ABSTRACT OF TITLE:
A historical summary of all the recorded instruments and proceedings that affect title of property.

ACKNOWLEDGMENT:
A formal declaration signed before a duly authorized official who states the person individually, or acting as a duly appointed representative for a separate entity, signed the document as a voluntary free act and deed. All recorded instruments in the State of New Jersey are required to be acknowledged in order to authenticate the signer(s).

ADJUSTABLE RATE MORTGAGE:
Mortgage loan that allows the interest rate to be changed at specific intervals during the term of the loan.

ADMINISTRATIVE CONSENT ORDER:
The consent of a property owner to follow certain land use requirements set forth by the
New Jersey Department of Environmental Protection Agency (DEP).

ADMINISTRATOR’S DEED:
A deed conveying the property of a person who died without a will (Intestate).

ADMINISTRATOR:
A person appointed by a Court to administer the estate of a person who left no will.

ADVERSE POSSESSION:
A method of acquiring title to real property when a person other than the owner of record
has been in open possession for a given period of time as stated by law.

AFFIANT:
A person who makes an affidavit.

AFFIDAVIT:
A written statement sworn to or affirmed before an officer authorized to administer an
oath.

AFFIDAVIT OF CONSIDERATION:
Required affidavit to file with deeds when full or partial exception from Realty Transfer
Tax is declared.

AGREEMENT:
A record of the consent of two or more persons respecting the transmission of some
property, rights or benefit.

AGREEMENT NOT TO CONVEY OR ENCUMBER:
The agreement of a property owner to a given lender not to convey or encumber the title or equity of the property for the duration of the note, mortgage or other obligation.

AGREEMENT TO REIMBURSE:
An agreement which serves as a lien against property by a recipient of County or State
Assistance program to reimburse any funds granted.

AIRCRAFT LIEN:
A lien against an aircraft’s owner for labor, supplies or other fees incurred.

AMENDMENT:
A change or alteration to any given document.

ANNEXATION:
The process by which an incorporated city expands its boundaries to include a specified area. Annexation procedures are established by state law.

APOSTILLE:
An authentication of a notary acquired from the NJ Division of Revenue. Foreign governments as further certification of a Clerk’s signature usually require these.

APPRAISAL:
The act or process of estimating the value of a property.

APPRAISER:
One qualified to estimate the value of real property.

ASSESSMENT:
The amount of tax or special payment due to a municipality or association.

ASSESSOR:
A public official who determines the amount of property tax.

ASSIGNMENT:
The method by which one’s property rights or contract rights are transferred to another.

ASSIGNEE:
The person to whom certain rights are sold or transferred.

ASSIGNOR:
The party who transfers certain property or contract rights to another.

ASSUMPTION AGREEMENT:
A formal agreement by a buyer to assume terms of an existing mortgage. The seller remains liable to the lender unless the lender also agrees to release him.

ATTACHMENT:
The legal seizure of property to force payment of debt or to determine ownership issues.

ATTORNEY’S CERTIFICATES OF GOOD STANDING:
To notify the public of a duly commissioned and qualified ATTORNEY AT LAW issued by the
NJ Supreme Court.

ATTORNEY’S ETHICS REPORTS:
Reports of actions taken by the Disciplinary Review Board of the Supreme Court.

ATTORNEY IN FACT:
One who is authorized to act for another under Power of Attorney which may be general or limited in scope.

BALLOON MORTGAGE:
A mortgage with a balloon payment. This balloon payment is the final payment of the loan which is larger than any preceding payments.

BANK MERGER OR NAME CHANGE:
Public notification regarding bank mergers or name changes. Necessary when canceling or discharging mortgage.

BANKRUPTCY:
The financial inability to pay one’s debts. Court action is necessary to erase or work out debts.

BARGAIN AND SAidE DEED:
A deed transferring property for valuable consideration in which the Grantor implies to have an interest. No warranties of title are given. This is the most common deed used in N.J. today.

BENEFICIARY:
The person who receives the benefits resulting from certain acts such as a trust.

BLANKET ASSIGNMENT OF MORTGAGE:
A single assignment used for more than one mortgage.

BLANKET MORTGAGE:
A single mortgage which covers more than one lot or parcel of real estate.

BONAFIDE:
In good faith.

BOARD OF DIRECTORS:
The governing body of a corporation. Non profit and other organizations may have boards to
establish their policies.

