360-degree evaluation
An evaluation system that has employees not only rated by supervisors, but also
by peers, direct reports, and sometimes clients and customers.
401(k)
Employer-sponsored investment program to set aside tax-deferred money for
retirement.
401(k) plan
A type of qualified retirement plan authorized by Section 401(k) of the Internal
Revenue Code.
A number
This can be an alien number, file number, green card number, or case number
(especially in immigration court). Refers to the file number assigned in
sequence by the USCIS to an alien who has applied for adjustment or has been
apprehended by the USCIS. This is the permanent file number of the alien and
will eventually appear on the work permit, green card, and naturalization
certificate. This number must appear on all correspondence and applications
filed with the USCIS.
A.L.R.
See American Law Reports.
AARP (formerly American Association of Retired Peo
An organization that advocates on behalf of persons age 50 and older.
abandoned application
An application that is removed from the PTO docket of pending applications
either (a) through formal abandonment by the applicant, attorney or agent of
record, (b) through failure of applicant to take appropriate action at some
state in the prosecution of the application, or (c) for failure to pay the issue
fee, or (d) in the case of a provisional application, automatically after twelve
months after the filing date of the provisional application.
abandoned property
Personal property of the tenant left behind after the tenant vacates the
dwelling.
abatement (tax)
Lowering of real property tax because the owner filed an appeal.
above par
Situation when a mortgage is sold for more than its face value.
abstract of title
Legal history of ownership of real property used when doing a title search.
abusive discharge
The termination of an at-will employee for engaging in protected activity or for
refusing to commit an illegal act, sometimes called wrongful discharge.
acceleration clause
Part of the mortgage contract that allows the lender to legally demand that the
entire mortgage be paid in full because the borrower has failed to make a
mortgage payment(s).
accommodation party
Person who guarantees a loan for another by signing a promissory note, bill, or
other negotiable instrument.
account
A record of a business transaction.
account balance
The difference between the debit and the credit sides of an account.
accounting
System of gathering financial information and keeping a record of business
transactions to prepare statements concerning assets, liabilities and operating
results.
accounting method
System for a business to keep financial information and report it to the proper
taxing body.
accounts payable
Amount owed to creditors for goods and services.
accounts receivable
Amount due from customers for merchandise or services.
accredited investor
Sophisticated individuals with high net worth or high income, large trusts or
investment companies, or persons involved in the business.
accrual accounting
Method of recording expenses incurred and income due in the periods to which
they relate rather than actual flow of cash.
accrual method
Method of keeping accounts that shows expenses incurred and income earned for a
given period of time, even if these expenses or income have not actually been
paid or received in that period.
accrued interest
Interest earned for a specific period of time.
acknowledgement of paternity/parentage
A written form signed by the named father of a child born outside of marriage
that he is the true father of the child.
acknowledgment
A statement, written or oral, made before a person authorized by law to
administer oaths (such as a notary public).
acre
A unit of measure for land, 43,560 square feet. The land hat a home sits on is
usually expressed in terms of acre (half acre, quarter-acre, number of acres).
action
A lawsuit, including a divorce.
activities of daily living (ADL)
Benchmarks used to measure a person’s ability to care for oneself, such as
dressing, bathing, grooming, and cooking.
actual cash value
The price a willing buyer would pay to a willing seller for an item of property.
The term applies to the loss valuation portions of property policies.
actual damages
Money lost by the plaintiff due to the wrongful acts of the defendant. This
differs from other types of damages such as punitive or liquidated.
actuary
An employee of an insurer who performs mathematical and statistical analyses for
the purposes of setting rates and for reserves other than loss reserves, such as
reserves for incurred but not reported losses
actus reus
A concept in criminal law that involves the criminal act itself.
ad hoc committee
Special committee appointed to carry out a specific nonrecurring task and
disbanded when that task is completed.
addendum
A document attached to another document to add some new terms.
additional insured
Person or entity added to an insurance policy as an insured such as a mortgagee,
lessor, or subcontractor.
additional living expense
A homeowners policy property coverage. In the event of a covered loss to the
dwelling, the insured generally is covered for the costs of temporary alternate
quarters/lodging, among other things, while repairs or reconstruction is
ongoing.
additional principal payments
Payments that are higher than the required amount. The extra money reduces the
principal balance.
ADIT (Alien Documentation, Identification and Tele
The process where an adjustment applicant places his or her signature and
fingerprint on the I-89 card, which will be sent to a service center to be made
into a green card. It is usually done at the USCIS interview.
adjudicate
This occurs when a USCIS officer makes a decision as to whether to grant or deny
an application.
adjustable rate mortgage (ARM)
Type of mortgage that has a variable interest rate based on a certain percentage
or financial interest.
adjusted basis
Original cost of a property, plus the value of improvements to the property,
minus any depreciation taken.
adjustment of status (AOS)
Process where one becomes a permanent resident in the U.S. Since one has a
previous status in the U.S., they are said to be changing their status to
permanent residence.
adjustment period
The time between possible changes to the rate of interest for an adjustable rate
mortgage.
administrative appeal
An appeal filed at the local USCIS to the Administrative Appeals Unit in
Washington within thirty days of a petition's denial.
administrative closure
A case that is not denied but is no longer pending.
administrative law
Rules and regulations enacted by local, state or federal administrative
agencies.
administrator
A personal representative who is not named in the decedent’s will. In earlier
times, a female administrator was called an administratrix. See also executor
and personal representative.
admission
This occurs when an alien presents himself or herself for inspection to an
immigration officer at a border or airport and whose entry was approved on a
particular basis.
admitted insurer
An insurer admitted to transact business within a particular state. If an
insurer is not admitted in a particular state, yet does business within that
state, it does so as a nonadmitted, or excess and surplus lines insurer.
Policies issued by nonadmitted insurers in a particular state are not protected
by that state’s insurance guaranty fund in the event of insurer insolvency.
adoptee
Person being adopted.
adoption
A process whereby a child becomes part of another’s family through legal means.
adoption assistance agreement
A contract between adoptive parents and state agency that placed the child,
describing the monthly payments the state will make to the parents to help with
the expense of raising a child.
adult
In most states, a person eighteen years of age or older.
adult adoption
Adoption by one adult of another adult.
adult day care
Daily care provided by a facility to nonresident adults, usually for the purpose
of allowing the primary caregivers to go to work.
adult protective services
State agency that investigates elder abuse.
advance
A pre-payment of royalties.
advance directive
(1) A general term used to describe any legally recognized written document or
oral statement in which a person gives instructions concerning his or her health
care. It includes a health care power of attorney, a living will, or an
anatomical gift. (2) The title given to a health care power of attorney or
living will in some states.
advance medical directive
A type of document instructing health-care personnel as to the wishes of the
maker of the document regarding health-care decisions, to be used in the event
the maker of the document becomes terminally ill or incapacitated and is unable
to communicate his or her wishes.
advance parole
Issued by either a local office or a service center, depending on where the
adjustment application is, it is advance permission to return to the U.S. to
resume processing of an adjustment application.
advance sheets
Supplemental pamphlets which add new case opinions to reporters.
adverse interest test
Method in which a court can consider a parent’s sexual orientation in a custody
case.
adverse possession
Right by which someone occupying a piece of land acquires title against the real
owner, if that possession has been actual, continuous, hostile, visible, and
distinct for a certain time as stated by law.
advisory action
A form sent to you in response to your reply to a final office action from the
PTO. This action will advise you of the disposition of your reply and why your
application is still not in condition for allowance.
affiant
The legal term for the person who signs an affidavit.
affidavit
Sworn statement in writing, usually notarized.
affidavit of support
Important form required in a family-based adjustment case in which the
petitioner agrees to reimburse the government if the person being adjusted
requires federal benefits within ten years of adjustment or the person
naturalizes.
affirmative action
Action required of most government contractors and subcontractors to assure
equal employment of minorities, women, persons with disabilities, and certain
veterans.
Age Discrimination in Employment Act (ADEA)
The ADEA prohibits discrimination because of age against persons forty or more
years old.
age of majority
The age at which a child becomes an adult under state law. Each state may have
slightly different ages for different purposes.
agency
(1) Legal principal supporting liability against one party for actions taken by
another. For example, the actions of an employee may support liability against
his or her employer under the principals of agency. (2) Federal or governmental
organization.
agency adoption
An adoption in which an agency connects the birth mother and intended parents
and handles the mechanics and paperwork.
agency shop
A type of union security arrangement where union membership is optional.
However, as a condition of continued employment, nonunion members pay to the
union amounts equal to initiation fees and periodic dues paid by union members.
agenda
Sequence in which issues are to be taken up in a meeting.
agent
A person who is given authority to act on behalf of another person or other
legal entity.
aggravated felony
In the immigration sense, this means any type of crime listed in Section
101(a)(43) of the INA, which includes many non-violent crimes and misdemeanors.
agreement for a term
A written lease that specifically states the length of the tenancy.
agreement for deed
A legal instrument that two parties agree to the purchase and sale of a piece of
property for a series of payments. Also known as a contract for deed.
agreement for sale
See purchase and sales agreement.
air rights
Right to control the air space over a property.
air space
Space above the surface of land not occupied by a building.
alien
One who is not a permanent resident but is present in the U.S. on a nonimmigrant
visa, is out of status, or entered without inspection.
alien registration card (green card)
Proof of lawful, permanent United States resident status.
alienation
Legal term for transferring title to real estate.
alienation clause
See acceleration clause.
alimony
Money paid by one party to the other, to assist in the other party’s financial
support. Some states refer to it as maintenance or spousal support.
ALJ
An administrative law judge who hears a Medicaid appeal.
all-cash offer
Proposal to purchase property without the contingency of needing to get a
mortgage.
all-inclusive deed of trust
See wraparound mortgage.
all-risk insurance
Policy under which a loss resulting from any cause other than those causes
specifically excluded by name is considered to be covered.
allowed application
An application which, having been examined, is passed to issue as a patent,
subject to payment of the issue fee.
alternate payee
An employee’s spouse, child, or other dependent who, pursuant to a Qualified
Domestic Relations Order (QDRO), is awarded an interest in the employee’s
pension plan. Also, an employee’s child who, pursuant to a Qualified Medical
Child Support Order (QMCSO), becomes entitled to health insurance coverage under
the plan in which the employee participates.
alternative dispute resolution (ADR)
A procedure for resolving disputes other than by a lawsuit. Arbitration and
mediation are forms of ADR.
alternative market mechanisms
Programs established by the laws of states to provide availability of insurance
to certain categories of hard to place insureds. Examples include assigned risk
auto insurance programs.
Alzheimer’s disease
A degenerative disease of the brain, marked by loss of cognitive functions and
dementia, usually associated with the elderly.
Am Jur
See American Jurisprudence 2d.
amend
Modify or change; under parliamentary procedure modify a motion by adding,
deleting or substituting words.
amendment
Opportunity to make changes to either your claims or specification outside your
claims, as well as arguments, in order to try to bring your application into
condition for allowance.
amendment
Revision of a governing document or, under parliamentary procedure, a motion.
amenity
Describes any of several extras provided with a house.
American Association of Tissue Banks (AATB)
A voluntary organization that accredits sperm and egg donation banks.
American Dream Downpayment Assistance Act
Law passed that will provide funds for first time home buyers from 2004 to 2007,
with some restrictions.
American Jurisprudence 2d
A legal encyclopedia covering the laws of all fifty states and the federal
government.
American Law Reports
A set of books that report on legal topics of general interest. See also
annotations.
American Medical Association (AMA)
The national professional organization for doctors.
American Society of Composers, Authors, and Publis
Performance rights society.
American's with Disability Act (ADA)
A federal law that prohibits discrimination against persons with disabilities.
amicus attorney
An attorney appointed by the court to represent your grandchild.
amnesty
Time-limited benefit allowing adjustment of status that will issue out green
cards based upon residence in the U.S. prior to a certain date.
amortization
Repayment of the mortgage over a set number of years, which is the term of the
mortgage. Lenders will sometimes provide an amortization schedule, which shows
the total of each payment and the portion that is put against the principal and
the interest amounts.
amortization schedule
A table showing the amounts of principal and interest due at regular intervals
and the unpaid mortgage balance after each payment is made.
anatomical gift
The donation of an organ, other body part, or the entire body, upon death.
ancillary administration
Probate of decedent’s property located in a state other than the state in which
the decedent lived.
ancillary services
Additional services provided by an assisted living or skilled care facility,
beyond basic care, such as rehabilitative services like physical therapy or
hospice services.
angels
Friends, family, or wealthy individuals who invest their money, usually in
start-up or early-stage companies.
annotations
(1) Abstracts, or summaries, of cases construing a particular point of law. (2)
Comprehensive legal writings found in American Law Reports.
annual exclusion
The amount of property a person can give to another person per year that is not
counted against the lifetime unified credit.
annual fee
A yearly amount charged by credit card companies for the privilege of holding
the card.
annual membership meeting
Once a year assemblage of unit owners required by governing documents to conduct
association business such as electing a Board of Directors.
annual mortgage statement
Report prepared by the lender that states the amount of taxes, insurance, and
interest that was paid during the year, and the outstanding principal balance.
annual percentage rate
The interest rate plus certain costs of borrowing expressed as a percentage.
annual report
Report given once a year by the Board to the membership showing the condition of
the association fiscally and otherwise.
annuity
A financial arrangement where a bank pays a yearly sum in exchange for equity
interest in a home.
annuity trust
Charitable remainder trust that provides the donor a fixed annual income.
annulment
A legal procedure by which a marriage is declared invalid.
answer
Pleading filed by a defendant or respondent setting out the reasons why the
relief sought in a complaint or petition should not be granted.
antecedent basis
If you fail to expressly define a term or if the term does not have an inherent
meaning, you are not allowed to introduce the term in your claim by using the
word “said” since your term is undefined.
antenuptial agreement
A written, legal contract signed by the parties before their marriage, which
spells out what property is owned by each, and how property will be divided in
the event of divorce.
anti-contest clause
A clause that disinherits anyone who contests the will. It also disinherits any
persons who attempt to contest non-will transfers such as joint tenancies,
T.O.D. securities accounts or life insurance, or make claims against your estate
for services rendered or under alleged oral agreements to share property.
anticipation
Art term used to describe a reference which teaches each and every element of
your claimed invention.
appeal
To ask a court to decide that another court’s decision was wrong.
appellate court
A court that hears appeals from trial courts.
application
Form used to apply for a mortgage that provides information on both the borrower
and the property selected.
application data sheet
A sheet which contains information about your patent application. One of the
important parts of information which it can contain is any claims of priority
that you make to previously filed domestic or foreign applications.
application fee
Amount charged the borrower by the lender when the borrower fills out the loan
application. (It may include the cost of an appraisal, credit report, lock-in
fee, or other closing costs.)
application support center (ASC)
The facility that takes fingerprints of applicants.
apportionment
The legal term for how real estate taxes, insurance premiums, and rents are
fairly divided between seller and buyer.
appraisal
A professional evaluation of the value of property.
appraiser
Person who is professionally qualified to estimate the value of a property.
appreciation
Increase in financial value of a home. (The economy, the neighborhood, the
condition of the home, the property the home sits on, and other intangibles
influence this value.)
approval notice
A notice from a service center stating a petition is approved. See I-797 form.
appurtenance
Legal term meaning things attached to land such as a barn, garage, or an
easement.
APR
See annual percentage rate.
arbitration
A type of dispute resolution, whereby one or more persons (called arbitrators)
determine the outcome of the dispute, similar to the manner in which a judge
makes a decision in a lawsuit. Arbitration can either be binding (meaning that
the decision of the arbitrators is final) or nonbinding (meaning that either
party can file a lawsuit to have the matter heard in a court). The idea is that
arbitration is quicker and less expensive than a lawsuit in court, however, this
is not always the case in practice.
arbitration award
Final written decision of the arbitrator or arbitrators.
architect
Person who designs homes, additions, and remodeling.
architect’s inspection certificate
Document issued by an independent architect, verifying that a certain portion of
construction on a project has been completed in accordance with approved plans
and specifications. (Used when building your own home to show the lender that
work has been done.)
argument
Remarks or oral presentation made in court by attorneys on behalf of the parties
involved.
ARM
See adjustable rate mortgage.
arrangement
Transcription into print music.
arrearage
Past due, unpaid child support owed by the noncustodial parent.
arrears
Term for paying the mortgage or real estate taxes after the due date.
arrival/departure document
See I-94 form.
articles of incorporation
A legal document filed with a state government to set up a corporation.
articles of organization
A legal document filed with a state government to set up a limited liability
company.
artificial hydration
The use of feeding tubes (either through the mouth, nose, or intravenously) to
provide water (hydration) to a person who is unable to drink in a normal manner.
artificial nutrition
The use of feeding tubes (either through the mouth, nose, or intravenously) to
provide food (nutrition) to a person who is unable to eat in a normal manner.
asbestos
Form of insulation or roofing.
ascendants
Any ancestors of an individual (either living or dead), including parents,
grandparents, great-grandparents, etc.
asking price
Amount for which a house is offered for sale.
assault
A violent physical or verbal attack.
assessed value
Value placed on a home by the tax assessor for the purpose of calculating the
annual property tax.
assessment
(1) A special tax levied against a piece of property usually based upon some
improvement benefiting that property. (2) Amount charged against each unit owner
based on percentages of budgeted common expenses to fund the operation,
administration, maintenance and management of the community.
assessment rolls
Public records of taxable property.
assessor
The government official who appraises taxable property.
assets
Money and real or personal property owned by a person or organization.
assignee
Person to whom a copyright has been transferred.
assignment
The transfer of legal rights to another person or entity. The person receiving
the rights is called the assignee; the one transferring the rights is called the
assignor. A transfer of duties is called a delegation. (2) A provision common to
most insurance policies that provide that the insured cannot assign his or her
rights and obligations under a policy to another person. This provision enforces
the insurer’s right to choose with whom it wishes to contract and insure.
assignment of the lease
Occurs when a new tenant steps into the shoes of the existing tenant by assuming
possession of the premises and assuming the rights of the tenant under the
original lease.
assisted living
A facility in which assistance is provided with the activities of daily life.
assisted living facility
An institutional lifestyle option for a senior citizen or disabled person
needing some assistance with self care, but not needing skilled nursing care.
Assisted living staff assists the resident with various tasks, such as grooming
and housekeeping, as needed.
assisted reproductive treatment (ART)
This is the medical assistance you receive as you try to conceive.
association fee
Money paid to a condominium or townhouse association.
assumable mortgage
A mortgage that allows a buyer to replace the seller by taking over the
obligation of the loan.
assumed name
A name under which a person, partnership, corporation, or other business entity
conducts business.
assumption agreement
Written agreement by one party to pay an obligation of another under the same
terms.
assumption fee
Amount paid to the lender for the paperwork processing of an assumption of
mortgage.
assumption of risk
The defense that a plaintiff should not be allowed to collect from a defendant
after engaging in an activity that he knew to be dangerous, and voluntarily
engaged in that activity anyway.
assumption/assumption of mortgage
Taking over the previous borrower’s obligation on a mortgage.
asylee
One who has been granted asylum either through the Asylum Office or by the
immigration judge but who has not yet adjusted status to that of a permanent
resident.
asylum
A showing that one has a well-founded fear of persecution on the basis of
political opinion, religion, gender, nationality or membership in a particular
social group. (A well-founded fear can be thought of as a 10% chance of severe
harm.)
asylum officer
An employee of the Department of Homeland Security who will conduct the initial
administrative interview on an asylum application.
at-will employment
Employment that is not for any fixed or definite term. In an at-will employment
relationship, the employee can quit at any time and the employer can fire the
employee at any time with or without cause.
attending physician
The primary physician who has responsibility for the treatment and care of the
patient.
attestation clause
This clause comes after your signature and is where the witnesses declare under
penalty of perjury that they witnessed your will.
attorney at litem
An attorney representative for your grandchild.
attorney-at-law
A person who is licensed to practice law before state of federal courts. The
term has no relationship to an attorney-in-fact.
attorney-in-fact
The person who is given authority by a power of attorney. This is another term
for an agent. An attorney-in-fact does not have the power to represent anyone in
court or to give legal advice.
attractive nuisance
A legal principle that applies in tort law wherein certain objects may be
considered to be an attractive nuisance to a child and thereby create liability
for the owner or manager of that property.
audit
Examination of inventories, insurance policies, management and financial records
and accounts to verify their accuracy and determine if they adequately reflect
an association's status.
auditor
Person or firm, usually accountants, engaged to examine financial documents for
errors or fraud.
augmented estate
A term defined by the law of a particular state, which describes exactly what
property is included in the estate for particular purposes, such as in
determining the spouse’s intestate or elective share. This may include property
that is in addition to property in the probate estate, may not include some
property that is in the probate estate, or may simply be different from property
in the probate estate. For example, a typical definition is: “the value of the
probate assets reduced by funeral expenses, homestead, family allowances and
exemptions, liens, mortgages, and enforceable claims.”
author
Person who created a copyrightable work.
autopsy
Medical examination of a body after death to determine cause of death.
back points
A commission paid to a mortgage broker that is not charged as points to the
borrower. The borrower will pay a higher rate of interest to make up for the
commission payment.
back rent
Commonly describes rent that is more than one rental period in arrears, although
it can mean any unpaid rent that is due.
backpay
Pay awarded to an employee or applicant for employment that, but for
discrimination, an unfair labor practice, or other wrongful conduct by the
employer, would have been earned between the time of the wrongful conduct and
the time the award is made.
bad faith
Acting with intent to do wrong rather than simply making a mistake.
bag and baggage letter
A form letter sent by the Deportation Office asking an alien to appear at the
office with their luggage on a certain date to be deported.
bait and switch
Illegal practice of advertising a product or service at one price to get
customers interested in buying and then trying to sell it to them at a higher
price.
balance
The total amount owed on an account.
balance sheet
Financial statement that presents a snapshot of what the business owns (assets),
what it owes (liabilities), and what equity it has on a given date.
balloon mortgage
A mortgage contract with low monthly payments that do not increase until the
final payment. The final payment, due at the end of the term of the mortgage, is
usually very large.
balloon payment
A payment on a mortgage that is larger than the others.
balloon payment mortgage
A mortgage that has required payments not sufficient to pay it off (amortize it)
during the term. As a consequence, the final payment is much larger than prior
payments. This large payment is the balloon.
ballot
Paper used to cast secret vote.
bankruptcy
A legal process that freezes all actions by creditors against a debtor. If the
petition for bankruptcy is approved, all of the debt will be discharged or
excused.
bankruptcy discharge
When a bankruptcy court allows a person to wipe out his or her debts.
barter
To exchange services or property with someone who has property or services you
need.
base period
For unemployment insurance purposes, the most recent four out of five completed
calendar quarters (quarters in which the employee worked) preceding the filing
of a benefit claim.
base period employer
Any employer for whom an unemployment insurance claimant worked during his or
her base period.
battery
Causing harm to someone through impermissible contact.
bear market
Market characterized by falling prices. (A bear market in the mortgage industry
may be triggered by rising interest rates.)
bedroom community
Suburban residential area where most residents commute to neighboring
metropolitan areas for work.
belo plan
An exception to the Fair Labor Standards Act’s general overtime rules that
allows an employer to pay a fixed salary to nonexempt employees who work an
irregular number of hours from week to week because of the nature of the job,
such as doctors, firefighters, etc.
below market interest rate (BMIR)
Type of mortgage insurance programs where the interest rates on the mortgages
are below what is charged; used to assist low and moderate income families
beneficial interest
Right to enjoy or profit from property held in trust; the person with the
beneficial interest is the beneficiary.
beneficiary
Person who is named to receive some benefit or money from a legal document such
as a trust, life insurance policy or will.
beneficiary agreement
An agreement spelling out the rights and obligations of the beneficiaries of a
trust.
bequeath
To leave someone personal property in a will.
bequest
Gift of personal property left in a will.
best interest of the child
Standard used by courts as a part of deciding who should get custody of and
visitation with a child.
best interests standard
The standard applied to the determination of custody, visitation, or parenting
time used in all states. This standard makes certain presumptions about what is
best for a child and examines the child’s environment against certain factors
set out in the relevant state’s code.
bi-national
An immigration term referring to couples each having a different country of
origin or citizenship.
bid invitation
Invitation sent out to vendors to bid on providing services or equipment of a
substantial nature.
bill
A proposal for a law.
Bill of Rights
The first ten Amendments to the U. S. Constitution.
bill of sale
A document that is used to transfer ownership of items of personal property.
billing statement
Document listing what is owed.
billings
Written statement showing the work done by a vendor for goods or services in
such detail as to accurately describe the basis for each charge.
binder
Term used to indicate a preliminary agreement. (In real estate, a buyer usually
provides a binder of earnest money with his or her offer to purchase a home.)
binding arbitration
Arbitration which is final with no further recourse at the trial level.
Arbitration is presumed to be binding unless there is some contrary provision in
the contract providing for arbitration.
biographic information form
See G-325A form.
biological parent
A person who provided genetic material to create a child.
birth father
The biological father of the child.
birth mother
The biological mother of the child. Also sometimes defined as the woman who
physically gave birth to the child.
birth parent
The biological parent of the child.
biweekly payment mortgage
A mortgage loan requiring half the agreed upon monthly payment every two weeks.
This results in a larger amount being paid each month, which reduces the
principal balance and the length of the term.
blacklisting
The practice of circulating the names of former employees who should not be
hired because of their history of union organizing efforts or other protected
activity.
blanket mortgage
A mortgage that secures more than one piece of property. It is commonly used by
builders for construction of a tract of land.
blastocyst
An early embryo.
blue passport
See refugee travel document.
blue sky laws
A common name for laws regulating investments and securities.
BMI
Performance rights society.
board book
Documents compiled, reported and reviewed each month by management and Board
members for discussion and decision at regularly scheduled Board meetings.
board of directors
These are the individuals who control a corporation for the benefit of the
stockholders. They listen to management’s recommendations and set policy for the
corporation.
Board of Immigration Appeals (BIA)
A separate office within the Executive Office of Immigration Review that
administers appeals from the Immigration Court. It is located in Falls Church,
Virginia, just outside Washington, D.C.
bodily injury
A liability coverage concept. One of the categories of injury or damage to which
liability coverages apply. Bodily injury in the insurance context means largely
what most persons think of as personal injury. The laws of the states differ as
to whether emotional distress in the absence of physical symptoms does or does
not constitute bodily injury for insurance purposes. A spouse’s loss of
consortium claim is usually considered to be part of the injured spouse’s bodily
injury damages.
body of claim
The portion of your claim which contains the elements or limitations of your
invention.
boilerplate language
The basic terms and conditions that will generally be found in any standard
rental agreement.
bona fide
Legal term meaning “in good faith;” without fraud.
bona fide occupational qualification (BFOQ)
BFOQs are exceptions to certain forms of discrimination.
bond
Money that backs a promise that an individual (usually the personal
representative) will perform the duties required and not misuse estate funds.
booking
Process of scheduling a live performance.
booking agent
Person who arranges for musicians to play at venues.
borrowed servant
An employee who is transferred from his or her regular employer to another
employer on a temporary basis.
borrower
The one who receives funds in the form of a loan with the obligation of repaying
the loan in full, with interest.
bottom line
A summary that indicates what something really costs or can indicate profits
after expenses are deducted.
bottom ratio
See debt-to-income ratio.
breach
Violating the terms of a contract without a legal excuse.
bridge loan
Loan that enables a homebuyer to get financing to make a down payment and pay
closing costs on a new home before selling the present house.
broad form
Insurance term used to describe insurance coverage that extends beyond
“standard” peril insurance policies, i.e., fire and extended coverage, named
perils, etc.
broker
(1) Person employed as an agent to bring buyers and sellers together and assist
in negotiating contracts between them. (2) Person licensed to perform buying,
selling, and renting services for real property. (3) A broker is a person who
transacts insurance for another person for compensation, usually in the form of
a commission, consisting of a percent of the premium of insurance policies
placed.
bubble, real estate
Term used by financial experts to describe an economic condition where there is
a lot of positive real estate activity (buying and selling of homes, new homes
being built). This situation usually accompanies low interest rates on
mortgages. The bubble theory is that real estate activity can only grow to a
certain level, then it will stop and that will cause the value of housing to go
down.
budget
A way to organize expenses and income so that you can control your spending.
builder
Person or company that is responsible for the construction of a building.
building code
Local regulations and laws that define all aspects of a structure.
building code upgrade coverage
A property coverage that applies to increased costs of construction after loss
occasioned by changes in building code requirements since a home or other
building was built. Coverage is usually not included unless the insured requests
such coverage and pays an additional premium for same.
building permit
Written authorization from a local government for the construction of a new
building or for extensive repairs or improvements on an existing structure.
built-ins
Permanent, immovable appliances or similar features.
burden of proof
Standard of proof which the plaintiff must sustain in order to make out a case
and defeat a motion for judgment.
buried clauses
Clauses in a contract that are difficult to find unless the contract is read
very carefully. The law requires certain clauses to be in a specific size or
bold type or to be located in an easy to see place, such as just above where the
parties will sign.
business day
Days on which a bank or market is open for business or trading; usually excludes
Saturdays, Sundays, and legal public holidays.
business judgment rule
Standard of conduct for the Board of Directors; also called the prudent person
rule.
business manager
Person who handles financial affairs.
business plan
A way to track strategies, sales projections, and key personnel. Also, a road
map for marketing activities, mission implementation, goals, raising and
spending business income, and financing administration needs. (Often called an
operations plan.)
business pursuits exclusions
An exclusion and definition contained in and relevant to liability coverages
under homeowners policies. Business is broadly defined as any trade, profession,
or occupation carried on for a profit motive. Business pursuits and activities
are typically excluded from coverage under homeowners policies
business structure
A term for how your business is organized. Can also refer to an organizational
chart of who does what job.
buy-down mortgage
Money paid by the buyer of a house to reduce the monthly mortgage payments.
buy-out
When someone, or the partnership itself, purchases the partnership interest of
one of the partners.
buydown
A payment of a lump sum of money to a lender to reduce the interest rate of a
loan. The reduced rate may be for the life of the loan, or more commonly, for
the first few years of the loan.
buyer’s agent
Real estate agent hired by the buyer to represent him or her in finding a home
and negotiating its purchase.
buyer’s broker
A real estate agent who acts as agent of a buyer.
buyer’s market
Economic conditions in which the supply of housing exceeds demand. (Sellers may
be forced to make substantial price concessions.)
buyer’s remorse
Feeling when the buyer realizes that he or she has taken on a large debt.
buying on time
Making installment payments on an item, instead of paying the total amount all
at once.
bylaws
Secondary laws of an association that govern its internal affairs and deal with
routine operational and administrative matters.
bypass trust
Trust typically created by a married couple to contain property that will not be
included, for estate tax purposes, in the estate of the surviving spouse. The
surviving spouse receives income from the trust but not the principal.
C corporation
A corporation that pays taxes on its profits.
C-paper
Loans to people with low credit scores or other risk factors; usually at
much-higher than typical interest rates.
C-store
A convenience store.
C.J.S.
See Corpus Juris Secundum.
cafeteria plan
See section 125 plan.
California Association of Community Managers (CACM
Professional trade organization offering a statewide certification program.
call-up date
Used in the immigration court to indicate when motions or supporting documents
are due to the court. It is usually ten or fourteen days before the hearing.
cancellation
The termination of an insurance policy during the middle of a policy period, by
either the insured or the insurer. Many states’ statutes restrict insurers’
rights to cancel policies midterm. Nonpayment of premium is usually a permitted
ground for cancellation, as well as material increase in hazard. If an insurer
cancels midterm, the insured is entitled to a prorated refund of premium. If an
insured cancels a policy midterm, the insurer usually imposes a ten percent
penalty on the amount of the premium refund.
cancellation clause
Provision in a contract that lists the conditions under which each party may end
the agreement.
cancellation of removal
Procedure available to one who is before the Immigration Court and can
demonstrate that he or she has lived for ten years in the U.S., is a person of
good moral character, and that there would be extremely unusual hardship to a
U.S. citizen or LPR parent, spouse, or child if he or she was deported.
capital
Money invested in a business by the owner(s). Also called equity.
capital expenditures
Purchases of long-term assets, such as equipment.
capital improvement
A major investment in a home that becomes part of the home, such as remodeled
kitchen, garage, and additional rooms.
capitalization method
A method of estimating the value of income producing property by calculating the
Net Operating Income and then assigning a Cap Rate. The Net Operating Income
divided by the Cap Rate gives you an estimate of value.
capped rate
Rate commitment by a lender that locks in a maximum rate, but allows the
borrower to relock if market rates decrease.
caps (interest)
A consumer safeguard on an adjustable-rate mortgage that limits the amount that
the interest rate may change per year or over the life of the loan.
caps (payment)
A consumer safeguard on an adjustable-rate mortgage that limits the amount
monthly payments may change.
carryback financing
Agreement whereby the seller takes back a note for part of the purchase price
secured by a junior mortgage, wrap-around mortgage, or contract for deed.
case law
Written decisions of trial or appellate courts.
case opinions
See case law.
case style
The title to a case, it lists the parties involved.
cash accounting
Method of recording revenue when actual cash is received and expenses when
actual cash disbursements are made.
cash balance plan
A pension plan that has characteristics of both a defined contribution plan and
a defined benefit plan. In a cash balance plan, the ultimate benefit is defined
in terms of periodic contributions to a separate hypothetical account for each
employee and an assumed interest rate earned on those contributions.
cash flow
Amount of and frequency with which a business receives payments.
cash flowing
A property is “cash flowing” when you’re able to put money in the bank each
month.
cash method
Method of keeping accounts by recording income and expenses only when they are
paid out or received.
cash or deferral arrangement (CODA)
A feature of some deferred compensation plans under which the employee can elect
to take taxable cash or a nontaxable contribution to the plan.
casual employee
An employee who is not covered by workers’ compensation because he or she works
irregularly, for a brief period only, and does work not normally performed by
employees of the employer.
causation
A necessary element to collect damages. The plaintiff must show that the
defendant’s conduct caused the damages to the plaintiff.
cause
A reason that is legally sufficient to discharge an employee who has an
employment contract.
