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DUAL AGENCY Representing both principals (buyer and seller) to a transaction. VARIABLE RATE MORTGAGE See Adjustable Rate Mortgage. GRANTOR The person transferring title to, or an interest in, real property. A grantor must be competent to convey; thus, for example, an insane person cannot convey title to real property. SECOND MORTGAGE An additional mortgage placed on a property that has rights that are subordinate to the first mortgage. DEPOSIT Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase; earnest money; security for the buyer's performance of a contract. NEGOTIATION The transaction of business aimed at reaching a meeting of minds among the parties; bargaining. GOOD FAITH ESTIMATE Written estimate of the settlement costs the borrower will likely have to pay at closing. Under the Real Estate Settlement Procedures Act (RESPA), the lender is required to provide this disclosure to the borrower within three days of receiving a loan application. |
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