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Term Definition ABSTRACT OF TITLE A full summary of all consecutive grants, conveyances, wills, records and, judicial proceedings affecting title to a specific parcel of real estate. ACCELERATION CLAUSE A clause in a loan document describing certain events that would cause the entire loan to be due. In the event the property described herein or any part hereof or any interest therein is sold conveyed, alienated assigned or otherwise transferred by the maker or by the operation of law or otherwise all obligations secured by this instrument irrespective of the maturity dates expressed therein at the option of the payee thereof and without demand or notice shall immediately become due and payable. This phrase must be placed on note and trust deed and incorporated into instructions. ACCESS TO PROPERTY Seller will provide reasonable access to the property to buyer, inspectors representing buyer, to representatives of lending institutions for appraisal purposes or for any other purpose relating to the sale. ACCOMMODATION RECORDING I hand you herewith executed by-to which you are authorized to use in connection with the subject escrow. It is agreed that shall assume no responsibility in connection with recording of said- on my behalf as an accommodation to the undersigned. Affix $ documentary transfer tax (if a Deed) as total consideration is $-. Charge $-for transfer tax if applicable and for recordation of document. ACKNOWLEDGMENT A formal declaration to a public official. ACTUAL NOTICE Notice given by possession of property. ADDITIONAL INTEREST DUE/PAYOFFS The buyer and seller agree that disbursement of any payoffs for encumbrances being paid off at close of escrow must be received by the Lender by a specific date to avoid further accrual of interest. You are instructed to forward payoff funds to the lender and charge the appropriate account any fees at close of escrow. In the event the lender demands additional funds after the close of escrow buyer, or seller agrees to deposit additional funds according to lender's instructions. ADJUSTABLE RATE MORTGAGE (ARM) A note whose interest rate is tied to a flexible index. AGENCY RELATIONSHIP CONFIRMATION The following agency relationship is hereby confirmed for this transaction: The selling agent is the agent of the buyer exclusively; or seller exclusively; or both the buyer and seller. AGREEMENT OF SALE A contract for the sale of real property where the seller gives up possession but retains the title until the purchase price is paid in full. ALIENATION CLAUSE A clause in a loan document that would allow the lender to call the entire loan due upon the sale of the property. ALL-INCLUSIVE TRUST DEED A purchase money deed of trust subordinate to-but still including-the original loan. A.L.T.A. POLICY American Land Title Association policy of extended title insurance policy can be purchased by lender or buyer. AMENDING PREVIOUS INSTRUCTIONS These instructions supersede and amend any previous instructions in your escrow relative to the terms set forth. These instructions shall be your authority to act as directed in your capacity as escrow agent. ANNUAL PERCENTAGE RATE (APR) The relationship of the total finance charge to the total amount to be financed as required under the Truth-in-Lending Act. APPURTENANCE Those rights privileges and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the actual property. ASSIGNMENT OF RENTS An agreement between a property owner and the holder of a trust deed or mortgage by which the holder receives as security the right to collect rents from tenants of the property in the event of default by the borrower. ASSUMPTION CLAUSE A buyer takes over the existing loan and agrees to be liable for the repayment of the loan. ATTORNEY FEES If the buyer, seller or broker brings an action to enforce his or her rights under this agreement, including an action to recover commissions, the prevailing party shall be entitled to receive from the defaulting party a reasonable attorney fee to be determined by the court or arbitrator. BALLOON PAYMENT Under an installment, loan a final payment that is substantially larger than any other payment and repays the debt in full. BALLOON PAYMENT CLAUSE This note provides that the holder of this note shall give written notice to Trustor (borrower) of prescribed information at least 90 and not more than 150 days before any balloon payment is due. BALLOON PAYMENT DISCLOSURE All parties agree that they have not received or relied upon any statements or representations made to them by the broker regarding availability of funds or rate of interest at which funds might be available when buyer is obligated to refinance or pay off the remaining balance of any loan which is part of this agreement. BASE LINE A survey line running east and west used as a reference when mapping land. BENEFICIARY The lender under a note and deed of trust. BILL OF SALE A written agreement used to transfer ownership in personal property. BILL Of SALE* Buyer and seller agree to make a joint itemized inventory of all