Glossary of Definitions

  • Acceleration Clause: A clause in a note, mortgage or deed of trust which gives the lender the right to demand payment in full upon the happening of a certain event(s), such as a default.
  • Acknowledgement: A formal declaration made before a notary, stating the instrument was duly executed by the designated person.
  • Adverse Possession: A method of acquiring real property from the owner because of continuous, hostile and visible use of the property for a prescribed length of time.
  • Affidavit: A sworn statement by an individual.
  • Amortize: A gradual decrease of a debt based on structured payments over a designated number of years.
  • Assessment: A levy or tax imposed on land to raise revenue or to pay for improvements which benefit the land.
  • Attachment: A legal procedure where property is taken into custody to be sold so proceeds can be applied to satisfy a judgment debt.
  • Attorney in Fact: An agent authorized to act for another by virtue of a power of attorney.
  • Balloon Payment: A final payment on a note which is greater than the preceding installments.
  • Bargain and Sale Deed: A deed that conveys ownership without warranty and passes the after-acquired title of the Grantor.
  • Base File: A title file that includes all previous title search information on a particular property.
  • Beneficiary: One who benefits from a trust, or the mortgagee under a deed of trust.
  • Beneficiary Deed: A deed that conveys ownership upon the death of the Grantor but has no effect prior to the death of the Grantor.
  • Bill of Sale: An instrument that transfers personal property.
  • Bulk Sale: The sale of a business.
  • Chain of Title: A chronological list of the recorded instruments affecting title to real property from the patent to the present holder.
  • Chattel: Personal property.
  • Closing: The exchange of documents and monies for the purchase of real property with a Closing Statement that gives an accounting of how the funds are to be disbursed.
  • Cloud on the Title: An irregularity in the chain of title that could affect the interest of the owner.
  • Acceleration Clause: A clause in a note, mortgage or deed of trust which gives the lender the right to demand payment in full upon the happening of a certain event(s), such as a default.
  • Acknowledgement: A formal declaration made before a notary, stating the instrument was duly executed by the designated person.
  • Adverse Possession: A method of acquiring real property from the owner because of continuous, hostile and visible use of the property for a prescribed length of time.
  • Affidavit: A sworn statement by an individual.
  • Amortize: A gradual decrease of a debt based on structured payments over a designated number of years.
  • Assessment: A levy or tax imposed on land to raise revenue or to pay for improvements which benefit the land.
  • Attachment: A legal procedure where property is taken into custody to be sold so proceeds can be applied to satisfy a judgment debt.
  • Attorney in Fact: An agent authorized to act for another by virtue of a power of attorney.
  • Balloon Payment: A final payment on a note which is greater than the preceding installments.
  • Bargain and Sale Deed: A deed that conveys ownership without warranty and passes the after-acquired title of the Grantor.
  • Base File: A title file that includes all previous title search information on a particular property.
  • Beneficiary: One who benefits from a trust, or the mortgagee under a deed of trust.
  • Beneficiary Deed: A deed that conveys ownership upon the death of the Grantor but has no effect prior to the death of the Grantor.
  • Bill of Sale: An instrument that transfers personal property.
  • Bulk Sale: The sale of a business.
  • Chain of Title: A chronological list of the recorded instruments affecting title to real property from the patent to the present holder.
  • Chattel: Personal property.
  • Closing: The exchange of documents and monies for the purchase of real property with a Closing Statement that gives an accounting of how the funds are to be disbursed.
  • Cloud on the Title: An irregularity in the chain of title that could affect the interest of the owner.
  • Hiatus: A gap unintentionally left when describing two adjacent properties.
  • Homestead: The personal residence of an individual that is exempt from claims of creditors up to a certain dollar amount.
  • Incompetent: A person who is incapable of binding himself to an enforceable obligation.
  • Indemnity: A letter or statement wherein one party agrees to hold harmless another party from loss or damage.
  • Ingress and Egress: The liberty of entrance and exit from property.
  • Intestate: A person who dies without leaving a will.
  • Joint Tenants: Can only be created if expressly stated in the deed. If a co-owner sells their portion to someone else, there is a good possibility that the joint tenancy will be severed. Married couples and parent/children purchases typically utilize the joint tenants so that on the death of any one of the joint tenants, the remaining joint tenants will ‘inherit’ the deceased co-owner’s stake in the property. There is no need for probate like there is with tenants in common.
  • Judgment: A decree entered by the court after final determination of the rights of the parties in legal action.
  • Lease: A contract where the owner grants to another the possession or use of their property.
  • Letters Testamentary: A court order empowering an individual to deal with a deceased person’s estate.
  • Lien: A charge upon real property as security for the payment of a debt.
  • Life Estate: The interest in property that exists only for the life of an individual.
  • Metes and Bounds Description: A legal description based on footage and direction prepared through a survey of the property.
  • Minor: A person of either sex who is not of legal age.
  • Monuments: Objects or markers used to fix or establish a property boundary.
  • Novation: Substitution of a new contract, debt or obligation for an existing one, between the same or different parties.
  • Order Confirming Sale: A court order given during a probate or bankruptcy proceeding which authorizes the sale of a part of the estate property.
  • Patent: An instrument used by the state or federal government to transfer title to property.
  • Power of Attorney: An authority or instrument by which one person (principal) enables another (attorney in fact) to act for him.
  • Probate: A court proceeding in which descendant’s estate is administered.
  • Quitclaim Deed: A deed that conveys ownership, if any, of the Grantor without covenants of warranty and passes no after-acquired title of Grantor.
  • Quiet Title: A court action that clarifies the title to real property.
  • Real Property Tax: A property tax on local real estate that is calculated according to the fair market value of the real estate. The property may be assessed at full value, which is presumably the price that the owner could sell it for in the current market, or using some other valuation method.
  • Release: The termination of the lien created by a Deed of Trust.
  • Reservation: A reservation created by a Grantor in a deed, which establishes a new right or privilege for the benefit of the Grantor in the property.
  • Resolution: A formal declaration of the will of the group, such as the Board of Directors of a corporation.
  • Restriction: A limitation upon the owner’s use or right to deal with their land.
  • Settlement Statement: A document prepared for the closing of a Contract of Sale for real property which gives an accounting of how the funds are to be disbursed.
  • Severalty: An estate held by a person in his own right, without being joined by another person.
  • Special Warranty Deed: A deed that conveys ownership, but only warrants the title to the real property for the time period the grantor has had ownership of the real property described in the Deed and passes the after-acquired title of the Grantor.
  • Subordination: An agreement in which the existing lien will take an inferior position to a new or junior lien.
  • Tenants in Common: Is presumed under Colorado law unless joint tenancy is expressly stated in the deed. Two or more people or entities take title to real property as tenants in common, each co-owner has an undivided interest in the property. Each co-owner can sell their interest without the other co-owner’s consent. The ownership of the property must add up to 100%. If one co-owner dies- their interest will most likely be sold by a representative via probate court rather than passing directly to the other co-owners like Joint Tenancy.
  • Testate: A person who dies leaving a will.
  • Title: The right to posses real property described in a Deed or a Court Order.
  • Trust: Property that is held by one party for the benefit of another.
  • Usury: An interest rate that is greater than the amount which can be legally charged.
  • Waiver: A voluntary surrender of a right or privilege, such as the right to file a lien.
  • Warranty Deed: A deed that conveys ownership with covenants of warranty to the real property from the Patent to the time the Grantor conveys the title and passes the after-acquired title of the Grantor.