A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z  

Abstract (of title)- A summary of public records relating to the title to a particular parcel of land.

Acceleration clause (in a mortgage)- Specifies conditions under which the lender may advance the time when the entire debt which is secured by the mortgage becomes due. For example, most mortgages contain provisions that the note shall become due immediately upon the sale of the securing land without the lender's consent or upon failure of the landowner to pay an installment when due.

Acknowledgement- A formal declaration before an authorized officer (usually a notary public) by a person who has executed an instrument that such execution is the individual's act. Administrator. Person appointed by a court to take possession of property of a person who died without leaving a will, to pay debts and to distribute the property to those entitled to it according to the law. Adverse possession. Physical possession of land inconsistent with the right of the owner. In most states, a party in adverse possession, after satisfying fully the requirements of the relevant statutes, thereby acquires the title to the land.

Affiant- One who swears to or affirms the statement in an affidavit.

Affidavit- A statement in writing sworn or affirmed to before an official (usually a notary public) who has the authority to administer an oath or affirmation.

Affirmative coverage- Provisions in policies by which the insurer affirmatively insures against loss due to specific risks generally not covered by policies; for example, insurance against loss due to violation of usury or truth-in-lending statutes or restrictive covenants.

All inclusive rate- The system of quoting rates for insurance where the stated rate includes the cost of title search, title examination, and the policy. This system is in contrast with the system which quotes the rate charged for the policy only. The cost of search and examination in this latter system is extra.

ALTA- American Land Title Association, a national association of title insurance companies and title abstract organizations. This term is used most frequently as part of the identification of standard policy forms adopted by that association.

Amortize- To reduce debt by means of regular periodic payments which include amounts applicable to both principal and interest. An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the issuance of title insurance policies.

Appurtenances- Rights which pass with the title to the land itself. These rights may affect other lands; e.g., an appropriate access easement over adjoining land.

Assessed valuation- The valuation placed upon land for purposes of taxation. This valuation does not necessarily correspond to the market valuation.

Assessment- A special tax imposed on owners of land by governing bodies for the purpose of paying for improvements (sewer lines, sidewalks, street paving, etc.) which benefit the land of such owners.

Assignment- A transfer of (or the document transferring) a right and /or interest in land. Used often in transferring interests of a mortgagee or of a lessee. Assignor is the person who transfers the interest; assignee is the person to whom the interest is transferred.

Assumption of mortgage- An obligation undertaking by the purchaser of land to be personally liable for payment of an existing note secured by a mortgage. As between the lender and the original borrower, the original borrower remains liable on the mortgage note.

Attorney in fact- A person who holds a power of attorney from another to execute specified documents on behalf of the grantor of the power. B Back title letter of back title certificate or starter. A letter or certificate furnished to an attorney by a title company authorizing the attorney to base title opinion to the title company concerning a particular parcel of land on an examination of tit le beginning with a specific date or with a specific deed, and giving the attorney the status of title as of that date or deed.

B

Balloon payment- A large lump sum payment of unamortized premium and accrued interest at the end of the term of a loan in which the consecutive monthly installment payments are insufficient to amortize the entire principal and interest over its terms.

Base title or basic title- Title to an area or tract out of which plats are subsequently conveyed or from which a subdivision or development is made. Thus the title to farm acreage which has been subdivided would be the base title to the entire subdivision .

Beneficiary (of a trust)- A person designated to receive some benefit from the trust estate, binder or commitment. An enforceable agreement that upon satisfaction of the requirements which are stated in the binder the insurer will issue the specified title insurance policy subject only to the exceptions stated in the binder. A binder sets forth status of title as of a particular date. Bond. (1) An insurance agreement under which one party becomes surety to pay, within stated limits, financial loss caused to another by specified acts or defaults of a third party. (2) An interest bearing security evidencing a long term debt, issued by a government or corporation, and sometimes secured by a lien on property.

Building (restriction) line or setback- A line fixed at a certain distance from the front and/or sides of a lot or at a certain distance from a road or street, which line marks the boundary of the area within which no part of any building may project. This line maybe established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.