CD-ROM
Compact Disc-Read Only Memory. Used to store computer programs.
cedent
One of the parties to a reinsurance transaction. The cedent is the insurer which
cedes a portion of the risk or liability assumed under a policy issued to an
insured to a reinsurer and pays the reinsurer a proportionate share of the
policy’s premium to the reinsurer.
censored
Items removed from publication.
Centers for Medicare and Medicaid Services (CMS)
The federal office that administers Medicare, and in conjunction with the
individual states, Medicaid.
certificate of citizenship
Document given in place of a naturalization certificate to those born abroad to
U.S. citizens, adopted by U.S. citizens, or children whose parents naturalized.
Normally given to those who qualify for citizenship without first becoming a
permanent resident.
certificate of completion
Document issued by an architect or engineer stating that construction is
completed in accordance with the terms, conditions, approved plans, and
specifications
certificate of deposit index
Index commonly used for interest rate changes in ARM mortgages.
certificate of eligibility
A document issued by the Veterans Administration showing that a specific veteran
may apply for a VA guaranteed mortgage.
certificate of limited partnership
A legal document filed with the state government to register a limited
partnership.
certificate of occupancy
Written authorization given by local government that legally allows a newly
completed or substantially renovated structure to be used by people.
certificate of reasonable value
The name for the appraisal used for a VA guaranteed mortgage.
certificate of reasonable value (CRV)
Used in a VA-guaranteed mortgage, it is the appraisal issued to the Veterans
Administration that shows the property’s value.
certificate of title
A document drafted by a title company, attorney, or abstract company that states
who is the legal owner of a property.
certificate of veteran status
An FHA form completed by the Department of Veteran Affairs in order to establish
a borrower’s eligibility for an FHA, Vet Mortgage.
certificates of insurance
Form that shows insurance policy coverage, limits, etc.; generally used as proof
of insurance.
certification
The certification is where you date and sign your inter-vivos trust in the
presence of a notary who acknowledges your signatures.
certified nurses aide (CNA)
A health-care professional who has received state certification upon completion
of required training, but who is not a licensed nursing professional.
Certified Public Accountant (CPA)
Accountant who has met certain state legal requirements.
chain of title
The history of who owned or had liens on a property.
challenge for cause
Disqualifying a juror because of perceived prejudice concerning matters relevant
at trial.
Chamber of Commerce
Association of merchants for the promotion of commercial interests in the
community; provides valuable information on the town.
change of status (COS)
An application made on Form I-539 by one in the U.S. to change from one
nonimmigrant status to another.
change of venue
Request of the applicant or by motion of a respondent to change the jurisdiction
of the USCIS office or immigration court based on a change of address.
Chapter 11
Type of bankruptcy used by businesses that is a reorganization of debts with a
repayment schedule that is acceptable to the creditors.
Chapter 13
Type of bankruptcy where an individual debtor files a budget with the court and
agrees to make partial payments to creditors over a three-to-five year period.
Chapter 7
Type of bankruptcy filing which gives a trustee the power to distribute a
debtor’s assets to creditors.
charging order
A claim against an interest in property.
charitable lead trust
Trust that donates to a charity income from trust assets while reserving the
assets for later distribution to other beneficiaries. Compare with charitable
remainder trust.
charitable remainder trust
Trust that pays income from trust assets to the donor or beneficiaries while
reserving the assets for later contribution to a charity. Compare with
charitable lead trust.
charter school
A school that is not a regular public school, but is funded by the government.
Child Citizenship Act of 2000
A federal law that allows an internationally adopted child to automatically
become a US citizen.
child labor
Labor by a person under 18 years-of-age.
child support
An amount of money paid by one parent to another under court order to assist in
financially supporting a child.
child support enforcement agency
A standard method states use for setting child support.
child support guidelines
Each state’s guidelines may be different.
children’s trust
A trust set up to hold property given to children. Usually it provides that the
children will not receive their property until they reach a higher age than the
age of majority.
chose in action
A right to recover personal property, a debt, or damages by a lawsuit. A
potential or pending lawsuit for the recovery of property or money.
Circular E
An IRS publication for employers, also known as Publication 15, containing
instructions and tables for federal income tax withholding and payroll tax
obligations.
citation
The way all legal materials are quoted. It is a form of legal shorthand used to
give information about where a case or statute can be found.
cited case
The case you are shepardizing. See Shephard’s Citations.
civil law
That body of law consisting of statutes, case decisions, and administrative
rules and regulations for matters that are noncriminal.
Civil Rights Act
The Act that was significantly amended in 1991 is the principal federal statute
prohibiting discrimination in employment and public accommodations.
civil union
A life partnership between two people of the same sex, similar to marriage,
under Vermont law.
claimant
Someone who believes he has a claim against another.
classes
Categories of people protected from discrimination.
classification
Short code that appears on the green card and approval notice. It is the basis
upon which one became a permanent resident.
clear title
A title to property that does not have liens or legal complications.
clock
Generally, a running total of the number of days since an asylum application has
been filed. It is used in determining when an asylum applicant may file a work
permit application. The term is also used when accruing illegal presence.
cloning
Different procedures used to create a copy of a cell.
closed adoption
An adoption whereby the child has no information about the birth parents.
closed listing
Right of one real estate agent to be the only one who may sell the property
during a period of time.
closed period
An interval of time under a mortgage during which the loan cannot be prepaid.
closed shop
A type of union security agreement where employees must be union members in
order to be hired.
closing
The event where the purchase of the property is completed. It is usually
attended by the buyer, seller, and lender (or their legal representatives).
Documents are signed, money exchanged, and the buyer gets the keys to the home.
closing argument
Closing address made by each side summing up the evidence and events of the
trial in the light most favorable to that side.
closing costs
Expenses in addition to the price of the property that are paid by both buyer
and seller.
closing date
The date that the purchase and sale of a property are finalized.
closing statement
The document that summarizes all of the payments, expenses, and prorations in
the sale and purchase of a property.
cloud
A problem with the title to a piece of property.
cloud on title
A lien on a title that must be cleared up for the title to pass from the seller
to the buyer.
cluster zoning
Zoning procedure where there is a limit on the number of houses, structures, or
density for an entire area.
coborrower
Additional person equally responsible for payments on a mortgage.
code
(1) The collection of a state’s laws, such as “Code of Alabama.” Many states use
the term statutes instead. (2) The collection of a state’s laws on a particular
subject, such as “Probate Code.”
Code of Federal Regulations (CFR)
A multi-volume detailed interpretation of federal laws, including immigration
laws.
codicil
A written charge or amendment to a will.
coercive partner notification
A practice where partners are notified against the will of a patient regarding a
health condition, usually relating to sexually transmitted diseases.
collaboration
Work done by two or more authors of the same copyrightable material.
collaborative law
An alternative dispute resolution technique where attorneys work in a
cooperative fashion, instead of as adversaries, to make decisions regarding such
issues as property division and issues concerning children without involving a
court.
collaborator
Colleague or teammate.
collateral
Property that is pledged as security against a debt.
collateral security
The mortgaged property. When a person borrows money, the loan is secured by the
promise to repay. When the lender requires more security, such as real estate,
the property is the collateral security.
collection agency
A company that collects debts on behalf of creditors.
collective bargaining agreement (CBA)
An agreement between an employer and a union dealing with employee pay,
benefits, disciplinary, grievance procedures, and other conditions of
employment.
collision
One of the physical damage coverages of auto policies. Collision generally is
defined as the upset of or contact of an insured vehicle with another vehicle or
object.
commerce clause
A clause in Article I of the U.S. Constitution empowering Congress to regulate
commerce with foreign nations, among the several States, and with the Indian
tribes.
commercial real property
Real property that is used for business or industrial purposes.
commingling
The mixing of two types of property. In the context of premarital agreements,
divorce, and probate, it typically refers to mixing marital and nonmarital
property. For example, prior to marriage the wife has a bank account, which
would be nonmarital property under the laws of her state. After marriage she
adds money from her paychecks, which would be marital property under the laws of
her state. She now has a bank account with marital and nonmarital property
commingled.
commission
(1) Real estate agent’s compensation for negotiating a real estate transaction,
often expressed as a percentage of the selling price. (2) Court authorization to
take the oath of a witness to will.
commission points
Percentage charged to compensate the lender or mortgage broker for services.
commissioner’s adjusted fair market value (CAFMV)
HUD’s estimate of the fair market value of a property in foreclosure.
commitment
1. A guarantee by a lender that the borrower will get a loan on the specified
terms. 2. A preliminary report by a title company guaranteeing title insurance
if certain specified conditions are met.
commitment (builder)
Agreement by a lender to provide long term financing to a builder, secured by an
existing or proposed building(s).
commitment ceremony
Celebration of a life partnership.
commitment fee
Fee paid by a potential borrower to a potential lender for the lender’s promise
to loan money at a specified date in the future.
commitment letter
Promise from a lender to provide the borrower with a mortgage.
committee
Group of people officially designated to perform a function, such as investigate
and report on a matter to the Board of Directors.
common areas
Property owned jointly by all unit owners that ordinarily includes land and
structure or portions of structure not otherwise described as units.
common expenses
Costs of managing, maintaining, administering, repairing, replacing and
operating the community.
Common Interest Development (CID)
Community Association in the form of condominiums, stock cooperative, community
apartment project or planned development.
common law
Legal principals that are determined in court cases, rather than statutes
enacted by a legislature.
common stock
Units representing ownership of a corporation. The owners (shareholders) are
typically entitled to vote on the selection of directors and other company
matters, as well as receive dividends on their holdings. If the company is
liquidated, the claims of its creditors and owners of bonds or preferred stock
take precedence over the common stockholders.
community apartment project
Development where an undivided interest in the land and the building is tied to
the exclusive right to occupy an apartment. This means that the owners of the
development through the association are their own landlords.
Community Association
Private organization, usually nonprofit, responsible for the total operation of
communities included but not limited to, condominiums, cooperatives,
time-sharing and planned unit developments.
Community Associations Institute (CAI)
Independent nonprofit research and educational organization formed in 1973 to
develop and distribute guidance on condominium and Homeowners Associations
community property
Property acquired during marriage from the efforts of one or more of the
spouses. Term applies in Arizona, California, Idaho, Louisiana, Nevada, New
Mexico, Texas, Washington, and Wisconsin. See also separate property.
Community Reinvestment Act (CRA)
Federal legislation that requires every financial institution to help meet the
credit needs of its entire community, including low- and moderate income
neighborhoods.
community spouse resource amount
An amount the spouse of a person receiving Medicaid may keep as assets.
comortgagor
Second borrower who signs a mortgage loan with a mortgagor.
comp time (compensatory time)
Leave taken in lieu of overtime pay. Use of comp time to compensate a nonexempt
employee who works more than forty hours in one workweek generally violates
wage-and-hour laws.
compact disc
A computer disc that is capable of storing large quantities of information.
comparables
Similar properties in the same area that have recently sold.
comparables method
A method of estimating value by comparing the subject property to similar
properties that have sold in the recent past.
comparative negligence
The percentage of negligence attributable to the injured party. It reduces the
amount recoverable from the defendant by the same percentage.
compensatory damages
Compensation for all proven injury or loss, such as medical bills, lost earnings
or automobile property damage.
competition
The action of two or more commercial interests to obtain the same business from
third parties.
competitive research
Research done to obtain an edge on competitors.
compilation
A collection of copyrighted works.
complaint
A legal pleading, beginning a law suit, that states the nature of the
plaintiff's claim, the request for damages and the basis for the court to hear
the case.
compound interest
Situation where interest is computed on both the original principal and accrued
interest.
comprehensive
The other physical damage coverage of auto policies. Some insurer’s
comprehensive coverage is limited to certain named or listed perils. It is more
common for comprehensive coverage to be stated in terms of accidental direct
physical loss, unless excluded.
Comprehensive Environmental Response Compensation
Federal law controlling hazardous substance pollution and liability.
compulsory license
The right of a person to use a copyrighted musical work as long as a statutory
fee is paid to the copyright owner.
concerted activity
Union organizing activity or other activity by employees for the purpose of
bettering wages, hours, or working conditions. Concerted activity is protected
by the National Labor Relations Act.
concurrent causation
Also referred to as multiple causation. A concept applicable to property
coverages. Coverage issues can arise when a noncovered and a covered cause of
loss combine to result in loss or damage. Most states use an efficient proximate
cause analysis to determine whether coverage exists in such a situation. The
efficient proximate cause of loss is referred to as the predominant cause. If
the efficient proximate cause of loss is covered, the loss is covered, and the
obverse.
condemnation
Taking of private property for public use under the right of eminent domain with
just compensation paid the owner.
conditional resident
One who has obtained conditional permanent residence through marriage to a U.S.
citizen (where the marriage is less than two years old at the time of
adjustment) or through a qualifying investment.
Conditions, Covenants, and Restrictions (CC&Rs)
In some jurisdictions, a basic document recorded to enumerate the property
interests in a Community Association, similar to a declaration.
condominium
Form of ownership in a multifamily housing development that combines exclusive
ownership of a dwelling unit and joint ownership of common areas.
condominium association fee
Fee paid by the homeowner to the association that governs a condominium.
condominium conversion
Process of changing rental units into a condominium form of ownership.
conflict management policy
A predetermined business policy for handling disputes with customers, vendors,
and others in running the business.
conflict of interest
Situation where a person has two or more interests which conflict.
conforming loan
A loan that follows the Fannie Mae or Freddie Mac guidelines for sale in the
secondary market.
consent
A legal agreement that an adoption should take place.
consideration
An exchange of something valuable, which makes a contract legally binding.
consignment store
Store that sells goods made by others. The purchase price includes a percentage
kept by the store.
Consolidated Omnibus Budget Reconciliation Act (CO
A federal law making health insurance available to employees for a period of
time after leaving a job.
consolidation
Combining several loans into one with a lower monthly payment. Most often used
with student loans.
consolidation loan
A mortgage loan used to pay off other debts, such as car loans and credit cards.
The purpose is to lower the interest rate and monthly payments of the borrower
from the higher interest rate loans to the mortgage interest rate.
construction contract
Agreement between a general contractor and an owner/developer stating the
specific duties the general contractor will perform according to blueprints and
specifications at a stipulated price and terms of payment.
construction costs
All costs incurred in the construction project, including land, labor, overhead,
and builder’s profit.
construction loan
Short-term, interim loan for financing the cost of construction. The lender
advances funds to the builder at periodic intervals as work progresses.
construction loan agreement
Written agreement between a lender and a builder or borrower that details the
specific terms and conditions of a construction loan, including the schedule of
payments.
constructive discharge
A termination where the employee is forced to quit, either directly or as a
result of intolerable working conditions.
constructive eviction
Claimed by the tenant when a dwelling becomes uninhabitable or unfit, and he or
she reasonably has no choice but to move.
constructive service of process
The act of notifying a person that he is being sued by placing a notice in the
newspaper and mailing him a copy.
consulate
Office run by the U.S. Department of State and is a sub-office in a larger
foreign country of the main embassy office. It is responsible for the issuance
of immigrant and nonimmigrant visas to aliens for entry into the U.S. May also
make determinations on U.S. citizenship.
Consumer Credit Counseling
A service that will assist you in combining your debts into one monthly payment.
consumer credit counseling program
A program to help a consumer lower his or her debts, prepare a budget, and clean
up any credit score problems.
consumer report
A credit report and/or an investigative report about a person. The obtaining and
use of consumer reports by employers are regulated by the Fair Credit Reporting
Act and by some state laws.
consumer reporting agency (CRA)
A person or entity which, for a fee, regularly assembles or evaluates credit
information or other information on consumers for the purpose of furnishing
consumer reports to third parties. The obtaining and use of consumer reports
from a CRA is regulated by the Fair Credit Reporting Act and by some state laws.
contempt
A judicial determination that a person wilfully failed to follow the court’s
order.
contempt of court
Violation of a court order or improper behavior in a courtroom.
contiguous
Adjoining or next to.
contingencies
(1) Things that may or may not happen in the future. (2) A condition that must
be met before a contract can be enforced. (In an offer contract for real estate,
common contingencies are that the property pass inspections and the buyers are
able to obtain financing.)
contingency clause
Wording in a contract that makes it unenforceable if specified conditions are
not met. Common examples are clauses that state that a buyer is not obligated to
buy property until and unless he or she is able to sell currently owned
property, or that the buyer is not obligated to buy property if he or she is
unable to get a mortgage loan for a certain amount.
contingency fee
Fee paid to a lawyer consisting of a percentage of the amount recovered in
litigation.
contingency reserves
Funds set aside to cover unanticipated emergencies or major expenditures not
included in the current fiscal year operating budget.
contingent beneficiaries
Persons who become owners of property after the previous owners die.
contingent fee
The amount an attorney charges for handling a personal injury case. It is
calculated as a percentage of whatever the client is awarded.
contingent interest
Interest in property that is dependent on the occurrence of a future event, such
as a college graduation, not on the passage of time.
contingent liability
A possibility that at a future time a person will have financial liability.
contingent worker
A worker who is outside an employer’s core workforce of full-time, long-term
employees. Contingent workers include independent contractors, part-time
employees, job sharers, temporary employees, leased employees, and joint
employees.
continuation application
A second or even later filed application covering the same invention for which
you previously filed a patent application. By filing a continuation, you
maintain the ability to change the scope of your claims in case a cunning
competitor is successful in designing around your claims of your issued patent.
continuation-in-part application (CIP)
CIPs are applications which are filed later so as to include new matter to your
specification which was not included in your originally filed application.
continuing care community
A long-term living choice that provides all levels of care for residents from
senior living to skilled nursing care.
continuing care retirement community (CCRC)
A lifestyle option for seniors that provides a range of services and
accommodations in a single facility or complex. Typically, a CCRC will contain
some type of independent living accommodations, assisted living, skilled nursing
facilities, and in some cases, specialized units, such as an Alzheimer’s disease
wing.
contract
An agreement to either do or not do something that involves the exchange of some
consideration.
contract for deed
A legal instrument in which two parties agree to the purchase and sale of a
piece of property for a series of payments. Also known as an agreement for deed.
contract to purchase
See purchase and sale agreement.
contractor
Person or company who agrees to do work and/or furnish materials for a
contracted price. (Subcontractors are often hired by the contractor to perform
specialized or technical labor.)
contributory negligence
A concept that applies in tort law whereby a plaintiff’s claim may be barred if
the plaintiff is guilty of any negligence that caused the injury.
conventional financing
Mortgage financing that is not insured or guaranteed by a government agency.
conventional loan
Mortgage that is not insured by FHA or VA.
conventional mortgage
A mortgage not made, insured, or guaranteed by a government agency.
conversion feature
Feature of a mortgage that allows the conversion to another interest rate,
mortgage term, or type of mortgage instrument.
convertible
Usually refers to debt or preferred stock, each of which is convertible into
common stock of the company. Obviously, it is possible to have debt convertible
into preferred stock and it is even possible to have preferred stock convertible
into debt, although the latter is unusual.
convertible ARMs
Adjustable rate mortgages that can convert to fixed rate loans at a future date.
convertible mortgage
Type of adjustable-rate mortgage that may be converted to a fixed-rate mortgage.
conveyance
The transfer of a piece of real property.
conviction
A determination in a court case that someone broke the law and a sentence
issued.
cooling-off period
Period of time, provided by law or by contract, during which a party to a
contract can legally back out of a contract.
cooperation clause
Cooperation clauses appear in both property and liability policies. An insured’s
breach of a cooperation clause can result in a denial of coverage if the insurer
can show that it was actually and substantially prejudiced by the insured’s lack
of cooperation. In the liability context, the purpose of the cooperation clause
has been stated to assist the insurer’s defense of a suit against the insured,
and to prevent collusion between the insured and the claimant.
cooperative (co-op)
A type of subdivision in which the property owners own stock in the real estate
project, with each given the exclusive right to occupy a unit. Also called a
stock cooperative.
copyright
Legal protection given to original works of authorship.
copyright infringement
Act that violates the ownership interest in a creative work.
corporal punishment
Type of punishment that involves physical contact.
corporate ethics committee
In the case of company-owned long-term care facilities, a committee made up of
corporate support staff to address topics that are germane to such facilities,
including ethical health-care issues and certain resident grievances.
corporation
An artificial person that is set up to conduct business owned by shareholders
and run by officers and directors. Each state determines its own rules regarding
corporations.
Corpus Juris Secundum
A legal encyclopedia covering the laws of all fifty states and the federal
government.
correspondence
Any letters or items that you have sent or received through the mail, email, or
fax.
cosigner
Someone who agrees to be responsible for a debt if the debtor does not make
payments.
Cost of Funds Index (COFI)
An index that may be used to set interest rates in an ARM.
cost of living
Cost of the basic necessities of life.
costs
Money expended in the pursuit of a lawsuit. It includes the cost of obtaining
medical records, filing the lawsuit and any motions, investigating the accident,
obtaining expert testimony, taking depositions, procuring the attendance of
witnesses, etc.
counter offer
Home seller’s response to buyer’s offer on the house.
counterpetition
A response to a petition, which seeks some relief from the court rather than
merely admitting or denying the allegations in the petition.
country reports
Detailed report of each foreign country published each February by the
Department of State regarding human rights conditions in each country. These are
heavily relied upon by immigration judges and asylum officers in deciding an
asylum application.
court hearing
A general term covering any number of court proceedings. It differs from a trial
in that there is no jury and may be based on legal, rather than factual, issues.
court opinion
See opinion.
court-appointed special advocate (CASA)
A person, usually a specially trained volunteer, who is appointed to monitor the
case to be sure the best interest of the child is being protected. This person
is not a lawyer representing the child.
covenant
An agreement in a contract.
cover
Song written by one person and performed by another.
credit bureau
A company that compiles records of a person’s debts, and whether these debts
were repaid as agreed.
credit card
A card that allows you to charge items to your account. Interest is charged on
balances not paid off during the billing cycle.
credit estate tax
State tax on the assets of someone who has died. Applies only in some states and
only to estates that are required to pay federal estate taxes. Estate does not
pay double taxes but instead, by paying a credit estate tax, rebates part of the
federal estate tax owed back to the state.
credit history
Your past credit reports that indicate how much of a risk you are to loan money
to.
credit limit
The total amount you are authorized to charge on a credit card.
credit rating
A numerical value determined by a person’s or a corporation’s history in paying
bills.
credit report
A history of the debts of a person with emphasis on whether the debts were paid
as agreed. The report is commonly used by prospective lenders, landlords, and
employers.
credit reporting agencies
Companies that create credit reports by gathering information from creditors.
credit repository
See credit bureau.
credit score
A number derived by a formula that rates a person’s credit history.
credit shelter trust
Another name for bypass trust.
creditor
A person or institution to whom money is owed.
creditors’ bill
A legal action to collect money.
creditworthiness
A determination done by comparing a person’s borrowing history with that of
other consumers.
cremation
The process in which a body is turned to ash.
crime involving moral turpitude (CIMT)
There is no statutory definition, and it is somewhat in the eye of the beholder.
A CIMT within five years of adjustment or any two CIMTs at any time may make a
person removable. There is a long list of CIMTs. A retail theft, for example, is
a CIMT.
criminal law
Statutes enacted by federal, state or local legislative bodies that impose
criminal penalties for certain actions. The criminal penalty may consist of
being imprisoned or being fined.
cross-collateral
Hypothecating additional property to obtain a mortgage. For example, the
borrower does not have sufficient equity in the home to get the desired loan, so
he or she puts up a vacation home as additional security.
cross-collateralization
The right, given in a contract, to be repaid money advanced on one project from
the monies received from other projects.
cross-examination
The opportunity of a party to ask leading questions of the witness put on by the
other party in order to clarify, limit, or impeach that witness’ testimony
before a court.
cryopreservation
The freezing of eggs, sperm, or embryos.
cul de sac
Residential street that ends in a large turn around.
curable breach
A violation of a contract that can be corrected. A landlord can send a notice to
a tenant demanding that the tenant correct the violation of the lease before
beginning eviction.
Current Law Index
A guide to locating law reviews and legal periodicals.
current visa
A visa where the priority date on the I-130 approval notice moves past the date
reflected on the visa bulletin published by the Department of State.
curriculum
The program of study at school.
custodial care facility
An assisted-living facility.
custodial parent
The person with whom the child primarily lives.
custodian
A person appointed under the Uniform Gift to Minors Act (sometimes called
Uniform Transfers to Minors Act), who has a fiduciary position over assets which
are for the benefit of a minor or person under the age of 25 years. In essence,
a trustee without formal trust documents.
custody
The term for the person who has the rights and duties of a parent. Can also
refer to physical possession of the child. Legal custody is a determination by a
court that establishes with whom a child will live. Physical custody describes
with whom the child is living regardless of the legal custody status. Joint
custody occurs when two persons share legal and/or physical custody of a child.
Split custody occurs when two or more children are in the legal custody of
different people. Some states use the concept of parenting time instead of
custody.
cut-off date
The date on the Department of State's monthly visa chart that makes people whose
priority date is before it eligible to apply for permanent residence.
cycle (economic)
Period of time, such as when the economy is growing or when it is in a
recession.
cytoplasm
Material that fills the egg and gives it energy.
cytoplasmic transfer
A technique that removes cytoplasm from a donor egg and injects it into the
mother’s egg.
D & O insurance (directors and officers insurance)
Coverage that protects company officials from personal liability for good faith
actions taken in the course of their employment.
d/b/a
Abbreviation for doing business as.
damages
The sum of money that an injured party claims the other party owes for all
losses, expenses, and harm to property or persons.
debit card
A type of card in which the user deposits a certain amount of money with the
bank and then charges against it, using that money to pay the items charged.
debt
An amount of money owed.
debt collector
Person whose job is to collect money owed on debts.
debt ratio
The amount of money a person owes in relation to his or her net worth.
debt service
The amount of money you have to pay on a debt in order to keep it from being in
default. If you make the payments that are called for under a note or loan, then
you are servicing the debt.
debt-to-income ratio
The percentage of a person’s income that is already allocated to debts such as,
mortgages, loans, utilities, and credit cards.
debtor
A person or institution who owes money.
decedent
A person who has died.
decedent trust
A trust created at the decedent’s death to take advantage of decedent’s federal
estate tax exemption.
decennial digests, or decennials
Sets of digests, grouped in ten year periods, which cover all of the states and
all federal jurisdictions.
declarant
A person who signs a living will, usually when the living will document is
titled “Declaration.”
declaration
(1) Another name for a health care directive. (2) A statement that warns you
about willful false statements. (3) That portion of a policy that identifies the
policy to the insured. The declarations, or declarations page, show who the
insurer is, the policy number and policy period, who the named insured is, its
mailing address, the address of premises insured, the coverages afforded, the
policy limits applicable to each coverage, the deductible(s), and often, the
forms contained in the policy. (4) In some jurisdictions, this is a basic
document recorded to set out property interests in a Community Association,
similar to CC&Rs.
decree
An order that has the force of law. This may also be called a judgment.
deductible
The amount of money you must pay on an insurance claim before your insurance
will begin to make payments on the claim.
deductions
An amount subtracted from gross income when calculating adjusted gross income.
deed
A legal instrument that transfers an interest in a property.
deed in lieu of foreclosure
A deed given by the property owner to a lender instead of the lender going
through the foreclosure process. Its purpose is to save the time and expense of
foreclosure when the borrower has little or no equity in the property.
deed of trust
See mortgage.
deed of trust
A document used in some states instead of a mortgage. It has the same purpose as
a mortgage, but is structured differently.
defamation
Harming a person's reputation by making a false statement to another person,
either in writing or orally.
default
(1) Failure to fulfill or live up to terms of an agreement. (2) The failure of a
defendant to file an answer or appear in court within the time limit after
having been served with a summons and complaint. The failure to appear can then
lead to a default judgment being entered by a court.
default letter
Letter sent to the borrower indicating that the mortgage has not been paid or
that the borrower has violated one of the requirements of the mortgage (such as
keeping the property insured) and asks what the lender is going to do about this
issue.
defendant
The person against whom a case is filed. This person may also be called a
respondent.
defendant index
A list of cases filed by the name of the defendant. This lets the researcher see
all the cases filed in the past against a particular person.
deferment
Occurs when a loan is put on hold without payments becoming due. Usually only
applies to student loans.
deferred admission
Formerly known as deferred inspection. Where a nonimmigrant or possibly lawful
permanent residence had trouble reentering the U.S. and must appear at the local
USCIS office to clarify their status.
deferred compensation
Compensation set aside for an employee, but not currently taxable to the
employee, because the employee’s receipt and enjoyment of the compensation is
deferred.
deferred interest
A mortgage that is written so the interest payments are delayed for a period of
time.
deferred maintenance
Repairs that have been put off for awhile and are starting to pile up.
deficiency
The money a borrower might still owe their lender after a foreclosure.
deficiency judgment
The amount still owed on a debt after a foreclosure or court ordered sale.
defined benefit plan
A type of retirement plan in which the benefit amount is fixed by a
predetermined formula including such factors as years of service and
preretirement compensation. Contributions to the plan are calculated so that the
plan will have sufficient funds to pay the promised benefit.
defined contribution plan
A type of retirement plan in which the amount contributed to the plan is fixed
by a predetermined formula and the benefit amount depends on the value of each
participant’s separate account within the plan.
deliberations
That time during a jury trial when the jury leaves the courtroom to weigh and
analyze the facts in the case, in order to ultimately reach a verdict.
delinquency
An amount that was paid later than agreed or not paid at all.
delinquent
Late or overdue.
demand letter
Correspondence in which an injured party explains its side of a legal dispute,
and requests a sum of money to settle the case.
Department of Homeland Security (DHS)
Newly formed department responsible for government functions related to
security. The former INS has been split into the U.S. Citizenship and
Immigration Services (USCIS), which is responsible for administering immigration
services, and the Immigration and Customs Enforcement (ICE), which is
responsible for immigration enforcement within the U.S.
Department of Housing and Urban Development (HUD)
A government agency that promotes fair housing principles and can provide
certain types of relief for aggrieved parties.
Department of Labor (DOL)
Through its oversight of the labor certification process, it is responsible for
providing determinations as to the availability of qualified U.S. workers for
positions offered in many of the employment-based categories.
Department of State
Runs the embassies and consulates, which decide on immigrant and nonimmigrant
visa applications. Also runs the Passport Office.
