Language of Real Estate

A case of Mistaken Identity -- Security Deposit vs. Earnest Money Deposit The security deposit is paid by a tenant up-front to cover any default in the lease, including damage, whereas a buyer puts up an earnest money deposit at the time of the offer to purchase, to...

Subordination vs. Subrogation Subordination means to give up priority to an anticipated future mortgage or lien, whereas subrogation means to substitute a creditor who succeeds to the rights of another. Subrodination -- An agreement whereby a holder of a prior...

Mistaken Identity -- Easement vs. License An easement is a permanent right in property, whereas a license, which is not an interest in property, is a temporary right to use that property and may be revoked at any time. Easement -- A nonpossessory (incorporeal)...

A case of Mistaken Identity: Assumption vs. Subject To Mortgage Both involve the sale of a property without paying off the underlying mortgage. With an assumption, the buyer agrees to become personally liable for any deficiency judgment upon default; subject to means...

Chain of Title vs. Cloud on Title The chain of title reveals the succession of owners in the history of a property, whereas a cloud on title is a defect or impairment in the title. Chain of Title --  The recorded history of matters that affect the title to a specific...