Coverage to protect the insured against claims of negligence resulting in injury or property damage to the claimant.

Obligated, responsible.

The latin word for book. Used instead of the word book in some states when referring to the book and page of a recorded document.

A permission, either express or implied.

(1) Regarding classifications of people entering upon another’s land, a licensee is distinguished from a trespasser, and so has greater legal rights. (2) One who holds a real estate license (a salesperson).

Laws regulating the granting of real estate licenses. Because these are state laws, the requirements (education, testing, etc.), are not of equal severity. However, generally they are similar, requiring testing and granting exceptions, such as trustees, executors, owners selling property themselves, etc.

An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.

A theory followed in several states that assumes a mortgage has only a lien on the mortgage property, and the mortgagor has legal title. See: Title Theory.

For our purposes, a waiver of mechanic’s lien rights, signed by subcontractors so that the owner or general contractor can receive a draw on a construction loan.

The length of time an improvement will last, either in relation to its physical utility or as an accounting procedure.

One who receives payments or other rights from a trust for his or her lifetime.

An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party (remainderman).

The remaining life of someone already alive. An expression used in rules against perpetuities.

An interest in real estate for a period of the life of the one having the interest, or the life of another.

One who holds land for the length of his, or another’s life.

Monthly payments to the borrower under this reverse mortgage continue until the borrower’s death, even if the borrower sells the mortgaged property. Because the lender’s collateral security is lost if the property is sold, the borrower must purchase an annuity at the origination of the loan.

See: Payment Cap.

The limit (cap) that the interest rate can adjust over the life of an adjustable rate loan.

A single window pane, or opening for a single window pane.

An easement restricting the servient tenement from obstructing the light and air (usually the view) of the dominant tenement. For example: A developer builds a resort hotel. He may wish to obtain a light and air easement from adjoining owners so that they may not build tall structures and block the sun from the hotel’s swimming pool.

Encompassing most light manufacturing, as opposed to factories which tend to produce heavy pollution (air, water, noise, etc.). A zoning designation.