C

Certificate of title- A written opinion by an attorney that ownership of the particular parcel of land is as stated in the certificate.

Chain of title The successive ownership or transfers in the history of title to a particular parcel of land. Each deed or other instrument effecting a transfer of the title is called a "link" and all of the links constitute the chain.

Chains and links- Units of length in the measurement of land. Closing. (1) Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage. The process includes the signing and transfer of documents and distribution of funds. (2) Condition in description of real property by courses and distances at the boundary lines where the lines meet to include all the tract of land. Closing costs. Miscellaneous expenses involved in closing a real estate transaction over and above the price of the land.

Cloud on title- An outstanding claim or encumbrance which adversely affects the marketability of title.

Coinsurance- Insurance in which more than one insurer shares a part of a single risk. . Coinsurance is usually effected by separate contracts of insurance by separate companies, each of which undertakes a fractional part o f the whole risk.

Collateral- Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral.

Commitment- See binder. (Has different meanings in related businesses such as real estate, mortgage lending, etc.)

Community property- A category of property, existing in some states, in which all property (except property specifically acquired by husband or wife as separate property) acquired by a husband and wife, or either, during marriage, is owned in common by the husband and wife. Condemnation. (1) The lawful taking of private land for public use by a government under its right of eminent domain. (2) A declaration by a governmental agency that a building is unfit for use. Condominium declaration. The document which establishes a condominium and describes the most important property rights of the unit owners. Special statutes in each state prescribe the contents of this document, known in some states as a "master deed."

Construction disbursement service- A direct payment plan for disbursement of construction loan and equity funds through the title company as an independent escrow agent to subcontractors and suppliers upon approval of the owner, general contractor, and lender.

Construction loan- A loan which is made to finance the actual construction or improvement on land. It is often the practice to make disbursements in increments as the construction progresses.

Contract of sale- Agreement by one person to buy and another person to sell a specified parcel of land at a specified price.

Conventional loan- A mortgage loan neither insured by FHA nor guaranteed by VA.

Conveyance- (1) A document which transfers an interest in real property from one person to another; e.g., a Deed. (2) The act of executing and delivering a deed or mortgage.

Cooperative (apartment)- An apartment building which is owned by a corporation and in which tenancy in a apartment unit is obtained by purchase of the pertinent number of shares of the stock of the corporation where the owner of such shares is entitled to occupy a specific apartment in the building.

Cotenancy- Ownership of the same interest in a particular parcel of land by more that one person; e.g., tenancy in common, joint tenancy, tenancy by the entireties.

Covenant- An agreement between the parties in a deed whereby one party promises either (1) the performance or non-performance of certain acts with respect to the land or (2) that a given state of things with respect to the land are so; e.g., covenant that the land will be used only for residential purposes. Curtsey. A husband's life estate in the property of his deceased wife. By statute in most states, it is a life estate in one third of the land she owned during their marriage. Curtsey has been abolished by statute in some states.

D

Dedication- The granting of land by the owner for some public use and its acceptance for such use by authorized public officials.

Deed- A written instrument duly executed and delivered by which the title to land is transferred from one person to another.

Deed of Trust- A conveyance of a land title by a maker of a note (the debtor) to a third party, a trustee, as collateral security for the payment of the note with the condition that the trustee shall reconvene the title to the debtor upon payment of the note, and with power in the trustee to sell the land and pay the note in the event of a default on the part of the debtor.

Deficiency judgment- A judgment against a person liable for the debt secured by a mortgage in an amount by which the funds derived from a foreclosure or trustee's sale are less than the amount due on the debt.

Devise- A gift of land by will or to give land by will. A devisee is the person to whom property is given by a will.

Discount points- The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. This amount is equal to the difference between the principal balance on the note and the lesser amount which a purchaser of the note would pay the original lender for it under market conditions. A point equals one percent of the loan.

Dower- An estate for life to which a married woman by statute is entitled on the death of her husband. In most states it is a life estate of one third of the value of all land which the husband owed during their marriage. Dower has been abolished by statute in some states. The reason for requiring a wife's joining in the deed of any land by her husband is the release of her dower right.

