Page 39 - 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 Estate: A person’s possessions. The extent of a person’s
of communication is required by the creditor, a consumer trust which requires loan to be paid in full if property is interest in real property.
Coinsurance: A form of insurance underwritten by two or indicates intent to proceed with the transaction when sold or transferred.
more title insurers sharing a single risk under separate the consumer communicates, in any manner, that the Examination of Title: The investigation and interpretation of
title insurance policies in proportional amounts. consumer chooses to proceed after the Loan Estimate has E the record title to real property based on the title search
been delivered. This may include (i) oral communication or abstract.
Common Interest Community (CIC): Ownership in person immediately upon delivery of the Loan Estimate; Earnest Money: Advance payment of part of the purchase
characterized by mutual ownership of common areas, or (ii) oral communication over the phone, written price to bind a contract for property. Exception: In legal descriptions, that portion of land to be
either jointly or through membership in an association, communication via email, or signing a preprinted form deleted or excluded. The term often is used in a different
e.g., condominiums, planned unit developments and after receipt of the Loan Estimate. A consumer’s silence is Easement: An interest in land owned by another that entitles sense to mean an encumbrance on title, excluded from
townhomes. its holder to a specific limited use, such as laying a sewer, coverage in a title insurance policy.
not indicative of intent to proceed.
Condemnation: Taking private property for public use Contract for Deed: An agreement to sell and purchase, putting up electric power lines or crossing the property. Executor: A person appointed by the probate court to carry
Also see “Right of Way.”
through court proceedings. under which title is held as security by the seller until such out the terms of a will. The term is “executrix” if that
Also see “Eminent Domain.” Egress: The right to leave a tract of land. person is a woman.
time as the required payments to the seller have been Also see “Personal Representative.”
Condition or Conditions: A proviso in a deed, will or other completed. Eminent Domain: The power of the state to take
instrument that, upon the happening or failure to happen Convey: The act of deeding or transferring title to another. private property for public use upon payment of just F
of a certain event, limits, enlarges, changes or terminates compensation.
the title of the purchaser or devisee. Conveyance: An instrument by which title is transferred, e.g., Fannie Mae: Federal National Mortgage Association (also
a deed. Also the act of transferring title. Encroachment: A trespass or intrusion onto another’s FNMA) is a private corporation, federally chartered to
Conditions and Restrictions: Limitations placed on the use property, usually by a structure, wall or fence. provide financial products and services that increase the
and enjoyment of land. May include penalties for failure Covenant: An agreement written into deeds and other availability and affordability of housing by purchasing
to comply. These are found most often on condominiums instruments promising performance or nonperformance Encryption: The conversion of data into a form that cannot mortgage loans.
and planned unit developments. of certain acts, or stipulating certain uses or non-uses of be easily understood by unauthorized people. The process
the property. of encoding a message so that it can be read only by the Fee Simple Estate: The greatest possible estate in land
Condominium: A system of individual fee ownership of units sender and the intended recipient. Encryption is the most where the title is held completely and without any
in a multi-unit structure, combined with joint ownership of Cul-de-Sac: The terminus of a street or alley. Usually laid effective way to achieve data security. limitations or conditions. Sometimes designated simply as
common areas of the structure and land. out by modern engineers to provide a circular turnaround “Fee.”
for vehicles. Encumber: To burden a parcel of land with a lien or charge.
Conservator: See “Guardian.” Financing Statement: A document filed with the Register
Consummation: Consummation is not the same thing as D Encumbrance: A lien, liability or charge upon a parcel of of Deeds or Secretary of State to give notice that a
land, e.g. a mortgage or easement.
closing or settlement. Consummation occurs when the creditor (lender) has or may have a security interest in the
consumer becomes legally obligated to the creditor on Deed: A written document by which the ownership of land is Escheat: A reversion of property to the state in those cases personal property of the debtor (borrower).
the loan, not, for example, when the consumer becomes transferred from one person to another. where an individual dies without heirs or devisees, and, in Fixed Rate Mortgage: A mortgage on which the same rate of
contractually obligated to a seller on a real estate Deed of Trust: An instrument used in many states in place some states, without a will. interest is charged for the life of the mortgage.
transaction. of a mortgage. Property is transferred to a trustee by the Escrow: A procedure whereby a disinterested third party
trustor (borrower), in favor of the beneficiary (lender) and handles legal documents and funds on behalf of a seller Fixtures: Any item of property so attached to real property
reconveyed (satisfied) upon payment in full. and buyer, and delivers them upon performance by the that it becomes a part of the real property.
parties.
Devise: The disposition of real property by will.

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