personal items to be conveyed through this escrow and will deposit it with escrow holder. You are to prepare a bill of sale to be executed by the seller who states that all items being conveyed will be free and clear of encumbrances and/ or liens unless previously disclosed to buyer. You are instructed to include list of the bill of sale being created in escrow instructions. BLANKET LOAN A loan secured by several properties. BONDS OR ASSESSMENTS If there is a bond or assessment on the subject property, with an outstanding balance, and is a lien upon this property, it shall be paid by seller assumed by b. if the bond or assessment is to be assumed, the obligation shall (not) be credited to buyer at closing. This agreement is conditioned upon all parties verifying and approving in writing the amount of any bond or assessment within ten (10) days of receipt of the preliminary title report. The disapproving party may terminate this escrow, in which case all unused deposits shall be returned to Buyer. BROKER BUYING AS PRINCIPAL Seller acknowledges that buyer is a licensed real estate broker (salesperson) acting as a principal for his or her own account. BROKER Listing broker selling broker cooperating brokers and all sales persons. BROKER REPRESENTING BOTH PARTIES By placing their initials here: buyer and seller agree that the broker in this transaction represents all parties with the consent and knowledge of all parties. BUSINESS OPPORTUNITY Any type of business that is for lease or sale. BULK TRANSFER LAW The law concerning the transfer in bulk by a retail business (not a sale in the ordinary course of the seller's business). BUYER'S APPROVAL OF DISCLOSURE STATEMENT If Transfer Disclosure Statement is delivered to buyer after the execution of this offer, buyer is allowed to terminate this agreement by written notice delivered to seller or his agent within three (3) days from receipt of the Transfer Disclosure Statement. All deposits to be returned less expenses incurred to date of termination. CANCELLATION INSTRUCTIONS The buyer had agreed to purchase the seller agreed to sell that certain property commonly known as . However buyer and seller mutually agree to cancel the subject escrow and escrow holder is hereby authorized to disburse the deposit you now hold in the sum of $-as follows:$-to- $ to and any charges for title or escrow services $-to It is also agreed that buyer and seller will hold the broker and escrow holder harmless and free of any liability in connection with the release of funds as directed by the buyer and seller and for the cancellation of the escrow as directed by the principals. CHAIN Of TITLE The recorded history of matters such as conveyances liens and encumbrances affecting title to a parcel of real estate. CHATTEL Personal property. CHATTEL REAL An item of personal property which is connected to real estate for example a lease. CLOSING COSTS On or before - or within- days of acceptance all parties shall deposit with Escrow Holder all funds and instruments necessary to complete the sale. Escrow fee to be paid by _ Documentary Transfer Tax if any to be paid by COMMISSION A commission is to be paid to the broker at the close of escrow as directed by the terms of the commission agreement. COMMISSION SPLIT The previously agreed upon division of money between a broker and sales associate when the brokerage has been paid commission from a sale made by the associate. NEW CONVENTIONAL FIXED RATE LOAN CASH DOWN PAYMENT Purchase price payable in cash. Contingent upon buyer obtaining a fixed rate loan to be secured by the property in the amount of at % of purchase price with equal monthly payments amortized over a period of not less than - years with interest not to exceed _% per annum. Buyer shall have days from date of acceptance to obtain a loan commitment or waive this condition in writing. Loan fee not to exceed _%. CONCURRENT RECORDING The closing of this escrow is contingent upon the concurrent closing of escrow no- . Neither escrow may close without the simultaneous closing of the other escrow. CONDITION PRECEDENT A condition which requires something to occur before a transaction becomes absolute and enforceable; for example a sale that is contingent on the buyer obtaining financing. CONDITION SUBSEQUENT A condition which if it occurs at some point in the future can cause a property to revert to the grantor; for example a requirement in a grant deed that a buyer must never use the property for anything other than a private residence. CONSTRUCTIVE NOTICE Public notice given by recording a document with the county recorder. CONTINGENCY (WAIVED/SATISFIED) Escrow holder is instructed that when the condition concerning has been (satisfied/waived) escrow holder is to proceed with the completion of this escrow. If the contingency is waived all parties should consent in writing. CONTRACT OF SALE A contract for the sale of real property where the seller gives up possession but retains title until the total of the purchase price is paid in full. CONVEYANCE The transfer of title to land from one person to another by