Draw- Disbursement of a portion of the mortgage loan. Usually applies to construction loans when partial advances are made as improvements to the property progress.

E

Easement- A privilege or right of use or enjoyment which one person may have in the lands of another; for example, a right of way to install, operate, and maintain utility lines.

Eminent domain- The right of a government to appropriate private property for a public use by making reasonable payment to the owner of such property.

Encroachment- The intrusion of any improvement partly or entirely on the land of another.

Encumbrance- Any right or interest in and held by persons other than the fee owner which right or interest lessens the value of the fee title. Examples are judgement liens, easements, mortgages, restrictions.

Endorsement- A form issued by the insurer at the request of the insured which changes term(s) or item(s) in an issued policy or commitment.

Equity- (1) The interest or value which an owner has in real estate over and above the debts against it. (2) A type of court of record.

Equity participation- A type of mortgage transaction in which the lender, in addition to receiving a fixed rate of interest on the loan, acquires an interest in the borrower's land and shares in the profits derived from the land.

Escheat- The transfer of title of property to the state if the owner dies intestate and without heirs.

Escrow- Money, securities, documents, or other property deposited with a third party to be held by the third party (called the escrow agent) until the happening of a future event and then to be delivered to the designated party. In some states nearly all real estate transactions are closed through the use of escrow.

Estate- The degree, quantity, nature, and extent of interest which a person has in land. And wife.

Examination of title- The review of the chain of title as revealed by an abstract of the title or public records.

Exceptions Those matters affecting title to the particular parcel of realty which matters are excluded from coverage of the particular title insurance policy.

Exclusion- Those general matters affecting title to real property excluded from coverage of a title insurance policy.

Executor- A person named in a will to administer the estate. Executrix is the feminine form.

F

FNMA (Fannie Mae)- Federal National Mortgage Association, a federally sponsored private corporation which provides a secondary market for housing mortgages.

Fee simple- An estate in which the owner is entitled to the entire property, with unconditional power of disposition during the owner's life, and which descends to the heirs upon the owner's death if the owner dies without a will.

FHA- Federal Housing Administration, an agency of the federal government which insures private loans for financing of new and existing housing and for home repairs under government approved programs.

FHLMC (Freddie Mac)- Federal Home Loan Mortgage Corporation, an affiliate of the Federal Home Loan Bank, which creates a secondary market in conventional residential loans and in FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.

Fixture- Personal property that by state law becomes real property upon being attached to real property.

Foreclosure- Legal process by which a mortgagor of real property is deprived of interest in that property due to failure to comply with terms and conditions of the mortgage.

G

General warranty deed- A deed containing a covenant whereby the seller agrees to protect the buyer against being dispossessed because of any adverse claim against the land.

GNMA (Ginnie Mae)- Government National Mortgage Association, a government corporation which provides a secondary market for housing mortgages and special assistance to mortgagee financing housing under special FHA mortgage insurance programs.

Graduated payment mortgage- A mortgage securing a loan in which the initial monthly payments on the loan are insufficient to satisfy interest payments at the stated interest rate, and unpaid amounts of interest are added to the principal balance.

Grantee- In a deed, the person to whom the land is transferred.

Grantor- In a deed, the person who transfers the land.

Guaranty policy- A title insurance policy which insures only against defects of title appearing in the public records. Other policies insure against defects whether or not they appear in public records.

H

Heir- The person who, at the death of the owner of land, is entitled to the land if the owner has died without a will.

Homestead (exemption)- A person's dwelling and that part of the land which is about and contiguous to the dwelling. Many states by statute give special privileges to such lands, such as exemptions from remedies of creditors.

HUD- The Department of Housing and Urban Development. It is responsible for the implementation and administration of U.S. government housing and urban development programs.

I

Indemnity agreement- An agreement by the maker of the document to repay the addressee of the agreement up to the limit stated for any loss due to the contingency stated on the agreement.

Insurable title- A land title which a title insurance company is willing to insure.

