Page 38 - Home Buyers and Sellers Guide - Hawaii

Clouded Title: An encumbered title. Consumer’s Intent to Proceed: Unless a particular manner Due-on-Sale Clause: Provision in a mortgage or deed of
of communication is required by the creditor, a consumer
Coinsurance: A form of insurance underwritten by two or indicates intent to proceed with the transaction when
more title insurers sharing a single risk under separate the consumer communicates, in any manner, that the
title insurance policies in proportional amounts. consumer chooses to proceed after the Loan Estimate has
been delivered. This may include (i) oral communication
Common Interest Community (CIC): Ownership in person immediately upon delivery of the Loan Estimate;
characterized by mutual ownership of common areas, or (ii) oral communication over the phone, written
either jointly or through membership in an association, communication via email, or signing a preprinted form
e.g., condominiums, planned unit developments and after receipt of the Loan Estimate. A consumer’s silence is
townhomes.
not indicative of intent to proceed.
Condemnation: Taking private property for public use Contract for Deed: An agreement to sell and purchase,
through court proceedings. under which title is held as security by the seller until such
Also see “Eminent Domain.”
time as the required payments to the seller have been
Condition or Conditions: A proviso in a deed, will or other completed.
instrument that, upon the happening or failure to happen Convey: The act of deeding or transferring title to another.
of a certain event, limits, enlarges, changes or terminates
the title of the purchaser or devisee. Conveyance: An instrument by which title is transferred, e.g.,
a deed. Also the act of transferring title.
Conditions and Restrictions: Limitations placed on the use
and enjoyment of land. May include penalties for failure Covenant: An agreement written into deeds and other
to comply. These are found most often on condominiums instruments promising performance or nonperformance
and planned unit developments. of certain acts, or stipulating certain uses or non-uses of
the property.
Condominium: A system of individual fee ownership of units
in a multi-unit structure, combined with joint ownership of Cul-de-Sac: The terminus of a street or alley. Usually laid
common areas of the structure and land. out by modern engineers to provide a circular turnaround
for vehicles.
Conservator: See “Guardian.”
Consummation: Consummation is not the same thing as D Encumbrance: A lien, liability or charge upon a parcel of
closing or settlement. Consummation occurs when the
consumer becomes legally obligated to the creditor on Deed: A written document by which the ownership of land is
the loan, not, for example, when the consumer becomes transferred from one person to another.
contractually obligated to a seller on a real estate Deed of Trust: An instrument used in many states in place
transaction. of a mortgage. Property is transferred to a trustee by the
trustor (borrower), in favor of the beneficiary (lender) and
reconveyed (satisfied) upon payment in full.
Devise: The disposition of real property by will.
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Estate: A person’s possessions. The extent of a person’s
trust which requires loan to be paid in full if property is interest in real property.
sold or transferred.
Examination of Title: The investigation and interpretation of
E the record title to real property based on the title search
or abstract.
Earnest Money: Advance payment of part of the purchase
price to bind a contract for property. Exception: In legal descriptions, that portion of land to be
deleted or excluded. The term often is used in a different
Easement: An interest in land owned by another that entitles sense to mean an encumbrance on title, excluded from
its holder to a specific limited use, such as laying a sewer, coverage in a title insurance policy.
putting up electric power lines or crossing the property. Executor: A person appointed by the probate court to carry
Also see “Right of Way.”
out the terms of a will. The term is “executrix” if that
Egress: The right to leave a tract of land. person is a woman.
Also see “Personal Representative.”
Eminent Domain: The power of the state to take
private property for public use upon payment of just F
compensation.
Fannie Mae: Federal National Mortgage Association (also
Encroachment: A trespass or intrusion onto another’s FNMA) is a private corporation, federally chartered to
property, usually by a structure, wall or fence. provide financial products and services that increase the
availability and affordability of housing by purchasing
Encryption: The conversion of data into a form that cannot mortgage loans.
be easily understood by unauthorized people. The process
of encoding a message so that it can be read only by the Fee Simple Estate: The greatest possible estate in land
sender and the intended recipient. Encryption is the most where the title is held completely and without any
effective way to achieve data security. limitations or conditions. Sometimes designated simply as
“Fee.”
Encumber: To burden a parcel of land with a lien or charge.
Financing Statement: A document filed with the Register
of Deeds or Secretary of State to give notice that a
land, e.g. a mortgage or easement.
creditor (lender) has or may have a security interest in the
Escheat: A reversion of property to the state in those cases personal property of the debtor (borrower).
where an individual dies without heirs or devisees, and, in Fixed Rate Mortgage: A mortgage on which the same rate of
some states, without a will. interest is charged for the life of the mortgage.
Escrow: A procedure whereby a disinterested third party
handles legal documents and funds on behalf of a seller Fixtures: Any item of property so attached to real property
and buyer, and delivers them upon performance by the that it becomes a part of the real property.
parties.
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