Glossary: S

Savings and Loan Association.

A set of rules and regulations that will guarantee compliance with the law, if followed.

An interest rate provided by low-risk investments such as high grade bonds or secured first mortgages.

A technique in which a seller deeds property to a buyer, who simultaneously leases the property back to the seller.

An agreement between a buyer and seller to purchase real estate. A sales contract, also known as an offer to purchase or a binder, secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money that was paid is forfeited unless the binder expressly provides that it is to be refunded.

A state specific form that may need to be filed, disclosing everything about the sale of the home.

A person who is licensed to make real estate transactions while under the supervision of a broker licensed by the state.

A fee charged by a title company or attorney in some states to perform a check of the title records that verifies the buyer is purchasing a house from the legal owner and there are no liens, overdue assessments, or other claims filed that would adversely affect the transfer of the title. For our comparison purposes, a search and exam fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.

A fee charged by a title company in some states to perform a check of the public record to verify that the buyer is purchasing a home from the legal owner and there are no liens, overdue assessment, or other claims that would adversely affect the transfer of title. In addition, a search is performed to insure that there are no issues that a survey would show that could affect the property. For our comparison purposes, a search and survey fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.

A fee charged by a title company or attorney in some states to cover the cost of searching the public record to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue assessments, or other claims filed that would adversely affect the transfer of the title. For our comparison purposes, a search fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.

A loan that has a lien position subordinate to the first mortgage.

The buying and selling of existing mortgages, primarily residential first mortgages.

A loan that is backed by collateral.

The collateral offered to a lender in exchange for a loan. When a lender provides a mortgage, you provide your home as the security. This means that if payments are in default, the lender has the right to take title to the property.

The lender's right to take property that has been offered as security.