Insured closing service- An agreement by the insurer to indemnify for any loss in settlement funds caused by (1) the failure of the company's policy issuing agents or approved attorneys to conform to closing instructions of the insured, or (2) fraud or dishonesty of the issuing agent or approved attorney. This service is offered by the insurer to certain large lenders, developers, etc.

Interval ownership- A form of time share ownership. See Time share ownership.

Intestate- Without having made a valid will or one who dies without having made a will.

J

Joint protection policy- A title insurance policy in form suitable to insure the owner and/or lender.

Joint tenants- Persons who are co-owners of interests in the same land. At common law and in some states today, upon the death of a joint tenant, interest automatically passes to the surviving joint tenant(s). This survivorship feature, when it exists, is the principal distinction between joint tenancy and a tenancy in common.

Judgment- The formal expression and evidence of the decision of a court in a specific lawsuit. Where the judgment decrees that one party (the judgment debtor) pay another party (the judgment creditor) a certain sum of money, the recording of that judgment creates a lien upon all land of the judgment debtor in that jurisdiction.

Junior mortgage- A mortgage, the lien of which is subordinate to that of another mortgage.

L

Leasehold- The right to possession and use of land for a fixed period of time. The lease is the agreement which creates the right. The person who has the leasehold is the tenant or lessee. The person who grants the leasehold is the lessor or landlord.

Legal description- A property description which by law is sufficient to locate and identify the parcel of real property.

Lien- A claim or charge on property of another for payment of some debt, obligation, or duty. Lien waiver or waiver of liens. A document signed by the general contractor, each subcontractor, and each material man of a construction project whereby the signatories waive their right to mechanics' liens on the land involved in that particular project.

Life estate- An individual's right to the use and occupancy of real property for life.

Link- Links. See Chains of title.

Lis Pendens- A legal notice that there is litigation pending relating to the land and a warning that anyone obtaining an interest subsequent to the date of the notice may be bound by the judgment.

Loan policy or mortgage policy or mortgagee policy- A title insurance policy in which the insurer insures the mortgagee against loss it may suffer because the title is not vested as stated in the policy and insures the validity and priority of the mortgage lien over any other lien not excepted to in the policy.

M

Marketable title- A title which a reasonable purchaser, well informed as to the facts and their legal meaning, would be willing to accept.

Master deed- See Condominium declaration.

Mechanics' liens surety bond- A bond in which an approved surety company agrees to indemnify the title insurance company for any loss it may suffer due to the insurer's issuing a specific policy without mechanics' lien exception.

Metes and bounds- A description of a parcel of land by describing the boundary lines in length and direction.

Mortgage- An instrument whereby an owner conditionally transfers title of property to another as security for payment of a debt. The owner retains possession and use of the land and, upon the payment of the debt, the mortgage becomes void.

Mortgage policy- See Loan policy.

Mortgagee- The lender who provides the money for the mortgage and to whom the mortgage is given.

Mortgagee policy- See Loan policy.

Mortgagor- The person who borrows the money from the mortgagee, and who signs the mortgage as security.

N

Negative amortization- Occurs where monthly installment payments are insufficient to pay the interest accruing on the principal balance, so the unpaid interest must be added to the principal due.

Note- A written promise to pay a certain amount of money, at a certain time, or in a certain number of installments. It usually provides for payment of interest and its payment is at times secured by a mortgage.

O

Open-ended mortgage- A mortgage or deed of trust written so as to secure and permit advancing of funds in addition to the amount originally loaned.

Option- The right, acquired for a consideration, to buy, sell, or lease land at a fixed price within a specified time.

Oversized policies- Policies in which the amount (limit of risk) exceeds that which the agent is authorized to write without specific approval.

Owner's policy- A title insurance policy insuring the owner against loss due to any defect of title not excepted to or excluded from the policy.

P

Partition- Division of land, usually by a legal proceeding, among the parties who were formerly co-owners.

Permanent financing- A loan secured by land after improvements have been completed.

Planned unit development (PUD)- A project consisting of individually owned parcels of land together with common areas and facilities that are owned by an association of which the owners of all the parcels are members.