Department of Veterans Affairs (VA)
Agency of the U.S. government that manages benefits and other issues for
veterans of the military.
dependent claim
A claim that refers back and further restricts a single preceding claim.
deportable
State where the alien is either being asked or may be asked in the future to
leave the U.S.
deportation
This occurs when a person is physically taken by an DHS Deportation officer to
his or her native country, usually because either a deportation order or removal
order from the immigration court exists.
deportation officer
A USCIS employee whose responsibility is to apprehend and deport illegal aliens
from the U.S.
deposit
See earnest money.
deposition
Part of the discovery process in a case, a deposition is comprised of questions
asked and answers given by a witness in a case who is under oath. The
questioning is done by the opposing attorney and is not in a courtroom, nor
under the supervision of a judge. The answers are recorded by a court reporter.
depreciation
An accounting concept in which the IRS, and other people, pretend that assets
will decrease steadily in value over a predetermined time period until, at the
very end, they are completely worthless. It usually bears no relationship to
reality, but does allow you to write off expenses on your taxes even though
you’re not actually writing checks for those expenses.
derivative beneficiary
One who obtains status on a visa petition not on account of their own standing
but because of their relationship to the principal beneficiary, such as a child
through his or her parent.
derivative work
A creative work based upon a previously copyrighted work.
descendant
A living person born into the family line (a child, grandchild, etc.)
descendants
Any offspring of an individual (either living or dead), including children,
grandchildren, etc.
design patent application
Type of application that protects the ornamental appearance of something. It is
one of three types of patent applications, the others being utility and plant
patent applications.
developer
Person or entity who prepares raw land for building sites or rehabilitates
existing buildings.
devise
Real property left to someone in a will. In many states, used interchangeably
with bequest.
devisee
The person who is left real property in a will.
digest
The primary guide to finding case law in reporters. It is a compilation of
abstracts or summaries of each case in a particular jurisdiction or legal area.
dilution
Reduction in the value of a company’s outstanding stock caused by issuance of
additional stock.
direct caregiver
A nursing staff member of a long-term care facility who provides one-on-one care
directly to a resident.
direct examination
The questioning of a witness by the attorney who calls that witness as part of
his case.
direct lender
A mortgage lender of any size that makes loans from the lenders’ own portfolio
of assets.
direct liability
Liability for an employer’s own negligence in hiring, retaining, or failing to
supervise an employee who presents an unreasonable risk of injury or damage to
the public.
direct threat defense
A provision of the Americans with Disabilities Act that allows employers to
exclude disabled employees from certain jobs where the disabled person would
pose a direct threat to his or her own health or safety or to the health or
safety of others in the workplace.
directors and officers liability insurance (D&O)
Protection against loss arising out of alleged errors in judgment, breaches of
duty and wrongful acts of a Board of Directors and/or officers in carrying out
their prescribed duties.
disability
For Americans with Disabilities Act purposes, a physical or mental impairment
that substantially limits one or more major life activities.
disclosure
The act of informing a party, usually the buyer, of conditions and matters
relating to the property.
disclosures
The blank spaces in the rental agreement that require individual information,
including certain information that may be required by state law.
discount
An allowance or deduction made from a gross sum.
discount points
The percentage paid to reduce the interest rate to a borrower or a reduction
from face value in order to sell a loan in the secondary mortgage market.
discoverable documents
Documents which may be required to be produced in the discovery phase of
litigation.
discovery
The formal process by which parties to court proceedings obtain information and
documents from opposing parties and question opposing parties and nonparty
witnesses under oath.
discovery motion
Motion through which one party attempts to obtain the court's assistance in
forcing the other party to produce information about the case.
discrimination
Legal term meaning being denied rights or treated unfairly because of membership
in a minority group.
disinheritance clause
This clause states that all persons other than your specifically named
beneficiaries are disinherited.
disparate impact
In discrimination law, the effect of workplace rules or requirements that appear
neutral on their face but that have an adverse impact on a particular race, age
group, and so on.
disparate treatment
In discrimination law, intentional adverse treatment of an applicant or employee
because of his or her race, religion, gender, and so on.
disposition (of an action)
The final action taken in an action. This will usually either be a final
judgment or a dismissal.
disqualified person
California is the only state to currently have a disqualified persons statute.
If bequests you are considering fall within the California disqualified persons
statute you should consider safeguards such as the qualifying procedures
discussed earlier. It is important to be aware of such laws as they can, if
enacted, apply retroactively.
dissolution
(1) Ending an agreement or partnership. (2) The closing of a limited liability
company.
dissolution of marriage
Legal term for divorce used in some states.
distressed property
A polite way of referring to a property owner facing foreclosure.
distribution
A transfer of money or other property from a partnership to a partner in the
partner's capacity as a partner or to the partner's transferee.
District Director (DD)
The head official of the USCIS offices in a certain district that may include
several states. The DD has considerable discretion and power over certain types
of applications and waivers, such as humanitarian parole or extended voluntary
departure.
diversity jurisdiction
An element of subject matter jurisdiction in federal court that requires that
there must be a diversity of citizenship between opposite parties in the case.
diversity visa
A green card lottery run by the Department of State where 100,000 people will be
notified that they will be allowed to adjust status. However, only 50,000 visas
are available.
dividends
A taxable distribution made to shareholders disbursed from a portion of the
company’s earnings; usually paid in cash, but may be paid in additional, newly
issued shares.
divisional application
These types of applications are often filed after you receive a “restriction
requirement” in an office communication from the PTO. You file your non-elected
inventions in separate divisional applications.
DNA
The abbreviation for and standard term used for deoxyribonucleic acid.
do not resuscitate order
A document signed by a patient’s physician and by the patient or someone having
the proper legal authority to act on his or her behalf that instructs medical
personnel not to attempt resuscitation in the event the patient’s heart or
breathing cease.
docket number
A number that you create to identify your application.
documentary stamp
Mark or actual stamp put on a deed that indicates the proper transfer tax has
been paid.
documentary stamp tax
State tax on the transfer of an interest in real property.
doing business as (d/b/a)
When a business uses a name other than the name of the owner.
domestic adoption
An adoption of a child born in the United States.
domestic partners
Persons other than spouses and relatives who live together and have a voluntary,
committed relationship with each other.
domestic partnership
Life partnership for those not permitted to marry.
domestic partnership agreement
A contract which may or may not be legally enforceable detailing the obligations
and promises a life couple makes to each other.
domicile
The state of a person’s main and permanent residence. This is more than mere
residency. A person can have several residences, but only one domicile. Good
proof of domicile in a particular state would be that you are registered to vote
there, have a driver’s license and car registration issued there, are employed
or have your principal place of business there, and list that address on your
income tax returns.
donee
One who is the recipient of a donation.
donor
(1) One who makes a donation. (2) A person who donates egg, sperm, or embryo for
another to use.
door
Total amount of money paid by people to see a particular show.
double jeopardy
A constitutional principle that prohibits a person from being tried twice for
the same crime.
double taxation
In a corporation, income is taxed at the corporate level and again as part of
the personal income of shareholders to whom it is distributed as dividends.
double-patenting
There are two types of double-patenting. The first is based on U.S.C., Title 35,
Sec. 101, which says that you are entitled to only a patent. This requirement
has been interpreted by courts to mean that you cannot claim the same invention
twice. You are not allowed, for example, to file a patent application for
invention X and then several years down the road file a new patent application
for invention X. A second type of double-patenting is a so called “judicial
type,” which prohibits you from not only claiming the same invention later, but
also from claiming any inventions that are obvious from the one you previously
claimed in a patent application.
down payment
The initial amount of money a buyer will pay for a property, in addition to the
money from a mortgage.
draw
The number of people who pay to see a show.
drop boxes
A place designated by the landlord in which tenants can deposit their rent at
any hour of the day or night.
dual agency
Person who acts as an agent for two people or entities.
due date
Date mortgage payment is required.
due diligence
(1) The process of gathering and confirming information about a company and its
business, management, and financial affairs to determine its feasibility and
level of risk for an investment. (2) The exercise of reasonable efforts to
complete a task, such as discovering the proper address in an attempt to serve
papers on the opposing spouse.
due on sale clause
Wording in a mortgage that gives the lender the right to demand full payment of
the loan if the mortgaged property is sold.
due process
Concept of fundamental fairness, such as the right to reasonable notice to
present evidence and cross examine witnesses at a fair and impartial tribunal.
due process clause
A clause in the Fifth Amendment to the U.S. Constitution that provides that no
person shall be deprived of life, liberty, or property, without due process of
law. The Fourteenth Amendment also prohibits states from depriving any person of
life, liberty, or property, without due process of law.
due-on-sale clause
A clause in a mortgage that requires that the mortgage be paid if the property
is sold.
duplicate petition
Normally filed where the original petition was lost or misplaced by the USCIS.
In order to file the duplicate petition, one must have the original receipt
number or a copy of the receipt notice in order to file the duplicate to the
first filing.
durable power of attorney
A power of attorney that continues after the principal becomes incapacitated.
duress
Some extraneous pressure that causes people to sell property cheaply (because
they’re facing foreclosure) or causes other people to pay an unusually high
price (in order to avoid income taxes).
duty to defend
One of the two principal promises of the insurer under liability coverages. The
insurer is obligated to defend suits against the insured seeking damages
potentially covered by the policy. Under most policies the average person will
purchase, the costs of defense are in addition to, and not included within the
liability limits. In most cases, the insurer selects defense counsel.
duty to deliver possession to tenant
Once a rental agreement has been executed by landlord and tenant, the landlord
has an obligation to allow the tenant to actually move into the dwelling. The
landlord can be held responsible if the tenant is denied occupancy, even if it
is not necessarily as a result of any action by the landlord.
duty to indemnify
The second principal promise of the insurer under liability coverages. The
insurer is generally obligated to pay settlements or judgments when the facts
proved show that the damages sought are actually within the policy’s coverage.
duty to maintain fit premises
The landlord typically has an ongoing obligation to keep essential services,
such as water and electricity, in good working order.
duty to mitigate
The obligation of the plaintiff to hold damages to a minimum. An example is a
landlord’s obligation to try to re-rent the property after a tenant moves out
before the lease ends.
dwelling
A home, apartment, mobile home, or other structure used as a sleeping place for
one or more residents.
early neutral evaluation
Neutral party brought into a dispute to evaluate it for one or both sides to
resolve the dispute before litigation is begun.
earned rate
For unemployment insurance purposes, the rate used to compute an employer’s
contribution obligation based upon the employer’s actual claims experience.
earnest money
A significant amount of money that the potential buyer puts down with the offer
to buy that shows that the potential buyer is serious about going through with
the deal.
easement
Right to use land owned by someone else for certain limited purposes, such as
for party driveways, drainage, etc.
economic depreciation
Loss in the value of real estate due to changes outside the particular property
affected, e.g., a decline in the neighborhood or change in zoning.
effective filing date
This date can be critical for you to know to determine whether your invention is
novel. It is also important in determining the date from when your patent term
will run. The effective filing date of your application is usually the date on
which you file your patent application. However, if you have filed previous
applications before on your same application, your effective filing date will be
the earliest U.S. filing date so long as you have made a claim of priority back
to such earliest filed U.S. application.
efficient proximate cause
See concurrent causation
egg nuclear transfer
Cutting edge technology in which DNA is implanted into a human egg cell.
egress
To go out.
ejectment
A lawsuit to remove a person from real property.
elective share
The minimal portion of property that a state allows a surviving spouse to
receive when the decedent leaves a will. The surviving spouse must choose or
elect to take what he or she was left in the will, or to take the elective
share. This generally comes into play when the decedent has left little in the
will to the surviving spouse, so that he or she would receive more by taking the
elective share.
Electronic Communications Privacy Act (ECPA)
The federal law that regulates the interception of wire, electronic, and oral
communications.
Electronic Federal Tax Payment System (EFTPS)
The system for paying employment taxes and other federal taxes electronically.
electronic funds transfer (EFT)
The process by which money is transmitted electronically from one bank account
to another.
elimination period
For purposes of long-term care insurance, a period of time during which the
insured person must pay out-of-pocket for long-term care expenses before
insurance coverage will begin.
emancipation
(1) The process by which a court makes one a legal adult even though the legal
age has not been reached. (2) The age at which a parent is no longer responsible
for the care of a child, usually because the child has reached the age of
majority.
embassy
The main office for the U.S. government located in a friendly foreign country.
embryo
An egg fertilized with sperm that has begun to divide.
embryo adoption
A process in which an embryo is donated to another couple or person and
adoption-type procedures are followed, such as home studies and possible contact
between the parties.
embryo donation
A donation to another couple or for use in research of an embryo created during
ART.
emergency maintenance
Necessary repairs that cannot be predicted and require immediate attention.
eminent domain
The right of government to take private property for public use after the
property owner is paid market value for the property.
emotional distress
The mental reaction (anguish, grief, fright) to another person's actions. It may
only be recoverable as damages when it is accompanied by physical manifestations
(nausea, vomiting, dizziness).
employee
A person whose manner of work the employer has a right to control.
employee assistance plan (EAP)
A fringe benefit some employers offer, that may include short-term counseling,
alcohol or drug abuse treatment, and similar services.
employee handbook
A handbook of rules, policies, procedures, and so on, issued by the employer for
the guidance and information of employees.
Employee Polygraph Protection Act (EPPA)
The EPPA prohibits employers from using lie detectors except in extremely
limited circumstances.
Employee Retirement Income Security Act (ERISA)
ERISA is the principal federal law regulating retirement plans and other
employee benefit plans.
employee stock ownership plan (ESOP)
An ESOP is a form of retirement plan in which the retirement fund holds stock of
the employer company.
employee stock purchase plan
A plan for granting stock options to an employer’s general workforce in
proportion to their compensation.
employer identification number (EIN)
The taxpayer identification number a business will use for all the documents and
tax returns that a business files with the IRS. A business must obtain it if it
has one or more employees.
Employer Information Report (EEO-1)
The form filed annually with the Equal Employment Opportunity Commission by
employers who have 100 or more employees, and by certain government contractors
to provide the EEOC with a breakdown of the workforce by sex, race, and national
origin.
employment authorization document (EAD)
A photo identification card issued by the USCIS that evidences the holder’s
authorization to work in the U.S. and obtain a social security number.
employment contract
An agreement that employment will last for a specific term and/or that the
employment will only be terminated for cause or in accordance with specified
procedures.
employment practices liability insurance (EPL insu
A relatively new form of coverage that protects employers from
employment-related claims.
en banc
When all of an appellate court’s judges sit in on an argument. It means “on the
bench” or “full bench.”
enablement requirement
A statute requirement that demands your patent application teach one skilled in
your art how to make and use your claimed invention.
encroachment
A situation in which part of one piece of property unlawfully violates the
rights of another piece of property.
encumbrance
Something that limits the ownership of a property, such as mortgage, liens, or
easements.
end-stage condition
A condition that is caused by injury, disease, or illness that has resulted in
severe and permanent deterioration, indicated by incapacity and complete
physical dependency, and for which, to a reasonable degree of medical certainty,
treatment of the irreversible condition would be medically ineffective.
enforcement
Association action in applying the penalty for violating its rules.
engineer’s report
Report done by an engineer stating the physical condition of property.
entered without inspection (EWI, pronounced “eee-w
A person who entered the U.S. across the border from Mexico or Canada without
being inspected by an immigration officer.
enterprise zone
Depressed neighborhood, usually in an urban area, in which businesses are given
tax incentives and are not subject to some government regulations. (These
advantages are designed to attract new businesses into the particular area or
zone.)
entrepreneur
Someone who organizes a venture and accepts the risks in hopes of profit.
environmental impact statement (EIS)
Document required by many federal, state, and local environmental land use laws,
containing an analysis of the impact that a proposed change may have on the
environment of a specific geographic region.
EP
A CD that has more than one song, but fewer than a full length CD.
Equal Access Law of 1984
Federal law that requires public schools that receive federal funding to allow
student-led clubs in public high schools to organize and meet on school property
and receive equal support as other clubs so long as the organization is a
student-led, special interest, non-curriculum club must.
Equal Credit Opportunity Act (ECOA)
Federal law that requires lenders and other creditors to make credit equally
available without discrimination based on race, color, religion, national
origin, age, sex, marital status, or receipt of income from public assistance
programs.
Equal Employment Opportunity Commission (EEOC)
The EEOC is the principal enforcer of Title VII of the federal Civil Rights Act,
the Age Discrimination in Employment Act, and the employment provisions of the
Americans with Disabilities Act.
Equal Pay Act
See Fair Labor Standards Act.
equitable distribution
A legal concept for how marital property is to be divided in a divorce, which
seeks to divide property in a fair manner, after considering whatever factors
are legally required to be considered in a particular state.
equitable mortgage
A financial interest in real property based on what a court deems is fair.
equitable relief
One party asking the court to prohibit the other party from doing something or
mandating that the other party do something.
equitable title
The ownership interest of the person entitled to ownership of real property.
equity
(1) The preferred and common stock of a business. Also, it is frequently used to
describe the amount of ownership of one person or a venture capitalist in a
business. (2) Owner's interest in a property, usually determined by the value of
the property less mortgage, liens or other encumbrances against it.
equity accrual
Buildup of an owner's interest in a property because of mortgage loan
amortization or appreciation in its total value.
equity skimming
A scam usually perpetrated by buying property from an owner during the
foreclosure process for a small amount of money, then renting the property until
foreclosure is completed and the tenants are evicted by the new owner. The
skimmer, also called a milker, does not turn over the rent to the lender, but
keeps it for personal use. A less common type of skimming is when the mortgagor
moves out, rents the property during foreclosure, and does not pay the rent to
the lender but keeps it for personal use.
ergonomics
The science that studies the relationship between workers and their work
environment.
errors and omissions insurance (E&O)
Protection against loss arising out of an alleged error or oversight on the part
of an insured professional while performing prescribed duties.
escrow
(1) In some states, the procedure in which the closing of a property purchase
and sale is finalized. (2) In purchasing real estate, a third party holds
earnest money in escrow. The third party will deliver the escrow amount upon
certain conditions, such as the purchase of the property.
escrow account
Money paid by the mortgagor to the mortgagee in addition to principal and
interest, so that the lender can pay taxes (and sometimes insurance) when due.
escrow agent
Person or organization that has legal responsibility to both the buyer and
seller (or lender and borrower) to see that the terms of the purchase/sale (or
loan) are carried out. (This person usually holds the escrow amounts.)
escrow analysis
Periodic examination of escrow accounts to determine if current monthly deposits
will provide sufficient funds to pay taxes, insurance, and other bills when due.
escrow closing
When the money is taken out of the escrow account.
escrow company
Organization established to act as an escrow agent.
escrow contract
Three-party agreement between the buyer, seller, and the escrow agent,
specifying the rights and duties of each.
escrow overage or shortage
Difference, determined by escrow analysis, between escrow funds on deposit and
escrow funds required to make a payment when it becomes due.
escrow payment
Portion of a mortgagor’s monthly payments held by a lender to pay taxes and
insurance as they become due.
escrow transfer agreement
Document transferring escrow funds held by the lender to a third party upon
transfer of property.
essential services
These include those services that are necessary to keep a dwelling habitable,
such as water, heat, and electricity.
estate
All property, real or personal, that a person owns.
estate tax
Type of death tax based on the decedent’s right to transfer property; not a tax
on the property itself.
estimated budget range
Item in a budget which is not certain and an estimated amount is used generally
based upon the amount in the prior budget and other pertinent considerations,
such as possible increases or decreases in revenue and expense expectations
estimated taxes
Quarterly taxes for businesses that expect to owe taxes of $1,000 or more.
ethical will
A message to one’s children or heirs in which you share your thoughts, advice,
and wisdom.
evaluative mediator
Mediator who injects an opinion or evaluation into a mediation.
eviction
A court action to remove a tenant from real property.
evidence
Evidence can come in many different forms but typically it comes in the form of
testimony, documents, and other physical exhibits.
evidence of title
Proof of ownership of property.
evidentiary hearing
Hearing where evidence is used by the tribunal to make a decision of liability
or fault such as an arbitration or trial.
examination of title
Review of the chain of title as revealed by an abstract of title or public
record.
examination under oath
A loss settlement condition, usually in property policies. The policy give the
insurer the right to demand an examination under oath of the insured, outside of
the presence of any other insured. The insured must sign a transcript of the
examination. The insurer may request that the insured produce documents and
records at the examination under oath, even if the insured has previously
provided the insurer with the same records. An insured’s refusal to submit to an
examination under oath after the insurer requests same furnishes the insurer
with grounds to deny the claim.
examinations section or exams
The typical name for the section of the USCIS that interviews adjustment
applications.
exception
An exception to an exclusion restores coverage taken away by the exclusion. An
exception to an exclusion cannot create coverage for a loss not covered by the
insuring agreement of the policy.
excess benefit plan
An unfunded plan maintained by an employer solely to avoid the contribution and
benefit limitations imposed on qualified plans by Section 415 of the Internal
Revenue Code. Excess benefit plans are exempt from most provisions of the
Employee Retirement Income Security Act.
excess insurance
Excess policies apply upon the exhaustion of the limits of liability of
underlying primary insurance. Exhaustion means that the full limits of the
primary insurance have been paid for covered settlements or judgments against
the insured. Umbrella policies are excess policies that provide gapfilling
coverage. Coverage will apply to damages covered under the umbrella policy’s
insuring agreement that are not covered under underlying primary insurance,
subject to the insured’s retention (similar to a deductible).
excess lines broker
An intermediary to whom a retail agent or broker turns to obtain a policy from a
nonadmitted or excess or surplus lines insurer. Under most states laws, an
excess or surplus lines policy can be issued only upon proof that standard lines
admitted insurers will not write a policy for the risk in question.
excess lines insurer
See admitted insurer.
excessive damages
Unreasonable or outrageous award of money by a jury that is subject to reduction
by the court.
excise tax
Additional tax imposed on the performance of an act, the engaging in an
occupation, or the enjoyment of a privilege. Common term for any license fee or
any tax, except income tax.
exclusion
A policy provision that takes away a portion of coverage extended by a policy’s
insuring agreement. Under the law of most states, insurer drafted exclusions are
narrowly construed and the insurer bears the burden of proving the application
of an exclusion.
exclusionary rule
A rule of evidence that applies in criminal cases whereby evidence may be
excluded if it was improperly obtained by the law enforcement authorities.
exclusive listing
See closed listing.
exclusive right to sell
See closed listing.
execute
To sign a legal document in the legally required manner, thereby making it valid
and effective.
execution
The act of signing a will by the testator and the witnesses.
Executive Office for Immigration Review (EOIR)
A separate agency from the USCIS within the Department of Justice that runs the
immigration court.
Executive Order 11246
An executive order issued by President Lyndon Johnson in 1965 which, as amended,
prohibits employment discrimination and requires affirmative action plans by
most federal contractors and subcontractors.
executor
A personal representative who is named in the decedent’s will. In earlier times,
a female executor was called an executrix. See also administrator and personal
representative.
executor or executrix
A person appointed by the court, or by a will, to oversee distribution of the
property of someone who has died with a will. Executor applies to a male, and
executrix applies to a female.
exempt assets
Assets that are not considered when you apply for Medicaid.
exempt employee
An employee who is not covered by minimum wage and overtime requirements of the
federal Fair Labor Standards Act (and the parallel provisions of state law)
because he or she is employed in an executive, administrative, or professional
capacity or falls within some other statutory exemption.
exempt property
Property set aside by a state’s laws that is exempt from attachment by
creditors, to which a surviving spouse is entitled in addition to any other
rights such as the intestate or elective share, homestead, and family allowance.
exemption trust
See decedent’s trust.
exit interview
A meeting between an employee and management immediately prior to termination of
the employee.
expedited case
Adjustment cases that are time-sensitive such as diversity visas, aging out
(child about to turn 21), medical reasons, or other urgent reasons.
expenses
Costs incurred by the association for its operations.
expert witnesses
Those witnesses whose special expertise is required regarding a matter of
relevance to the trial. Doctors, engineers, accident reconstructionists,
statisticians, economists, vocational specialists, nurses, etc. are all expert
witnesses.
exploit
To use a creative work for commercial purposes.
expungement
A criminal record where the person’s name has been deleted from the records of a
particular state.
extension of status (EOS)
Where one applies for another term of status on the same type of nonimmigrant
visa.
extension of time
You can buy these in packages of up to five months in order to extend the time
that you need to reply to an office action from the PTO.
external legal issues
Legal conflicts which arise between the Community Association and outsiders.
extreme hardship
The legal standard for different types of waivers, such as for unlawful presence
or entry with a false passport. The hardship must be to a qualifying relative
such as U.S. citizen or LPR parent or spouse.
facilitative mediator
Mediator who facilitates the conclusion of a mediation without expressing an
opinion as to the mediation issues.
facilitator
A professional who arranges adoptions.
fact witnesses
Those witnesses who will testify concerning the facts of the accident.
factoring
Occurs when a financial institution buys a firm’s accounts receivable (at a
discount) and then collects the full value of the accounts from customers.
Banks, through their Visa and Mastercard programs, do a form of factoring for
merchants who accept their credit cards.
Fair Credit Billing Act
Law enacted to facilitate settlement of billing error disputes and to make
credit card companies more responsible for the goods purchased by the
cardholder.
Fair Credit Reporting Act (FCRA)
Law that protects consumers through federal regulations on the total interest
paid over the life of the loan and procedures to repair errors on a person’s
credit report.
fair employment practice agency (FEPA)
FEPAs, also known as deferral agencies, are state or local agencies that enforce
equal employment laws comparable to federal law.
Fair Housing Amendments Act of 1988
Expanded on the Federal Civil Rights Act of 1968 by prohibiting discrimination
against the handicapped and families with children.
Fair Labor Standards Act (FLSA)
The FLSA establishes minimum wages and overtime requirements and prohibits
oppressive child labor. As amended by the Equal Pay Act, the FLSA also prohibits
employers from paying different wages to males and females who do the same work.
fair market value (FMV)
The price that a willing buyer would pay a willing seller, with neither of them
operating under duress.
fair use
Limited use of a copyrighted work which is allowed by law.
faith financing
Mortgages, loans, and other financial assistance that is structured to the rules
of a person’s religion.
False Claims Act
A federal law that permits a whistleblower to file suit in the name of the U.S.
Government against companies that have allegedly defrauded the Government.
family allowance
Money or other property which a surviving spouse or children may keep in
addition to other rights such as the intestate or elective share, homestead, and
exempt property. It is designed to provide living expenses for a certain period
of time, usually up to one year from the date of death.
Family and Medical Leave Act (FMLA)
A federal law that allows up to twelve weeks of unpaid time off from work when
you are dealing with your own medical conditions (such as fertility treatments)
or caring for a family member, such as a newborn or adopted child.
family council
A group of family members’ of nursing home residents who meet to discuss issues
and problems at the home.
family trust
Another name for a bypass trust.
Fannie Mae
The Federal National Mortgage Association. A major purchaser of loans in the
secondary mortgage market.
Farmers Home Administration (FmHA)
Organization that provides loans specifically to farmers who are unable to find
other financing.
Federal Arbitration Act (FAA)
The FAA provides for enforcement of arbitration agreements.
Federal Civil Rights Act of 1968
Prohibits discrimination on the basis of race, color, religion, sex, national
origin, or age.
Federal Employment Non-Discrimination Act
Federal law prohibiting discrimination in employment but does not include sexual
orientation in its protected class of people.
Federal Equal Opportunity Credit Act
Federal law prohibiting discrimination in the extension of credit, but does not
include sexual orientation in its protected class of people.
federal estate tax
Federal tax assessed against the assets of a person who has died if the value of
the taxable assets exceeds 675,000.
Federal Fair Housing Act
Federal law providing protection from housing discrimination, but does not
include sexual orientation in its protected class of people.
Federal Flood Insurance Program
A federal program that affords flood insurance policies to persons living in
areas potentially subject to flood losses. Flood is a standard exclusion from
property policies. Therefore, unless one has a policy from the Federal Flood
Insurance Program, one will not have coverage for a flood loss. There is a
30-day waiting period after the date of application before a policy under the
Federal Flood Insurance Program goes into effect.
Federal Funeral Rule
Federal law, enforced by the Federal Trade Commission, that requires that
information regarding funeral pricing be accurate and itemized, and prohibits
the provider of funeral services from making misrepresentations of the law and
other harmful practices.
Federal Home Loan Mortgage Corporation (FHLMC)
See Freddie Mac.
Federal Housing Administration (FHA)
An agency of the United States government that, among other things, guarantees
home loans.
Federal Insurance Contribution Act (FICA)
FICA imposes a tax on employers and an identical tax on employees to fund the
social security system.
Federal Long-Term Care Insurance Program (FLTCIP)
A federal agency providing long-term care insurance to active and retired
employees of the federal government, as well as certain members of their
families.
Federal National Mortgage Association
See Fannie Mae.
Federal Parent Locator Service (FPLS)
A service operated by the federal Office of Child Support Enforcement (OCSE)
within the Department of Health and Human Services that obtains address and
employer information, as well as data on child support cases in every state,
compares them, and returns matches to the appropriate states. This helps state
and local child support enforcement agencies locate absentee parents so that
custody, visitation, and child support can be determined and enforced.
federal per diem rates method
A method for reimbursing employees for business travel based on daily rates
established by the federal government. The rates are divided into two groups,
known as CONUS (continental U.S.) and OCONUS (outside continental U.S.).
federal reserve
The Board of Governors of the Federal Reserve System, among other duties, set
interest rates for borrowing by banks. These rates have an effect on mortgage
rates.
Federal Trade Commission
Governmental body that enforces laws on price fixing, false advertising, trade
restraints, and other matters of commerce.
Federal Unemployment Tax Act (FUTA)
FUTA imposes a tax on employers to finance the federal portion of the
unemployment insurance program.
fee agreement
A contract between an attorney and client that spells out the terms of the legal
representation.
fee simple deed
A legal instrument that conveys absolute ownership in a property.
fees
Money charged by lenders and others involved in mortgage loan transactions, as
distinguished from interest on the loan.
felony
A crime for which a person may be imprisoned for more than a year.
FHA loan
Loan insured by the Federal Housing Administration.
FHA value
Value established by the FHA as the basis for determining the maximum mortgage
amount that may be insured on a specific property. (The FHA value is the sum of
the appraised value of the property plus HUD and FHA’s estimate of closing
costs.)
FICO
A credit score calculation, developed by Fair Isaac & Co., that private credit
bureaus use to indicate the likelihood that a person will pay his or her bills
on time.
ficticious name
The name a person or business uses to conduct business with the public, but is
not its actual, legal name.
fiduciary
A person who holds a special position of trust with respect to another person.
Fiduciaries are required to act solely in the best interests of the persons for
whom they hold the special trust position and not in their own self-interest.
fiduciary duty
Responsibility of the Board to exercise a high degree of care in acting for the
financial benefit of the members rather than for themselves; also fiduciary
responsibility.
fiduciary relationship
Agreement based on trust in which one person or group of persons handles
financial transactions for another or others.
file number
See A number.
filing date
This is the date you get when you file your patent application containing your
specification, at least one claim, and any required drawings. You do not need
all components of a completed application to obtain a “filing date.” When
everything is complete, you will receive a “filing receipt.”
final judgment
The order of the court at the end of a trial or pursuant to a settlement
agreement.
final order of removal (deportation)
An order to send a person out of the U.S. by the immigration judge that has not
been appealed within the thirty-day period.
final rejection
This is a second or subsequent office action which you may receive from your
examiner which basically tells you that your examiner rejects your claims and
wants to close your file. Your options after a final rejection become more
limited.
finance charge
Fees charged for borrowing money, often stated as a percentage.
finance plan
Written steps and goals for financing a business.
financial management
Management of the day-to-day affairs of a Community Association's financial
issues, such as whether or not certain revenue or expenses are within the
budget.
financial power of attorney
A power of attorney giving the agent the power to act in financial matters, as
opposed to health care matters.
financial statement
A listing of a person’s assets, liability, and net worth.
fingerprint card
Until 1997, a card having fingerprints of an alien taken on it by a law
enforcement entity or a credentialed private organization. USCIS took over the
fingerprinting process to avoid fraud.
fingerprint clearance
Required fingerprint check against FBI computer records prior to adjustment of
status. Fingerprints must be taken within fifteen months prior to the date of
adjustment or else the fingerprints will expire and have to be retaken.
fire and casualty damage
Damage caused by fire, flood, or other natural disasters that renders a dwelling
uninhabitable. These do not include damages caused by the tenants themselves.
firm commitment
Lender’s agreement to provide a mortgage loan.
first amendment
The addition to the constitution that protects free speech, freedom of religion,
and freedom of association.
first mortgage
For those who have multiple mortgages on a home, this one is the first in time.
(First mortgages will be paid off first in a foreclosure.)
first party insurance
Insurance in which the insurer’s obligation is to make payment to the insured,
as opposed to someone who is not a party to the contract (policy). Common
examples are the dwelling and personal property coverages, and collision and
comprehensive coverages of an auto policy.
fiscal controls
Procedures for regulating and verifying the financial activities.
fiscal year
The dates a business’s accounting year begins and ends. It is often the same as
the calendar year, but a business can choose any one-year cycle of dates that
best suits it.
fixed expenses
Costs that remain relatively stable.
fixed payment loan
Aloan that requires a level payment. Other terms of the loan may change.
fixed-rate loan
A loan that will require the borrower to pay the same interest rate for the
entire term.
fixed-rate mortgages
Mortgage where the interest and the payment remain the same for the term of the
loan.
fixer-upper
A property requiring repair or remodeling to bring it to what is considered
standard condition. The term is used in advertising to imply that the property
is priced lower than similar properties in good condition.
fixture
Personal property that becomes part of the real estate, such as a shed attached
to the garage or curtain rods bolted to the wall.
flexible payment mortgage
A loan that requires the payment to adjust at some time during the term to
amortize the loan. The adjustment can cause a huge increase in the payment since
there is no cap on the payment.
flexible spending arrangement or flexible spending
An employer-sponsored arrangement under which an employee can contribute pre-tax
dollars to a special trust account and obtain reimbursement out of the account
for uninsured medical expenses and/or dependent care expenses.
flextime
An arrangement under which employees may choose a work schedule different from
the employer’s normal work schedule, so long as the total hours worked per week
meet the employer’s minimum requirement.
flip mortgage
See pledged account mortgage.
flood insurance
Insurance for losses due to water damage. (This may be required by the lender.)
flood plain
Land that is subject to flooding when a stream or river is at flood stage.
floor plan
Architectural drawings showing details of floor design and layout.
forbearance
Occurs when the lender allows you to postpone or make temporary reductions in
your payments.
forced share
Rights granted by state law to the surviving spouse to take a portion of the
decedent’s estate regardless of what the will may allow. Another term for the
spouse’s elective share.
foreclosure
A legal proceeding in which a property is taken from a debtor for failure to pay
a loan.
