Glossary

T

Tenements - Possessions that are permanent and fixed; structures attached to land.

Term - The amount of time (usually computed in months) until the balance of a mortgage, trust deed land contract is due and payable. For example, a land contract may fully amortize over a 10-year period (120 months). However, the contract may also call for a balloon payment to be made at the end of the fifth year (60th month). In this case, the term of the land contract would be 60 months or five years.

Title - Evidence that the owner of the land is in lawful possession thereof.

Title Insurance - A form of insurance purchased to protect against any losses or defects in the title of a particular piece of property.

Title Search - An examination of public records, law, and court decisions to disclose the past and current facts regarding ownership of real estate.

Township - A six-mile-square tract delineated by a government rectangular survey.

Trust Deed - A claim against real estate similar to a mortgage but title is held by a third party called a Trustee for the Beneficiary.

Trustee - One who holds property in trust for another to secure performance of an obligation.

U

Underlying Debt - An original loan that is still in existence. This loan may be owed on a mortgage, trust deed or land contract.

Use Restrictions - A clause in a deed which places limitations or restrictions on the property's use. For example, "this property can never be used to sell liquor" or "this property can never be used to raise farm animals". These limitations "run with the land" and are therefore binding on subsequent owners.

Have more questions?  Try the RAM Funding  Note Buyer Questions page.  Unfamiliar with some of the terms used by cash flow note buyers? Try the RAM Cash Flow Note Definitions page.  To find out how we calculate the value of your cash flow, visit the Present Value page.  You can find out about our Cash Flow Purchase Options too.

What is a Cash Flow?  click here  What is a Cash Flow Broker?  click here

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