Plat (of survey)- A map of land made by a surveyor showing boundary lines, buildings, and other improvements on the land.

Points- See Discount points.

Power of attorney- An instrument in writing by which one person, the principal, authorizes another, the attorney in fact, to act in the specific actions described in the instrument.

Prepayment penalty- Penalty to the mortgagor for payment of the mortgage debt before it becomes due.

Prescription- The doctrine by which easements are acquired by long, continuous, and exclusive use and possession of property.

Public records- Records which by law impart constructive notice of matters relating to land.

Purchase money mortgage- A mortgage given by the purchaser to the seller simultaneously with the purchase of real estate to secure the unpaid balance of the purchase price.

Q

Quieting title- The removal of a cloud on title by proper action in a court.

Quitclaim- A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land.

R

Recording- The noting in the designated public office of the details of a properly executed legal document, such as a deed or mortgage, thereby making it a part of the public record, and thus by law imparting constructive notice of that document.

Redemption- The right of the owner in some states to reclaim title to property if the owner pays the debt to the mortgagee within a stipulated time after foreclosure.

Reinsurance- The act of an insurer transferring a portion of the risk to other insurers. The original insurer is sole insurer for a portion of the risk and shares the risk in the excess amount with the reinsurreinsuresirst portion of the loss risk retained by the ceding company as its sole liability is called the "primary liability."

Reissue rate- A reduced rate of title insurance premium applicable in cases where the owner of the land has been previously insured in an owner's policy by the insurer within a certain time.

REIT- Real Estate Investment Trust, a business trust which deals principally with interest in land. REITs generally are strictly organized to conform to the requirements of provisions of the Internal Revenue Code which give tax advantages to conforming REITs.

Release- A deed from the mortgagee or trustee of a deed of trust which releases specific property from the lien of the mortgage or deed of trust.

Remainder- An interest or estate in land in a person other than the grantor in which the right of possession and enjoyment of the land is postponed until the termination of some other interest or estate in that land.

Renegotiable rate mortgage- A loan secured by a long-term mortgage of up to 30 years, which provides for renegotiations at equal stated intervals of the interest rate for a maximum variation of 5 percent over the life of the mortgage.

Reserve- The portion of the title insurance company's retained earning set aside for some specific purpose.

Liability reserve- A segregated or earmarked portion of retained earning established to show the estimated amount of a known or potential future liability. Reserve for undetermined title losses. The liability reserve established and maintained against unpaid losses and expenses related to every specific claim presented to the title insurance company by a policyholder. The amount of reserve is established by careful estimates of probable liability. It is reviewed periodically and changed when warranted.

Statutory reserve- The reserve requirement established by state statutes as the minimum which must be maintained by a title insurance company, either (1) by a company incorporated under the laws of that state or (2) as a qualification for a company incorporated in another state to do business in the state.

RESPA- The Real Estate Settlement Procedures Act (12 U.S.C. 2601) which, together with Regulation X promulgated pursuant to the Act, regulate real estate transfers involving a "federally related mortgage loan" by requiring, among other things, certain disclosures to borrowers.

Restriction- Provision in deed or will or in a "Declaration of Condition, Reservation and Restrictions" which limits in some way the right to use land or convey its title. Examples are building setback lines and limitations to residential uses. Reverse annuity mortgage. A mortgage given by a homeowner who desires to convert the equity in his or her house to an income-producing asset. The proceeds of the loan are paid out in periodic installments to the homeowner, thus giving the homeowner income until the proceeds paid out equal the face amount of the mortgage.

Reversion- Provision in conveyance by which, upon the happening of an event or contingency, title to the land will return to the grantor or the successor in interest in the land.

Right of way- See Easement.

Riparian- Pertaining to the banks of a watercourse. The owner of land adjacent to a watercourse is called a riparian owner and the rights of the riparian owner related to that watercourse are called riparian rights.

S

Sale and leaseback- A financial device which an owner of land may employ to raise money and will have the use of the land by selling the land to the financier and immediately leasing it back for the period the owner wishes to use it.

Separate property- Property a husband or wife owns independently of the other.