BOARD OF PROPRIETORS:
The original owners of the lands which were the colonies of New York and New Jersey. Their records are still available. Proprietary copies of maps are available in some County Clerk’s Offices.

BOND TO RELEASE CONSTRUCTION LIEN:
An instrument obtained from a surety company duly authorized to conduct business in this state which releases a Construction Lien.

BOROUGH:
One type of Municipality in NJ which is determined by its type of government and individual charter.

BUILDING CODES:
The establishing of building requirements in individual municipalities. This information is obtained at a local level.

BY-LAWS:
A set of rules and regulations adopted by a corporation or association to establish how it will conduct its business.

CANCELLATION OF MORTGAGE:
A method whereby a mortgagee acknowledges that a mortgage commitment has been paid in full and the County Clerk is authorized to cancel of record. Cancellation endorsement is submitted on the original recorded document.

CAPTION:
The heading or title of document.

CEMETERY DEED:
A deed which conveys ownership of a cemetery plot(s). These are usually on record at the cemetery and occasionally recorded with the County Clerk.

CERTIFICATE OF INCORPORATION:
The document, which creates a corporation, endowed with certain rights, privileges and duties as set by State law.

CERTIFIED COPY:
A copy produced by the official holder of record, which cites keeper of record and bears official stamp or seal.

CHAIN OF TITLE:
A history of conveyances and encumbrances affecting a particular parcel of land which go back as far as official records are available.

CHAINS AND LINKS:
A method of measuring land used by surveyors until recent times. A chain is 66 feet in length consisting of I 00 links.

CHATTEL MORTGAGE:
An obsolete name for mortgage of personal property. Most items of personal property used as security today are filed under provisions of the Uniform Commercial Code.

CITY:
One type of municipality in New Jersey which is determined by its type of government and individual charter.

CLEAR TITLE:
Title to property, which is, free and clear of any encumbrances or disputed interests.

CLERK’S CERTIFICATE:
A certificate attached to an original notarized document, which validates the name and legality of the officiating Notary Public.

COLLATERAL TAX WAIVER:
See Inheritance Tax Waiver.

COLONIAL CONVEYANCES:
Returns given by the proprietors of the colony of New Jersey to individuals and entered into the
Surveyor General’s records at Perth Amboy.

COMPLAINT IN REM:
The filing of a complaint in the Courts against a given property usually initiated by a municipality for non-payment of taxes.

COMMON LAW:
The unwritten body of law which originated from practices and customs in England and which still prevails unless superseded by other law.

CONDEMNATION:
The legal process of taking private property for public use.

COMMON ELEMENTS:
In condominiums those portions of the property that are held with indivisible interest by all unit owners. These areas usually include ground; parking lots, clubhouses, etc.

CONDOMINIUM:
A system of ownership of individual units in a multi-unit structure. Combined with joint ownership of commonly used property such as grounds, parking and recreational areas.

CONDOMINIUM DEED:
A deed for an individual unit in a condominium complex.

CONSIDERATION:
Anything of value given to induce another to enter into a contract.

CONSTRUCTION MORTGAGE:
A loan secured by property which is used for building a structure on the property.

CONSTRUCTION LIEN CLAIM:
The filing of a lien by contractors, subcontractors and suppliers for work, services, material or
equipment against residential or commercial property and owners.

CONTRACT:
An agreement between two or more parties to do or not to do certain things for a consideration.

CONTRACT OF SALE:
A written agreement whereby purchaser agrees to buy certain real estate and seller agrees to sell upon certain terms.

CONVEYANCE:
The transfer of title of real estate from one party to another (Deed).

COOPERATIVE (CO-OP):
A residential multi-unit building in which a tenant becomes shareholder in a corporation that owns the building. As of December 2010 co-op units in New Jersey are obtained by Proprietary Leases.

CORPORATION:
A legal entity properly registered with the Secretary of State, which is endowed with certain
rights, privileges and duties.

CORRECTIVE DEED:
A deed by a Grantor to correct a mistake made in a former deed of the same property conveyed by him.

CO-TENANCY:
Refers to forms of multiple ownership such as Tenancy in Common or Joint Tenancy.

COVENANT:
An agreement written into deeds and other instruments in which promises are made for the
performance or non-performance of certain acts or requiring or preventing certain uses of the property.

COURTESY:
In Common Law, the right of a husband to all or part of his deceased wife’s property regardless
of will provisions if they had children in their marriage.

DEBT:
An obligation to pay.

DECEDENT:
Deceased person.