use of a written instrument. COPIES Copies of all documents must be given to buyer and seller at the time of signing. CORRECTIONS AND DELETIONS Any corrections and deletions must be approved by all principals. COURT CONFIRMATION This escrow is subject to court confirmation. A certified copy of the court order confirming the transfer is to be recorded concurrently with or prior to the recording of other documents of the sale. DATE OF ACCEPTANCE Means the date the seller accepts the offer or the buyer accepts the counter offer. DATE OF CLOSING Date title is transferred to buyer. DECLARATION OF HOMESTEAD The recorded document that protects a homeowner from foreclosure by certain judgment creditors. DEED OF TRUST - PRIORITY CLAUSE This Deed of Trust is given to secure a portion of the purchase price of the subject property and is junior to a Deed of Trust in the amount of $__in favor of recording concurrently. OR This Deed of Trust is junior to that certain Deed of Trust for $__ in favor of __which recorded on as Instrument#__ Official Records of __County. DEED OF TRUST SECURING INSTALLMENT NOTE INTEREST INCLUDED A Deed of Trust to record executed by buyer securing an installment note for $__in favor of payable at __with interest from at the rate of __percent per annum principal and interest payable $__ or more on the day of each month beginning and continuing until at which time all principal and interest has been paid in full. At close of escrow escrow holder is instructed to list the interest rate accrual date first payment date and maturity date on the reverse of the executed note according to the instructions of the parties. EASEMENT The right to use another's land for a specified purpose sometimes known as a right-of-way. EASEMENT IN GROSS An easement that is not appurtenant to any one parcel; for example public utilities. ENCROACHMENT The placement of permanent improvements on adjacent property owned by another. EXTENDED POLICY An extended title insurance policy. DEFAULT Failure to pay a debt or on a contract. DEFICIENCY JUDGMENT A judgment against a borrower for the balance of a debt owed when the security for the loan is not sufficient enough to pay the debt. DEPOSIT INCREASE IN CASH Initial deposit to be increased to $- within days from acceptance of this agreement. DEPOSITS Escrow holder should note the form in which the deposit is received: Cash, personal check, certified check, cashier's check. DOCTRINE OF CORRELATIVE USER A riparian owner may use only a reasonable amount of the total water supply for his/her beneficial use. DUE ON SALE DISCLOSURE If there is a due on sale clause in any existing loan, the lender may demand full payment of the entire loan as a result of this transfer. All parties agree that they are not relying on any representation by the other party or the broker about the enforceability of such a clause in existing notes or deeds of trust to be executed as a result of this sale. All parties have been advised by the broker to seek legal advise. EMBLEMENTS Annual crops produced for sale. EQUAL CREDIT OPPORTUNITY ACT A Federal law that requires lenders to assure that credit is available with fairness, impartiality, and without discrimination. EQUITABLE TITLE The interest held by the trustor or vendee. EQUITY OF REDEMPTION Also known as the right of redemption; the right of a debtor before a foreclosure sale to reclaim property that had been given up due to mortgage default. ESTATE A legal interest in land defines the nature, degree, extent, and duration of a person's ownership in land. ESTATE OF INHERITANCE A freehold estate that can be passed by descent or by will after the owner's death. ESTATE IN FEE The most complete form of ownership of real property, also known as an estate of inheritance. ETHICS A set of principles or values by which an individual guides his or her own behavior and judges that of others. EXCHANGE RESERVING RIGHT TO The buyer and seller agree to complete a 'like kind' tax deferred exchange under Section 1031 of the Internal Revenue Code and acknowledge that escrow holder has made no representations as to the sufficiency or effect of this exchange as it relates to Federal and State or Tax law. EXCHANGE TAX CONSEQUENCES Escrow holder has recommended that buyer and seller obtain legal counsel as to the tax consequences and other effects of this transaction. Escrow holder shall be held harmless from any loss which buyer and seller may sustain in the event this transaction is audited and disallowed by the Internal Revenue Service as a tax deferred exchange. EXCHANGE: AGREE TO COOPERATE Buyer and seller agree to cooperate with each other in completing all documents required to effect their respective exchange. All parties agree that neither party is to be at any additional expense or liability in connection with the other party's tax deferred exchange. EXISTING LOANS Within three (3) days of acceptance of this offer, seller shall provide buyer with all notes and Deeds of Trust to be assumed or taken subject to, and within five (5) days after receiving them, buyer shall give approval