| Term | Definition |
|---|
| trust deed | The most common method of financing real estate purchases. The trust deed transfers the title to the property to a trustee-- often a title company--who holds it as security for a loan. When the loan is paid off, the title is transferred to the borrower. The trustee will not become involved in the arrangement unless the borrower defaults on the loan. At that point, the trustee can sell the property and pay the lender from the proceeds. Sometimes refered to as a deed of trust. |
| trustee | One who as agent for others handles money or holds title to their land. |
| underwriting | The process of verifying data and approving a loan. |
| unlawful detainer | An eviction lawsuit. |
| usufruct | The right to use property--or income from property--that is owned by another. |
| usury | Charging more than the rate of interest allowed by law. |
| VA | The Veterans Administration, a federal agency which guarantees loans made to qualified veterans on approved property. |
| variable rate | An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly. |
| variance | An exception to a zoning ordinance, usually granted by a local government. For example, if you own an oddly shaped lot that could not accommodate a home in accordance with your city's setback requirement, you could apply at the appropriate office for a variance allowing you to build closer to a boundary line. |
| vendee | Purchaser. |