DECLARATION:
A form a l pleading as to the facts and circumstances of a cause of action or a statement made out of Court for various purposes.

DECLARATION OF TAKING:
A statement giving public notice of the taking of private property by a unit of government.

DECLARATION OF TRUST:
A written statement given by a legal owner of property or an estate, which declares that he holds the same in trust for the use of another person(s) or for certain specified purposes.

DEDICATION:
A gift of land by its owner for public use and the acceptance of such l and by an authorized governmental official.

DEED:
A written document properly signed and delivered, that conveys land from one owner to a n other.

DEED OF DEDICATION:
The formal conveyance of property gifted by owner to a unit of government.

DEED OF TRUST:
A deed which conveys property to or from a trust. This title is also used as a mortgage in some states.

DEED IN LIEU OF FORECLOSURE:
The act of giving property back to a l ender without foreclosure.

DEPARTMENT OF ENVIRONMENTAL PROTECTION:
The New Jersey Department of Environmental Protection issues various documents and perm its concerning land use and restrictions.

DEFENDANT:
A person against whom a legal action is taken.

DEFICIENCY:
(See Notice of Deficiency)

DELIVERY:
The final and absolute transfer of a deed from sell er to buyer in such a manner that it cannot be recalled by sell er.

DEPONENT:
A witness an affiant.

DEVISE:
The disposition of land by will. This term is used for LAND only.

DEVISEE:
A person to whom real property is given by will.

DISCHARGE:
The method of releasing a person from obligation or debt as a mortgage or various types of liens.

DISCLAIMER:
A voluntary denial or repudiation of a person’s claim or right to possess a given thing such as a right of title to property.

DOMINANT TENEMENT:
Land that benefits from an easement of another property. This land is usually adjacent to the other property.

DONEE:
A person to whom a gift is made.

DONOR:
A person who makes a gift.

DOWER:
Under common law, the right of a wife or child to a part of a husband’s or father’s property.

DURABLE POWER OF ATTORNEY:
The authorization for an attorney-in-fact to continue acting for a principal after the principal’s inability to contract.

EARNEST MONEY:
A deposit for part of the purchase price of real estate to show good faith of buyer.

EASEMENT:
The rights privilege or interest that one party has in the property of another. This is usually for a specific purpose such as sewer lines.

EMINENT DOMAIN:
The right of government or public utility to take private property for public use by condemnation.

ENCROACHMENT:
An obstruction that physically extends from one property onto the land of another.

ENCUMBRANCE:
Any right to or interest in land that affects its value.

ENVIRONMENTAL PROTECTION AGENCY:
An agency of the United States government, which enforces and implements various pollution prevention programs.

ENDORSEMENT:
The act of signing ones names, as payee, on the back of check or note with or without further qualification.

ENTIRETY:
A form of co-tenancy in which owners are seized as the whole.

EQUITY:
The interest or value that an owner has in real estate over and above the liens against it.

ESCALATOR MORTGAGE:
See adjustable rate mortgage.

ESCHEAT:
The reversion of property to the state in the event the owner dies without leaving a will or without heirs.

ESCROW:
An agreement between two or more parties which designates a third party to act as agent for both parties for safe keeping documents, carrying out instructions, delivering papers and documents or disbursing funds.

ESTATE:
A person’s possessions. The degree, nature and extent of interest that a person has in real
property.

ESTATE FOR LIFE:
(See Life Estate).

ESTATE FOR YEARS:
An interest in land by contract for a specified and limited time.

ESTATE TAX:
A tax based on the value of property left by the deceased.

ESTOPPEL:
A doctrine of law that stops a person from denying facts that a person once acknowledged was true and others accepted on good faith.

ETAL:
And others.

ET SEQ:
And following.

ETUX:
And wife.

EVICTION:
A legal proceeding by a lessor (Landlord) to revoke possession of property.

EXAMINATION OF TITLE:
Research of the title to a piece of real estate. These usually concentrate on recent records as opposed to a title search.

EXECUTE:
To perform what is required to give validity to a legal instrument as by signing and perhaps sealing and delivering.

EXECUTORITRIX:
A person named in a will to carry out all provisions and directions as expressed in the will.

EXECUTOR’S DEED:
A deed which conveys property by an executor or an executrix of an estate.

EXEMPTION:
An amount provided by law that reduces the taxable value or taxable income.

EXPUNGEMENT OF RECORD:
An order by the Court for the annulment or destruction of a given record.

