An encumbrance is a claim against an asset by an entity that is not the owner. Common types of encumbrances against real property include liens, easements, leases, mortgages, or restrictive covenants. Encumbrances impact the transferability...
mortgages
equity of redemption
Equity of redemption (also termed right of redemption or equitable right of redemption) is a defaulting mortgagor’s right to prevent foreclosure proceedings on the property and redeem the mortgaged property by discharging the debt secured by...
escrow
An escrow is a financial instrument whereby two or more parties involved in a legal transaction deposit assets, documents, and/or money with an independent third party known as the escrow agent. The escrow agent holding the assets, documents...
escrow agent
The escrow agent is an independent third party in charge of holding the assets, documents, and/or money in escrow until the contractual condition is fulfilled in the terms and conditions established by the parties in the escrow agreement. The...
escrow agreement
The escrow agreement is a contract entered by two or more parties under which an escrow agent is appointed to hold in escrow certain assets, documents, and/or money deposited by such parties until a contractual condition is fulfilled. In...
escrow instructions
The escrow instructions define the events and conditions that must take place and the manner in which the escrow agent shall deliver or release to the beneficiary of the escrow the assets, documents, and/or money held in escrow. The escrow...
exempt property
Exempt property is any property that creditors cannot seize and sell in order to satisfy debt during chapter 7 or chapter 13 bankruptcy. The type of property exempted differs from state to state but often includes clothes, home furnishings,...
face amount
Face amount refers to what the words or numbers on the printed page of a financial instrument literally say. Often used in the context of life insurance, the face amount refers to the stated amount of money payable to the deceased’s...
face value
Face value refers to the stated value of a security at the time of issuance. Face value can be applied to many things, like currency, but is usually used regarding stocks and bonds. For bonds, the face value is the same thing as par value:...
fair market value
The fair market value (FMV) is the value of property as determined by the marketplace (or objective purchasers) rather than as determined by a subjective individual. This is what an informed and unpressured buyer would pay to an...