Foreign Affairs Manual
The regulations that apply to consular officers in adjudicating immigrant or
nonimmigrant visas.
foreign filing license
Your filing receipt, that you get back from the PTO after you file your patent
application, will usually have the words “foreign filing license granted” on the
form. A foreign filing license is a prerequisite before you file a foreign
application for your invention, if your invention was made here in the U.S. If
you fail to obtain this license before your foreign file, the consequence can be
loss of patent rights here in the U.S.
Foreign Investment in Real Property Tax Act (FIRPT
Federal law requiring aliens to pay taxes on profits and sales made in the U.S.
foreseeable dangers
Danger of injury that could reasonably have been seen. The law expects the
landlord to take reasonable steps to protect the safety of their tenants.
formal administration
The procedure by which a decedent’s estate is probated, usually when family or
summary administration is not available.
foster care
A situation in which a child that is in the custody of the state is temporarily
cared for by adults licensed by the state.
foster parent
An adult who contracts with an agency to care for children who are in the
custody of the state.
franchise
Purchase of a right to run an existing business that is part of a well-known
chain of businesses. It usually includes the use of the business’s name,
marketing, policies, and other objects the public associates with this business.
fraud
Deliberate deception practiced to secure unlawful gain.
Freddie Mac
The Federal Home Loan Mortgage Corporation. A stockholder owned corporation,
originally chartered by Congress, that buys mortgage loans in the secondary
mortgage market.
free association
The right to spend time with people of your own choosing.
Freedom of Information Act (FOIA)
Important law allowing anyone to obtain a copy of his or her file held at a
governmental agency such as the USCIS.
fresh consideration
Something of value, such as a promotion or pay raise, offered to an existing
employee in exchange for the employee’s signing a noncompetition agreement.
Friendship, Commerce, and Navigation Treaties (FCN
FCN treaties permit foreign companies doing business in the U.S. to engage, at
their choice, high-level personnel essential to the functioning of the
enterprise, effectively permitting them to discriminate in favor of their own
nationals.
front pay
See backpay.
front-end ratio
See housing to income ratio.
full faith and credit clause
A provision of the U.S. Constitution that requires each state to recognize the
laws of every other state.
fully-indexed rate
The total interest charged to the borrower for an adjustable rate loan once the
start rate ends. It includes the interest rate of the index and the margin.
fundamental fairness
Conduct by one to others that is in keeping with the simple and basic ideas of
what is fair treatment.
fundamental right
A right guaranteed by the U.S. Constitution.
future damages
Money awarded for additional medical treatment, future pain and suffering or
loss of earning capacity.
future interest
Interest in property that cannot be possessed or enjoyed until a specified
period of time passes or a future event (for example, a 21st birthday) occurs.
G-28
Attorney appearance form. Blue form that must accompany any immigration
application in order for an attorney to be officially entered as attorney of
record and to receive copies of correspondence.
G-325A
Detailed biographic information form that is required with an adjustment of
status application and other petitions. One of the copies is sent to the embassy
in the native country and another is sent to the CIA to perform records checks.
Required for all adjustment applicants fourteen years of age and over.
gamete
An egg or sperm cell.
gamete intrafallopian transfer (GIFT)
A technique in which eggs are placed into the intended mother’s fallopian tubes
with large numbers of sperm.
gap financing
See bridge loan.
gap loan
A temporary loan to supply needed money before a sale or longer term financing
can be completed. It is arranged quickly, easy to get, and expensive.
garnish
To order a third party to turn over to a creditor any property that is being
held for a debtor.
garnishment
A legal action to withhold wages or other assets for payment of a debt.
gay straight alliance (GSA)
School support group of children of GLBT families or gay teens.
gender identity disorder (GID)
A classification by the American Psychiatric Association of transgender
individuals.
general agent
A general agent is a much different concept than that of a retail agent. In the
property/casualty context, some insurers contract with general agents to perform
underwriting and claims functions rather than to hire their own employees to
perform the underwriting and claims functions. In other circumstances, insurers
contract with general agents to perform underwriting functions only, commonly
for limited classes of business, such as restaurant policy programs. In the life
insurance context, insurers sometimes contract with general agents to be their
exclusive marketing channel for the insurer’s products. In order to sell that
company’s products, an agent must be a subagent of the general agent.
general contractor
Party that performs or supervises the construction or development of a property.
The general contractor may use his or her own employees for this work or the
services of other contractors (subcontractors).
general duty clause
The Occupational Safety and Health Act requirement that every employer furnish
its employees with employment and a place of employment free from recognized
hazards that cause or are likely to cause death or serious physical harm.
general employer
An employer who transfers an employee to another employer (called the special
employer) for a limited period of time. While the transfer is in effect, the
special employer has temporary responsibility and control over the employee’s
work.
general maintenance
Upkeep that can be anticipated and performed on a regular basis or that is minor
in nature.
general partner
A partner who shares ownership and has full liability for the debts of the
business.
general partnership
A business that is owned by two or more persons.
general power of attorney
A power of attorney that gives the agent very broad powers, generally to conduct
all kinds of business on behalf of the principal.
general release
A legal writing setting forth the terms of the settlement. It prevents the
plaintiff from seeking further legal redress.
general warranty deed
See warranty deed.
generation-skipping trust
Trust designed to skip one generation of estate taxes because the trust leaves
the principal to the grantor’s grandchildren, not the grantor’s children.
genetic (DNA) testing
The analysis of blood or saliva to obtain genetic information that can identify
the parents of a child.
genre
A particular type of music; rock or country, for example.
geriatric care manager
A professional service provider who assists in long-term care planning by
seeking suitable facilities for the elderly.
gestational surrogacy
The intended mother’s egg is implanted into the surrogate with the intended
father’s sperm to conceive a child. The surrogate has no biological relationship
with the child.
GI loan
Old term for a VA guaranteed mortgage loan.
gift
Voluntary lifetime or at-death transfer of property, made without compensation.
gift letter
A letter from one who is giving money to a buyer for part of the down payment.
The letter must state that the money need not be repaid.
gift tax
Tax on lifetime transfers of property given without consideration or for less
consideration than the property is worth.
Ginnie Mae
The Government National Mortgage Association. A government agency that
guarantees payment to those who buy certain types of mortgage backed securities.
glass ceiling
The invisible barrier to advancement sometimes faced by women and minorities.
goal
The actions taken to achieve a business purpose.
golden parachute
Payments promised to key personnel in the event of a change in ownership or
control of a company.
good will
In accounting, the monetary value placed on the good reputation of a business.
It is considered an asset of the business. Typically, an organization that has
been in business for a number of years and enjoys a good reputation among its
customers has more good will value than a new company.
governing documents
Set of legal papers, filed by a developer with the appropriate local government
office, that submit land to use for, create and govern a Community Association.
government mortgages
Mortgages insured or guaranteed by the government.
Government National Mortgage Association (GNMA)
See Ginnie Mae.
grace period
(1) The time between when the billing cycle closes and the date you have to pay
the balance by to avoid any finance charges. (2) Time allowed to get something
done.
graduate payments
Student loan payments that begin low and increase over time, often beginning
with interest-only payments.
graduated payment mortgage
A mortgage loan that begins with a low monthly payment that gradually increases
to an amount necessary to amortize the loan over the term. Its purpose is to
help buyers who expect future income to increase.
grandfathered
Amendment to a governing document that changes rights or restrictions while
preserving an owner's rights who relied on the documents at the time of
purchase.
grantee
A person who received property from another.
grantor
A person who transfers property to another.
grantor trust
Living trust in which the grantor maintains enough control over the assets so
that the trust income received is taxed to the grantor, not to the trust or to
the trust’s beneficiaries.
green card holder
See lawful permanent resident.
green card number
See A number.
green card stamp
Refers to the temporary stamp placed by a USCIS officer into a person’s passport
signifying his or her adjustment of status.
gross estate
Property owned by a decedent at death. Value before debts are paid.
gross income
Sales less cost of goods sold.
gross monthly income
Income received each month from every source before taxes deductions for
employer incentive savings program 401(k).
groundwater
Water that is present in the subsoil.
growing equity mortgage (GEM)
Graduated payment mortgage in which increases in a borrower’s mortgage payments
are used to accelerate reduction of principal on the mortgage.
guaranteed insurability rider
Addition to a life insurance policy that allows you to purchase more insurance
without going through medical history or exams.
guaranteed issue life insurance
Life insurance that is offered regardless of a person’s risk of death.
guaranteed loan
Loan that a government agency assures the lender will be paid back even if the
borrower defaults.
guarantor
Person who is also liable for another’s debt or performance.
guaranty
Agreeing to be liable for the debt of another.
guardian
A person appointed by the court to handle property and personal matters for
another individual.
guardian ad litem
The person, usually an attorney, appointed by the court to watch out for the
best interests of the child during the court case.
guardian of the person
A person who is authorized by a court, pursuant to a guardianship proceeding, to
make decisions regarding the care of another person.
guardian of the property
A person who is authorized by a court, pursuant to a guardianship proceeding, to
handle the financial affairs of another person.
guardianship
(1) A legal proceeding to determine whether a person is legally incompetent and
should have a guardian appointed to care for the person or the person’s
financial matters. (2) The legal relationship between a guardian and a ward.
H-1B visa
The most popular temporary nonimmigrant visa, issued for a maximum of six years;
most professional positions normally qualify; a job offer is required before you
can apply.
habitability
A condition fit for human occupancy. A landlord has a duty to have the rental
unit fit for the tenant to live in, such as having heat and working plumbing.
This is a minimum standard required by law. The standard agreed to by the
parties may be much higher.
half-time plan
Sometimes called a fluctuating workweek plan, an exception to the Fair Labor
Standards Act’s general overtime rules that allows an employer to pay only
half-time, instead of time and a half, for overtime worked by nonexempt
employees. The exception only applies where the employee’s workweek fluctuates
and where the employer has entered into an agreement to pay a fixed salary to
cover the straight time component of all time worked in a workweek.
handy-man’s special
Term with no set definition by the real estate industry; usually refers to a
home that needs maintenance.
harassment
A form of discrimination involving conduct that has the purpose or effect of
unreasonably interfering with a person’s work performance or that creates an
intimidating, hostile, or offensive work environment.
hard money mortgage
1. A mortgage loan with interest and fees much higher than market rates and
fees. It allows borrowing by those who cannot get a loan elsewhere because of
severe credit or debt problems. 2. A mortgage loan that is not used to purchase
property.
hazard insurance
Insurance against specific losses.
hazardous conditions
Within the scope of residential housing, lead-based paint and asbestos are two
of the hazardous conditions for which to watch. Tenants should contact the
landlord immediately if there is any sign of danger from these hazardous
conditions.
headnote
A brief summary of a legal rule or significant fact in a case.
health care advance directive
The term used in some states for a health care power of attorney.
health care directive
A document indicating choices you have made about your own health care and/or
appointing someone to make medical decisions for you, should you be unable to.
health care power of attorney
A specific type of power of attorney that gives your agent (usually a family
member or close friend) the authority to make decisions about your medical
treatment. You may also see this referred to as a durable power of attorney for
health care, health care proxy, designation of health care surrogate, advance
health care directive, or some similar name.
health care proxy
A type of advance medical directive executed by a person that makes another
person his or her agent for the purpose of making health-care decisions on his
or her behalf, in the event he or she becomes incapacitated and is unable to
make such decisions on his or her own.
Health Insurance Portability and Accountability Ac
A federal law that makes medical record confidential and imposes requirements on
group health plans to make it easier for employees who change jobs to be
eligible for full coverage under their new employer’s plan.
health reimbursement arrangement (HRA)
An employer-funded health insurance plan, often paired with a high-deductible
group health insurance policy used to reimburse employees for uninsured medical
expenses.
health-care directive
A document giving someone else the power to make medical decisions for you or
directing what kind of care you are willing accept.
health-care proxy
A legal document giving someone else the authority to make health-care decisions
for you if you are unable to do so for yourself.
hearing
Examination, usually informal, of an accused person.
hearsay
An out of court statement that is offered for its truth value.
heating, ventilation, air-conditioning system (HVA
The unit regulating the even distribution of heat and fresh air throughout a
building.
heir
Person who inherits the property of a person who died.
hidden defect
A problem with the title that is not apparent in public records. (Examples of
hidden defects are unknown heirs, secret marriages, forged instruments, mental
incompetence, or infancy of a grantor.)
hidden franchise
A term used when a licensing agreement resembles a franchise agreement too
closely, resulting in additional legal hurdles associated with franchises.
holder in due course
One who buys a negotiable instrument, such as a mortgage note. The buyer gets
certain legal protections greater than the originator of the loan. To become a
holder in due course, procedures described in the Uniform Commercial Code must
be followed.
holographic will
A will wherein the essential terms are all in the handwriting of the testator.
Although the will must be signed by the testator, the signature need not be at
the end of the document, and the will need not be witnessed by any other
persons. This type of will is valid in most states.
home equity
The amount of ownership that a person has paid into his or her home. Usually
expressed as how much mortgage principal has been paid.
Home Equity Conversion Mortgage Program (HECM)
A federally-insured reverse mortgage program by which a senior (aged 62 years
and older) may receive a loan for long-term care expenses based on the equity in
the senior’s home.
home equity line of credit
A mortgage loan that allows the borrower to draw money to a maximum amount at
any time during the term. Interest is paid only on the amount borrowed. The
money may be repaid and borrowed again at any time during the term. It is a
revolving loan, similar to a credit card loan.
home equity line of credit loan
Open-end loan, usually recorded as a second mortgage, that permits borrowers to
obtain cash advances based on an approved line of credit; home is used as
collateral.
home equity loan
A loan not used to purchase property. It is usually secured by a second mortgage
and covers the equity between the first mortgage and the property value.
home health care
A lifestyle option for a senior, wherein assistance with daily living
activities, as well as any necessary medical care, is provided by a health-care
aide in the senior’s home, allowing the senior to maintain his or her own
residence rather than relocating to an assisted living or nursing facility.
home health-care aide
A worker trained to assist people with bathing, meal preparation, and household
tasks.
home improvement loan
Mortgage to finance an addition to or rehabilitation of a residence.
home inspection
Done by a professional to evaluate structural and mechanical condition of a
property.
home keeper mortgage
The name given to the Fannie Mae version of a reverse mortgage.
home loan
Mortgage loan secured by a real property.
Home Mortgage Disclosure Act (HMDA)
Federal legislation that requires certain types of lenders to compile and
disclose data on where their mortgage and home improvement loans are being made.
home study
A process through which a licensed social worker meets with prospective adoptive
parents and evaluates their lifestyle and home for its appropriateness to house
a child.
home warranty
Insures a new home against major structural damage for a set period of time,
usually ten years.
homeowners association
An organization of homeowners whose major purpose is to maintain and provide for
the rights of owners.
homeowners insurance
Insurance policy that protects the owners and the mortgage holder from loss.
homestead
Real property where an individual or married couple had their primary residence.
This is used in some states that give special rights and protection to such
property against the claims of creditors or for property tax purposes. In
probate law, many states allow the surviving spouse certain rights in homestead
property which cannot be given away to others by a will.
homestead estate
In some states, a legal exemption that prohibits the attachment, lien, or sale
of owner-occupied properties to pay the claims of creditors.
hospice
Care provided for the terminally ill, focusing on pain relief and emotional
support for the patient, as well as bereavement assistance for the surviving
family members.
hostile environment
A work environment made offensive by harassment.
house rules
Guidelines related to day-to-day conduct in common areas and relationships
between unit owners.
house value
Determined by upkeep of the home, upgrades made to the home, the neighborhood,
and the economy.
housing costs
Used in the housing-to-income ratio; includes monthly loan payment, real estate
taxes, and insurance.
housing expense ratio
See debt-to-income ratio.
Housing Finance Agency (HFA)
— State or local agency responsible for the financing of housing and the
administration of subsidized housing programs.
housing starts
Number of residential units actually under construction. (This is a key economic
indicator and is used in analyzing real estate and mortgage trends.)
housing-to-income ratio
Total mortgage payment is divided by a person’s gross monthly income to arrive
at a ratio.
HUD
The Department of Housing and Urban Development. FHA is one of its many
departments.
HUD-1 Uniform Settlement Statement
Standard form used to disclose costs at closing. All charges imposed in the
transaction, including mortgage broker fees, must be disclosed separately.
human resources (HR)
Formerly called Personnel Department.
humanitarian parole
One is paroled into the U.S. for humanitarian reasons such as medical or for
young children to reside with parents even if there is not a visa number
available.
HVAC
Real estate term for heating, ventilating, and air-conditioning system.
hybrid mortgage loan
A mortgage loan that contains both fixed and adjustable periods during the term.
Hydration (artificial)
Providing a person with water through a feeding (gastrointestinal), or an
intravenous, tube.
hypothecate
To put up property as collateral security without the physical delivery of the
property, as is done with a mortgage loan. When the property is physically held
by the lender as security, it is pledged.
I-130
Visa petition form used for a family-sponsored immediate member or preference
category.
I-140
Visa petition form used for an employment-based preference category.
I-161
See bag and baggage letter.
I-20
Form issued by a school when a foreign student has enrolled and paid tuition.
I-212 waiver
Form needed to waive the effect of a removal or deportation order.
I-485 Supplement A
Form filed by those eligible for mini-amnesty. You can only file it during
certain times and you must be eligible. It is required by one who entered the
country without documentation or who is out of status and is filing adjustment
through a preference visa petition.
I-551 stamp
See green card stamp.
I-601
See waiver
I-765
Work permit application.
I-797
Also called a receipt notice or approval notice of action issued by a service
center in regard to an immigrant or nonimmigrant visa application.
I-864
See affidavit of support.
I-9
The form employers must complete and maintain for each employee as a record that
the employee is eligible to work in the U.S.
I-94
Small white card stapled into one’s passport upon admission into the U.S. on a
nonimmigrant visa. It contains the date of expiration of the nonimmigrant visa.
I/T/F
Abbreviation that stands for “in trust for.” This is a way to keep bank accounts
out of an estate.
identity theft
Taking on another person’s persona for illegal purposes. Usually includes the
use of Social Security numbers, credit card information, and other confidential
details.
illegal alien
One who is in the U.S. out of status or who entered without inspection.
image
The impression the public has of a business’s product, service, and business.
immediate relative
Spouse, parent, or child (under the age of 21) of a U.S. citizen. However,
adopted children must have been adopted before the age of 16 and stepchildren
before the age of 18.
immigrant
Someone who has become a lawful permanent resident.
immigrant home buyers
Those who are not native to the United States.
immigrant visa (IV)
Used when applying for permanent residence at an embassy or consulate.
immigrant visa packet
After the alien has been approved at an embassy or consulate, he or she is given
a packet to present upon arrival for inspection in the U.S. This packet must be
presented to the USCIS officer for ADIT processing.
immigration
Process through which people legally enter the United States and get permission
to remain.
Immigration Act of 1990
Federal law updating the United States immigration policies with a significant
change in the number of work visas allowed per year.
Immigration and Customs Enforcement (ICE)
Agency that comprises the interior enforcement side of the former INS. It is
part of the new Department of Homeland Security. For example, deportation
officers are now part of this bureau.
Immigration and Nationality Act of 1952 (INA)
The starting point of current immigration law; all immigration laws passed since
then are amendments to the INA.
Immigration and Naturalization Service (INS)
The previous name of the department whose duties are now split into several
parts in order to separate the benefits functions (USCIS) from the enforcement
(BICE), among others; all of which are now part of the new Department of
Homeland Security.
immigration court (EOIR)
See Executive Office for Immigration Review.
Immigration Judge (IJ)
An administrative law judge who is an employee of the Department of Justice.
Immigration Reform and Control Act of 1986 (IRCA)
An amendment to the Immigration and Nationality Act. IRCA prohibits employers
from hiring aliens who are ineligible to work in the U.S. IRCA also prohibits
discrimination against noncitizens.
immunity
Rule that says that governments cannot be sued unless they pass a law that
allows the particular type of lawsuit.
impaired risk life insurance
Life insurance for people with a higher risk of death
implied authorization
Authority of an agent implied by his or her position, even if there is no actual
authority. If a building manager, for example, collects rent against the wishes
of the owner, but the owner has not informed the tenant that the manager has no
authority to do this, the tenant is not responsible for any loss suffered by the
owner if the manager keeps the money.
implied provisions
Certain provisions will be implied to the lease, even though they are not
specifically written. Examples include the warranty of habitability, which
requires a landlord to provide a minimum level of habitability for the tenant.
implied warranty
A guarantee that the law makes a seller provide even though not in writing.
impound
That portion of the monthly mortgage payment that is held in escrow by the
lender to pay for taxes and insurance.
impound account
See escrow account.
improved land
Land that already has utilities, streets, sewers, or other improvements.
imputed income
Term used to describe the value of goods or services received that is added to
an employee’s income for tax purposes. Seen in situations where one partner
receives benefits from the other partner’s employer (insurance or other fringe
benefits). The IRS requires the value of the benefits received be added to the
employee’s gross income.
in vitro fertilization (IVF)
When an egg is fertilized with sperm in a laboratory.
in vitro maturation
A process that allows eggs to mature in a lab instead of inside a woman.
inadequate damages
Jury award that does not fairly compensate the plaintiff for the injuries and
losses proved. The court's remedy may be to award a new trial.
inadmissible
Any one of a number of grounds, such as criminal acts or medical conditions,
that cause an alien not to be admitted to the U.S.
incapacitated/incompetent
One who is unable to manage his or her own affairs either temporarily or
permanently.
incentive zoning
Agreement between public officials and private developers whereby developers are
offered an incentive to build a desired public improvement.
incidental use
Use of a copyrighted work in the background of another work in which it is
unimportant to the context.
income
All financial gains from investments, work or business.
income beneficiary
Beneficiary of a trust who receives only the income generated by the trust
assets.
income limits
Income restrictions established for people to qualify for the low- to
moderate-income subsidized housing programs.
income property
Property such as an apartment building, a condominium, or a house that is rented
for money.
income shifting
Transferring income from one person to another in a lower income tax bracket.
income tax
Charge levied by the federal government against taxable income or an individual
or corporation.
income withholding
The process by which an employer automatically deducts child support from income
or wages. Income withholding is often incorporated into the child support
agreement or order and may be voluntary or mandatory.
income-based budgeting
Money spent each year on expenses that does not exceed annual income.
income-based payments
Student loan payments that are determined by income, going up or down as your
income does.
income-to-debt ratios
The comparison of a prospective borrower’s income to debt expressed as a
percentage. The top ratio is the comparison of the income to PITI monthly
mortgage costs. The bottom ratio is the comparison of income to total monthly
debt payments.
income/expense ratio
Qualifying ratio used in underwriting a residential mortgage loan that computes
the percentage of monthly income required to meet the monthly housing expense.
incompetent, incompetence, or incompetency
A person is incompetent if he or she has been judicially determined to lack the
capacity to manage at least some of his or her property or to meet at least some
of the essential health and safety requirements of such person. This can be a
little confusing, because some state laws use the word incapacity. In this book,
however, the word incapacity is used when there has not been a legal
determination, and the word incompetency is used when there has been such a
determination.
incomplete application
An application lacking some of the essential parts and not accepted for filing
by the PTO.
incorporation-by-reference
Instead of reciting all the information contained in a reference that you want
to include in your specification, you are allowed to incorporate various types
of references into your specification. The material which you
incorporate-by-reference becomes as much a part of your specification as if you
had written the material directly into your specification.
incurable breach
A violation of a contract that is so severe the landlord simply wants the tenant
out of the residence.
indemnification
Condition, usually contractual, of being protected against possible damage, loss
or suit.
indemnity plan
A type of health insurance plan in which the plan participant chooses his or her
own health care provider, and the insurer pays the provider directly or
reimburses the participant according to a formula or schedule specified in the
plan.
independent adoption
An adoption in which the adoptive parent locates the child or birth mother
instead of having an agency do so.
independent contractor
A person who works from him- or herself, rather than as an employee.
independent living community
A community that typically is limited to those above a certain age (for example,
the resident or spouse must be over the age of 55), with residents maintaining
their own homes or apartments. The community provides no health care, but in
some cases there is an activities staff to facilitate social interaction among
the members of the community.
independent medical examination
Term used by the insurance industry for medical examinations conducted by
doctors paid by the insurance company to examine the plaintiff. IME's are
performed strictly for litigation purposes. They are anything but "independent".
index
A rate used to compute the index on adjustable-rate mortgages.
Index to Legal Periodicals
A guide to law reviews and legal periodicals.
Indian Child Welfare Act
A federal law specifying that a Native American child must be placed with
relatives, within the tribe, or with other Native Americans before other options
are considered.
indie
Record label other than a major label, shorthand for independent label.
individual hearing
Type of hearing before the immigration court where the alien actually puts on
his or her case over a one to three hour time period.
induced cycle
Ovulation that is induced by medication.
industry code
A number assigned to each type of business.
inevitable disclosure
A legal doctrine, adopted in a few states, permitting a court to enjoin a former
employee from working for a competitor when the former employee has confidential
information, and when the old and new jobs are so similar that disclosure of the
confidential information is inevitable.
inflation
Increase in the general price level of goods and services.
information disclosure statement (IDS)
You fulfill your duty to let the PTO know about anything material to the
patentability of your invention by completing an IDS. If you neglect to fulfill
this duty, your any patent which you later obtain may be held unenforceable.
informational sheet
Piece of paper real estate agents possess containing the details of a home.
informed consent
Agreeing to treatment after being apprise of all the risks and benefits.
Informed consent is required before any medical procedure can be done.
infrastructure
Basic public improvements such as roads, sewers, water, drainage, and other
utilities that are necessary to prepare raw land for buildings and future
development.
infringement
Violation of the rights of another.
ingress
Legal term for to go in.
ingress and egress
The right to enter and exit a piece of property by legal means.
inheritance tax
Tax imposed on property received by beneficiaries from the estate of a decedent.
injunction
A remedy to prevent a person from doing something, rather than collecting
damages for the harm caused. If you want the factory next to your building to
stop emitting noxious fumes, you could sue for an injunction to make it stop.
injunctive relief
Court order which grants a petition for the mandate for or prohibition against
conduct or acts of a person or entity.
insemination
A process of inserting sperm into a woman’s body or into eggs in a laboratory to
achieve conception.
inside buildup
The accumulation of tax-exempt income within a deferred compensation plan.
insider trading
Buying or selling publicly-traded securities using information that is generally
not available to the public. Insider trading is illegal under federal and state
laws.
insolvent
Being without enough assets of income to pay debts.
inspection
(1) The act of having a professional inspector look at a property and complete a
report on the positives and negatives of that property. (2) To be inspected by
an immigration officer at an airport, or border, or on a ship. The officer will
check to see that all documents are in order. The officer may admit, send the
alien back, or refer the alien to deferred admission.
inspector
Person hired to complete a thorough examination of the house on behalf of the
buyer; credentials certified by major home inspection associations.
installment loan
Loan that is repaid in equal payments over a particular time period, such as a
mortgage or car loan.
instant sale contract
See sale-buyback.
institution
Any type of business entity (e.g., corporation, partnership, limited liability
company), organization, or other entity other than an individual person.
instrument
A legal term for a document.
insurable interest
Stake that a borrower, lender, or owner must have in real property in order to
be able to get insurance against loss of that stake.
insurable title
Title to a property for which a title insurance company has agreed to issue a
policy.
insurance
Protective measure that shifts risk of financial loss due to certain perils to
an insurance company in return for payment of premiums.
insurance adjuster
The insurance employee who handles some or all aspects of the investigation,
negotiations and settlement of the claim.
insurance agent
Representative of an insurance company, licensed by the state, who negotiates
and effects insurance contracts and services policyholders.
insurance binder
A document written by an insurance company that states that temporary insurance
is in effect. (This is required at a closing to prove that the buyer has
contacted the insurance company and they will provide insurance coverage.)
insurance board
Supervisors of the insurance business conducted in a state.
insurance broker
One who shops around with many insurers as the agent of the insured.
insurance claim
Sum of money demanded for a loss in accordance with the terms of an insurance
policy.
insurance premium
The amount of money you pay to buy the insurance policy and coverage.
insurance trust
Trust that owns and manages a life insurance policy and designates its
beneficiaries.
insured
One covered by insurance; a policyholder.
insured closing letter
Document issued by a title insurance company that protects a mortgagee against
embezzlement or failure to follow specific closing instructions.
insurer
One who provides insurance; an insurance company.
insuring agreement
The insuring agreement, or coverage grant, of a policy or coverage, states the
basic scope of coverage. Exclusions then limit or subtract from the general
statement of coverage of the insuring agreement. Insuring agreements are
generally broadly construed, and the insured bears the burden of proof that his
or her claim comes within the basic scope of coverage of the insuring agreement.
If a claim does not come within the insuring agreement, there is no need to
consider exclusions.
intangible personal property tax
An annual tax on a person’s stock, bonds and other items of intangible personal
property.
intangible property
Property that has no intrinsic or marketable value in and of itself, but is
merely the evidence of value, such as promissory notes, stock certificates, or
certificates of deposits (as distinguished from land, furniture, and equipment).
intellectual property
Legal rights to the products of the mind, such as writings, musical
compositions, formulas, and designs.
intentional acts
Those acts that are deliberately done. Intentional wrongdoing is generally
considered more serious than carelessness (negligence) or acts for which one is
strictly liable.
intentional injury
Harm inflicted as the result of intentional conduct, as opposed to negligent
conduct. An example are the injuries suffered in an assault and battery.
inter vivos
During one’s lifetime.
inter vivos trust
See living trust.
inter-lineations
When one or more words are inserted between the lines or on the margin of a
document such as a will.
inter-vivos trust
A trust created during lifetime (instead of created at someone’s death via their
will). Generally the trust is for the benefit of the person who creates the
trust, but it becomes irrevocable upon the death of the person who creates the
trust. The term means the same as living trust.
interest
(1) A percentage of the balance that is charged by the creditor as a fee for
borrowing the money or a percentage you earn on money you have saved. (2) A
right in property. It may be the right of an owner, the right to occupy as a
tenant, or some lesser right as to travel across the property (easement right).
interest only mortgage loan
A loan requiring the borrower to make monthly payments covering only the
interest on the loan and requiring a lump-sum principal payment called a
balloon. Principal reduction is on a voluntary basis until the term ends.
interest rate
Percentage paid for the use of money, usually expressed as an annual percentage.
interest rate cap
Limit on interest rate increases and/or decreases during each interest rate
adjustment (adjustment period cap) or over the term (life cap) of the mortgage.
interest-bearing account
An account earning money simply for being in the account. Some money held by a
landlord, such as security deposits, may be placed in such accounts.
interested person(s)
An individual who may have a claim against the decedent’s estate, or an interest
in the outcome or distribution.
interim financing
Financing used from the beginning of a project to the closing of a permanent
loan; usually found in a construction or development loan.
internal legal issues
Legal conflicts which arise between owners or owner and the Community
Association.
Internal Revenue Code (IRC)
The set of laws passed by Congress regarding tax related matters.
Internal Revenue Service (IRS)
Branch of the U.S. Treasury Department responsible for administering the
Internal Revenue Code and providing taxpayer education.
international adoption
An adoption of a child born in another country.
Internet
Connection of computers allowing for an exchange of information. Also known as
the Information Superhighway.
Internet service provider
An internet host. A host is necessary to gain access to the internet. Often
charges a fee for access. Also know as an ISP.
interrogatories
One type of formal discovery in which questions are sent in writing to the
opposing party and must be answered under oath.
interview
An appearance before your examiner for purposes of advancing your application
towards allowance.
intestate
Dying without leaving a will.
intestate share
The amount of property an heir receives from the estate of a person who died
without a will.
intestate succession
The distribution of a decedent’s property to the decedent’s heirs when there is
either no will, or the will fails to dispose of the property.
intracytoplasmic sperm injection (ICSI)
An injection into an egg of a single sperm, also called microinsemination.
intrauterine insemination (IUI)
A superovualtion is induced and a large number of sperm is inserted into the
uterus.
inventor
The person who has made any contribution to the conception of your claimed
invention.
inventory
(1) The portion of a financial statement that reflects the value of a business’
raw materials, works-in-progress, and finished products. (2) List of estate
assets and liabilities.
investigations section
Staffed by ICE officers who are allowed to carry weapons, have arrest authority,
and do investigations on fraudulent marriages, fraudulent businesses, alien
smugglers, fraudulent documents and aliens involved in criminal and gang
activities.
investment
Outlay of money to realize income or profit in the future.
investment summary
An attachment to the periodical financial summaries of operations that indicates
the amount of investments held, the institution where invested, the rate of
interest and the maturity date where applicable.
invitee
A person who has an express or implied right to be on the premises, such as a
business associate or a restaurant patron. The owner of the premises has a duty
to inspect the premises, and warn the invitee if there are any dangerous
conditions.
involuntary servitude
Slavery or other forms of compulsory work, prohibited by the Thirteenth
Amendment to the Constitution and federal law.
