Page 43 - Home Buyers and Sellers Guide - Hawaii

Mortgage Broker: A person or company that buys and sells Ownership: The right to possess and use property to the Privacy Rule: The GRAMM-LEACH-BLILEY ACT requires Reinsurance: To insure again by transferring to another
mortgages for another on commission or who arranges exclusion of others. financial institutions (which includes title insurance insurance company all or part of an assumed liability, thus
for and negotiates mortgage contracts. companies) to give notice to all of their “clients” about spreading the loss risk any one company has to carry.
P their privacy practices. The Privacy Policy is a “clear and
Mortgage Insurance: Insurance protecting against the conspicuous” written notice describing their privacy Reverse or Reverse Annuity Mortgage: A mortgage for
nonpayment of, or default on, an individual mortgage Patent: A document or grant by which the federal or state policies and practices. which the borrower pledges home equity in return for
or loan involved in a residential mortgage transaction. It government originally transferred title to public land to an regular (monthly) payments, rather than a lump sum
protects the mortgage lender against loss incurred by a individual. The first in the series of transfers by which title Prorate: To allocate between seller and buyer their distribution of loan proceeds. Repayment is usually not
reason of nonpayment or mortgage default. comes down to present owners. proportionate share of an obligation paid or due. For required until the home is sold or the borrower’s estate
example, a proration of real property taxes or fire is settled, provided the borrower continues to live in the
Mortgagee: The mortgage lender. Personal Representative: A person appointed by the insurance premiums. home and keeps current all taxes and insurance. Also see
probate court to administer a decedent’s estate. “Home Equity Conversion Mortgage.”
Mortgagee’s Policy: See “Lender’s Policy.” Also see “Executor” or “Administrator.” Q

Mortgagor: The mortgage borrower. Plat or Plot: A map representing a piece of land subdivided Quiet Title: An action in a proper court to remove record Right of Way: The right which one has to pass across the
land of another. An easement.
N into lots with streets shown thereon. defects or possible claims of other parties named in the Riparian: Rights to use of waterways in adjoining lakes or
P.M.I.: Private Mortgage Insurance. An insurance contract action. rivers.
Non-Public Personal Information (NPPI or NPI): Means which insures that the named lender will recover a
‘‘personally identifiable financial information’’ that is (i) specific percentage of the loan amount from the insurer in R S
provided by a consumer to a financial institution, (ii) the event the loan goes bad.
about a consumer resulting from a transaction or service Range: A part of the government survey, being a strip of Second Mortgage: A second loan on real estate that already
performed for the consumer, or (iii) otherwise obtained by Points: A one-time special fee or extra charge paid to land six miles in width, and numbered east or west of the has a mortgage. It is subordinate to the first mortgage.
the financial institution. Personally identifiable financial a lender in order to secure a loan. Expressed as a principal meridian.
information includes any information obtained by a percentage of face amount of mortgage. Real Property: Land, together with fixtures, improvements Section or Section of Land: A parcel of land comprising
financial institution in connection with its provision of a and appurtenances. approximately one square mile or 640 acres.
‘‘financial product or service,’’ even if the information is Policy: See “Title Insurance Policy.”
not typically considered financial in nature. REALTOR : A federally registered collective membership Set Back Lines: Those lines which delineate the required
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Policyowner: The insured on a title insurance policy. distances for the location of structures in relation to the
Notary: One authorized to take acknowledgments. mark which identifies a real estate professional who is a perimeter of the property.
Power of Attorney: An instrument authorizing another to act member of the National Association of REALTORS and
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Note: The instrument evidencing the indebtedness. A note on one’s behalf in legal matters. subscribes to its strict Code of Ethics. Sub-Surface Right: The right of ownership to things lying
is usually secured by a security instrument such as a Power of Sale: A clause in a will, mortgage, deed of trust or Realty: A brief term for real property. beneath the physical surface of the property.
mortgage or deed of trust.
trust agreement authorizing the sale or transfer of land in Survey: The process of measuring land to determine its
O accordance with the terms of the clause. Redeem: Literally “to buy back.” The act of buying back land size, location and physical description, and the resulting
after a mortgage foreclosure, tax foreclosure, or other
Pre-Settlement Inspections: See “Walk Through.” execution sale. drawing or map.
Origination Fee: The administrative fee charged by the
lender to prepare loan documents, run credit checks, Prepayment Penalty: A clause in a mortgage or loan Redisclosure: For transactions covered under the TILA- T
inspect and sometimes appraise a property, usually contract that says if the mortgage is prepaid within a RESPA Integrated Disclosure (TRID) Rule and under very
computed as a percentage of the face value of the loan. certain time period, a penalty will be assessed. The specific circumstances, the Loan Estimate and/or the Tax Lien: A lien for real property taxes. Attaches only to
penalty can be based on percentage of the remaining Closing Disclosure may be revised and delivered to the the property upon which the taxes are due in most
Owner’s Policy: A policy of title insurance, which insures mortgage balance or some other calculation as described consumer. jurisdictions. It may be foreclosed for nonpayment.
a named owner against loss by reason of defects, liens in the clause.
and encumbrances not excepted to in the policy or Registered Land: See “Torrens Title.” Tenancy by the Entirety: Ownership by married persons.
unmarketability of the title. The company also agrees to Premium Tax: A tax imposed on all premiums from the Each owns the entire estate, with the survivor taking the
defend covered claims made against the title. business of title insurance. Only applies in some states. whole upon the other’s death.

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