EXTENSION OF MORTGAGE:
A modification of a mortgage, which extends the time period originally, specified. (See
Modification of Mortgage).

FACE YALUE:
The dollar amount shown by words and/or numbers on a document.

FACSIMILE:
An exact and precise copy.

FAIR MARKET YALUE:
The price that property would sell for in a market of willing buyers and willing sellers in the ordinary course of trade.

FANNIE MAE:
Nickname for Federal National Mortgage Association.

FARM CREDIT AGENCY:
An agency of the Federal Government that gives mortgage loans on rural property to farmers and to individuals who service farmers and ranchers.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC):
A public corporation that insures up to $250,000 for depositors in most commercial Banks and
Savings and Loans. (Established in 1933).

FEDERAL HOUSING ADMINISTRATION (FHA):
An agency, which is part of the Federal Department of Housing and Urban Development (HUD) that administers many loans and loan guarantee programs.

FEDERAL REVENUE STAMPS:
Stamps that indicated the payment of federal tax imposed upon a transaction which were affixed to the document. (Not required since 1968).

FEDERAL TAX LIEN:
A notice of debt attached to property for UNPAID federal taxes- most often the IRS.

FEE SIMPLE:
The greatest interest in ownership of property that is possible to own without limitation. The owner has unconditional power of disposition during owner’s life and the right to designate heirs upon owner’s death.

FINANCE STATEMENT:
A document which encumbers personal property or fixtures with a debt. Also see Uniform
Commercial Code (UCC).

FIXTURES:
Improvements or personal property attached to the land so as to be part of the real estate –
examples are a built-in-bookcase or fence.

FLOOD PLAIN:
A level land area which is subject to periodic flooding from a contiguous body of water.

FORECLOSURE:
Enforcement of a lien (usually a mortgage) by sale of property which was given as security.

FORECLOSURE SALE:
The public sale of property which was pledged as security for a debt (usually mortgage). Such sale held to pay debt in the event of default in payment.

FORFEITURE:
The losses of a right title or interest in property due to failure to perform under terms of a
contract or obligation.

FRANCHISE:
A contractual right to engage in business under trade name owned by another.

FREDDIE MAC:
A nickname for Federal Home Loan Mortgage Corporation.

FREEHOLD:
Interest in land without a predetermined time span.

GENERAL INDEX:
A listing of all records affecting title to real estate by the names of individuals and entities, rather than by property description.

GINNIE MAE:
Nickname for Government National Mortgage Association.

GOOD FAITH:
A concept of honesty.

GRANDFATHER CLAUSE:
A special provision when a law is changed or a new law is passed giving the right to continue any specific activity, which was in place and legal under the old law.

GRANT:
To bestow or confer a gift or bestowal by one having control or authority over it such as property.

GRANTEE:
The party to whom the title to real priority is conveyed (the buyer).

GRANTOR:
A person who transfers title or interest to property to another (seller).

GROUND LEASE:
A lease that rents the land only.

GUARDIAN:
One appointed by the court to administer the personal affairs or property of an individual not capable of such duties.

HABENDUM CLAUSE:
The “have and to hold” clause that defines or limits the quantity of the estate granted in the deed.

HEIR:
One who inherits property.

HEIRS AND ASSIGNS:
A term often used in deeds to provide a “fee simple” estate.

HOME EQUITY LOAN:
A loan secured by a mortgage, either as a line of credit to be drawn on as needed, or a second
mortgage providing a lump sum amount.

HOME OWNERS ASSOCIATION:
An organization in a particular subdivision or condominium for the purpose of enforcing deed restrictions or managing common elements.

HONORABLE DISCHARGE:
A formal final judgment and declaration by the government that an individual has left military service in a status of honor.

HOSPITAL LIEN:
A lien filed by a hospital, doctor or dentist against the property of a patient for non-payment of fees.

HUD:
Housing and Urban Development is a federal agency to implement certain federal housing and community development programs.

IMPROVED LAND:
Land that has been partially or fully developed for use. This could include roads, utilities buildings, etc.

IMPROVEMENTS:
Those additions to raw land which tend to increase its value. (See Above).

INCOMPETENT:
One not legally capable of completing legal matters such as the mentally iII or minors.

INCORPORATE:
To form a corporation under state regulations as determined by the Secretary of State (See Certificates of Incorporation).

INDENTURE:
A deed or other document to which two or more persons are parties with different interests. This term comes from olden times when each party had a copy, which was indented or tom in a given way to correspond with all other copies.