IRC 529 college plan
State-run college education programs permitted by the Internal Revenue Code
wherein accounts can be funded by persons for the higher educational benefit of
others they select. These programs have substantial federal income tax
advantages when the account assets are used for higher educational expenses.
irretrievably broken
A legal way of saying that a marriage is broken and can’t be repaired.
irrevocable trust
Trust that cannot be changed or canceled after it is created.
irrigation district
Product of special state laws to provide for water services to property owners.
These districts have the power to tax, borrow, and condemn.
ISP
See internet service provider.
issue
Legal term to describe the lineal descendants of a person. Your issue would be
your children, your grandchildren, your great-grandchildren, etc.
issue fee
A fee which you must pay after your application is allowed in order for you to
be issued a patent. This fee is due three months from the date of your notice of
allowance.
issuer
An entity, usually a corporation, that has the ability to issue and distribute
securities.
joinder
Legal process by which two separate lawsuits are joined together into one
litigation.
joint account
An account that is equally owned by two people.
joint and several liability
A legal principle, which holds that tenants may be both individually and
collectively liable for any amounts owed to the landlord.
joint annuitant
A equal co-owner of an annuity.
joint custody
This may include legal or physical custody situations where the parties share
the responsibility for their child(ren) pursuant to court order or judgment.
joint legal custody
Where custody of a child is held equally by both parents regardless of where the
child actually physically resides. This gives the parent with whom the child
does not primarily resides full decision making authority over matters
concerning the child.
joint physical custody
This is one of two types of custody. A parent who has physical custody lives
most of the time with the child and makes daily care decisions during that time.
See also joint legal custody.
joint property
Property owned by a husband and wife together.
joint tenancy
A type of property ownership by two or more persons. If one owner dies, his
interest in the property goes to the surviving owner or owners. Some states may
require the ownership document to include the phrase “as joint tenants with
rights of survivorship.”
joint tenancy with right of survivorship
Form of ownership in which property is equally shared by all owners and is
automatically transferred to the surviving owners when one of them dies.
joint tenants
A method of property ownership. If a joint tenant sells their share to someone
else, it destroys the joint tenancy and turns it into a tenancy in common. If a
joint tenant dies, his share is split equally among the surviving joint tenants.
joint work
Copyrightable work made by two or more persons.
jointly-owned property
Property held in the name of more than one person in equal portions.
judgment
A formal decision of a court. This may also be called a decree.
judgment debtor
A person who owes money, the amount of which has been decided by the court in
the form of a judgment.
judgment proof
Someone who has little or no assets so that a judgment against them has little
effect since there is nothing that can be taken.
judicial foreclosure
Foreclosure proceeding used in some states that is handled as a civil lawsuit.
jumbo loan
A mortgage loan above the limits of Fannie Mae and Freddie Mac. It is a
nonconforming loan.
junior lien
A lien that is subordinate to another lien. A junior lien will be paid only
after any liens above it are satisfied.
junior mortgage
A mortgage in a secondary or lesser position than a first mortgage.
jurisdiction
Legal authority of a court to preside over a case.
just cause
A legal and lawful reason to bring a legal action.
key number
A method of linking cases on the same point and so you can search legal issues
by concepts (only West Publishing has key numbers).
kickback
Improper payment in cash, goods or services to one who holds an official
position in order to influence that person improperly.
kinship adoption
An adoption of a child that is a relative.
kinship agreement
An agreement outlining contact that birth parents and other relatives will have
with a child that has been adopted.
labor certification
An approved labor certification is a requirement for some employment-based
adjustment applications. It is an actual recruitment of U.S. workers, under the
supervision of the Department of Labor and a state employment security agency in
order to establish that there is no U.S. worker who is ready, willing, and able
to take the position offered to an alien.
labor condition application (LCA)
The first stage of a nonimmigrant H-1B petition; an LCA has nothing to do with a
labor certification application.
Lambda Legal
An organization committed to achieving full recognition of the civil rights of
GLBT members and people with HIV or AIDS through impact litigation, education,
and public policy work.
land development loan
Loan for the acquisition of land to be held in anticipation of zoning, until
plans are drawn and construction financing can be obtained.
land-use zones
Where local government ordinances dictate permitted land use.
landlord
The party that rents a dwelling to a tenant.
landlord/tenant law
That portion of Real Property Law dealing with the legal relationship between an
owner of property (landlord) and one who rents the property (tenant).
landscape
Used as an activity, to plant foliage and ground cover around a house. As a
description on real estate, describes the ground cover, trees, shrubs, and other
foliage that is planted around a home.
last chance contract
An agreement between an employer and an employee that gives the employee a final
opportunity to conform to company requirements or else be fired.
late amnesty
Those illegal aliens that missed the 1988 deadline for amnesty applications and
became part of several class-actions lawsuits against the USCIS such as LULAC or
CSS. (Most late amnesty class members had a deadline of June 2002 to file for
adjustment of status.)
late charge
Financial penalty for making a debt payment past the due date.
law reviews
Journals published by law schools.
lawful permanent resident (LPR)
The most correct term for someone who has adjusted status through an immigrant
visa.
lease
A contract between a landlord and a tenant setting forth the rights and duties
agreed to by each. It differs from a rental agreement in that it has a definite
termination date.
lease-purchase mortgage loans
See rent with an option to buy.
lease/option
An agreement to rent a piece of property to someone who also obtains the right
to buy the property during or after the term of the lease.
legacy
A gift of personal property in a will.
legal custody
Custody which grants a parent the right to make ultimate decisions regarding
matters concerning his or her child.
legal description
Description of the property that is recorded in public records. (A professional
surveyor usually does this.)
legal form
This is the structure of the business in the eyes of the law. It could be a
corporation, partnership, or sole proprietorship.
legal oversight
Responsibility of the Board to engage outside legal counsel to advise it on
legal matters.
legal parent
A parent who is considered to be a child’s parent in the eyes of the law.
legal periodicals
Law-related journals and newsletters that are not classified as law reviews.
legal person
An entity recognized by the state as a person apart from its members.
legal relief
Legal relief typically involves the award of some money damages in the form of a
money judgment against the defendant.
legal risk placement
A placement of a foster care child who may need to be reunited with his or her
parents.
legal title
The name in which real estate ownership is registered.
legal will
See will.
legalization
The former process whereby aliens through the 1986 amnesty were first granted
temporary residency then permanent residence.
LegalTrac
A CD-ROM method for locating law reviews and legal periodicals.
legatee
A person who is left personal property in another person’s will.
lender
Bank or financial institution that lends money to buyers.
lender paid mortgage insurance
Mortgage insurance program that allows the lender to collect a higher interest
rate from the borrower and forward the excess interest to the mortgage insurance
company to pay for the mortgage insurance.
lessee
One who rents property from another.
lessor
One who rents property to another.
letter of credit
Letter authorizing a person or company to draw on a bank or stating that the
bank will honor their credit up to the stated amount.
letter of intent
Letter stating that a buyer or developer is interested in a property.
letters of administration
Document signed by the court giving an individual authorization to act on behalf
of the estate.
levy
A collection, seizure, or assessment.
LexisNexis™
An on-line legal database.
liability
Broad legal term that is commonly used to mean a legal responsibility.
liability insurance
Coverage for damages arising out of insured's legal responsibility and resulting
from injuries to other persons or damage to their property.
libel
A defamatory statement expressed in a fixed medium, such as a writing, art, or
the internet.
license
(1) A state or federal approval given to a business or person who has fulfilled
certain criteria such as education or testing. (2) Right to use a creative work
of another person.
licensed practical nurse (LPN)
A nurse who has some medical training.
licensee
One who has an express right to be on the premises, but is not there for the
owner's benefit, such as a social guest. An owner has a duty to warn the
licensee about dangerous conditions, if they are known to the owner.
licensing board
A government entity which grants permission to perform certain functions
lien
A legal claim against the property that must be cleared before the owner can
sell the property.
LIFE Act
The most recent major legislation affecting immigration enacted in December
2000. Allows those who are out of status, entered EWI, or worked in the U.S.
without USCIS authorization to adjust status through a family member or a labor
certification filed before April 30, 2001.
life estate
Ownership of a property for the term of one’s life.
life-prolonging procedure
Any medical procedure, treatment, or intervention, including artificially
provided sustenance and hydration, that sustains, restores, or supplants a
spontaneous vital function. The term does not include the administration of
medication or performance of medical procedure, when such medication or
procedure is deemed necessary to provide comfort care or to alleviate pain.
like-kind property
Property that is similar in nature to property being sold by the seller.
Generally used to refer to property involved in Internal Revenue Code §1031
like-kind exchanges.
limitation on suit clause
A property policy condition that requires a suit on a policy to be brought
within a certain time, usually one or two years from the date of loss. These
clauses are in effect contractual statutes of limitation, and are enforced.
Under many states’ laws, the time between the insured’s notice of the claim to
the insurer and the time of the insurer’s claim decision does not count toward
the expiration of the suit limitation period.
limited common areas
Property that physically is part of a Community Association's common areas but
is reserved for the exclusive use of a particular unit owner or group or unit
owners.
limited liability
Fixing the amount a person can be forced to pay for a legal event at a limited
sum.
limited liability company (LLC)
An artificial legal person set up to conduct a business owned and run by
members.
limited liability partnership
An artificial legal person set up to conduct a business owned and run by
members, which is set up for professionals such as attorneys or doctors.
limited partner
A partner in a limited partnership who is in the position of an investor, and
has no authority to engage in operating the business.
limited partnership
A business that is owned by two or more persons of which one or more is liable
for the debts of the business and one or more has no liability for the debts.
limited power of attorney
A power of attorney that limits the agent’s authority to certain specific areas
or actions.
line item budget
Format listing of expenses by type.
line of credit
The amount a person or corporation can purchase without putting up cash. Similar
to a credit limit on a credit card.
lineal ascendant
Relationship in the direct ascending line, as in a parent.
lineal consanguinity
The relationship between persons in direct line from each other, such as father
to son, grandson, great-grandson.
lineal descendant
Relationship in the direct descending line, as in a son or grandson.
liquid assets
Those things that can quickly be converted to cash. (Stocks and bonds are types
of examples.)
liquidated damages
In contract law, an amount specified by the parties in advance that a party
would be entitled to receive if the other party breaches the contract. While a
liquidated damage provision eliminates the need to prove a party’s actual
damages, the amount of damages specified must be reasonable and cannot be so
high as to amount to a penalty that the courts will not enforce.
lis pendens
A notice placed in the real estate records that someone has a claim against
property, even though that claim might not rise to the status of a lien. Heirs
fighting over property might file lis pendens notices against each other.
Spouses in the process of a divorce not yet finalized might file a lis pendens
in order to put potential purchasers or lienholders that someone else might own
the property before too long, and all buyers should beware!
listing
Commonly used term for the sheet of information on real property that each real
estate agent has access to.
listing agent
The real estate agent who signs the contract with the seller to list the
property for sale.
litigation
A lawsuit in which parties present evidence and resolve issues.
living benefits
Life insurance that pays a benefit while you are alive.
living trust
A trust created during lifetime (instead of created at someone’s death via their
will). Generally the trust is for the benefit of the person who creates the
trust, but it becomes irrevocable upon the death of the person who creates the
trust. The term means the same as inter-vivos trust.
living wage
A wage rate higher than the federal minimum wage that some local jurisdictions
require government contractors to pay their employees.
living will
A document stating a person’s desires regarding the use of life-prolonging
procedures in the event the person is in certain medical conditions, such as a
terminal condition, an end-stage condition, or a permanent vegetative state; and
is either unable to make his or her own decisions, or is unable to communicate
his or her wishes.
loan
The amount of money one person or entity lets another borrow.
loan administration
Function that includes the receipt of payments, customer service, escrow
administration, investor accounting, collections, and foreclosures.
loan commitment
See commitment.
loan forbearance
See loan modification.
loan modification
Extends the loan for more time while reducing the amount of payment.
loan origination
Procedures that a lender follows to produce a mortgage on real property.
loan origination fee
Fee charged a borrower by a lender for negotiating a loan.
loan submission
Package of pertinent papers and documents regarding a specific property or
properties, delivered to a prospective lender to obtain financing.
loan transfer
Assumption of existing financing by a new owner when a property is sold.
loan-to-value ratio
The ratio, expressed as a percentage, of the loan amount to the value of the
mortgaged property.
local housing authority
Government agency that monitors and implements programs to satisfy community
housing development needs.
location
Where the home sits, in terms of neighbors, neighboring structures, city,
county, and state.
lock-in
A written contract from the lender that guarantees a particular interest rate on
a particular property for a set period of time.
lock-in fee
Another fee charged by some lenders at the time the borrower is given a lock-in
mortgage rate.
lock-in period
Number of days during which a lender guarantees a borrower a specific interest
rate and terms on a mortgage.
lockbox
Postal address maintained by a mortgagor used solely for the purpose of
collecting mortgage checks. (In some areas a lockbox is actually a metal box
which locks onto the front door of a home for sale. The real estate agents have
keys to the lockboxes. Inside the lockbox is the actual key to the home.)
locked-in rate
The interest rate on a mortgage loan that the lender has agreed to use if the
loan closes within a specified time.
long-term care facility
A lifestyle option for seniors who require skilled medical care or are otherwise
unable to care for themselves. Nursing care and many basic activities of daily
living are provided by the facility staff.
long-term care insurance
An insurance policy providing coverage of costs for various long-term care
options for seniors or disabled persons. Policies and their coverage vary
widely.
long-term financing
Mortgage or loan with a term of ten years or more.
look back period
A three- to five-year period of time prior to applying for Medicaid, during
which certain transfers of the applicant’s property for less than fair market
value will trigger a period of Medicaid ineligibility for the applicant.
loss
Amount of an insured's claim; amount of decrease in value of the insured's
property.
loss of consortium
Loss of the affection, sexual relations, aid , services and companionship that
one spouse is entitled to from the other spouse.
loss of future earning capacity
Loss of the ability to earn future wages as the result of an accident.
loss payee
A person, such as a mortgagee or seller of an item of personal property under an
installment contract, who is added to coverage as to the building or item of
property as an additional insured to the extent of their interest in the
property and/or unpaid loan balance.
lost wages
The money that an injured party is awarded for the time he or she lost from
employment due to the injury.
lot
Measured parcel of land having fixed boundaries as shown on the recorded plat.
lottery
See diversity visa.
love contract
A contract required by some employers that sets out certain ground rules for an
office romance, especially one between a supervisor and a lower-level employee.
By having the parties acknowledge that the relationship is consensual and can be
terminated by either party at any time, the employer hopes to avoid later claims
of discrimination based on sexual harassment.
maintenance
(1) Upkeep of property or an item in its proper and functional condition. (2)
The term used in some states for alimony.
maintenance fee
A charge for work done.
maintenance program
Schedule of all repair, inspection, cleaning, lubrication and other tasks
necessary to keep something in proper working order.
managed care plan
A type of health insurance plan in which the participant is limited in his or
her choice of health insurance providers but pays either nothing or only a small
amount for services.
management agreement
The document that controls the operation of a limited liability company that is
managed by managers.
management company
A business that takes care of property for the owner. It may be responsible for
collecting rents, maintenance, leasing to and evicting tenants, or all of these.
management letter
Letter from an accountant or auditor with questions and suggestions regarding
the financial aspects of managing the association.
management plan
Program for operating the community.
manager
(1) A person who controls the operations of a limited liability company. (2)
Person who advises a musical act in matters related to their career. Also called
a personal manager. (3) Individual hired to day-to-day operation of a property.
manager-managed LLC
A limited liability company that is controlled by one or more managers who are
not all of the members of the company.
managers only manual
A manual of policies and procedures distributed only to management-level
employees.
managing general agent
See general agent.
mandamus
A petition filed in federal court to have a federal judge order the USCIS to
take a certain action.
mandatory deposit
The requirement that copies of a copyrighted work be sent to the copyright
office within three months of publication.
manufactured home
Trailer home.
margin
The portion of the interest rate over the index rate. It is the profit to the
lender.
marital assets
Assets that are considered the property of both parties to a marriage.
marital property
Property considered by some state laws as owned by husband and wife together.
marital trust
A trust created at death for the benefit of the decedent’s spouse that takes
advantage of federal estate tax exemptions, but is not able to be changed by the
surviving spouse.
market survey
A research tool in which a business asks potential buyers what they want.
market value
Approximate price that a property can get when sold. (It is calculated by
looking at comparables and factoring in the potential growth of the area.)
marketing
The strategy behind the advertising, promotion, and sale of a service or
product.
marketing plan
The blue print or road map of a business’s advertising, promotion, and sales
activities.
marks
The legal term used to describe any device a business uses to distinguish its
products or services from those of others. A mark can be any word, name, brand,
symbol, or logo.
mass layoff
A layoff of at least fifty employees at a single site that amounts to at least
33% of the workforce at that site.
master
Two meanings. 1. The post-production work on a recording. 2. The final version
of the recording itself.
master calendar hearing (MCH)
As opposed to the individual hearing, usually a brief housekeeping hearing
before an immigration judge (IJ) at which the alien pleads to the Notice to
Appear and states the relief for which he or she is applying.
master deed
Recorded instrument which describes the property involved in a Community
Association and may contain specific references to properties in the Community
Association subject to the master deed.
master use license
The right to use a particular recording made by someone else.
master-servant relationship
An outdated reference to an employer-employee relationship.
material breach
A breach of the lease by either landlord or tenant that has a sufficient
influence or effect on the other party.
material irreparable breach
A breach of the lease that is not only material, but also cannot be corrected.
(Examples include assault and drug possession.)
Material Safety Data Sheet (MSDS)
An Occupational Safety and Health Administration form used to communicate
information about hazardous chemicals.
Matthew Shepard
A 21-year old college student who was murdered in an anti-gay hate crime in
Laramie, Wyoming, sparking a wave of anti-hate crime protesting.
means-plus-function claim
A style of claim format which uses the word “means” followed by a specified
function. Look to the specification to determine what types of “means” carries
out the specified function.
mechanic’s lien
Lien placed against property by an “unpaid” private contractor.
mechanical license
The right to record a song written by another person.
mechanical maintenance
Repair, inspection, lubrication and cleaning of machines and tools to keep them
in proper working condition.
mechanical royalty
The payment to the songwriter for each sale of a recording made pursuant to a
mechanical license.
mechanics and materialmen’s lien (M&M liens)
This is a lien that suppliers and workers can place on property for the value of
their goods and services.
mediation
A form of dispute resolution in which a person called a mediator attempts to
help the parties reach a mutually agreeable settlement of the dispute. Mediation
is different from arbitration in that the mediator does not make a decision, as
does an arbitrator.
Medicaid
Governmental program that provides payment for medical service to persons who
cannot otherwise afford health care.
Medicaid annuity
A method by which you sell your home and invest the proceeds in an annuity that
does not affect your Medicaid eligibility.
medical examination
An exam done by a USCIS or State Department approved physician and on a special
form required prior to adjustment of status or to obtaining immigrant visa at an
embassy or consulate.
Medical Information Bureau (MIB)
A database checked by life insurance underwriters to obtain health information
about people applying for life insurance.
Medicare
Federally funded health insurance provided to persons aged 65 and older, certain
younger disabled persons, and certain persons with permanent kidney failure.
Medigap
Private health insurance that covers things Medicare does not.
meeting
Association members gathered to discuss issues and make decisions on them
through motions.
Megan's Law
The term used to describe statutes requiring local law enforcement agencies to
notify a community of any resident convicted of a sexually related crime. Named
after Megan Kanka, who at age seven, was raped and murdered by a twice-convicted
sex offender.
member
Person owning an interest in a limited liability company.
member-managed LLC
A limited liability company that is controlled by all of its members.
memorandum
A document similar to a prospectus, sometimes also referred to as an offering
circular, that is the official document by which private placements are offered
and sold.
mens rea
A concept in criminal law that involves criminal intent on the part of the
defendant.
merger
When two separate legal interests combine into one.
military indulgence
Protection enacted and provided by the Soldier’s and Sailor’s Civil Relief Act
to a mortgagor who is about to enter or is in the military and whose ability to
keep a loan current has been materially affected by military service
milking
See equity skimming.
minimum lot zoning
Type of zoning that specifies the smallest lot size permitted per building.
minimum payment
The least amount you can pay to keep an account current.
minimum wage
The minimum hourly amount that employers must pay employees pursuant to the Fair
Labor Standards Act (or the parallel provisions of state law).
ministerial exception
An exception to laws prohibiting discrimination on the basis of religion. Under
the ministerial exception, religious organizations may discriminate in the
selection of their clergy.
minor
In most states, someone under the age of 18 years.
minority interest owners
The owners of an interest in an LLC who own less than a majority interest.
minutes
Official record of proceedings of a meeting.
Miranda rights
Rights that apply in a criminal investigation to a potential suspect to be
advised of his or her right to remain silent and right to counsel.
misdemeanor
The less serious classification of crimes carrying lower sentences.
mission
The purpose of a business.
mitrochondrial genes
Specific genes that do not determine physical traits, but can carry inherited
diseases.
mixing
The process of adjusting the sound levels of the various tracks of a recording
to create a desired sound for a song.
mobile home
Factory-assembled residence consisting of one or more modules, in which a
chassis and wheels are an integral part of the structure, and can be readied for
occupancy without removing the chassis or wheels.
modem
The equipment that creates the telephone link between computers.
modification
An increase or decrease in the amount of current child support due.
modification
(1) A change made to an existing contract. (2) An increase or decrease in the
amount of current child support due. (3) When the term is used as a method to
avoid foreclosure, it means that the lender agrees to change the terms of the
loan so that the borrower can make the payments. The change could be lowering
the interest rate, forgiving delinquent interest, or any other change to help
the borrower cure the default.
modified tenure
A reverse mortgage program allowing the borrower to take a portion of the loan
amount as a lump sum and the balance in lifetime payments.
modified term
A reverse mortgage program that allows the borrower to take a portion of the
loan amount as a lump sum and the balance in payments over a specified term.
MOL (more or less)
Used in legal descriptions of property because exact areas are not easy to
ascertain.
monographs
Books that only cover a very small portion of a subject.
monthly payment
Payments of principal and interest collected by mortgage lenders every 30-31
days. This payment may also include escrow items for taxes or insurance and
thereby called the housing payment.
monthly periodic rate
The APR divided by twelve months.
moral rights
A recent theory that artists have some enduring rights in works they create and
sell.
moratorium
Legal authorization to suspend an activity.
mortgage
(1) A loan for purchase of property where the property is put up as collateral.
(2) A legal instrument that pledges a piece of real property to guarantee
payment of a loan. Some states use mortgages, others use deeds of trust.
mortgage banker
A mortgage company that makes portfolio mortgage loans or loans to be sold in
the secondary market, as opposed to simply brokering the loans.
mortgage broker
A person or company that facilitates obtaining a mortgage loan. The broker puts
together the loan package for submission to a lender and charges a fee for the
service. The cost to the borrower may be less than dealing directly with a
lender, since the broker can shop the package and has access to hundreds of
lenders.
mortgage calculator
Any of a number of programs designed to supply information on various aspects of
mortgage lending, such as amortization schedules, monthly payments at various
interest rates, or savings on prepayment.
mortgage commitment
Agreement between lender and borrower detailing the terms of a mortgage loan
such as interest rate, loan type, term, and amount.
mortgage insurance
An insurance contract that will pay the lender should the borrower default on
the mortgage loan.
mortgage insurance premium (MIP)
The required insurance payment for an FHA loan. The insurance is to protect the
lender from a loss if the borrower defaults.
mortgage life insurance
Insurance policy that will pay the rest of the mortgage due if the primary
borrower dies.
mortgage loan application
The supplying of financial information by a borrower to a lender to help the
lender decide whether to make a mortgage loan and which loan program it can
offer.
mortgage pass-through securities
See mortgage-backed securities.
mortgage-backed securities
Bonds issued by secondary lenders that are secured by mortgages. The sale of
these instruments replenishes the supply of money to the secondary mortgage
market.
mortgagee
The lender that receives a mortgage in exchange for making a loan.
mortgagor
The borrower that gives a mortgage to a lender to secure repayment of a loan.
motion
(1) A request to a court, often in writing, to obtain a ruling or order from the
court. (2) Formal proposal put before an assembly on which action must be taken.
motion for judgment
Motion filed by one party during the trial asking the court to rule in its favor
regarding some or all of the issues in the case.
motion in limine
Motion filed by one party to prevent the other party from using certain evidence
at the trial of the case.
motion to reopen
A common motion to make a previously denied or closed benefit pending again in
order to obtain that benefit. There may be restrictions on the number of
motions, when they may be filed and the basis for reopening.
move-in inspection
This is the opportunity for both landlord and tenant to document the condition
of the dwelling at the time that the tenant is moving in, and the opportunity
for the landlord to address any items that need repair at that time.
move-out inspection
This is the opportunity for both landlord and tenant to document the condition
of the dwelling at the time that the tenant moves out. This inspection should be
used in conjunction with the move-in inspection to determine appropriate tenant
responsibility for items that need repair or replacement after the tenant has
left.
Multiethnic Placement Act
A federal law that denies funding to adoption agencies that delay or deny
placement because of race.
multiple causation
See concurrent causation.
multiple listing services (MLS)
The listings used by brokers and real estate agents to list properties for sale.
multiple listing services (MLS)
Provides information to all real estate agents that are registered members,
about every house that other members are selling.
multiple-dependent claim
A claim which depends on more than one claim. As with a dependent claim, a
multiple-dependent claim must further restrict the claims on which it depends.
multitasking
Doing more than one thing at a time.
mutual funds
Relatively safe investment in a grouping of bonds and stocks.
NAIC (National Association of Insurance Commission
Organization whose membership consists of state insurance regulators. (NAIC’s
objectives are to promote uniformity in regulation by drafting model laws and
regulations for adoption by the states and to provide support services to
insurance departments such as examinations and statistical information.)
named insured
Person or entity in an insurance policy entitled to indemnification by having a
covered injury or liability.
named peril insurance
Policy under which only specified causes are considered to be covered.
named perils
Insurance term for a policy that will specifically list the perils insured
against as opposed to an “all risk” policy that covers all perils other than
those specifically excluded.
National Association of Home Builders (NAHB)
National trade association that provides support to the building industry
through lobbying and educational services.
National Association of Mortgage Brokers (NAMB)
Professional society for mortgage brokers that was developed to foster
professional business relationships.
National Association of Realtors® (NAR)
Trade association representing real estate sales professionals. (Realtors® is a
registered trade mark of the National Association, and is properly used only to
describe members of the Association, not all real estate brokers or agents.)
National Visa Center (NVC)
State Department office located in New Hampshire that stores approved visa
petitions until they become current.
nationality
For immigration purposes, generally the same as citizenship.
natural cycle
Ovulation that occurs without medication or medical intervention.
natural person
A human being as opposed to a legal person created by the law.
naturalization
Process whereby a green card holder becomes a U.S. citizen through filing a
N-400 application.
naturalization certificate
A document given as evidence as having become a citizen of the U.S. by
naturalization.
negative amortization
Unpaid interest that is added to the mortgage principal in a loan where the
principal balance increases rather than decreases because the mortgage payments
do not cover the full amount of interest due.
negative cash flow
Assuming you make all your bank deposits on time, and pay all your bills on
time, you have negative cash flow when there’s not enough money in the bank to
pay your bills.
negligence
The failure to exercise ordinary case in a particular circumstance.
negligence per se
Negligence from violating a statute (law). For example, if the law says that you
must have a fence around your pool and you do not, injury caused by not having
the fence would be negligence per se.
negligent employment
See direct liability.
negotiable instrument
A debt instrument that may be transferred (sold) using procedures set out by the
Uniform Commercial Code. The buyer incurs less liability than the originator of
the instrument. Mortgage notes are negotiable instruments.
negotiation
The process of resolving a dispute to a mutually acceptable solution.
nepotism
The practice of hiring relatives or favoring them in workplace decisions.
net income
The profit remaining after all expenses have been deducted from income.
net proceeds
Amount of cash that the seller gets after expenses are deducted from a home
sale.
net worth
Value of all the person’s assets minus all his or her debts.
networking
Your system for developing business contacts for advice, information, and
support.
new matter
When you file your patent application you have set the disclosure for your
invention. If you try to add any new material to your patent application later
on that new material will probably be considered new matter. You are not allowed
to add new matter to your application.
newsletter
Printed periodical report devoted to news of and for the association members and
others associated with the community.
nexus test
Method in which a court can consider a parent’s sexual orientation in a custody
case.
Nicaraguan Adjustment and Central American Relief
Law that allows certain individuals from eastern Europe, former Soviet block
countries, who entered the U.S. prior to 1991 and filed for asylum at that time
to apply for suspension of deportation
no code order
See do not resuscitate order.
no fault benefits
Chose benefits obtainable from one's own insurance company, usually for medical
bills and lost wages. This is sometimes also known as PIP benefits or first
party benefits.
no-fault divorce
Concept accepted by most states which allows a couple to divorce without the
need for stating a formal reason for the marital breakdown.
no-fault insurance
A form of auto insurance mandatory in twelve states, and optional in several
others. Under no-fault coverage generally, the insured looks to his or her own
insurer for bodily injury claims that fall below a certain threshold and cannot
sue a third party for damages. Persons living in no-fault jurisdictions should
consult with their department of insurance for state specific no-fault
information.
no-match letter
A letter issued by the Social Security Administration to an employer stating
that an employee’s name and Social Security Number as reported on a W-2 form do
not match the Administration’s records.
nonadmitted insurer
See admitted insurer.
nonassumption clause
Clause in a mortgage that prohibits the assumption of a mortgage by a third
party without approval of the lender.
noncompete agreement
An agreement that an employee will not compete with his former employer after
the employment terminates.
nonconforming loan
A loan that does not fall within the guidelines of Fannie Mae or Freddie Mac for
sale to the secondary market.
nonconforming use
Permitted use of real property that does not conform to current zoning laws.
noncustodial parent
The parent who does not have primary care, custody, or control of the child.
nonexempt assets
Assets that must be considered when applying for Medicaid.
nonexempt employee
An employee who is covered by minimum wage and overtime requirements of the Fair
Labor Standards Act (or the parallel provisions of state law).
nonimmigrant visa (NIV)
Any one of the several dozen visa types that permit one to stay in the U.S. for
a temporary period for a specific purpose.
nonjudicial foreclosure
Being able to foreclose on real estate without a court’s assistance. This is
allowed in some states.
nonmarital assets
Assets that are considered the separate property of only one party to a
marriage. Generally these are assets that were acquired before the marriage, or
acquired by one party as a separate gift or inheritance.
nonmarital property
Property designated by state law as being the separate property of one of the
parties. Nonmarital property is generally not subject to any claims by the
spouse.
nonowned auto
An auto, not owned by an insured and not specifically described and rated in the
insured’s auto policy, such as a rented or borrowed auto, used by an insured
person with the permission of its owner. Nonowned autos are usually defined as
vehicles not regularly available to or furnished to an insured person.
nonprofit corporation
A specific way of organizing a business for charitable or benevolent purposes.
nonrecourse mortgage
A mortgage loan under which the borrower is not personally liable if the
mortgaged property does not bring enough money at the foreclosure to cover what
is owed.
nonrefundable deposits
The part of the security deposit that will not be returned to the tenant at the
end of the lease. These nonrefundable deposits are usually earmarked for the
cleaning or redecorating of the dwelling.
nonrenewal
A refusal by an insurer to continue coverage under a policy at its expiration.
Most states restrict an insurer’s right to nonrenew personal lines policies.
nontaxable certificate
Certificate obtained from Florida Department of Revenue confirming that there
are no estate taxes due on the estate.
