GLOSSARY OF REAL ESTATE TERMS

USURY
An unconscionable or exorbitant rate of interest. A usurious loan carries and interest rate in excess of that permitted by law.

VEST
To create a present (non-contingent) right, title or interest in something. With regard to real estate, vesting denotes ownership (e.g., “the property is vested in…”) or the form of ownership (e.g., joint tenants).

VOID
To have no legal force or effect.

WAIVE
To intentionally and voluntarily relinquish a right or privilege. To refrain from enforcing or requiring performance of a duty by another.

WARRANTY DEED
A written instrument that includes certain warranties (promises) and that is used to transfer all of the right, title and interest in and to a parcel of real property from the grantor to the grantee. The usual warranties are (1) “seisin” – the grantor is the possessor and owner of the property and he or she has the right to convey it; (2) quite enjoyment – the grantee will not be disturbed by someone claiming an interest in the property; (3) no encumbrances – the grantor is delivering clear title except as otherwise stated in the deed; (4) further assurance – if necessary, the grantor will procure and deliver additional documents necessary to perfect the grantee’s title; and (5) forever defend – the grantor will bear the expense of defending the grantee’s title against future ownership claims. Warranty deeds may be general or special (in which case the warranties are limited to those claiming by, through or under the grantor). Compare bargain & sale deed and quitclaim deed.

WRAP-AROUND FINANCING
A financing arrangement whereby debt secured by an existing (senior) mortgage is incorporated into a new loan secured by a junior mortgage. A common “wrap” scenario is as follows – as part of a sale transaction, the purchaser takes over payment of the seller’s existing loan and borrows and additional amount from the seller. The purchaser makes a single payment to the seller (junior lender) and from that payment the seller pays the original lender. The instrument securing the new loan from the seller is called a wrap-around mortgage or an all-inclusive deed of trust. There are risks associated with the wrap-around financing (default on the senior loan or a senior loan with a due-on-sale clause), but if the senior loan carries a low interest rate and prevailing rates are high, the arrangement allows the purchaser to receive the benefit of the lower rate. Compare loan assumption and subject-to mortgage.

WRIT OF EXECUTION
A court order authorizing and directing an officer of the court, usually a sheriff, to carry into effect a judgment or decree of the court.