bundle of rights: inherent to ownership.
Real Property Sales Contract: An agreement to convey title to real property upon satifaction of specfied conditions which does not require conveyance within one year of formation of the contract.
Reconveyance: This instrument of transfer is commonly used to transfer the legal title from the trustee to the trustor (borrower) after a trust deed debt has been paid in full.
Recording: The process of placing a document on file with a designated public official for public notice. The public official is usually a county officer known as the County Recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially placed on file. Documents filed with the Recorder are considered to be placed on open notice to the general public of that county. Cliams against property usually are given a priority on the basis of the time and the date they are recorded with the most preferred claim going to the earliest one recorded and the next claim going to the next earliest one recorded, and so on. This type of notice is called “constructive notice” or “legal notice”.
Redlining: A lending policy, illegal in California, of denying real estate loans on properties in older, changing urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institution to the credit worthiness of the individual loan application.
Refinancing: The paying-off of an existing obligation and assuming a new obligation in its place. To finance anew, or extend or renew existing financing.
Release Deed: An instrument executed by the mortgagee or the trustee reconveying to the mortgagor or trustor the real estate which secured the loan after the debt has been paid in full.
Right of Survivorship: The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.
Seal: An impression made to attest the execution of an instrument.
Secondary Party: A loan secured by a second mortgage or trust deed on real property. These can be third, fourth, fifth, sixth mortgages or trust deeds, on and on ad infinitum.
Secured Party: This is the party having the security interest. Thus the mortgagee, the conditional seller, the pledgee, etc., are all now referred to as the secured party. (Uniform Commercial Code.)
Separate Property: Property owned by a married person in his or her own right outside of the community interest including property acquired by the spouse (1) before marriage, (2) by gift or inheritance, (3) from rents and profits on separate property, and (4) with the proceeds from other separate property.
Severalty Ownership: Owned by one person only. Sole ownership.
Simple Interest: Interest computed on the principal amount of a loan only as distinguished from compound interest.
Special Power of Attorney: A written instrument whereby a principal confers limited authority upon an agent to perform certain prescribed acts on behalf of the principal.
Special Warranty Deed: A deed in which the grantor warrants or guarantees the title only against defects arising during grantor’s ownership of the property and not against defects existing before the time of grantor’s ownership.
Specific Performance: An action to compel performance of an agreement, e.g., sale of land as an alternative to damages or rescission.
Statute of Frauds: A state law, based on an old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g., contracts for the sale of real property, contracts not be performed within one year.
Statutory Warranty Deed: A short-term warranty deed, which warrants by inference that the seller is the undisputed owner, has the right to convey the property, and 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 conveyer fails to do so, the new owner can defend said claims and sue the former owner.
Straight Note: A note in which a borrower repays the principal in a lump sum at maturity while interest is paid in installments or at maturity. (See Interest Only Note.)
“Subject To” A Mortgage: When a grantee takes title to real property subject to a mortgage, grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most that grantee can lose in the event of a foreclosure is grantee’s equity in the property. (See also “assumption of mortgage”) In neither case is the original maker of the note released from primary responsibility. If liability is to be assumed, the agreement must so state.
Subordinate: To make subject to, or junior or inferior to.
Subordination Agreement: An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.