North American Industry Classification System (NAI
A system of six digit numbers used to classify industries.
notary public
A person who is legally authorized by the state to acknowledge signatures on
legal documents.
note
A debt instrument by which the borrower promises to repay money. A mortgage is
used to secure the promise.
notice
Notification of a claim or lawsuit.
notice of action
See I-797.
notice of allowability
This form means that your examiner has allowed all of your claims and that your
patent application is ready to be issued.
notice of appeal
If you disagree with the reasoning of your examiner, you have the option of
filing this form to the Board of Patent Appeals and Interferences.
notice of default
An instrument giving notice that a mortgage loan borrower is in default. The
document is recorded and becomes a matter of public record. The notice is
required to begin foreclosure proceedings.
notice of intent to deny
Issued either for an I-130 petition or asylum application (where applicant is in
valid nonimmigrant status) to give the applicant an opportunity to rebut and
submit additional evidence.
notice of nonpayment of rent
A written notice from the landlord to the tenant specifying any and all amounts
due, and providing the time allowed by state law to pay those amounts.
notice to appear (NTA)
Charging document that brings a person before the immigration court.
notice to quit
Informing a tenant to leave the property or face eviction. The notice could
simply demand that the tenant leave or be conditional, such as pay the rent owed
or leave.
nuclear transfer
A process in which the nucleus of an egg cell is removed and replaced with
another nucleus.
nucleus
Part of a cell that contains genetic material.
nursing home
A facility in which medical care is received on a long-term basis.
nutrition (artificial)
Providing a person with food through a feeding (gastrointestinal), or an
intravenous, tube.
oath
A notarized statement.
obituary
A death notice in a newspaper.
objective evidence of injury
An injury that is directly provable generally through radiological methods, such
as MRI, X - ray or EMG testing.
obligation
The amount of money to be paid as child support by a noncustodial parent.
obligee
The person or agency to whom child support is owed.
obligor
The person who is required to pay child support
obviousness
A patent term of art used to describe the combination of prior art references to
anticipate your invention even though no one of the prior art references alone
anticipates your invention.
occupational license
A government-issued permit to transact business.
Occupational Safety and Health Act (OSHA)
An act that requires employers to comply with a variety of safety and health
standards for the protection of their employees.
occurrence
A liability coverage concept applicable to bodily injury and property damage
coverage. Under most American liability policies, occurrence is defined as a
accident. The occurrence or accident refers to the liability producing act, not
the resulting injury or damage. Under the law of most states, if the liability
producing act was intentional, resulting injury or damage is not covered, even
if the particular injury or damage was not expected by the insured.
off-site improvements
Those improvements outside the boundaries of a property that enhance its value,
such as sidewalks, streets, curbs, and gutters.
offer
Legally presenting the seller(s) with a contract to purchase; acceptance is not
guaranteed.
offering circular
A disclosure and information document used to furnish information about a
company and its stock offering to prospective investors; commonly used for
exempt offerings and patterned after a prospectus.
office action
A written communication which you receive from the PTO concerning your patent
application.
Office of Child Support Enforcement (OCSE)
The federal agency responsible for the administration of the child support
program. Created by Title IV-D of the Social Security Act in 1975, OCSE is
responsible for the development of child support policies in the state child
support enforcement programs.
Office of Federal Contract Compliance Programs (OF
An office within the U.S. Department of Labor’s Employment Standards
Administration that administers government contractors’ compliance with
Executive Order 11246, the Rehabilitation Act, and the Vietnam Era Veterans’
Readjustment Assistance Act.
official records
The registry of deeds and other interests in real property in each county.
Older Workers Benefit Protection Act (OWBPA)
An amendment to the Age Discrimination in Employment Act. OWBPA imposes special
requirements for releases of ADEA claims in connection with exit incentive
programs offered to groups of employees.
ombudsman
An advocate on behalf of nursing home and assisted living facility residents who
is responsible for addressing residents’ disputes with facilities, and in some
cases, for investigating complaints of elder abuse.
ombudsman
A state representative who handles complaints and inquiries about nursing homes.
on all fours
A case that is identical to your case in every way.
on-site improvements
Improvements within the boundaries of a property that increase its value.
on-site manager
A person who lives on the property and is responsible for the day-to-day
activities, such as collection of rent, maintenance, and showing the property to
prospective tenants.
onestop
When the I-130 and I-485 forms are filed at the same time normally with the
local USCIS office if one is the beneficiary of an immediate visa petition.
online
The link between computers over telephone lines.
online database
A source of information accessed through a telephone connection.
oocyte
An egg cell.
open adoption
An adoption in which the child is aware that he or she was adopted and one in
which he or she may or may not have contact with the birth parents.
open and notorious
Legal description of the use of property that is essential in establishing
adverse possession; technically means not hidden.
open equity line
Second mortgage that is an open line of credit; the balance can be increased by
future draws up to a set amount.
open listing
Written contract that does not allow one licensed real estate agent the
exclusive right to sell a property for a specified time, but reserving the
owner’s right to sell the property alone without the payment of a commission.
open shop
A workplace that employs both union and nonunion employees.
opening statement
Opening address given by each side before the testimony begins. It serves to
summarize the evidence and orient the jury to the case it is about to hear.
operating agreement
A contract among members of a limited liability company spelling out how the
company is to be run.
operating budget
Portion of the budget for the expenses of operating the association other than
reserves.
operating expenses
Costs incurred to maintain a property and keep it productive of services.
operating reserves
Funds set aside for the payment of an annual expense.
opinion
The written decision of a court.
oppressive child labor
With certain exceptions, employment of any child who is under the age of 16,
regardless of the occupation, and employment of a child who is between the ages
of 16 and 18 in mining, manufacturing, or other hazardous industries.
option
The choice of entering into a contract. For example, a lease could give the
tenant the option (right but not obligation) to extend beyond the expiration
date or the option to purchase the property.
options
The right to purchase a property some time in the future.
oral rental agreement
Less preferable than a written rental agreement, an oral rental agreement
contains the essential terms of a tenancy without a written document.
order
A pronouncement of the judge. Orders may be temporary or permanent. If an order
resolves all of the issues in a case, it is called a judgment or decree.
ordinance
A law passed by a city, town, or other municipal government.
ordinary skill in the art
This refers to the level of skill which would be possessed by a person employed
in the technology of the invention.
organ donor agreement
A written document outline a person’s wishes that his or her organs be donated
after their death to another or science.
organizational meeting
The meeting of the founders of a corporation or limited liability company in
which company is structured and ready to begin business.
original lender
The retail lender that makes the mortgage loan to the borrower. The loan can
either be kept as a portfolio loan or sold to a secondary lender.
original works of authorship
Works created by a person, rather than copied from others.
origination date
The date of the mortgage note.
origination fee
A fee, usually expressed in points, paid to the retail lender for services.
out of status (overstay)
One whose nonimmigrant status as set forth on the I-94 card or a subsequent
extension has ended; or the person has violated the terms of the visa, for
example, by engaging in unauthorized employment.
outside management
Individual manager or management company whose representative does not live in
the community.
over-improvement/overbuild
Building, renovation or remodeling that is inappropriate to an area due to
excess size, cost, or inadequate return on investment.
ovum
Egg cell, female reproductive cell.
owned real estate (ORE)
Sometimes called REO (Real Estate-Owned). This is the portfolio of property on
which a bank has foreclosed and still owns. Technically, branch banks would seem
to be “owned real estate” but the term refers only to foreclosure properties.
owner financing
Seller provides part or all of the financing in the sale of real estate.
owner-occupied purchase
Purchase of a property as the primary residence of the owner.
owners manuals
Manuals of policies and procedures of an association affecting the members.
paid time off (PTO)
PTO plans replace various forms of leave traditionally offered to employees.
palimony
Court ordered support paid by one member of a couple, who were never married, to
the other after a break-up.
palliative care
Medical care or treatment designed to alleviate pain or discomfort, rather than
to cure or control the underlying illness or injury.
parent-initiated adoption
An adoption in which the adoptive parent locates the child or birth mother
instead of having an agency do so.
parenting schedule
The details of the actual time that a parent (or person with the right to see
the child) spends with the child. This may include significant dates like
birthdays and holidays as well as routine periods such as every Tuesday.
parenting time
As opposed to a legal concept of custody, parenting time designates the actual
time that a party spends with his or her child. Some courts may think of this as
physical custody or visitation.
parliamentary procedure
Established rules of parliamentary law and unwritten rules of courtesy used to
facilitate the transaction of business in deliberative assemblies.
parody
A humorous imitation of a work.
parol evidence
A rule of evidence that applies in regard to contract litigation that may
exclude the admission of certain evidence unless it is part of the written
contract.
parole
Generally given to an alien outside the U.S. for humanitarian reasons or to an
alien who in the U.S. who wishes to travel abroad and whose paperwork for
adjustment is pending. Constitutes a lawful entry for purposes of applying for
adjustment of status.
partial entitlement
The remaining dollar amount of a veteran’s entitlement after the veteran has
used part of his or her full entitlement of a VA mortgage.
partial payment
Payment of only a portion of the required amount due, including payments
received without the late charge.
partial payment agreements
An agreement between the parties that the tenant will pay a portion of the
amounts due on specific date(s), with a certain date when the final payment is
due.
partition
A court action to sell a property and split the proceeds between the owners.
partnership
An association of two or more persons to carry on as co-owners a business for
profit.
partnership agreement
An agreement, written or oral, among the partners concerning the partnership,
including amendments to the partnership agreement.
partnership at will
A partnership in which the partners have not agreed to remain partners until the
expiration of a definite term or the completion of a particular undertaking.
partnership interest
All of a partner's interests in the partnership, including the partner's
transferable interest and all management and other rights.
party
A person who files a divorce action, or the person one is filed against. The
husband and wife are the parties in a divorce action.
passport office
An office of the Department of State that issues passports and in doing so, may
make decisions on U.S. citizenship.
patent
Protection given to inventions, discoveries, and designs.
patent and trademark office (PTO)
The administrative agency charged with handling your application for a patent.
Patent Cooperation Treaty (PCT)
The PCT allows you to file one international application in which you designate
all those countries which you want to seek patent protection.
patent term adjustment
There are many situations where the PTO will add extra days, months or even
years to your patent term. The PTO does this by making an adjustment to your
patent term.
paternity
Legal determination of fatherhood. Paternity must be established before child or
medical support can be ordered.
pay-on-death account
A financial account, such as a bank account or certificate of deposit that is
payable to a certain person upon the death of the account holder.
payable on death (POD)
An account that passes directly to a designated beneficiary upon the owner’s
death.
payee
The person who is entitled to receive a payment of alimony or child support.
payment cap
Limitation on increases or decreases in the payment amount of an adjustable-rate
mortgage or fixed-rate mortgage.
payment history
Part of a person’s credit report; records of late and on-time payments.
payment schedule
Plan for periodic payments for a debt or obligation such as a stipulation for
judgment.
payoff letter
Statement detailing the unpaid principal balance, accrued interest, outstanding
late charges, legal fees, and all other amounts necessary to pay off the lender
in full.
payor
The person who is obligated to pay alimony or child support.
penalty period
A period of time during which a Medicaid applicant is ineligible for enrollment,
because of certain transfers of the applicant’s property for less than fair
market value.
per capita
Will or trust distribution plan that requires that all living descendants of the
grantor, regardless of generation, receive an equal share of the grantor’s
estate.
per stirpes
Will or trust distribution plan that requires that descendants of a deceased
beneficiary, as a group, inherit equal shares of the amount the deceased
beneficiary would have received had he or she lived. (For example, if your child
predeceases you, any grandchildren descended from that child would receive equal
shares of your deceased child’s inheritance.)
percolation test
A test used to determine the absorption rate of water into the ground where a
septic system will be placed.
peremptive strike
Disqualifying a juror for no stated reason.
perfecting title
Elimination of claims against title on real estate.
performance agreement
The contract that contains the terms for a live appearance by a musical act.
performance rights society
Organization that administers royalty payments earned by songwriters when other
people play their song.
perjury
The crime of giving false statements under oath.
perma-temp
Slang for a worker who, despite long tenure on the job, is still classified as
temporary for benefit or other purposes.
Permanent Partners Immigration Act (PPIA)
A proposed bill which would change current U.S. immigration law and allow United
States citizens and lawful permanent residents to sponsor their permanent
partners for residence in the United States.
permanent resident (LPR)
See lawful permanent resident.
persistent vegetative state
A permanent and irreversible condition of unconsciousness in which there is: (a)
the absence of voluntary action or cognitive behavior of any kind, and (b) an
inability to communicate or interact purposefully with the environment.
personal injury
A group of liability coverages including such things as libel and slander, false
imprisonment, and violation of a person’s right of privacy. Personal injury does
not include bodily injury, sickness, or disease.
personal injury protection
The formal name for no-fault auto coverage.
personal jurisdiction
This applies to whether or not the court has jurisdiction over the defendants in
a civil case.
personal liability
Being forced to pay for a liability out of personal funds rather than from
limited company assets.
personal property
All property other than land and things permanently attached to the land (such
as buildings).
personal protective equipment (PPE)
Equipment required by various Occupational Safety and Health Administration
standards to be worn to reduce excessive exposure to workplace conditions that
could cause personal injury.
personal representative
A person appointed by the court or a will to oversee distribution of the
property of someone who has died. This is a more modern trend and generally
replaces the terms administrator, administratrix, executor, and executrix.
Personal Responsibility and Work Opportunity Recon
The federal welfare reform law that provides a number of requirements for
employers, public licensing agencies, financial institutions, as well as state
and federal child support agencies, to assist in the location of absent parents
and the establishment, enforcement, and collection of child support.
personal service
When legal papers are personally delivered to a person by a sheriff or other
authorized process server.
personal use
Use of a copyrighted work for other than commercial purposes.
personnel manual
See employee handbook.
petition
(1) Document that initiates a lawsuit. (2) A written document submitted to a
court or administrative agency requesting a remedy.
petition to make special
A petition which you can submit to the PTO in order to speed up examination of
your patent application. You or your invention must fall into one of the
categories of persons which serves as the basis for such a petition.
petitioner
(1) Anyone who petitions, or asks the court in writing, to take a particular
action. (2) The U.S. citizen or legal permanent resident or U.S. corporation
filing on behalf of an alien beneficiary for either an immigrant or nonimmigrant
visa.
phonorecord
The term used in the Copyright Act for a recording, such as a CD.
physical custody
Term used to describe the parent with whom a child primarily resides.
physical maintenance
Repair, inspection and cleaning of a physical plant to keep it in proper
condition.
piercing the corporate veil
When a court ignores the corporate structure to hold the owners of the business
liable.
piggyback loan
A second mortgage loan offered with the first loan. The purpose is to reduce the
first loan to 80% so PMI is not required.
plaintiff
A person who brings a case. This person may also be called a petitioner.
plan of care
Plan describing how a nursing home resident will be cared for.
planned community
Community Association which is other than a condominium, stock cooperative or
community apartment project.
planned development
Development having one or both of two features: first, a common area, and
second, the association has the power to assess a separate interest owner, such
as a unit or apartment, and to lien such owner’s interest and it is not
necessarily one of the other three forms of CID.
planned expenses
Expenditures which are expected and intentionally provided for the future.
planned unit development (PUD)
A subdivision with lots the same size or nearly the same size as the buildings
on them. The owner of each unit owns the lot under the unit, and owns the
remainder of the subdivision in common with the other unit owners.
plat
Map representing a piece of land subdivided into lots with streets, boundaries,
easements, with legal dimensions shown.
plat book
Book showing the lots and legal descriptions of the subdivisions of an area;
usually recorded and kept in city and county government offices.
pleading
A written paper filed in a lawsuit which gives a party’s position, such as a
complaint or an answer.
pledge
To put up property as security for a loan.
pledged account mortgage (PAM)
Graduated payment mortgage in which part of the buyer’s down payment is
deposited into a savings account; funds are drawn from the account to supplement
the buyer’s monthly payments during the early years of the loan.
plot
The main story line of a work.
plot plan
Layout of improvements on a site, including their location, dimensions, and
landscapes. (The plot plan is generally a part of the architectural plan.)
POC
Charge that is paid outside of closing. (This would include closing costs such
as the appraisal and credit report that an applicant pays up-front to the
lender.)
pocket part
A small pamphlet placed in a slat, or pocket, in a book, meant as an update in
lieu of printing a new hardbound book.
POD (also P/O/D)
Pay on death, usually used on bank accounts and in some states on securities.
points
A fee for providing a mortgage loan, usually based on a percentage of the loan
amount.
police power
The right by which the state or other governmental authority may take, condemn,
destroy, impair the value of, limit the use of, or otherwise invade a person’s
property.
polygraph
A lie detector. Polygraph tests in connection with employment are generally
prohibited.
portable business
A business that can be run in many different places.
portfolio lenders
A mortgage lender who makes loans from the lender’s own portfolio of assets.
portfolio loan
A loan that will be kept by the originating lender and not sold in the secondary
market.
postdated check
A check dated with a future date.
postmarital agreement or postnuptial agreement
An agreement between a husband and wife, executed after they are married,
providing for the division of their property in the event of death or divorce.
pourover will
Will provision that distributes money or property to a trust that already
exists.
power of appointment
A power, given by the owner of property to another person, to designate who will
receive property or income from the property upon the death of the owner.
power of attorney (POA)
Legal document giving someone else the authority to manage your business,
financial and legal affairs for you.
power of direction
The power of some person to instruct a trustee to take action.
preamble
The introductory portion of your claim. A preamble typically starts with the
article “A” or “An.”
preapproval
Agreement by a lender to make a mortgage loan for a certain maximum amount
without considering the specific property the borrower may purchase. It does not
lock in the interest rate and is not a firm commitment to make the loan.
prearranged financing agreement
Used in some areas of the country to prove that the buyer has been pre-approved
for a mortgage loan.
precedent
A court’s opinion furnishing an example, or authority, for an identical or
similar case based on a similar question of law.
preclosing
In some states there is a meeting preceding formal closing in which documents
are reviewed and signed.
predatory hiring
A campaign to hire workers away from a particular company in order to harm that
company’s ability to compete. Predatory hiring may violate antitrust laws.
predatory lending
Mortgage lending that has high fees, high interest rates, and difficult terms.
preference
The payment to certain creditors to the exclusion of the remaining creditors;
also, priority ranking of individuals or institutions who may be named as
personal representative of an estate.
preference visa category
A family member other than an immediate relative and whose petition therefore
requires a waiting period between the I-130 filing and the application for
adjustment.
preferred shares
A separate class of a company’s stock with certain preferential features over
common stock that often include a right of its owners to be repaid before
shareholders of common stock in the event of liquidation, rights to dividends
before owners of common stock, and sometimes certain voting rights superior to
those of common stock.
Pregnancy Discrimination Act (PDA)
An amendment to Title VII of the federal Civil Rights Act that defines sex
discrimination to include discrimination because of pregnancy, childbirth, or
related medical conditions
preliminary amendment
An amendment that is received by the PTO on or before the mail date of your
first office action. (MPEP sec. 714.01(c).)
premarital agreement
An agreement between a man and woman, executed before they are married,
providing for the division of their property in the event of death or divorce.
premises liability
A theory of liability in tort law by which a property owner or manager may be
liable to persons who are on the premises.
premium
The amount of money charged by an insurer to issue a policy. Premiums are
determined by the insurer’s application of a rate against an exposure factor.
For example, an insurer might charge a different rate for auto liability
coverage for a person who has a greater number of miles driven annually than one
who drives less. An insurer might charge a higher rate for premises liability
coverage for an auto repair shop than for a stationary store.
prenuptial agreement
Another name for a premarital agreement.
prepayment
Payment made in addition to the required monthly mortgage payment. (Prepayment
allows a borrower to pay down a mortgage loan quicker than originally planned as
the payment goes against the principal, not the interest.)
prepayment penalty
An extra cost to the borrower if the loan is repaid sooner than required. The
repayment time and penalty amount are not standard and not applicable to all
loans.
prequalified
Buyer who has been preliminarily approved for a loan; not a guarantee and final
approval will depend on further investigation.
prequalifying
An estimate by a lender of the amount and type of loan for which a borrower may
be eligible. It is given before the application and documentation is submitted,
and is not binding on the lender. The term may also be used for the research
done by a prospective borrower to estimate the amount and type of mortgage loan
he or she may be qualified to expect.
present interest
Right to use property immediately. Compare with future interest.
president of the board
Elected officer responsible for the strategy and management of the association.
prevailing wage
The wage paid for a particular job category. An employer must obtain a
prevailing wage determination as part of the process of applying for an H-1B
visa. State and local government contracts sometimes contain provisions
requiring contractors to pay their employees prevailing wages.
preventive maintenance
Program of inspection and regular care that allows potential problems to be
detected and solved early or prevented altogether.
price level adjusted mortgage (PLAM)
Mortgage loan in which the interest rate remains fixed, but the outstanding
balance is adjusted periodically for inflation according to a price index like
the Consumer Price Index or Cost-of-Living Index. At the end of each period, the
outstanding balance is adjusted for inflation and monthly payments are
recomputed based on the new balance.
primary insurance
Insurance that applies to a loss on a first dollar basis. For example, the
liability coverage of a homeowners policy is primary insurance. If the insured
has a personal umbrella policy, its coverage would apply as excess insurance
upon exhaustion of the limits of liability of the homeowners policy.
primary lender
The lender who originates the loan, also called the originating lender or retail
lender. The term is used to distinguish this lender from one that buys the loan
in the secondary market.
primary residence
An inexact term that describes the home in which the borrower lives, as opposed
to a vacation property. The common requirement is that the borrower spends most
of the year at that location. Intent may also be considered. Mortgage loans are
less expensive and easier to qualify for if the property to be mortgaged is the
primary residence of the borrower.
prime rate
Interest rate commercial banks charge their most creditworthy customers for
short-term loans. Prime is a yardstick for trends in interest rates, and it is
often a baseline for establishing interest rates on high-risk loans.
principal
(1) The person on whose behalf an agent acts. (2) Amount of debt on a loan that
does not include interest. (3) Property in a trust; also called corpus.
principal applicant
The lead applicant in an adjustment or asylum application.
principal beneficiary
The main beneficiary of a visa petition, as opposed to a derivative beneficiary
such as a minor child who obtains status through the principal.
principal, interest, taxes, and insurance (PITI)
The costs used to determine the top loan income-to-debt ratio.
prior art
An art term used to describe reference(s) which meet the criteria set forth in
any one of the prior art sections of U.S.C.,Title 35, sec. 102. If a reference
constitutes prior art and it anticipates your invention, your claimed invention
will be rejected.
prioritizing
Placing things in order of importance.
priority
A method of ranking lienholders to determine who gets the first money off the
top on a sale, who gets the second money, and so on. Except for very specialized
circumstances in a bankruptcy, lienholders do not share money pro-rata. Each one
must be paid in full before you can go to the next lower, or “junior”
lienholder.
priority date
(1) This date is usually when you file your patent application. However, if you
have filed previous applications for your same invention (either domestic or
foreign), then this date can become the date that any one of those earlier
applications was filed so long as you make a proper claim of priority to those
earlier applications. This date can be absolutely critical with respect to
negating a novelty or other prior art type rejection that you receive from the
PTO. (2) The date used to determine when a beneficiary of a visa petition is
able to apply for adjustment of status.
privacy
The right of a person not to have private facts disclosed to the public.
private adoption
An adoption that does not involve an agency. The birth mother and intended
parents work directly with each other.
private mortgage insurance (PMI)
A protection for the lender that it will not suffer a loss if the amount owed on
the mortgage loan exceeds what the lender receives at a foreclosure sale. The
policy does not cover the entire loan amount. The insurance is required when a
borrower’s down payment is less than 20%.
private placement
An offering of securities exempt from full SEC registration requirements that is
usually made directly by the issuing company but may also be made by an
underwriter.
private-duty nurse
A nurse employed by the patient and not the hospital or facility the patient is
in.
privilege
Legal protection that may apply to certain relationships, for instance the
attorney/client relationship or the doctor/patient relationship.
pro forma financial statements
Estimated income statement showing anticipated revenues, costs, and expenses
over a period of time, and a balance sheet showing assets, liabilities, and
equity at a fixed point in time.
pro rate
A method to distribute income, ownership, or debts in a fair manner to both the
buyer and the seller.
pro se
When a person chooses to act as his or her own attorney and represent him- or
herself.
probable cause
A legal principle that governs justification for making an arrest or issuing an
arrest or search warrant. Probable cause means that it is reasonably probable
that the person has committed a crime or that evidence of the crime may be on
the premises.
probate
Court process in which is a will is a validated and an estate is distributed.
probate code
Statutes enacted in virtually every state that governs wills, trust, and
probate.
probate estate
Generally, those assets of a decedent that are subject to probate; typically it
does not include property passing automatically to a joint owner, pay-on-death
accounts, or life insurance proceeds. This is matter of definition in a
particular state’s laws, and therefore varies from state to state.
proceeding supplementary
A court action to enforce a court judgment or collect money owed.
proceedings
See removal proceedings.
process
In the law, this means the manner in which a person is compelled to appear in
court or respond to a lawsuit. Generally, this is done by a summons or by a
subpoena.
process claims
These claims define methods of making or doing something and are characterized
by their “ing” active elements steps.
product
Manufactured goods, merchandise, or inventions.
product claims
These types of claims define discrete physical structures or materials.
product liability
A theory of tort law by which a manufacturer or seller of a product may be
liable for injuries resulting from the product.
product-by-process claim
A particular type of claim format where you recite the product, and then also
recite a process of making that product.
professional business
Business for a professionally licensed person, such as an attorney, CPA, or
insurance agent.
professional community association manager (PCAM)
The professional designation conferred by the Community Associations Institute
on individuals who have met certain minimum levels of experience, education and
participation in the profession of association management.
professional corporation
A legal business organization recognized by some states for certain
professionals such as attorneys, accountants, and insurance agents.
professional employment organization (PEO)
An organization that, for a fee, jointly employs a company’s employees in order
to provide HRrelated functions, such as benefit plan administration, payroll
services, and workers’ compensation coverage.
professional liability
Liability of a professional person to a client or patient.
professional services
A definition and exclusion common to the liability coverages of homeowners and
businessowners policies. Professional services are not limited to traditional
learned professions such as law, medicine, and accounting and include any
activity that requires specialized skill and training.
profit
What you pay taxes on. Because the principal portion of mortgage payments don’t
qualify as an accounting or an IRS expense, you can have a paper profit but
still not have enough money to pay your bills.
profit and loss statement
Summary of the revenues, costs, and expenses over a period of time. Also called
an income statement.
progressive discipline
A policy of imposing increasingly severe discipline for repetitive misconduct.
prohibited provisions
Certain provisions of a contract may be prohibited by state or federal law, and
neither party can legally waive certain rights or remedies that they would
otherwise have.
project labor agreement (PLA)
A multi-employer pre-hire agreement used on construction projects, that requires
all contractors and subcontractors who will work on the project to agree in
advance to a master collective bargaining agreement.
project manager
Individual employed by a management company with specific responsibility to
oversee and manage a particular community.
promissory note
A legal document in which a person promises to pay a sum of money.
promoters
Persons who start a business venture and usually offer interests for sale to
investors.
proof
Proof comes in the form of evidence. Evidence comes in the form of testimony,
documents, and physical things that are likely to prove the truth or falsity of
an issue in the case.
proof of loss
A document that must be submitted by an insured in support of a loss under the
property coverages of a policy. It must be signed and sworn to by the insured.
It usually requires a complete inventory of all property for which claim is made
and its value.
property damage
A liability coverage. Standard liability policies cover the insured’s obligation
to pay damages to others because of property damage caused by an occurrence.
Property damage typically refers to physical injury to tangible property.
property division or property distribution
The allocation of property between the husband and wife in a divorce case.
property inspection
Physical review or evaluation of a property to determine its current structural
condition with a report identifying any deferred maintenance or environmental
problems.
property insurance
Protection of insured's real or personal property against loss or damage.
property settlement agreement
A contract or agreement entered into between husband and wife resolving all
disputes relating to the marriage.
property tax
Tax against the owner of real estate.
property tax exemption
A reduction in property tax.
proprietorship
A business that is owned by one person.
proration
The division of some expense between two parties usually as of a certain date.
prosecution
A term of art used to describe everything that goes on between you and the PTO
after you file your patent application.
protected health information (PHI)
Information about employees and others that is subject to privacy regulations of
the Health Insurance Portability and Accountability Act.
provisional application
This type of patent application is easier to complete and less expensive than a
regular application. However, they only last for a year. Before the end of that
year, you will need to file a regular application in order to capture the
priority date of the provisional application.
provisions
Terms of a legal document.
proximate cause
Conduct so closely related in time and space to the injury that it is legally
determined to be the cause of that injury.
proximate damages
Amount of money awarded for those injuries and losses that flow immediately and
directly from the defendant's conduct.
proxy
Authorization given to one person to vote in place of another.
psychological parent
The person who has developed a parent-like relationship with the child due to
extensive care for the child. This might include a grandparent or a step-parent
or a foster parent.
public adjustor
A person who contracts with an insured to represent the insured in the
resolution of property insurance claims. The public adjustor may perform a
variety of functions, including assisting the insured in preparation of the
proof of loss and such other things as obtaining repair estimates from
contractors. Public adjustors are usually compensated by receipt of a percent,
often ten percent, of the insurer’s loss payment.
public assistance
State or federal programs, such as Temporary Assistance to Needy Families
(TANF), that provide financial aid to eligible recipients.
public auction
Process whereby property that has been foreclosed is sold.
public domain
The body of all works not protected by copyright law.
publish
To distribute copies of a work to the public or perform a work in public.
publishing
The process of licensing songs for commercial use.
punitive damages
Amount of money awarded to the plaintiff if the defendant acted recklessly,
intentionally, outrageously or fraudulently. The award is over and above the
actual damages, and is intended as a deterrent.
purchase and sale agreement
Legal document signed by both the buyer and seller to pass property with
specific terms for a certain amount of money.
purchase money mortgage
(1) A mortgage given to a seller by a buyer as part of the down payment or to
secure any part or the entire selling price of the property. (2) Any mortgage,
the proceeds of which are used to purchase the mortgaged property, as
distinguished from an equity loan or refinance loan.
putative father registry
A state registry that allows a man to record the fact that he believes he is the
father of the child, before the child is born.
QTIP (qualified terminable interest property) trus
Trust that qualifies for the unlimited marital deduction and postpones payment
of any estate taxes owed until both spouses have died. The surviving spouse
receives trust income for life but has little or no legal right to the trust’s
principal.
qualification
Process that determines whether an applicant can be approved for a mortgage
loan.
Qualified Domestic Relations Order (QDRO)
An order entered by a domestic relations court in compliance with the Employee
Retirement Income Security Act that awards an interest in a pension plan to an
alternate payee.
Qualified Medical Child Support Order (QMCSO)
Under a QMCSO, an employer with a group health insurance plan can be ordered to
enroll an employee’s child (the alternate payee) if the employer’s plan includes
a family coverage feature.
qualified Medicare beneficiary program
A state-sponsored program that pays Medicare premiums and co-pays.
qualified plan
See excess benefit plan.
qualifying event
An event that triggers an opportunity to elect COBRA coverage.
qualifying hospital stay
Inpatient hospital stay, occurring just before admission to a nursing home, that
is required before Medicare will pay for nursing home care. A qualifying
hospital stay must be at least three consecutive days.
quasi-community property
Property acquired by a married person who dies a resident of the community
property state, while owning property acquired while he or she was living
outside of the community property state. Further, at the time of death, that
property would have to have been community property, if the person had been
living in the community property state at the time the property was acquired. In
such a situation, the quasi-community property is treated like community
property.
quick assets
See liquid assets.
quid pro quo
A type of sex discrimination involving sexual favors in exchange for tangible
job benefits.
quiet enjoyment
Right of an owner to the use of property without disturbance.
quiet title action
Legal action taken to eliminate any interest or claim to property by others.
quitclaim deed
A legal instrument in which a person conveys any interest he or she may have in
a property without guaranteeing that he or she actually has any interest.
quorum
Minimum number of members that must be present or votes that must be represented
in person or by proxy at a meeting in order for business to be transacted
legally.
rabbi trust
A deferred compensation arrangement for select management or highly compensated
employees. Employer contributions to a rabbi trust are not currently deductible
by the employer or includible in the employer’s income because the trust assets
remain subject to claims by creditors of the employer.
Racketeer Influenced and Corrupt Organizations Act
A 1970 federal statute, primarily aimed at organized crime, that has been
applied to employers who repeatedly violate immigration or other laws.
radon
Radioactive gas found in some homes that may or may not cause health problems.
raising capital
Raising capital refers to obtaining capital from investors or venture capital
sources.
rate
A basic charge for a loss exposure. An insurer determines the premium to charge
for a particular coverage by multiplying the rate against an exposure factor.
For example, a common liability exposure factor for premises liability coverage
for light occupancy risks such as office exposures is square footage of the
insured’s premises. Many persons use rate or rates when what they really mean is
premium.
ratio method
A calculation that mortgage lenders use to determine approximately how much a
person can afford to pay for a home. The most common ratio calculation is the
28/36 formula. According to this formula, the total mortgage payment should be
no more than 28% of a borrower’s gross income. The borrower’s total debts should
be no more than 36% of his or her gross income.
raw land
Land in its natural state, having no physical improvements such as grading,
sewers, or structures.
readoption
Legal process in which parents of a child adopted internationally go through a
US adoption.
real estate
Land and all permanent improvements on it; realty.
real estate
The term generally used for both buildings and land.
real estate agent
Person who is licensed to process the sale of real estate.
real estate attorney
An attorney that works primarily in the area of real estate law.
real estate broker
Person who does the same duties as a real estate agent, in addition to searching
for homes, arranging funding, and negotiating contracts.
real estate laws
Regulations on a city, county, or state level that direct real estate
transactions and the actions of real estate agents or brokers.
real estate property taxes
See real estate taxes.
