DEED TO SECURE DEBT - A legal document that pledges property to a lender as security for the repayment of the loan. The term also is used to refer to the loan itself. This document is recorded at the county courthouse and transfers to the lender legal title to the subject property until the loan is satisfied.

EARNEST MONEY - A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract, usually applied against the purchase price.

GOOD FUNDS - A settlement agent shall not disburse settlement proceeds unless such proceeds are collected at the time of closing.Good funds can consist of a certified check, cashier's check, treasurer's check or wire transfers.

HAZARD INSURANCE - policy insuring individuals against any, some, or all of the risks of loss to personal dwellings or the contents thereof of the personal liability pertaining thereto.

HOMEOWNERS ASSOCIATION - An organization comprising neighbors concerned with managing the common areas of a subdivision or condominium complex. These associations take on issues such as salting and sanding a subdivision when it snows and collecting dues from residents. The homeowners' association is also responsible for enforcing and covenants, conditions & restrictions that apply to the property.

IMPOUND/ESCROW FUNDS - A sum of money that the lender requires to be collected at closing for payment of taxes and insurance to be disbursed when bills become due and payable.

INTANGIBLE TAX - on each long-term note secured by real estate, a tax is imposed at the rate of $1.50 for each $500.00 or fraction of the face amount of the note secured by the recording of deed to secure debt.

NOTE - Provides information about your loan (term of loan, payments, interest rate, prepayment penalties, etc). It is this document that creates the obligation for the loan debt.

OWNER'S AFFIDAVIT - This document states that the owner of said property knows of no circumstances such as encroachments, liens, judgments, or other problematic issues that would prevent the conveyance of clear title.

POWER OF ATTORNEY - A document that gives another person legal authority to act on your behalf. A power of attorney may be "general," which gives your attorney-in-fact extensive powers over your affairs. Or it may be "limited" or "special," giving your attorney-in-fact permission to handle a specifically defined task.

PREPAID INTEREST - the interest paid for the time period between the loan closing date and the end of the month.

PRIVATE MORTGAGE INSURANCE - Often referred to as PMI, insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale prices is less than the amount owed the lender (the mortgage plus the costs of the sale). A homebuyer who puts less than 20% down payment, may be required by their lender to purchase PMI.

PRO RATE - the act of adjusting, dividing or prorating property taxes, interest, insurance premiums, rental income, etc., between buyer and seller proportionately to time of use or the date of closing

QUITCLAIM DEED - A deed that transfers whatever ownership interest the transferor has in a particular property, however, the deed does not guarantee anything about what is being transferred.

REAL ESTATE TAX - Tax levied by local taxing authority against the ownership of real estate.

SETTLEMENT STATEMENT - A statement prepared by an escrow agent or lender, giving a complete breakdown of costs involved in a real estate transaction.

SUBORDINATION AGREEMENT - An agreement by which one holding an otherwise senior lien or other real estate interest consents to a reduction in priority vis-à-vis another person holding an interest in the same real estate.

SURVEY - The process by which a parcel of land is accurately measured to establish the existing boundary lines, any setback lines, power, utility or other easements and their specific location especially any encroachments or issues such as an overlapping driveway, retaining wall, gutter or other potential problems.

TITLE INSURANCE - Insurance issued by a title company that protects a property owner against loss if it is later discovered that title is imperfect.

TITLE SEARCH - An examination of the records of the registry of deeds or other office which contains records of title documents to determine whether title to the property is good, whether there are defects in the title.

TRANSFER TAX - A tax upon the passing of the title to the property or a valuable interest therein out of or from the estate of a decedent, by inheritance, devise, or bequest.

TRUTH IN LENDING DISCLOSURE - Required by federal law and discloses all lender required costs for the loan, the annual percentage rate, whether there is a prepayment penalty, etc. It also requires lenders to disclose the terms of a loan, including the total amount of the loan, the annual interest rate and the number, amount and due dates of all payments necessary to repay the loan.

WAIVER OF BORROWER'S RIGHTS - A document that puts the borrower on notice that in the event of foreclosure there is not a court hearing in the State of Georgia.

WARRANTY DEED - Typically used to transfer title from the seller to the purchaser and is recorded at the county courthouse. In addition, it expresses assurance about the legal validity of the title being transferred.

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