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TAX LIEN A general statutory lien imposed against real property for failure to pay taxes. There are federal tax liens and state tax liens. NOTICE OF DEFAULT A notice to a defaulting party that there has been a default, usually providing a grace period in which to cure the default. HAZARD INSURANCE Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the insurer. ADHESION CONTRACT A contract which is very one-sided and favors the party who drafted the document. LIS PENDENS A legal document recorded in the Bureau of Conveyances, which gives constructive notice that an action has been filed in either a state or federal court affecting a particular piece of property. "Lis Pendens" is a Latin term which means "action pending" and is in the nature of a quasi-lien. AGREEMENT OF SALE Contract signed by buyer and seller stating the terms and conditions under which a property will be sold. MORTGAGE BANKER An individual or company that originates and/or services mortgage loans. MARGIN A specified percentage that is added to your chosen financial index to determine your new interest rate at the time of adjustment for ARM loans. |
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