Real Estate Settlement Procedures Act (RESPA)
A federal law prohibiting certain unfair lending practices, such as kickbacks
and requiring disclosure of costs for services performed.
real estate taxes
Local government annual fees levied on the ownership of real estate.
real property
Land and the structures attached to it.
realtor®
Real estate professional who has membership in a local real estate board that is
affiliated with the National Association of Realtors®.
reasonable accommodation
A requirement under the Americans with Disabilities Act to protect persons with
disabilities. A requirement under Title VII of the federal Civil Rights Act to
allow for employee religious practices.
reasonable care
The care a reasonably prudent person would take under the circumstances. Failure
to use reasonable care is required to prove negligence.
reasonable suspicion
Some facts that could indicate that a crime may have been committed.
reasonable wear and tear
Generally considered to be the wear and tear that would be expected on a
dwelling based on the age and condition of the dwelling, coupled with the length
of the tenancy.
reassessment
Revaluation of property for tax purposes.
recasting
A method of refiguring both the interest rate and monthly payment at a specific
time in the loan term. The payment becomes the amount necessary to amortize the
loan in the time remaining on the term. Depending on the original interest rate
and payment agreement, recasting can increase the monthly payment by 100% or
more. There is no cap when a loan is recast.
receipt number
The case number assigned by a service center to a filing. The receipt number
includes the first three letters of the Service Center and the year in which it
was filed.
recess
Short break in a business meeting.
reconciliation
Last step in the appraisal process whereby all data is compared and the
approaches to value considered to arrive at a final estimate of value.
record of proceedings (rop)
Formal name given to the court file in immigration court and the file upon which
the immigration judge makes a decision.
recordation fees
The fees charged by a local government to record the documents of a real estate
transaction.
recorder
Public official or office who legally records the deed after the property has
been sold or transferred.
recording
The process of filing a deed, mortgage, or other legal document affecting title
to land, with the court clerk’s office.
recoup
Process of repayment of money advanced, such as for recording or merchandise
creation.
recourse
The ability of a lender to look to the borrower to be personally responsible for
the loss suffered if the sale of the mortgaged property from foreclosure does
not cover the amount owed.
recourse loan
Type of mortgage loan whereby the lender’s remedies in the event of borrower
default are unlimited, extending beyond the property to the borrower’s personal
assets.
red lining
Arbitrary denial of real estate loan applications in certain geographical areas,
without considering individual applicant qualifications.
redemption
The right to save a property from foreclosure after it has been sold for
nonpayment.
reduced closing cost mortgage
Mortgage that carries a higher interest rate in exchange for no points or a
credit towards other closing costs from the lender.
reduction in recruitment (RIR)
A relatively new fast track labor certification application where a company has
already attempted to recruit a qualified worker and therefore does not need to
go through supervised recruitment by the Department of Labor.
reentry permit
It is a document that lets an alien stay out of the country for over a year and
up to two years without abandoning their permanent resident status.
refinance
Exchanging an old mortgage for a new mortgage with a lower interest rate.
refinancing
Paying off an existing mortgage loan and replacing it with a new loan. The term
is also used to describe getting a mortgage loan other than to purchase the
property, even if there is no existing mortgage to be paid off.
refugee
One who is in the U.S. having been granted refugee status abroad, may apply for
adjustment of status after one year in the U.S.
refugee travel document
Blue passport that replaces the passport from one’s own country and is for
refugees and asylees only. Does not function as a reentry permit. Serves as
advance parole for refugees and asylees.
refund policy
A predetermined business policy that governs taking back merchandise that is
defective, flawed, or unwanted by consumers.
refundable deposits
The part of the security deposit that the tenant may be entitled to receive at
the end of the lease, depending on the condition of the dwelling at that time.
registered agent
The person or entity listed with a state governmental agency to receive legal
notices for a business organization.
registered nurse (RN)
A highly skilled nursing professional who is licensed pursuant to statutory
requirements of the state in which the RN practices.
registered office
A physical location where the registered agent of a limited liability company
can receive legal papers for the company.
registration (NSEERS)
Stands for National Security Entry-Exit Registration System (NSEERS). The
short-lived, special registration program, initiated in December, 2002 and
suspended one year later, that required males from 18 primarily Middle Eastern
countries to report to USCIS. Failure to have registered in 2002 when the
program was in effect may still be a bar to future adjustment of status unless
good cause is shown.
registration statement
A legal document that is filed with a state government to register a
partnership. This is optional in most states.
registry
Anyone residing in the U.S. since before 1972 may be admitted as permanent
residents if they can show good moral character.
Regulation A
An exemption made by the SEC from filing a full registration statement under the
Securities Act of 1933.
Regulation B
See Equal Credit Opportunity Act (ECOA).
Regulation D
An exemption made by the SEC from filing a full registration statement under the
Securities Act of 1933.
Regulation Z
A part of the Truth in Lending Act requiring disclosure of the cost of a loan to
a borrower.
regulations
Rules that are promulgated, or declared, by a state or federal agency.
regulatory agency
Arm of the state or federal government that has the responsibility to license,
pass laws, regulate, audit, and monitor industry related issues (i.e., NAIC,
FHLBB, HUD).
rehabilitation
Process of reconstructing or improving property that is in a state of disrepair,
bringing it back to its full potential or use.
Rehabilitation Act
Federal law that prohibits most federal contractors and subcontractors from
discriminating against persons with disabilities and requires affirmative action
to ensure equal employment opportunity.
rehabilitation loan
Term used by some lenders for a loan that replaces a defaulted student loan and
clears up negative credit scores due to defaulting on student loans.
reinstatement
Fixing of all mortgage defaults by a borrower to return it to current status.
reinsurance
A contract of reinsurance is one by which an insurer procures a third person to
insure against loss or liability by reason of such original insurance. The
purpose of reinsurance is the spreading of risk, so that in the event of a
catastrophic loss, no single insurer’s financial condition is likely to be
seriously impaired. Without delving too deeply into the issue of insurance
industry accounting and regulation, reinsurance enables a given insurer to issue
more policies than it could in the absence of reinsurance. Insurance
commissioners generally limit the amount of insurance an insurer may write by
comparing the ratio of written premium to policyholders’ surplus. An insurer is
allowed to reduce the amount of its written premium by the amount of reinsurance
premiums ceded (i.e., for accounting purposes, an insurer is allowed to credit
reinsurance premiums ceded against written premium). This lowers the written
premium to policyholders’ surplus ratio, enabling the insurer to write more
policies. Reinsurance has an extensive vocabulary specific to that particular
part of the business. The original insurer is referred to alternately as: the
reinsured; the ceding insurer; or the cedent. The reinsurer is referred to as:
the reinsurer; or, rarely, the assuming insurer. Reinsurers often retrocede a
portion of the liability they assume under their contract of reinsurance with
the cedent to a retrocessionaire. This is done for the same risk spreading
reasons as between insurers and reinsurers. A contract of reinsurance is a
separate contract from the original policy issued to the insured. A typical
reinsurance contract calls for payment by the reinsurer to the reinsured only
upon proof of payment by the insurer of a loss to the original insured. Under a
contract of reinsurance, the reinsurer accepts a portion of the liability that
the original insurer has assumed under the contract of insurance issued to the
insured, in exchange for a proportion of the original premium, les
release
(1) A legal form that allows a doctor to share a patient’s medical information
with another person. (2) Discharge of secured property from a lien.
release of liability
Agreement by a lender to terminate personal obligation of a mortgagor in
connection with payment of a debt.
release of lien
The document that discharges a secured property from a lien.
release price
Dollar amount needed to remove a lien.
relevance
Something is relevant if it tends to prove or disprove an issue in the case.
relinquished property
In a tax-deferred property exchange, the property sold by the taxpayer.
remainder
Balance of an estate after all specific gifts have been distributed.
remainderman
Person who takes the property after the life usage of the property by another.
For example, if the testator bequeaths a life estate in his residence to Bob,
and then at Bob’s death the residence passes to Mary, then Mary is the
remainderman.
remediation
A process that removes contaminants from a building or site.
remedies
Refers to the potential avenues for landlords and tenants if the other party has
breached the rental agreement.
removable
An illegal alien or a lawful permanent resident who has violated immigration law
by committing certain criminal acts or fraud and is subject to removal or
deportation.
removal proceedings
One who is in proceedings is before the immigration court to determine whether
he or she should be removed or deported.
remove conditions
The process by which the alien submits the proper form and evidence generally to
a service center, showing that the marriage is bona fide or the alien has
completed the investment requirements.
rent
The periodic payment of money in exchange for the right to possession of the
property.
rent control
A system for limiting the rent increases that a landlord can impose on the
tenant.
rent control board
A group that monitors and enforces rent control.
rent with an option to buy
Agreement between the owner of a property and the potential buyer whereby the
rent or a portion of the rent will be applied to a down payment on the property
at a certain date.
rental agreement
See lease.
replacement cost
(1) Cost to replace a structure with one of an equivalent value and function,
but not necessarily identical in design or materials. (2) A property insurance
concept. Replacement cost coverage applies only if the insured has maintained
policy limits that bear a minimum insurance to value relationship to the actual
replacement cost. That percent is often 80% but can be greater. Losses are paid
on an actual cash value until actual repair and replacement has been completed.
Replacement cost coverage usually does not include coverage for increased costs
of construction to comply with changes in building codes unless the insured has
separately requested and paid for such coverage.
replacement cost endorsement
Insurance endorsement used with a policy to insure that coverage is on a
replacement cost basis.
replacement property
In a tax-deferred exchange, the property purchased by the taxpayer.
replacement reserves
Funds set aside for probable repair and replacement of common area components at
some future time.
reporters
Books in which case law is published.
repossession
Occurs when a creditor seizes a piece of personal property to pay off a loan
secured by the property.
representative payee
A person authorized to receive benefits on your behalf from Social Security
should you be unable to manage your own affairs.
request for continued examination (RCE)
An RCE is a later patent application which you file in order to keep alive the
prosecution of your previously filed patent application. You usually file an RCE
when you are up against a final rejection from your examiner and want a second
chance to advance your arguments before your application goes abandoned.
request for evidence (RFE)
Document issued by a USCIS office or service center requesting additional
evidence or information to prove the alien’s case.
request for production
A written request from one party to another asking for specific documents and
other things for reviewing and copying.
res ipsa loquitur
A principle that applies in tort law wherein the jury may infer that the
defendant is negligent if an event occurs involving an item that is within the
defendant’s exclusive control and it typically would not have caused injury to
the plaintiff but for some negligence on the part of the defendant.
rescission
Returning the parties to a contract to their positions before the contract. This
may not always be possible as the subject matter of the contract cannot always
be returned.
reserve study
Document prepared every three years by the association showing the physical
condition of the property which it is obligated to monitor, the funds allocated
for its upkeep and maintenance and the planned annual use of those funds.
reserves
Funds set aside for special purposes, specifically, to enable an association to
meet nonrecurring and/or major expenses.
resident agent
Person in the county where estate is probated who is appointed by the court to
accept any notice or service of summons in the estate proceeding.
resident alien
A permanent resident or someone on an extended nonimmigrant visa, but not a
tourist visa.
Resident Assessment Instrument (RAI)
A form used to evaluate a long-term care facility resident’s physical and
emotional health and capabilities.
resident council
A group of nursing home patients who meet to discuss issues and problems
associated with the nursing home.
resident handbook
Book or manual setting out the basic rules and customs of the association and
useful information about the general community.
resident manager
Person who lives in the community and acts as manager.
resident referendum
Vote by membership on fundamental changes in the CC&Rs or to recall a member of
the Board.
resident’s representative
An agent of a nursing home resident designated to represent the resident in
dealings with the facility and others; usually a family member of the resident.
residential custody
Term used to describe the parent with whom a child primarily resides.
residential real property
A house, apartment, condominium, mobile home, or any type of home where a tenant
resides.
residual beneficiary
Person who receives remaining property that has not been given away in a trust
or will, or person who receives property only after the original beneficiary has
died.
residual income Residual income is basically money that you have earned and will come
to you each and every month for the rest of your life. The key to financial
success is residual income. Real Estate over time will allow you to build enough
residual income to live your life the way you want. This income will not go away
even if you lose your job. There are many worksheets on the internet or
financial planners who can provide you with tools to determine how much money
you will need to retire.
residue
Balance of an estate after all specific gifts have been distributed.
resource allowance
A certain amount of marital assets, determined by federal law, that a
noninstitutionalized spouse may own, regardless of the institutionalized
spouse’s resources for purposes of Medicaid eligibility.
respite care
Occasional care provided by a facility to a nonresident senior in order to give
the primary caregivers temporary relief from their caregiving responsibility.
respondeat superior
The legal doctrine that imposes vicarious liability on an employer for the
negligence of its employees.
respondent
(1) The party answering a petition. This person may also be called a defendant.
(2) The name given to an alien who is in removal proceedings before the
immigration court; similar to a defendant in a criminal proceeding.
response or reply
After you receive an office action from the PTO, you will need to make a
response/reply to the action within the specified time period or else your
application will go abandoned.
restatement
This involves restating the terms of the inter-vivos trust and acts as an
amendment as a way to revoke the trust.
restriction requirement
If you claim more than one separate invention in your patent application, your
examiner will issue this. In this case, you will need to elect the invention
that you want to pursue in your current application and cancel all claims to the
invention(s) which you do not elect. You have the option of filing divisional
applications for any of the non-elected inventions so those inventions do not
become lost as a result of this requirement.
restrictions
Limitations on the use of a piece of property.
restrictive covenant
(1) Clause in a deed or lease that denies the buyer or lessor full rights to the
property in question. (2) A noncompete agreement. An agreement that an employee
will not compete with a former employer after the employment terminates.
retainer
Fee paid to a professional, such as a lawyer, in advance for future services.
retaliation
Taking adverse action against an employee for exercising rights protected by
law.
retaliatory evictions
Demanding a tenant leave in response to a legitimate action taken by the tenant,
such as reporting the landlord for health code violations. If the eviction is
considered retaliatory, it is illegal.
retirement community
Planned community for those of retirement age, providing attractively sized and
priced dwelling units, and offering construction features, amenities and
locations for aging residents.
return on investment (ROI)
Percentage of profit returned in relation to the original amount invested in a
project.
Revenue Ruling
A decision by the Internal Revenue Service on a tax question.
revenues
Income accrued through any source that benefits the association.
reverse annuity mortgage (RAM)
Mortgage that uses present equity in the property to fund monthly payments from
the lender to the borrower in lieu of the borrower receiving the proceeds of the
loan in a lump sum. (This type of mortgage is popular with the elderly.)
reverse discrimination
Discrimination against members of an historically advantaged group, which
results from treating members of an historically disadvantaged group more
favorably. Quota systems and some affirmative action plans can amount to reverse
discrimination.
reverse mortgage
A mortgage loan whereby the borrower receives money but is not obligated to
repay it until no longer residing at the mortgaged property. Under current law,
a borrower must be age 62 to qualify. All reverse mortgage loans are nonrecourse
loans.
reversionary clause
Clause providing that any violations of restrictions will cause title to the
property to go back to the party who imposed the restrictions.
Revised Uniform Partnership Act (RUPA)
A standardized partnership law, created as an improvement on the UPA, which has
been adopted by many states.
revival
When a legal document becomes enforceable again after being unenforceable for a
time.
revocable trust
A trust, such as a living trust, the maker of which has full right and ability
to change, amend, or revoke.
revocation
The recalling or cancellation of a previously granted power.
revolving credit
Open lines of credit that are subject to variable payments in accordance with
the balance.
rider
Addendum to a performance agreement containing special requirements of the
musical act as a condition for performing.
rider
Additional clause(s) in a real estate contract that are required by local law.
right of first refusal
Right given by an owner stating that if the owner decides to sell the property,
this person will have the first opportunity to purchase it.
right of ingress or egress
In real estate, it is the right to enter or leave a portion of the property.
right of redemption
In some states, a right permitting the borrower to reclaim foreclosed property
by making full payment of the foreclosure sales price within a specified period
of time.
right of representation
To take the place, for inheritance purposes, of a deceased ancestor. For
example, if a will leaves a testator’s estate to “my issue by right of
representation” and the testator leaves two living children and one deceased
child who left two children of his or her own, then the estate would go
one-third to each of the living children of the testator and one-sixth to each
of the children of the deceased child of the testator.
right of survivorship
Term specifically required by some states to be included in the title of
property held in joint tenancy to indicate that the property passes on death to
the joint owner outside of probate.
right of way
Right to pass over land owned by another. Also, a strip of land used for a
street or railway.
right-to-work law
A state law that prohibits collective bargaining agreements from containing
union security clauses.
riparian rights
Rights of owners to the water and land within the normal flow of a river or
stream, or below a high water mark. (These rights vary with state laws.)
risk
Chance of a loss from a hazard.
risk management
Proactive and preventive systems designed to identify, address or avoid future
problems.
Robert's Rules of Order
Recognized formal guidelines for conducting a business meeting.
Roget’s
A thesaurus provides a list of synonyms and antonyms for the work you are
looking up.
routing slip
Form required in conjunction with an immigration court proceeding where an
application must be paid for at the USCIS cashier prior to filing with the
court. Form allows the USCIS cashier to return the paid application to the
applicant so that it may be filed with the immigration court at the instruction
of the immigration judge.
royalty
Payment to the owner of a copyright for the use of a work.
rural housing service (RHS)
Government agency within the U.S. Department of Agriculture that offers various
financing programs available for the development of rural America.
S corporation
A tax option for corporations formed under subchapter S of the federal Tax Code
in which shareholders can unanimously consent to be taxed like a partnership,
permitting income and expense to flow through to their personal tax returns.
Originally designed to avoid double taxation yet preserve limited liability, the
S corporation form is now giving way in some states to the LLC (limited
liability corporation).
safe-harbor rule
Any rule considered within the law or disclaimers to avoid liability.
sale-buyback
Financing arrangement where a developer sells a property to an investor then
buys it back on a long-term sales contract.
sale-leaseback
Sales arrangement where a seller deeds a property to a buyer for consideration.
The seller then leases the same property back from its new owner.
sales
The proceeds from the transfer of your product or service into the hands of a
consumer.
sales contract
Written agreement between buyer and seller stating terms and conditions of a
sale or exchange of property.
sales tax
A tax imposed on the sale of goods and services. It is usually measured as a
percentage of the retail price. Many states levy this type of tax.
salt
A person who applies for a job in order to unionize the workplace once hired.
sampling
Digitally copying a sound from another recording.
scénes á faire
Scenes or incidents that are indispensable to the telling of a certain type of
story.
screening
Checking the background of a prospective tenant. This may include a credit
report, verification of employment, reference of a prior landlord, etc.
search engine
Computer program which enables a person to find information, especially
websites, on the Internet.
seasoned mortgage
Mortgage on which payments have been made regularly for a year or longer.
SEC
The U.S. Securities and Exchange Commission, which is charged with the
administration and enforcement of federal securities laws.
second injury fund
A special fund established under state workers’ compensation laws. Second (or
subsequent) injury funds share responsibility for benefits due employees who
have pre-existing, nondisabling conditions and who become disabled through the
combined effects of the preexisting condition and a subsequent injury.
second mortgage
A legal instrument that pledges a piece of real property to guarantee payment of
a loan on a piece of property that has another (first) mortgage previously in
place.
second parent adoption
Adoption situation where a partner adopts the child of his or her partner.
second-parent adoption
An adoption of a child by his or her stepparent.
secondary lender
One that purchases an existing mortgage loan rather than the lender that
originates the loan.
secondary market
The purchase of existing mortgages by other lenders. (This usually does not
increase mortgage payments, but can effect the benefits offered with the
mortgage loan.)
secondary mortgage market
The buying and selling of existing mortgage loans.
secretary
Elected officer on the Board of Directors responsible for all association
documentation and records.
section
Legal division or parcel of land on a government survey comprising one square or
640 acres.
section 1031 intermediary
A person who holds the proceeds of a real estate transaction until the seller
finds a new property that qualifies for an exchange under Section 1031 of the
Internal Revenue Code.
Section 125 plan
A benefit plan that offers cash, or a variety of benefits in lieu of cash from
which the employee may choose. Cash payments are taxable to the employee, but
qualified benefits are not.
section 212(c) relief
Where a lawful permanent resident who has committed crimes involving moral
turpitude but not an aggravated felony may seek to stop removal before an
immigration judge upon a sufficient demonstration of the existence of certain
positive factors or equities on his behalf.
section 245(i) eligible
One who is eligible to file the I-485A Supplement and pay the $1000 penalty and
adjust status.
Section 2503(c) trust
Trust that allows a grantor to make gifts of $10,000 a year to a trust for the
future benefit of minor children without the grantor incurring gift taxes.
Section 8
Federal housing assistance.
secured credit card
A credit card in which the debtor gives a certain amount of money to the bank to
be used as a security. The debtor charges items and repays them and the security
interest is held in case there is a failure to pay.
secured loan
A loan in which you borrow money or buy a certain item and give the creditor a
security interest or collateral in an item. For example, a car loan.
secured property
Items purchased or financed through a loan that gives the creditor a security
interest in them.
securities
Interests in a business, such as stocks or bonds.
Securities Act of 1933
The federal law, including amendments, pertaining to the offering of securities
administrated by the SEC.
Securities Exchange Act of 1934
The federal law, including amendments, pertaining to the trading of securities,
stock exchanges, firms, and brokers administrated by the SEC.
security
An investment agreement in which one person put up money with the expectation of
making a profit from the efforts of others.
security deposit
A certain amount of money deposited by the tenant prior to commencement of the
lease to assure the landlord of the tenant’s full and faithful performance.
security deposit statement
A written statement provided by the landlord after the end of the tenancy. It
itemizes the amount of the tenant’s deposits followed by an accounting of the
deductions from the deposits.
security instrument
Mortgage using real estate as collateral for the loan.
security interest
The right maintained by a creditor to repossess or take back an item you
borrowed money to buy if you fail to make payments.
segregated
Divided by some common characteristic. Often refers to division along racial
lines.
self-help remedies
These are the remedies that a tenant may use when the dwelling is in need of
some type of repair and the landlord has yet to correct the problem.
self-insured
Not purchasing an insurance policy for known perils. Being prepared to pay the
cost of events that are normally insured against such as fire, flood, weather
destruction, inventory loss, etc.
self-management
Plan of running a community whereby unit owners carry out policy decisions of
and handle affairs for an association; also self management structure.
self-petition
An alien of extraordinary ability, a battered spouse, or the widow or widower of
a U.S. citizen who had been married to that citizen for at least two years.
self-proved will
A will in which at least two witnesses took an oath, included in the will, at
the time the will was signed, and in which both the witnesses’ and the
decedent’s signatures were notarized by a qualified notary public. (Florida
Statute, Section 732.503.)
self-proving affidavit
A document used in most states so that a witness will not be needed to testify
in court to prove a will offered for probate is the last will of testament of
the decedent.
self-proving will
If a will is self-proving under the law of a particular state, nearly all states
will permit the admission to probate of uncontested wills without testimony of a
witness to the will. In California, a will is self-proving if the witnesses
attest, under penalty of perjury, that the will was properly executed.
seller’s agent
The real estate agent who represents the seller of the property in the
transaction.
seller’s market
A period during which there is a high demand for homes, creating an advantage to
sellers. Prices rise in a seller’s market.
senior lien
A lien that is superior to another lien. A senior lien will be paid before liens
subordinate to it.
senior living
Apartments for seniors that may have special medical alert systems and activity
programs.
senior mortgage
A first mortgage.
seniority system
A system followed by management, either by custom or pursuant to a collective
bargaining agreement with its unions, under which an employee with greater
longevity will be favored for promotion or reassignment over otherwise equally
qualified candidates.
separate maintenance
Another name for alimony, used in some states.
separate property
Property that belongs entirely to one person.
served
1) To be given official, legal notice of lawsuit papers. 2) Delivered by a
sheriff ’s deputy or other person legally authorized to make official delivery
of legal papers. See service.
service
The process of serving a person with notice that a lawsuit is pending against
him or her. Unless waived by the parties, service of process is usually done by
a person authorized by the court like a sheriff or process server.
service business
A business that sells services not a product, for example, a dry cleaner.
service by publication
Serving notice of a case by publication in a newspaper, or by posting on a
bulletin board of a courthouse or other public facility, when other types of
service are impractical or have been unsuccessful. This procedure is not used in
every state.
service center
One of the several remote processing facilities. Each service center accepts
certain petitions and application from people that live in the states within its
jurisdiction.
service mark
Identifying name or design to identify and distinguish one service provider from
another. Like a trademark except applies to services and not goods.
service of process
The delivery of a summons and complaint to a party for the purpose of obtaining
jurisdiction over that party.
servicing agent
The one from whom the borrower receives the monthly statement and makes the
payment, if different from the mortgagee.
SESAC
A performance rights society.
settlement
(1) The resolution of a legal dispute in which the parties agree on the amount
the defendant must pay the plaintiff. (2) An agreement that is reached between a
debtor and creditor that solves or eliminates the dispute. (3) Another name for
a real estate closing.
settlement costs
Money paid by borrowers and sellers to effect the closing of a mortgage loan,
including payments for title insurance, survey, attorney fees, and such prepaid
items as taxes and insurance escrow.
settlement date
See closing date.
settlement statement
See HUD-1 Uniform Settlement Statement.
settlor
Another term for creator of a trust. See also grantor, donor.
severability clause
A provision in a contract that says that if a court declares one provision of
the contract invalid, it does not invalidate the entire contract.
sex reassignment
Gender change.
sexually transmitted disease (STD)
A disease that is spread through sexual contact between two people.
shared appreciation mortgage (SAM)
A loan that entitles the lender to part of the profit from the future sale of
the property. The property may also be refinanced at the future date to pay off
the lender, with the profit based on the appraised value.
shared custody
Another term for joint custody.
shared parenting
A newer and perhaps more accurate term for joint care and responsibility of a
child, this term seeks to recognize that both parents play a significant role in
the upbringing of a child and therefore does away with old notions that one
parent has custody and the other has visitation.
shareholders
Individuals or entities who own the securities (shares/stocks) of a company.
shares outstanding
The total number of shares of stock held by all shareholders.
Shariah Program
Faith financing that is sanctioned by the Shariah Supervisory Board of America,
a panel of ten Islamic scholars that monitors financial products targeting
Muslims.
shell corporation
A corporation with no active business on its own and generally serves only as a
vehicle for the business of another entity.
Shepard’s Citations
A guide to determining if cases and statutes are still valid law, and for
finding other sources related to them
shepardizing
The act of using Shepard’s Citations.
sheriff ’s deed
Deed given by court order when a property is sold to satisfy a judgment or tax
lien.
short sale
Acceptance by a lender of an amount less than the total owed on a mortgage loan
as full payment. The purpose is to avoid the time and cost of foreclosure. The
most common use of a short sale is when there is little or no equity in the
property and little or no chance of collecting on a deficiency judgment.
shortened-statutory period
The time period which the PTO sets for your response/reply to an office action
or other communication. The period is usually three months although it can be
shorter. It is called “shortened” because there is a statute which provides an
absolute six month time limit for responding to all Actions from the PTO.
shrink-wrap license
A license to use a product that is triggered by the opening of the packaging of
the product.
signatories
People who are given the responsibility to sign documents.
signature card
Small card used for thumbprint in conjunction with an application for employment
authorization at some service centers or possibly the I-89 card used in ADIT
processing.
single-family home
Detached dwelling designed for occupancy by one family.
singlefile mortgage
A program for borrowers under which the lender pays the PMI and passes the cost
to the borrower in the interest rate.
site plan
Drawing that shows all improvements to be done on a site, such as clearing,
grading, and the installation of public utilities.
site value
Value of land without improvements, as if vacant.
skilled care facility
See long-term care facility.
skilled nursing facility
A nursing home.
sky lease
Lease of air rights.
slander
A defamatory statement made orally.
Small Business Administration (SBA)
A federal agency created in 1953 to provide assistance to small businesses by
guaranteeing loans through financial institutions and assisting the management
of qualified businesses.
Small Corporate Offering Registration (SCOR)
An SEC-exempt offering for the sale of securities up to the amount of $1 million
that must be qualified under state blue sky laws. Also known as ULOR.
small entity status
Qualifying for small entity status basically gives you a 50% reduction in all
fees.
Social Security number (SSN)
Can be used to pay your business taxes if the IRS does not require you to have
an EIN.
social worker
A professional who performs home studies and assists families with adjustments
to adoptions.
sodomy
Defined as oral or anal intercourse; illegal in some states.
soft tissue injury
Neck and/or back strains and sprains involving damage to the connective tissues.
This type of injury does not show up on radiological testing and is therefore
often considered by the insurance company to be faked or at least exaggerated.
Soldiers’ and Sailors’ Civil Relief Act
A federal law that allows certain military members out of their lease obligation
if they are transferred to another location during the course of their tenancy.
sole property
Another name for separate property or nonmarital property, used in some states.
sole proprietor
The only owner of a business and usually the only worker in it.
sole proprietorship
A business form with a single owner in which the owner has total control, total
liability, and the proceeds of the business are taxed at the proprietor’s
individual rate.
somatic nuclear cloning
Replacing the nucleus of a cell with a cell from another person.
Sound Exchange
Organization that administers royalty payments for digitally downloaded
material.
Soundscan
Company that collects data from sales of recordings. Used to determine the
Billboard charts.
special assessment
Fee levied against unit owners to cover unexpected expenses.
special assessment district
Government created subdivision with the power to tax and improve property within
its jurisdiction.
special damages
Damages for past, present and future medical bills, property damage and lost
earnings.
special employer
An employer who has borrowed an employee from another employer (called the
general employer) for a limited time period and has temporary responsibility and
control over the employee’s work.
special meeting
Unscheduled meeting called by Board or membership to discuss urgent business.
special needs child
A child that has a physical or mental disability.
special power of attorney
See limited power of attorney.
special registration
See registration.
special warranty deed
A deed in which the grantor only warrants that he or she has not done anything
that would cloud the title, not that he or she has good title.
specific bequest
The gift of a specific item of personal property to a specific person in a will.
specific devise
The gift of a specific parcel of real property to a specific person in a will.
specification
This is basically everything that makes up your patent application, minus your
drawings.
speculation tax
A tax associated with the sell of property purchased with the intent of making a
quick profit at sale.
spending down
The transfer of an individual’s assets in a certain manner that is allowable
under federal Medicaid statutes and allows the individual to reach the threshold
level for resources below which the individual is eligible for Medicaid.
spendthrift clause
Provision included in some trusts that prohibits the beneficiary from giving or
selling to others the beneficiary’s rights to the trust’s assets or income.
sperm
Male reproductive cell.
sperm donor
Male who donates sperm to be used by a woman or couple to conceive a baby. Sperm
donors can be anonymous or known.
split custody
The dividing of responsibilities for two or more children between the parents.
For example, in a split custody situation, mom may take custody of child A and
dad of child B with the noncustodial parents (and the siblings) having
visitation.
sponsor
An individual or company who is filing a petition on behalf of his or her
relative or employee, or a joint sponsor who is filing an affidavit of support.
spot zoning
Government zoning on a lot by lot basis, following no prescribed pattern or
plan.
spousal support
Another term, used in some states, for alimony. See alimony.
springing power of attorney
A power of attorney that becomes effective only upon the happening of an event
named in it.
SS-4
A form that is used to apply for the federal tax identification.
staff appraiser
Appraiser who works as an employee for a mortgage company, as opposed to the
company hiring an independent firm to appraise properties.
stamps.com
Software program for purchasing postage and tracking packages.
Standard Industrial Classification system (SIC).