or disapproval of the terms of the documents in writing. Seller shall submit a Statement of Condition on the above loan within three (3) days after buyer's acceptance. All loans in the transaction will be current at close of escrow as per seller warranty. FAX TRANSMISSION A signed copy of any document sent to the other party or his or her agent by facsimile transmission, followed by faxed acknowledgment of receipt, is considered delivery of the signed document. FEE See fee simple or estate in fee. FEES Buyer and seller shall be charged equally for fees and expenses of this escrow, one-half (1/2) each, unless noted elsewhere in escrow instructions. FEE SIMPLE ABSOLUTE Also known as fee simple or fee. FEE SIMPLE DEFEASIBLE Also known as fee simple qualified. FEE SIMPLE QUALIFIED An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs. FEE SIMPLE The largest, most complete ownership recognized by law, also known as a fee simple absolute, or fee. FINANCING STATEMENT A written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property, establishes the creditor's interests in the personal property which is the security for the debt. FIRST RIGHT OF REFUSAL This escrow is contingent upon the sale and close of escrow on buyer's property at . Meanwhile, it is agreed that seller shall continue to show subject property to other prospective buyers. In the event that seller should receive a bonafide offer from another buyer, the seller shall immediately notify the buyer in this escrow in writing. At the time, buyer shall have __ hours to remove the contingency or withdraw from this transaction in favor of another buyer. FIXTURE Personal property that has become affixed to real estate. FIXTURES AND EQUIPMENT Seller guarantees that fixtures and equipment shall be in working condition at the time of buyer's possession. FLOOD HAZARD ZONE Subject property is located in an area which has special flood hazards and that flood insurance must be purchased by the buyer in order to obtain any loan secured by the property if a federally regulated financial institution is involved. Buyer is aware of this condition. FORECLOSURE A legal procedure by which mortgaged property in which there has been default on the part of the borrower is sold to satisfy the debt. FORECLOSURE SALE A sale where property is sold to satisfy a debt. FREEHOLD ESTATE An estate in real property which continues for an indefinite period of time. FULLY AMORTIZED NOTE A note that is fully repaid at maturity by periodic reduction of the principal. GOODWILL An intangible, saleable asset arising from the reputation of a business, the expectation of continued public patronage. GRACE PERIOD An agreed upon time period after the payment of a debt is past due during which a party can perform without being considered in default. GRANT DEED FROM SPOUSES TO CREATE SEPARATE ESTATE This deed is executed by the husband or wife of the grantee for the sole purpose of giving up any community property interest he or she may have in the subject property. it is his or her intention to vest the subject property in as his or her sole and separate property. IMPOUNDS Escrow holder is instructed to charge buyer and credit seller with the amount shown on Beneficiary Statement as being impounded for future payment of taxes, fire insurance premiums, or any other items shown. HOLDER The party to whom a promissory note is made payable. HOME EQUITY LOAN A cash loan made against the equity in the borrower's home. INSPECTION This escrow is contingent upon written notification to escrow holder of buyer's approval of property inspection. Any professional inspector shall be selected and paid for by Buyer. INSTRUMENT A written legal document setting forth the rights and liabilities of the parties involved. INTEREST The cost of borrowing money. JUDICIAL FORECLOSURE Foreclosure by court action. JUDGMENT The final legal decision of a judge in a court of law regarding the legal rights of parties to disputes. JUNIOR TRUST DEED Any trust deed that is recorded after a first trust deed whose priority is less than that first trust deed. LATE CHARGE Regarding the note created by this escrow; in the event that any installment payment is not received by the holder within days of its due date a late charge of may be charged by the holder. LAND CONTRACT A contract for the sale of real property where the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale. LEGAL TITLE Title that is complete and perfect regarding right of ownership; may be held by a trustee under a deed of trust. LESS-THAN-FREEHOLD ESTATE A leasehold estate considered to exist for a definite period of time or successive periods of time until termination. LICENSE Permission to use a property which may be revoked at any time. JUNIOR TRUST DEED Any trust deed that is recorded after a first trust deed whose priority is less than that first trust deed. LATE CHARGE Regarding the note created by this escrow; in the event that any installment payment is not received by the holder within days of its due date a late charge of _may be charged by the holder. LAND CONTRACT A