Lien; A charge or Claim against a person’s property made to enforce the payment of money. There are many forms of liens the most common is the mortgage lien or claim for repayment of a note. A lien is said to be an encumbrance on the owner’s title, this is anything which would prevent you from selling without arranging to pay off a recorded debt first. Property tax liens are judged to be superior to most other types of liens in that they take priority over many other encumbrances (because they are government enforced) and this can result in a TAX SALE where the property is sold to satisfy the debt.

Other liens that can cloud your title generally fall in the category of MECHANIC’S LIENS, this is an involuntary lien that gives security to persons or companies that provide services or materials but have not been paid. In this case the party filing the lien must have had an agreement with the property owner (and can prove some type of a contractual arrangement) and must then file notice of the lien in the public record of the county where the property is located. Other Liens can be filed for Municipal Utilities, Inheritance taxes, IRS tax and other claims that a judge can see clear to award an aggrieved party. Since the purchaser of real property has the right to clear title when buying, these liens must be satisfied and discharged against the real estate on or before the transfer of ownership.

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“HOMESTEAD” means the dwelling owned by a claimant or, in the case of a multi-unit dwelling, the portion of the dwelling which is owned and used as the claimant’s principal place of residence and the claimant’s domicile.

“HOUSEHOLD INCOME” means the sum of the adjusted gross income for federal income tax purposes of the claimant and any adult member of the claimant’s household who resides in the homestead.

“HEAD OF A NEW HAMPSHIRE HOUSEHOLD” means any person filing a federal income tax return as head of household or 2 or more adults who jointly share the benefit of the homestead. “New Hampshire household” shall not include those adults who share the homestead under a landlord-tenant relationship.

As an AGENT we are authorized and agree to represent the interests of another person. In our business this is most often the seller of real estate (by a listing agreement), but can be the buyer so long as we have a buyer - agent agreement.

The Principal is the individual who hires the agent to undertake the responsibility of representing the principals’ interest in a real estate transaction (whether they are a buyer or seller depending on the contractual obligation).

The Fiduciary relationship is a position of special trust and confidence held between the Principal and the Agent. The principal is also called the Client.

A Customer is someone to who is entitled to fairness, honesty and is given reasonable service for no guarantee of payment (commission) but with whom we don’t owe a fiduciary relationship too.

Consult with one of our professional agents whether you are a potential client or customer we will do our best to help with your transaction.

ABATEMENT - 1.) A reduction or decrease, 2) The removal of a nuisance.

BALANCE - The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.

CAPITAL - (1) Money used to create income, either as an investment in a business or an income property, (2) The money or property comprising the wealth owned or used by a person or business enterprise, (3) The accumulated wealth of a person or business, (4) The net worth of a business represented by the amount by which its assets exceed liabilities.

DEED - 1) The legal document conveying title to a property, 2) a written instrument, when executed and delivered, conveys Title to or an interest in real estate.

EASEMENT - 1) A right of way giving persons other than the owner access to or over a property, 2) The right to a specific use of or right to travel over Land owned by another.

FORBEARANCE - The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears. It is usually granted only when a borrower makes a satisfactory arrangement by which the arrears will be paid at a future date.

GRANTEE - The person who receives an interest in (a conveyance) of real property from a grantor. The grantee must be a person, either natural or otherwise (e.g. corporation, public agency, partnership, etc.) existing at the time of the conveyance and is capable of taking title.

HYPOTHECATE - To pledge real or personal property as Security for a loan or other obligation without surrendering possession of the property. The borrower retains the rights of control and possession, and the lender secures an underlying equitable right in the pledged property.

INGRESS - A way to enter a property - access. The opposite of egress.

JUDICIAL FORECLOSURE - A method of foreclosing on real property, used in some states, by means of a court-supervised sale that is handled as a civil lawsuit and conducted entirely under the auspices of a court . in a judicial foreclosure, there is an appraisal, after which the court determines an upset price below which no bids to purchase will be accepted.

KEY LOT - A lot having a number of other lots abutting a side line (undesirable for residential use).

LEVY - To assess, seize or collect. To Levy a tax is to assess a property and set the rate of taxation. To Levy an execution is to officially seize the property of a person in order to satisfy an obligation.

MECHANIC’S LIEN - A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

NEGATIVE AMORTIZATION - A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due. The amount of the shortfall is added to the remaining balance to create “negative” amortization.

OBSOLESCENCE - Loss in value due to reduced desirability and usefulness of a structure because it has become old fashioned and not in keeping with modern needs or because of adverse social or economic influences.

PLAT - A map or plan of a certain parcel of land.

QUITCLAIM DEED - A deed used to remove clouds on title by relinquishing any right, title or interest that the grantor may have.

RIGHT OF WAY - A privilege operating as an easement upon land, whereby the owner does, by grant or by agreement, give to another the right to pass over his land.

SITUS - Location.

TITLE - The rights of ownership.

UNDERWRITING - The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower’s creditworthiness and the quality of the property itself.

VESTED - Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.

WARRANTY DEED - A deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premises against the lawful claims of third persons. It is used commonly in other states but not in California where it has been supplanted by the grant deed. The modern practice of securing title insurance has reduced the importance of express and implied warranty in deeds.

ZONING - Act of city or county authorities specifying type of use to which property may be put in specific areas.