Labor Lien is a legal document filed and recorded against a
piece of property. This lien is normally filed by a subcontractor
that has provided labor for a project but has not been paid.
piece of property. This lien is normally filed by a subcontractor
that has provided labor for a project but has not been paid.
Contract is a legally binding agreement (oral or
written) between two or more persons regarding
an exchange of some sort. A legally binding
contract must include consideration passing
between the parties, an intention on the part of all
parties to be bound to the contract, a meeting of
the minds of the parties as to the contents of the
contract, and an element of clarity such that the
terms of the contract may be interpreted,
understood and enforced by a court
written) between two or more persons regarding
an exchange of some sort. A legally binding
contract must include consideration passing
between the parties, an intention on the part of all
parties to be bound to the contract, a meeting of
the minds of the parties as to the contents of the
contract, and an element of clarity such that the
terms of the contract may be interpreted,
understood and enforced by a court
Title Insurance policies typically insure a home buyer against
any title-search errors or mistakes, and against loss due to
disputes over property ownership. Title Insurance can additionally
offer protection to the lender under similar circumstances. The
cost of title insurance is usually a set value per thousand of
dollars of the total loan amount.
any title-search errors or mistakes, and against loss due to
disputes over property ownership. Title Insurance can additionally
offer protection to the lender under similar circumstances. The
cost of title insurance is usually a set value per thousand of
dollars of the total loan amount.
General Contractor is a person or company that enters into a
contract with the owner of a project for the construction and who
takes full responsibility for its completion, although the contractor
may enter into subcontracts with others for the performance of
specific parts or phases of the project
contract with the owner of a project for the construction and who
takes full responsibility for its completion, although the contractor
may enter into subcontracts with others for the performance of
specific parts or phases of the project
Covenants is a written agreement between two or more parties in
which a party or parties pledge to perform or not perform specified
acts with regard to property; usually found in such real estate
documents as deeds, mortgages, leases and contracts for deed.
which a party or parties pledge to perform or not perform specified
acts with regard to property; usually found in such real estate
documents as deeds, mortgages, leases and contracts for deed.
Easement
The right of the owner of one parcel of land to
use all or part of the land of another for a
specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys
the benefit of the easement) and one property to
be in servient position (is subject to the right).
The right of the owner of one parcel of land to
use all or part of the land of another for a
specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys
the benefit of the easement) and one property to
be in servient position (is subject to the right).
Cost Plus is a term referring to how the contractor will be
compensated for his work. In a cost plus contract the contractor is
paid for the material and labor costs plus a flat fee or a percentage
of the total cost.
compensated for his work. In a cost plus contract the contractor is
paid for the material and labor costs plus a flat fee or a percentage
of the total cost.
| Legal |
Construction Jargon
Bankruptcy
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
Closing Statement
A document which sets out the financial agreement between the
parties, the costs each must pay, and all other similar information
regarding a transaction (may be joint or separate for each party).
A document which sets out the financial agreement between the
parties, the costs each must pay, and all other similar information
regarding a transaction (may be joint or separate for each party).
Easement
The right of the owner of one parcel of land to use all or part of the
land of another for a specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys the benefit of the
easement) and one property to be in servient position (is subject to
the right).
The right of the owner of one parcel of land to use all or part of the
land of another for a specific purpose. Runs with the land. Requires
one property to be in dominant position (enjoys the benefit of the
easement) and one property to be in servient position (is subject to
the right).
Encroachment
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
Free and Clear
A description of title to property which is
unencumbered and subject to no competing
claims.
A description of title to property which is
unencumbered and subject to no competing
claims.
First Lien
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
Legal Description
A description of a piece of real estate that is
drafted according to legal requirements and
which clearly and adequately establishes the
identity of the property so described. Found in
most instruments for registration on title to land.
A description of a piece of real estate that is
drafted according to legal requirements and
which clearly and adequately establishes the
identity of the property so described. Found in
most instruments for registration on title to land.
Escrow
Escrow is usually money held in trust by a third party to be turned over
to the grantee only upon fulfillment of a condition. This could be
proceeds from a loan closing that would be held in escrow until a
particular condition is met.
Escrow is usually money held in trust by a third party to be turned over
to the grantee only upon fulfillment of a condition. This could be
proceeds from a loan closing that would be held in escrow until a
particular condition is met.
Encroachment
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
The intrusion across the property line and into one property of an
improvement to a neighboring property. May result in a claim for
adverse possession if the encroachment is unchallenged for a long
period of time.
Closing Statement
A document which sets out the financial
agreement between the parties, the costs each
must pay, and all other similar information
regarding a transaction (may be joint or
separate for each party).
A document which sets out the financial
agreement between the parties, the costs each
must pay, and all other similar information
regarding a transaction (may be joint or
separate for each party).
Bankruptcy
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
The state of being unable to pay your debts such that you submit
yourself to the protection of the state. A person or business may
voluntarily assign himself into bankruptcy or may be petitioned into
bankruptcy by his creditors. Once in bankruptcy, the person
surrenders his assets to a trustee in bankruptcy who sells the assets
for the benefit of the bankrupt's creditors, first secured creditors then
unsecured creditors. Once a person is discharged from bankruptcy,
none of his former creditors may pursue him for his former debts.
Free and Clear
A description of title to property which is
unencumbered and subject to no competing
claims.
A description of title to property which is
unencumbered and subject to no competing
claims.
First Lien
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
The registered legal claim which stands first in
line to enjoy the proceeds of a sale of the
property. Liens generally are ordered according
to time or registration but various statutes allow
some liens to jump to the head of the line.
Hazard Insurance
A type of insurance designed to cover damage
caused by a peril specified in the policy of
insurance (i.e. fire, flood, etc.).
A type of insurance designed to cover damage
caused by a peril specified in the policy of
insurance (i.e. fire, flood, etc.).
Legal Description
A description of a piece of real estate that is drafted according to legal
requirements and which clearly and adequately establishes the
identity of the property so described. Found in most instruments for
registration on title to land.
A description of a piece of real estate that is drafted according to legal
requirements and which clearly and adequately establishes the
identity of the property so described. Found in most instruments for
registration on title to land.
Homeowners Insurance
Liability coverage for property owners
covering both loss/damage to property or
dwelling and personal liability.
Liability coverage for property owners
covering both loss/damage to property or
dwelling and personal liability.
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