contract for the sale of real property where the seller gives up possession but retains the title until the purchase price is paid in full; also known as a contract of sale. LEGAL TITLE Title that is complete and perfect regarding right of ownership; may be held by a trustee under a deed of trust. LESS-THAN-FREEHOLD ESTATE A leasehold estate considered to exist for a definite period of time or successive periods of time until termination. LICENSE Permission to use a property which may be revoked at any time. LIFE ESTATE An estate that is limited in duration to the life of its owner or the life of some other chosen person. LINEAR FOOT A measurement meaning one foot or twelve inches in length as contrasted to a square foot or a cubic foot. LIS PENDENS A recorded notice that indicates pending litigation on a property; preventing a conveyance or any other transfer of ownership until the lawsuit is settled and the lis pendens removed. LITTORAL Land bordering a lake, ocean, or sea-as opposed to land bordering a stream or river (running water). MAKER The borrower who executes a promissory note and becomes primarily liable for payment to the lender. MANUFACTURED HOUSING A housing unit primarily constructed in a factory and moved to a permanent site, another name for a mobile home. MERIDIAN A survey line running north and south used, as a reference when mapping land. METES AND BOUNDS A method of land description in which the dimensions of the property are measured by distance and direction. MOBILE HOME A manufactured unit constructed on a chassis and wheels and designed for permanent or semi-attachment to land. MONUMENT A fixed landmark used in a metes and bounds land description. NEGOTIABLE INSTRUMENT Any written instrument that may be transferred by endorsement or delivery. NEUTRAL DEPOSITORY An escrow business conducted by someone who is a licensed escrow holder. NO BROKERS INVOLVED Buyer and seller acknowledge that these escrow instructions are the only contract between them and that there are no real estate brokers involved in this transaction. No deposit receipt has been written and no commissions are to be paid. NO TAX ADVICE Buyer and seller acknowledge that they have not received or relied upon any statements or representations by the agent, regarding the effect of this transaction upon their tax liability. NOVATION The substitution of a new obligation for an old one. OPEN END LOAN A loan where the borrower is given a limit up to which may be borrowed, with each advance secured by the same trust deed. 'OR MORE' CLAUSE A clause in a promissory note that allows a borrower to pay it off early with no penalty. PACKAGE LOAN A loan on real property that can be secured by land, structure, fixtures, and other personal property. PARTITION ACTION A court action to divide a property held by co-owners. PARTIALLY AMORTIZED INSTALLMENT NOTE A promissory note with a repayment schedule that is not sufficient to amortize the loan over its term. PATENT DEED Deeds used by the United States government when confirming or transferring ownership to private parties. PERSONAL PROPERTY INCLUDED IN PRICE Upon the close of escrow, the following personal property observed on the property when inspected by buyer, shall be transferred to buyer by a bill of sale. No warranty is implied about the condition of the personal property. PLEDGE The transfer of property to a lender to be held as security for repayment of a debt; lender takes possession of property. POWER OF SALE A clause in a trust deed or mortgage that gives the holder the right to sell the property in the event of default by the borrower. PREPAYMENT PENALTY (NONE) Buyer has the right to pay this note in full or in part at any time prior to its maturity without penalty. PROBATE SALE A court approved sale of the property of a deceased person. PROMISSORY NOTE A written promise or order to pay, evidence of a debt. PROPERTY Any real or personal property included in the sale. PRORATIONS Rents, taxes, interest payments, on bonds and assessments assumed by buyer homeowners fees and other expenses of the property are to be prorated as of the close of escrow. PURCHASE MONEY LOAN A trust deed created as evidence of a debt at the time of the sale of real property. RANGE A land description used in the U.S. Government Survey system consisting of a strip of land located every six miles east and west of each principal meridian. REAL ESTATE AGENT Someone licensed by the Department of Real Estate holding either a broker or salesperson license who negotiates sales for other people. REAL ESTATE BROKER Someone permitted by law to employ persons holding a salesperson license and who may also negotiate sales. REAL ESTATE LAW The law that affects the licensing and conduct of real estate agents. REAL ESTATE SALES ASSOCIATE The same as a real estate salesperson, holding a real license, employed by a broker. REAL ESTATE SALESPERSON Someone holding a real estate license and employed by a real estate broker for pay to perform any of the activities of a real estate broker. REAL PROPERTY Land, anything affixed to the land, anything