A defect in the chain of title of a particular parcel of
real estate; a missing document or conveyance that
raises doubt as to the present ownership of the land.
A licensed construction specialist who enters into a
construction contract with a developer or property owner
to construct a building or real estate project. The
general contractor often negotiates individual contracts
with sub-contractors who specialize in various aspects
of the building process, such as electricity, drywall
A county recorder's office index used by title company
examiners when searching the chain of title of a
property. The examiner uses the index to research all
the grantors and grantees in the chain of title. The
index lists all the things that apply to a person by
name, including liens, judgments and power of attorneys.
Every city and county is required to develop a
general plan of comprehensive zoning.
general warranty deed
A deed in which the grantor fully warrants good
clear title to the premises. Used in most real estate
deed transfers, a general warranty deed offers the
greatest protection of any deed.
A deed in which the consideration is "love and
affection." Because the deed is not supported by
valuable consideration, the donee (recipient of the
gift) may not be able to enforce against the donor
certain promises or agreements contained in the deed.
See: Government National Mortgage Association
Ginnie Mae Online
A preliminary accounting of expected closing costs.
The Real Estate Settlement Procedures Act (RESPA)
requires the lender to promptly give loan applicants a
good-faith estimate of closing costs.
Fractional sections in the rectangular (government)
survey system that are less than one quarter-section in
area. Areas smaller than full quarter-sections were
numbered and designated as government lots by surveyors.
These lots can be created by the curvature of the earth;
by land bordering or surrounding large bodies of water;
or by artificial state borders.
Government National Mortgage Association (GNMA)
A federal agency created in 1968 when the Federal
National Mortgage association (FNMA) was partitioned
into two separate corporations. "Ginnie Mae," as it is
popularly called, is a corporation without capital stock
and is a division of HUD. The GNMA operates the special
assistance aspects of federally aided housing programs
and has the management and liquidating functions of the
old FNMA. The FNMA is authorized to issue and sell
securities backed by a portion of its mortgage
portfolio, with the GNMA guaranteeing payment on such
Ginnie Mae Online
government survey system
A system of land description that applies to much of
the land in the United States, particularly in the
western states; also called the geodetic or rectangular
survey system. It is based on pairs of principal
meridians and base lines, with each pair governing the
surveys in a designated area.
An expression that conveys the concept that
something that was once permissible continues to be so,
despite changes in the law.
The person who receives a conveyance of real
property from a grantor. The grantee must be a person,
either natural or otherwise (e.g. corporation, public
agency, partnership, etc.) existing at the time of the
conveyance and is capable of taking title.
A type of deed in which the grantor warrants to the
grantee, that he has not previously conveyed the estate,
that he has not encumbered the property (except as noted
in the deed) and that he will convey any title to the
property he may later acquire.
Words in a deed of conveyance that state the
grantor's intention to convey the property at the
present time. This clause is generally worded as "convey
and warrant," "grant," "grant, bargain and sell" or the
The person transferring title, or an interest in
real property. A grantor must be competent to convey
title. A corporate grantor must have legal existence and
be authorized to hold and convey title to real property.
The grantor must be clearly identified in the deed.
gross income multiplier
A figure used as a multiplier of the gross annual income
of a property to produce an estimate of the property's
gross operating income
The result when other income is added to rental income.
A lease of property according to which a landlord pays
all property charges regularly incurred through
ownership, such as repairs, taxes, insurance and
operating expenses. Most residential leases are gross
gross rental income
Gross receipts for the rental of income property.
gross rent multiplier (GRM)
The figure used as a multiplier of the gross monthly
income of a property to produce an estimate of the
gross scheduled income
The maximum amount of rent if the property were 100
A lease of land alone, sometimes secured by improvements
placed on the land. Also called a land lease, the ground
lease is a means used to separate the ownership of the
land from the ownership of the buildings and
improvements constructed on the land.
Water under the earth's surface, regardless of the
geological structure in which the water is standing or
flowing. It does not include water in underground
streams that have identifiable banks and beds.