A system of four-digit numbers used to classify industries. The SIC system is
being replaced by NAICS.
standard metropolitan statistical area (SMSA)
Central city area and its surrounding suburbs and small jurisdictions.
standard of care
A legal principle that applies in negligence cases and governs whether or not
conduct of the defendant is up to the standard that applies to the reasonably
prudent practitioner in that profession.
standard of proof
The level of proof that is required in a criminal or civil case. In a civil case
the standard of proof is typically what is called the preponderance of the
evidence. In a criminal case the standard of proof is typically proof beyond a
reasonable doubt.
standby trust
Living trust that takes effect if a grantor becomes ill or incapacitated or
dies. The grantor’s assets are transferred to the trust and managed by the
designated trustee.
standing
Term for whether you meet the legal requirements to file a particular kind of
lawsuit.
standing committee
Group of people formed to handle ongoing business on a certain subject.
start rate
The interest rate at the beginning of an adjustable rate mortgage loan. The rate
lasts for a short period and then changes to the permanent rate formula of the
index plus margin.
starter home
Beginning home that is less than what the buyer really wants; typically
purchased for the purposes of building credit and experience in home ownership.
starts
Number of residential housing units begun within a stated period of time.
state banking authority
An agency that governs the banks and financial institutions within a state.
state employment security agency (SESA)
Agency that operates with the Department of Labor to ensure that there is no
available U.S. worker for a particular position that is sought by an immigrant
State Parent Locator Services (SPLS)
Part of the state’s child support enforcement agency, the SPLS locates absent
parents in order to establish and enforce child support obligations, visitation,
and custody orders or to establish paternity.
state registration
In accordance with state laws, the requirement that certain items or business be
listed with the states where they reside. An example is your car that is
registered in your state.
statement of claim
A written statement of facts explaining on what basis a demand for payment from
the decedent’s estate is being made.
statement of income and expense
Financial report that indicates how much income has been earned and what
expenses have been incurred over a certain period of time and compares budgeted
and actual figures for the period in question and year to date.
statute
A law passed by a state or the federal government.
statute of frauds
A provision in state law requiring certain contracts to be in writing to be
enforceable in court.
statute of limitations
A provision in law that bars lawsuits that are not filed within a specified time
period.
Statute of Uses
Law passed in England in 1536 that made most land trusts illegal.
statutes
Laws passed by the federal congress or state legislators. County and city laws
are called ordinances.
statutes of fraud
State laws requiring that certain contracts be in writing; including contracts
for the sale of real property.
statutory damages
Money awarded because statutory law requires it.
statutory employee
A person who, by law, is classified as an employee for income tax, workers’
compensation, or other purposes, even though he or she might otherwise qualify
as an independent contractor.
statutory law
Laws created by state, federal, or local legislative bodies.
statutory rape
Sexual contact between a person and another person who is too young to be
legally able to consent to the sexual contact.
statutory rate
The amount set by law as the royalty rate for a compulsory mechanical license.
statutory warranty deed
A legal instrument that uses the language of a state statute to convey an
interest in a property.
stay
A court order to stop a legal process in progress. For example, a bankruptcy
court could stay (stop) an eviction or foreclosure proceeding. The owner or
lender would then have to ask the court to lift the stay (grant a relief of
stay).
stay of deportation
An application made on Form I-246 and filed with the Deportation Office to
request that a scheduled deportation be delayed for extenuating circumstances.
stipulation
Agreement between the parties to a legal dispute on a specific point. This
eliminates the need to prove the point.
stipulation for judgment
Settlement procedure where a judgment is signed by agreement but not filed as
long as an agreed series of periodic payments is paid in full and where, if
there is a default as to a payment, the judgment may be entered by the court for
the full stipulated amount, less payments made. If the agreed amount is timely
paid, a dismissal is filed and there is no judgment recorded. Therefore no
negative public record is made.
stock cooperative
Development where a corporation has title to the real property and the owners of
the corporation have a right of exclusive occupancy of a portion of that real
estate along with their ownership of stock in the corporation.
stowaway
Person who entered illegally by traveling on a commercial transportation such as
a train, bus, or boat where a fare should have been paid.
straw man
Person to whom a property is conveyed temporarily in order to clear the title.
street team
Group who provides promotional services to a musical act, such as passing out
flyers advertising shows.
strict foreclosure
Type of foreclosure proceeding used in some states in which title to the
foreclosed property is invested directly in the mortgagee by court decree,
without holding a foreclosure sale.
strict liability
A principle in tort law wherein a defendant may be held liable even though there
is no evidence of negligence. Such an activity may include a blasting case
wherein blasting activities cause damage to an adjoining property owner.
strict liability
Holding one responsible for damages even though reasonable care was used to
prevent the damage or injury. The plaintiff must still show that the defendant
owed a duty to the plaintiff and that the plaintiff’s actions caused the
damages.
student loan
An unsecured loan that is usually offered through a bank or loan agency and
backed by the government in order to pay for college. Student loans cannot be
discharged in bankruptcy and are often a source of credit problems.
subcontractor
Person or company contracted to perform work for a developer or general
contractor
subdivision
Improved or unimproved land divided into a number of parcels for sale, lease
financing, or development.
subject matter jurisdiction
This governs the authority of a court to hear particular types of cases.
subject-to-mortgage takeover
The purchase of mortgaged property by one who acknowledges that there is a
mortgage but assumes no liability for it. It differs from an assumption, under
which the buyer agrees to pay the loan.
subjective evidence of injury
Proof of an injury where objective evidence is not available. This most commonly
takes the form of the plaintiff's own testimony concerning pain and suffering
and limitations in function and range of motion.
sublease
A lease between a tenant and a third party (subtenant). Subleasing is allowed
unless the lease specifically prohibits it. Usually the lease states that
approval of the landlord is required.
subletting
Subletting occurs when a tenant allows a third party to assume occupancy of the
dwelling during all or part of the rental agreement between the landlord and the
tenant.
subpoena
A legal document notifying a witness that he or she must appear at a particular
place and time to give testimony. This can either require appearance at court
for a trial or hearing, or at some office for a deposition.
subpoena duces tecum
A particular kind of subpoena which also requires the person to bring documents
or other items when they appear to testify.
subrogation
Right of recovery for amounts already paid. For example, your insurance company
may pay you for your property damage under your collision coverage and then
assert its right of subrogation to recover that money from the insurance company
for the driver who caused the accident.
subscribed will
A will that is signed by the testator at the end of the document and then signed
by at least two witnesses.
subsurface right
Ownership of everything beneath the surface of the earth, such as oil and
minerals.
success rate
The percent or successful pregnancies a clinic produces.
successor trustee
A person or entity (e.g. bank trust department) that serves as trustee of a
trust document upon the resignation, removal or death of a trustee. For most
inter-vivos trust, the person or entity you name to act as trustee once you are
no longer able to do so.
summary administration
A simplified probate proceeding that may be used if the total value of the
estate is $25,000 or less, and there is no real property.
summary plan description
Description of a pension or retirement plan that lays out all the details of the
plan.
summary trial
Abbreviated trial where many factual and legal issues are stipulated to by the
parties and only essential issues are decided by a jury, judge or arbitrator.
summons
A notice to a defendant that an action against him or her has been filed in
court and that a judgment will be taken against him or her if the complaint is
not answered within a certain time.
superior lien
Lien or encumbrance (for example a mortgage or mechanics lien) on real estate
whose priority is greater (or superior) to other’s interest in the same
property.
supplemental amount
The minimal amount of a spouse’s elective share when married less than one year
in a state where the spouse’s elective share is a based on the duration of the
marriage. It is typically a somewhat complicated calculation, starting with a
minimal amount and subtracting what was received through certain other legal
provisions (such as the homestead and family allowance). Where referred to in
appendix B, you will need to read the law of that particular state to figure out
exactly what this would be in a given situation.
supplemental application data sheet
An application data sheet which you submit to correct any errors in the previous
application data sheet which you submitted to the PTO.
supplemental reply
A subsequent response/reply that you make after having previously
responded/replied to an office action from the PTO. You are allowed to make as
many supplemental replies as you want, so long as they do not unduly interfere
with your examiner’s action on your prior response(s)/replie(s).
support order
An order setting the amount of child support. Support orders may also cover
health care, payment of arrearages, or reimbursement of costs, fees, interest,
and penalties.
supremacy clause
The provision in Article VI of the U.S. Constitution stating that the
Constitution, the laws of the United States, and treaties “shall be the supreme
Law of the Land” binding in every state.
surety bond
A surety bond posted by the executor is in an amount equal to the value of the
personal property of estate (real property does not have to be bonded as it
cannot be sold without consent of the beneficiaries or the court). It is an
inexpensive form of insurance to guarantee that the executor will act honestly.
surplus lines insurer
See admitted insurer.
surrogacy
An arrangement whereby a woman carries a child for another person or another
couple.
surrogacy agreement
A contract made with a surrogate in which she agrees to carry the couple’s child
and allow them to become the child’s legal parents. It often includes provisions
for the intended parents to pay her expenses through the pregnancy.
surrogate
(1) A woman who carried a pregnancy for the intended parent(s) without any legal
ties to the child. (2) Another term for the agent in a health care power of
attorney.
survey
(1) The official measurement of the dimensions of a piece of property. (2)
Measurement of the land by a registered surveyor; produces the legal description
of the property with references to known points, dimensions, buildings, and
natural items (trees, rocks, and streams).
surveyor’s certificate
Formal statement, signed, certified, and dated by a surveyor, giving the
pertinent facts about a particular property and any easements or encroachments
affecting it.
survivor’s trust
A trust created at death for the benefit of the decedent’s spouse that takes
advantage of federal estate tax exemptions, and the surviving spouse has the
power to make changes to it.
synchronization license
The right to use a song accompanied by video images. Also called a synch
license.
take home babies
The percent or number of children conceived through ART that are born and go
home with their parents. This rate is usually the most accurate way to evaluate
a clinic since it does not count failed pregnancies.
take-home pay
Borrower’s paycheck after taxes and other deductions have been subtracted.
taking against the will
When a surviving spouse chooses to take the elective share of the estate,
instead of taking what was left to him or her in the will.
talent agent
See booking agent.
tangible form
A form that can be seen or held.
tax basis
The amount used as the cost of an item for tax purposes.
tax credit trust
See decedent’s trust.
tax deduction
Something that the government allows you to subtract from your income before tax
liability is computed.
tax deed
Deed on property purchased at public sale for nonpayment of taxes.
tax deferral
A feature of some employee benefit plans, such as qualified pension plans, that
permits the employee to exclude plan contributions from gross income for income
tax purposes until a later time, such as retirement.
tax exemption
Freedom from liability on taxes that apply to others.
tax lien
Claim against property for unpaid taxes.
Tax Refund Offset Program
This federal program intercepts tax refunds and other federal monies and
reroutes the funds to pay past due child support.
tax sale
Sale of property by a taxing authority or court acting on a judgment to satisfy
the payment of delinquent taxes.
tax year
Twelve consecutive months in which a business calculates its taxable income and
files its income tax return.
taxable income
That portion of revenue that is subject to taxation.
teaser rate
See start rate.
telecommuting
Working at home or at a facility other than the employer’s office that is
connected with the office by high tech communications equipment.
teleworking
The Equal Employment Opportunity Commission’s name for telecommuting.
Temporary Assistance to Needy Families (TANF)
Public assistance payments made to poor families, based on Title IV-A of the
Social Security Act. TANF replaced Aid to Families with Dependent Children
(AFDC) when the Personal Responsibility and Work Opportunity Reconciliation Act
(PRWORA) was signed into law in 1996. Applicants for TANF benefits are
automatically referred to their State IV-D agency in order to establish
paternity and child support for their children from the noncustodial parent.
This allows the state to recoup or defray some of its public assistance
expenditures with funds from the noncustodial parent.
temporary protected status (TPS)
Status given to aliens of certain countries where there is war, famine, or
natural disaster, such as hurricanes, that allows the alien to work and obtain a
social security number.
temporary resident alien
The correct term for someone granted the initial stage of the legalization
process from the 1986 amnesty.
tenancy by the entirety
Type of joint tenancy available to married couples; includes the right of
survivorship and protection from one spouse selling the home without the
permission of the other.
tenancy in common
A way for two or more people to own property, whereby if one of the owners dies,
his or her interest in the property passes to his or her heirs (not to the other
co-owners).
tenant
Person renting real property.
tenant-in-common ownership
Undivided interest in common with the other owners in a portion of real property
known as the “common areas” of the project or development which are separate and
distinct from the separate interest areas such as a unit or apartment.
tenants in common
A manner to hold property between two or more individuals. Each owner’s share is
based on his or her portion of ownership and does not transfer to the other
owners automatically at death, but instead is part of a decedent’s estate.
tenure
In a reverse mortgage, it is the term used to describe the program by which the
borrower receives income for as long as he or she occupies the property as a
primary residence.
term
Period of months or years needed to repay a mortgage.
terminal condition
A condition caused by injury, disease, or illness from which there is no
reasonable probability of recovery and which, without treatment, can be expected
to cause death.
terminal disclaimer
Form in which you agree that any patent issuing from your application must
expire on the same date as another patent which you also own.
terminal illness, injury, or condition
An illness or injury that is extremely likely to result in death. Some states
require that death is likely to occur within a relatively short time, but do not
say what constitutes a relatively short time.
testamentary capacity
The legal and mental capacity to execute a will. Generally defined as being 18
years of age or older and aware of one's assets, one's relatives, and knowledge
that document takes effect at time of death.
testamentary trust
A trust created by a person’s will.
testate
Dying with a valid will.
testator
A person making a will.
tester
A person who applies for a job for the sole purpose of testing the employer’s
hiring practices for discrimination.
theme
The subject of a written work.
third party administrator (TPA)
A company that administers a health insurance plan but does not provide any
insurance against the risk involved.
third party benefits
Those benefits obtainable from the other party's insurance company.
third party insurance
Also known as liability insurance. Insurance where the insurer assumes the
liability to pay damages on behalf of an insured to a third party for a covered
event, such as bodily injury or property damage.
third-party
As used in this book, a party who is neither a principal nor an agent under a
power of attorney.
time off plan
An exception to the Fair Labor Standards Act’s general overtime rules that
allows an employer under certain narrow circumstances to award compensatory time
to nonexempt employees in lieu of time and one half for overtime.
Tip Rate Alternative Commitment (TRAC)
An agreement between the IRS and an employer in the food and beverage industry
under which the employer agrees to establish an educational program and
reporting procedures designed to promote accurate tip reporting by employees,
and the IRS agrees to assess payroll taxes based on tips as reported by
employees.
Tip Rate Determination Agreement (TRDA)
An agreement between the IRS and an employer under which the IRS and the
employer determine and agree in advance on the rate of tips to be reported by
employees. TRDAs require at least 75% of the affected employees to join in the
agreement.
title
(1) Ownership of property and instrument that is evidence of that ownership. (2)
The registered ownership of a piece of property.
title binder
This is not title insurance. The binder says that if you do all the things the
title company requires—like paying the purchase money and recording a deed—then
they will issue title insurance when you pay the premium. A title binder is
worthless if you don’t complete all the steps and pay the premium.
title company
Company that sells title insurance.
title insurance
Insurance purchased to protect a buyer of property from claims of ownership by
someone other than the seller.
title search
Check of records to determine who owned the property and what liens have been
placed on the property from the time the property was built.
title theory
System in which the holder of a mortgage (the lender) has actual title to the
mortgaged property until the mortgage loan is repaid.
title update
Examination of public records from the date of a previous title search to
ascertain the status of title to property since such last search.
Title VII
The sections of the Civil Rights Act that prohibit discrimination in employment.
TOD (also T/O/D)
Transfer on death. Usually used on bank account and in some states on
securities.
toileting
The process of urinating and defecating.
top hat plan
See excess benefit plan.
topic and key number
A word, phrase or abbreviation, in bold face type, and a number, to which a
digest refers you instead of a page number.
Torrens
A method of registering the owner of real estate and all liens against the
property. It is similar to a car title. Torrens systems are voluntary. They are
allowed in some counties, in some states.
Torrens certificate
Certificate issued by a public authority called a registrar of titles,
establishing title in an indicated owner; used when title to property is
registered under the Torrens system of land registration.
tort
A wrongful act, damage or injury for which a civil lawsuit can be brought.
tort reform
Phrase coined by the insurance industry characterizing its efforts to change the
laws regarding personal injury litigation.
tortfeasor
The individual who caused the accident.
total expense ratio
Person’s debts as a percentage of his or her gross income; usually calculated on
a monthly basis.
Totten trust
A revocable trust established by depositing money in one’s own name as trustee
for another, with the usual goal to avoid probate over the property.
tour support
Money advanced by record label to pay for series of shows played by an act to
promote a recording.
townhouse
Row house on a small lot that has exterior limits common to other similar units.
Title to the unit and its lot is vested in the individual buyer with a
fractional interest in common areas.
tract
Parcel of land.
tract loan
Loan to a developer secured by land being subdivided.
trade name
A name used to identify the manufacturer of a product or group of products.
trade secret
Business information, such as a customer list, formula, or process that has
value because it is not widely known and its confidentiality is protected.
trademark
A distinguishing mark used to identify the manufacturer of a product or group of
products.
traditional surrogacy
The surrogate’s own eggs are used in conjunction with sperm from the intended
father to conceive a child. The surrogate is biologically related to the
resulting child.
transaction broker
A real estate agent who puts a transaction together without being an agent of
either party.
transfer of ownership
Action whereby ownership of a property changes hands.
transfer on death (TOD)
An account that passes directly to a designated beneficiary upon the owner’s
death.
transfer tax
State or city tax on the sale of a home.
transgender (TG)
Person who changes gender through medical and psychological treatment.
transition phrase
An introductory clause in your claim between the preamble and the body of the
claim.
transmittal form
(1) Form that must often be included with submissions that you make to the PTO.
The form gives the PTO information about what you are submitting. (2) A form
that summarizes the data contained within a loan application.
treasurer
Elected officer on the Board of Directors responsible for all financial
oversight and strategy for the association.
treasury index
One type of index used in ARMs based on auctions held by the U.S. Treasury for
Bills and Securities.
treatises
Books that cover an entire field of law.
trespasser
One who has no consent or right to be on another's property.
trial
Courtroom proceeding which determines the outcome of a lawsuit.
trial attorney
A prosecutor employed by the Department of Homeland Security to represent it in
immigration court, among other duties.
triple net lease
A landlord/tenant arrangement in which the tenant pays all the expenses of
property ownership, such as taxes, insurance and maintenance. This is very
common with commercial leases, and extremely uncommon with residential leases.
Troxel rule
The standards set out by the Troxel v. Granville case, which says that a fit
parent is presumed to act in the best interest of the child and their decisions
must be given special weight.
truancy
Absence from school without an excuse.
trust
An agreement in which one person is given property to hold for another person.
trust B
Another name for bypass trust.
trust certificate
Optional legal instrument that denotes ownership of an interest in a land trust.
trust deed
See deed of trust.
trustee
A person named in a trust document who has legal title to the property contained
therein, but holds and manages it for the benefit of the trust maker.
trustee’s deed
A legal instrument that transfers ownership of real property from a trustee to
another party.
trustor
The borrower under a deed of trust.
Truth in Lending Act
Law enacted to provide information for consumers who are requesting credit.
truth-in-lending
See Regulation Z.
two-step mortgage
A program that calls for a one-time adjustment in the interest rate of the
mortgage loan after five or seven years. Once the loan adjusts, there are no
further changes for the rest of the term.
Type 1 Escrow
Account that contains earnest money from the buyer and held by a third party,
which will eventually be part of the buyer’s payment to the seller.
Type 2 Escrow
Account used for payments of insurance and taxes.
U.S. citizen
A person born in the U.S., or born outside the U.S. to a U.S. citizen parent, or
a person naturalized.
umbrella insurance
See excess insurance.
umbrella policy
An insurance policy that provides coverage over the basic amount provided in a
liability policy.
unconscionable clause
A clause in a contract that is so unfair (although not against the law) that a
court cannot in good conscience enforce it. The clause must be unfair at the
formation of the contract and the court can choose to enforce the rest of the
contract.
undercapitalized
Not having enough money to soundly operate.
underwriting
(1) The process by which an insurer evaluates an application for coverage to
determine whether the risk is acceptable for coverage, and if so, the premium to
be charged. (2) The process used by a lender to evaluate the application of a
borrower seeking to get a mortgage loan.
undocumented alien
Someone who entered the U.S. illegally across a border without a visa.
unemployment compensation
Payments to a former employee who was terminated from a job for a reason not
based on his or her fault.
unemployment insurance
A federal/state system funded by employers, under which employees who have
involuntarily lost their jobs receive temporary benefits.
unencumbered property
Property that is free and clear of debts or liens.
unfair labor practice (ULP)
Conduct by an employer or a union that violates the National Labor Relations
Act.
unified credit
The federal credit against estate taxes that is allowed to each person or
estate.
uniform business report
A form filed annually by an LLC in some states.
Uniform Commercial Code (UCC)
A set of laws passed by all fifty states which governs commercial transactions.
Uniform Partnership Act (UPA)
A standardized partnership law that has been adopted by many states.
Uniform Residential Appraisal Report (URAR)
Form used by appraisers of residential properties to estimate the value to be
financed with FHA, VA, or conventional mortgages.
Uniform Residential Landlord and Tenant Act (URLTA
The Act laid the basic framework for many of our current landlord and tenant
laws. Its provisions have been adopted by a large number of states.
Uniform Transfers on Death Securities Registration
An act allowing investment or other accounts is to be re-registered on request
after the owner's death in the name of a beneficiary.
Uniformed Services Employment and Reemployment Rig
USERRA requires service members on military leave to continue to be carried as
employees for certain benefit and seniority purposes and to be reemployed when
they return from military leave.
union security clause
A provision in a collective bargaining agreement that protects union membership
or revenue. A union security clause may require that employees be union members
in order to be hired (closed shop), that they join a union after being hired
(union shop), or that, in the case of nonunion employees, they pay dues as if
they were members (agency shop).
union shop
A type of union security arrangement under which employees are required to join
a union within a specified time after hire.
United States Citizenship and Immigration Services
Agency that comprises the benefits side of the former INS. It is part of the new
Department of Homeland Security
unlawful detainer
The name for the legal action to evict someone from property.
unlawful presence
Time that an alien is in the U.S. illegally or out of status since April 1,
1997.
unlimited marital deduction
Allows a spouse to transfer all property to his or her spouse without federal
estate tax.
unsecured loan
A loan in which the creditor does not hold a security interest in an item you
own. Most credit cards are unsecured.
upper bracket
Real estate agent’s way of referring to upper middle class, but not fabulously
wealthy, people.
use tax
A tax paid in place of a sales tax.
user accounts
A credit card account set up in one person’s name that has a card issued to
another person so that he or she may charge against the account. The person who
holds the account is ultimately responsible for payments.
user fees
Fees collected for the use of facilities such as extra parking or storage spaces
and other similar charges.
usury
Charging borrowers a rate of interest greater than that permitted by law.
usury ceiling
Maximum legal rate, established by some state’s laws, for interest, discounts,
or other fees that may be charged for the use of money.
usury saving clause
Clause in a loan document intended to protect the lender from a claim that an
unlawful amount of interest is being charged.
utilities
Basic services associated with developed areas that include provisions for
electricity, telephone, gas, water, and garbage collection.
utility patent
One of three types of patents which are granted. This is a general patent and
will probably be the type of patent which you will want to seek.
utility requirement
This is based on a statute and requires that your invention as described in your
patent application has a specific, substantial, and credible use.
V Visa
New benefit from LIFE Act that allows spouses or minor unmarried children of
green card holders after three years wait on the I-130 petition to obtain lawful
nonimmigrant status in the U.S. or enter the U.S. if abroad in order to wait the
remaining years on their visa petition.
VA loan
Mortgage loan made by an approved lender and guaranteed by the Department of
Veterans Affairs. (VA loans are made to eligible veterans and those currently
serving in the military, and can have a lower down payment than other types of
loans.)
valuation
Estimation of a property’s price through appraisal.
variable pay
Pay, such as bonuses or commissions, that may vary in amount depending on
productivity, company profitability, or other factors.
variable rate mortgage
See adjustable rate mortgage.
variance
Approved special change in construction codes, zoning requirements, or other
property use restrictions.
venture capitalists
Individuals or institutions that fund early stage, high risk businesses. They
generally want some ownership in the business and expect a 20% to 50% return on
investment.
venue
The place where a trial can properly take place. Proper venue is usually found
where the accident happened or where one or more of the defendants lives or does
substantial business
verification of deposit (VOD)
Document that lists details of a financial transaction.
verification of employment (VOE)
Form that requests and secures documentation of a mortgage applicant’s work
history and occupation, to assist in the lender’s credit investigation.
verification of mortgage
Form that requests and secures verification of payments made on an applicant’s
current or past mortgage.
verified complaint
A complaint which has been signed by a party under oath (such as before a notary
public or the court clerk).
vested
Nonforfeitable. When pension plan benefits are vested, they belong to the
employee, even if employment ends or the plan is terminated.
vested rights
Legal rights that are currently possessed, as opposed to rights that will not be
possessed until some time in the future.
veteran’s benefits
Health-insurance benefits provided to honorably discharged military personnel.
Veterans Affairs (VA)
An agency of the United States government that, among other things, guarantees
home loans for veterans.
Veterans Health Administration (VHA)
An agency under the VA that provides health services to military veterans.
vial of life
A program run by many sheriff departments, where a person keeps a vial on the
refrigerator with health information and emergency contact information.
viatical settlements
Term used to refer to the practice of selling a life insurance policy to a
company who makes an immediate cash payment, but then becomes the beneficiary of
the proceeds from the policy at your death.
vicarious liability
Liability imposed on an employer for the negligence of an employee that occurs
in the course and scope of employment.
vice president of the board
Elected officer who fulfills the President's responsibilities in his or her
absence and generally oversees the work of Committees.
Vietnam Era Veterans’ Readjustment Assistance Act
VEVRAA prohibits most federal contractors from discriminating against
Vietnam-era and disabled veterans and requires affirmative action to ensure
equal employment opportunity.
violation
Any situation on a piece of property that does not comply with a law or
regulation.
visa
An immigration document that allows you to enter a country.
visa bulletin
Information updated monthly by the Department of State available by mail,
Internet, or phone showing which preference categories are currently available.
visa lottery
See diversity visa
visa petition
Either the alien relative I-130 petition or the employment based I-140 petition
filed on behalf of a beneficiary.
visa waiver
Entry into the U.S. without a visa from a changing list of approximately twenty
countries whose citizens are known to respect U.S. immigration laws.
visitation
The court-ordered right given to a parent (or another) who does not have custody
to see and care for their child during specific time periods.
void
Used in real estate as phrase “null and void” meaning no longer in effect.
voir dire
The questioning of potential jurors before a trial to determine if they have any
biases.
voluntary conveyance
Elective transfer of property from a defaulting borrower to the lender, as an
alternative to foreclosure. This arrangement saves the lender the expense of
foreclosure, and the borrower receives credit for payment in full.
voluntary departure
Granted by an immigration judge or a USCIS officer where the alien agrees to
leave the U.S. at his or her own expense by a certain date in lieu of
deportation and the effects of a deportation order.
voluntary payment clause
An important liability coverage condition. Most policies provide that the
insurer has no obligation to reimburse an insured for any payment made by an
insured in connection with a claim without the insurer’s prior permission.
voucher system
In construction lending, a system of paying subcontractors vouchers in lieu of
cash; they then redeem the documents to the construction lender for actual
payment.
W-2
IRS form which reports income paid and taxes withheld by an employer for a
particular employee during a calendar year.
W-4
IRS form which determines the amount of Federal taxes the employer will withhold
from a person’s paycheck each pay period.
wage assignment
A voluntary agreement by an employee to assign future wages to pay debts, such
as child support.
wage withholding
A procedure by which scheduled deductions are automatically made from wages or
income to pay a debt, such as child support. Wage withholding often is
incorporated into the child support order and may be voluntary or mandatory.
wage-earner plan
See Chapter 13.
waiver
The giving up of a right. For example, accepting late rent without charging the
agreed upon late charge may be a waiver of future right to the late charge.
waiver
(1) Surrender of a right or privilege. (2) Legal document used to give another
person permission to either do or not do something that was required. (3)
Generally, one of the several forms, such as I-212, I-601, I-602 or I-612, used
to waive or negate a condition of inadmissibility such as entry on a false
passport or criminal record.
ward
A person who has been declared incompetent and had a guardian appointed.
warrants
A certificate giving its holder the right to purchase securities at a defined
price within a specified time.
warranty
(1) A guarantee as to the condition of a property. (2) The insurance policy some
sellers get on certain expensive items in the house to pay the buyers in case
the item is defective.
warranty deed
A legal instrument in which a person conveys an interest in property and
guarantees that he or she is giving good title to the property.
warranty of habitability
The warranty of habitability requires that the landlord keep up the premises to
a minimum level of habitability, regardless of the rental agreement.
web browser
Software that enables a person to read information on the World Wide Web.
web page
One page on the Internet. A group of web pages will comprise a website.
website
Where information is found on the World Wide Web, or Internet.
weekly benefit amount (WBA)
For unemployment insurance purposes, the amount a claimant is entitled to (but
for any disqualification) as determined from his or her base period wages.
Welcome Wagon
A person or group that provides information and gifts from local merchants to
new residents; can be a useful source of information.
Welfare-to-Work tax credit
A federal tax credit allowed to employers who hire long-term family assistance
recipients.
Westlaw®
An online legal database. That provides access to entire libraries of legal
information.
whistleblower
An employee who discloses fraud or other wrongdoing by an employer.
white card
See I-94.
white collar exemptions
Exemptions from the Fair Labor Standards Act’s overtime requirements for persons
employed in bona fide executive, administrative, or professional capacities and
as outside salespersons.
white passport
See reentry passport.
will
A document that, at someone’s death, directs the distribution of his or her
assets. A will generally cannot affect the distribution of assets held in joint
tenancy, distributed pursuant to a contract (life insurance, pensions,
retirement plans, annuities, etc.), or property subject to a “payable on death”
or “transfer on death” designation.
winding up
The acts connected with closing business operations upon the dissolution of a
partnership.
withholding of removal
Requires a showing that it is more likely than not that one faces persecution on
the basis of political opinion, religion, gender, nationality, or membership in
a particular social group.
withholding order
A court order in a domestic relations case, similar to a garnishment, requiring
an employer to withhold and turn over a portion of an employee’s earnings to
cover the employee’s family support obligations.
withholding taxes
Amount of money your business withholds from your employees’ wages for their
income, Social Security, and Medicare obligations.
witness
A person who sees a testator sign his or her will and signs the will after the
testator. A witness must be eighteen years or older, aware that the document he
or she is signing is a will, and not a beneficiary under the will who takes any
more than he or she would have under intestate succession.
work for hire
A work made by a person who grants all rights in the work to the person who paid
for it.
Work Opportunity Tax Credit (WOTC)
A federal tax credit allowed to employers who hire persons in targeted groups–
recipients of assistance under TANF, veterans, ex-felons, summer youths, food
stamp recipients, and SSI recipients.
work permit
See employment authorization document.
work-for-hire
A product created or invented by an employee for his or her employer, the
copyright or patent rights of which belong to the employer.
work-sharing agreement
An agreement between the Equal Employment Opportunity Commission and a state or
local Fair Employment Practice Agency that allocates responsibility for
processing charges of employment discrimination. Work-sharing agreements usually
provide that a filing with one agency constitutes a filing with the other agency
as well.
Worker Adjustment and Retraining Notification Act
A federal law that requires employers with 100 or more employees to give sixty
days’ advance notice of a mass layoff or plant closing.
workers’ compensation
A state statutory arrangement funded by employers, under which employees who
suffer work-related injuries or occupational illnesses receive benefits while
out of work or while limited in their ability to work. Death benefits are
provided to dependents of employees who are killed. The statutes also typically
provide for payment of medical expenses, funeral benefits, and vocational
rehabilitation.
working capital
The excess of current assets over current liabilities.
workout assumption
The taking over of a mortgage loan in default, even though the loan may say it
cannot be assumed. The purpose is to avoid foreclosure, and the workout may
include some forgiveness of unpaid interest.
World Wide Web
A popular method of accessing information on the Internet.
wraparound mortgage
A financing arrangement in which a buyer of property makes one monthly payment
to the seller that includes money the seller will pay to the holder of an older,
smaller mortgage on the property.
writ of execution
Court order authorizing an official to evict a tenant or sell real property.
writ of restitution
The writ entitles the landlord to use a law enforcement officer to remove the
tenant from the premises if the tenant does not leave voluntarily.
write-down
A lender agreeing to take less than the full debt as payment in full.
written description requirement
A statute requirement that your patent application be detailed enough to show
that you were in possession of your invention.
written stipulation
Written agreement between people commonly found in litigation.
wrongful death action
A type of tort action that is brought wherein the injured party has died as a
result of the fault of the defendant.
wrongful discharge
See abusive discharge.
wrongfully withheld deposits
These are funds that are kept by the landlord without cause.
x-mark signature
Signature made by a person who is unable to sign his or her name. (This type of
signature is only legally valid when witnessed by another person.)
zero down mortgages
Also called 100% loans. A mortgage that requires no down payment.
zero lot line
Positioning of a structure on a lot so that one side rests directly on the lot’s
boundary line.
zoning
Governmental regulations controlling the use of land.
zoning commission
Governmental body charged with the responsibility of enforcing or modifying
zoning restrictions.
zoning regulations
Laws governing the use of real property.
zygote
An early embryo.
zygote intrafallopian transfer (ZIFT)
A process where eggs are inseminated, then placed in the fallopian tubes.