appurtenant to the land, anything immovable by law. RECONVEYANCE DEED A deed used to transfer title to a property back to the trustor after a trust deed has been paid off. REINSTATE Bring current and restore. RELEASE CLAUSE A provision found in many blanket loans enabling the borrower to obtain partial release from the loan of specific parcels. RENT BACK BY SELLER Buyer and seller agree that seller shall hold possession of subject property for __ days after close of escrow. REQUEST FOR NOTICE A notice that is sent, upon request, to any parties interested in a trust deed, informing them of a default. REVERSE ANNUITY MORTGAGE A loan that enables elderly homeowners to borrow against the equity in their homes by receiving monthly payments from a lender, that are needed to help meet living costs. REVOKE Recall and make void. RIPARIAN RIGHTS The rights of a landowner whose land is next to a natural watercourse to reasonable use of whatever water flows past the property. ROLLOVER MORTGAGE A loan that allows the rewriting of a new loan at the termination of a prior loan. SALES TAX Collected as a percentage of the retail sales of a product, by a retailer, and forwarded to the State Board of Equalization. SECTION An area of land as used in the government survey method of land description; a land area of one square mile or 640 acres. It is 1/36 of a township. SELLER'S PERMIT Allows a retailer to buy his or her product at wholesale prices without paying sales tax. The retailer must then collect the proper sales tax from customers and pay it to the State Board of Equalization. SEVERALTY Ownership of real property by one person or entity. SPECIAL STUDIES ZONE ACT Buyer is aware that the subject property is located in a Special Studies Zone designated under the Priolo Special Studies Act and that construction or improvement of any structure may require the submission of a geological report by the buyer prepared by a registered geologist. Seller or broker have not made any representation about the cost of report or the geological characteristics of the property. STANDARD POLICY A policy of title insurance covering only matters of record. STATUTORY Regarding laws created by the enactment of legislation as opposed to law created by court decisions. STRAIGHT NOTE A promissory note in which payments of interest only are made periodically during the term of the note with the principal payment due in one lump sum upon maturity; may also be a note with no payments on either principal or interest until the entire sum is due. 'SUBJECT-TO' CLAUSE A buyer takes over the existing loan payments but assumes no personal liability for the loan. SUBORDINATION CLAUSE A clause in which the holder of a trust deed permits a subsequent loan to take priority. SUSPEND Temporarily make ineffective. TERMINATING THE AGREEMENT Buyer and seller are relieved of their obligations and all deposits shall be returned to buyer less expenses incurred by or on account of buyer to date of termination. TITLE Evidence of ownership of land. TITLE INSURANCE An insurance policy that protects the insured against loss or damage due to defects in the property's title. TOWNSHIP A land description used in the U.S. Government Survey system consisting of a six-by-six mile area containing 360 sections, each one mile square. TRADE ASSOCIATION A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to aid in the industry problems, promote its progress, and enhance its service. TRADE FIXTURE An article of personal property affixed to leased property by the tenant as a necessary part of business; may be removed by tenant as personal property upon termination of the lease. TRANSFER TAX NOT TO SHOW ON DEED AT RECORDATION Title Insurance Company shall be instructed by escrow holder to file grant deed as a separate declaration and not make it a part of the public record. TRUST DEED A document where title to property is transferred to a third party trustee as security for a debt owed by the trustor (borrower) to the beneficiary (lender). TRUSTEE'S DEED A deed given to a buyer of real property at a trustee's sale. TRUSTEE'S SALE The forced sale of real property by a lender to satisfy a debt. TRUSTEE Holds bare legal title to property as a neutral third party where there is a deed of trust. TRUST FUNDS Money received by real estate brokers or salespersons on behalf of others. TRUSTOR The borrower under a deed of trust. UNDIVIDED INTEREST That interest a co-owner has in property which carries with it the right to possession and use of the whole property along with the co-owners. USURY The act of charging a rate of interest in excess of that permitted by law. VENDEE The buyer under a contract of sale (land contract). VENDOR The seller under a contract of sale (land contract). VESTED Owned by. WRAP-AROUND LOAN A method of financing where a new loan is placed in a secondary position; the new loan includes both the unpaid principal balance of the first loan and whatever sums are loaned by the lender; sometimes called an All-Inclusive Trust Deed (AITD).

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