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COVENANTS RUNNING WITH THE LAND
Covenants which become part of the property and benefit or bind successive owners of the property.

LOAN APPLICATION FEE
Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

FORBEARANCE
The act by the lender of refraining from taking legal action on a mortgage loan that is delinquent.

PIGGYBACK LOAN
A joint loan with two lenders sharing a single mortgage.

RIGHT TO RESCISSION
Under the provisions of the Truth-in-Lending Act, the borrower's right, on certain kinds of loans, to cancel the loan within three days of signing a mortgage.

CERTIFICATE OF ELIGIBILITY
Document issued by the Veterans Administration to qualified veterans which verifies a veteran's eligibility for a VA guaranteed loan. Obtainable through local VA office by submitting form DD-214 (Separation Paper) and VA form 1880 (request for Certificate of Eligibility).

LIMITED PARTNERSHIP
A partnership formed by two or more persons having as members one or more general partners and one or more limited partners.

GROSS INCOME
Total income before taxes or expenses are deducted.

AD VALOREM
Latin for "according to valuation," usually referring to a type of tax or assessment.

INDEX
A published rate used by lenders that serves as the basis for determining interest rate changes on ARM loans.

BASIS
The financial interest which IRS attributes to the owner of an asset for purposes of determining annual depreciation and gain or loss on sale of the asset.

ALLODIAL SYSTEM
The free ownership of land by individuals.

PREMISES
The subject property, such as the property which is deeded or the unit that is leased.

INVENTORY
An itemized list of property. Many brokers recommend that their clients attach to the sales contract an inventory of property to be included in the sale of a residential property, including a condominium dwelling.

MORTGAGOR
The borrower in a mortgage loan transaction.

IMPUTED INTEREST
Interest implied by the federal tax law.