Service charge- A charge paid by the borrower to the lender for the lender's expenses in processing the loan.

Setback- See Building line.

Settlement- See Closing.

Shared appreciation mortgage- A loan having a fixed interest rate set below the market rate for the term of the loan which provides for contingent interest based upon a percentage of the appreciation in the value of the security at the sale or transfer of the property, or the payment of the loan.

Simultaneous issue- Simultaneous issuance of an owner's policy and a mortgagee policy, or an owner's policy and a leasehold policy, or owner's policy to different insured. A reduced premium rate is applicable in such cases.

Special warranty deed- A deed containing a covenant whereby the seller agree to protect the buyer against being dispossessed because of any adverse claims to the land by the seller, or anyone claiming through the seller.

Standard coverage policy- A form of title insurance which contains certain standard printed exceptions not included in the ALTA policies. This form of policy is used primarily in some of the western states.

Starter- See Back title letter.

Subdivision- A tract of land surveyed and divided into lots for purposes of sale.

Subordination- The act of a creditor acknowledging in writing that the lien of the debt due from a debtor shall be inferior to the lien of the debt due another creditor from the same debtor.

Subrogation- The substitution of one person in the place of another with reference to a claim, demand, or right, so that the individual who is substituted succeeds to the rights of the other in relation to the debt or claim and its rights, remedies, or securities.

Substitution loan and substitution rate- A loan made to the same borrower on the same land, or by the same lender on the same land, the title to which was insured by the insurer in connection with the original loan. A reduced rate for premium is given such cases.

T

Take out loan- A permanent mortgage loan which a lender agrees to make to a borrower upon completion of improvements on the borrower's land. The proceeds of the loan are used principally to pay off the construction loan.

Tandem plan-The purchase by the Government National Mortgage Association of certain mortgages at par for subsequent resale at market prices to the Federal National Mortgage Association.

Tax deed- The deed given to a purchaser at a public sale of land for non-payment of taxes. It conveys to the purchaser only such title as the defaulting taxpayer had and does not convey good title to that extent unless statutory procedures for the sale we re strictly followed.

Tenancy by the entirety or entireties- A form of ownership existing in many states where husband and wife together are treated as an entity.

Tenant- One who has right of possession of land by any kind of title. The word "tenant" used alone in modern times is used almost exclusively in the limited meaning of a tenant of a leasehold estate.

Tenants in common- Persons who are co-owners of residential interest in the same land. At death of a co-tenant, interest passes by will or by laws of intestate succession.

Testate- Having made a will. One who makes a will is known as the testator or testatrix.

Time share ownership- A technique for dividing the title to a commercial property or a vacation home among many different owners, with each owner acquiring the right to occupy the premises during a specified portion of each year.

Time share unit- An interest in a residential or commercial property which by contract or by conveyance of a real property interest allows a purchaser to occupy the unit during a particular week or weeks for a stated number of years. There are two major forms of time share estate:

• (a) Interval ownership. A time share estate where the unit purchaser is deeded an estate for years, giving a right to occupy the unit for a particular week during a stated number of years with a remainder interest in fee as a tenant in common with all other purchasers of the unit.
• (b) Time span ownership. A time share estate where the unit purchaser is deeded an undivided percentage interest in the unit as a tenant in common with all other purchasers and the right to occupy the unit for a particular time period is governed by contractual provisions of the time share declaration.

Title- The sum of all the facts on which ownership is founded or by which ownership is proved.

Title plant- A compilation of records maintained by title companies and containing information about specific parcels of land. This information would be ascertained otherwise only by a search of the public records.

Torrens systems- A governmental title registration system wherein title to land is evidenced by a certificate of title issued by a public official known as the registrar of title.

Turnkey housing- Housing initially financed and built by private sponsors and purchased by housing authorities for use by low-income families under the public housing program.

V

VA loan- A loan for purchase of land in which the Veteran's Administration guarantees the lender payment of a home mortgage by a qualified veteran.

Variable rate mortgage- A long-term loan having an interest rate which fluctuates with a reference index and generally reflects the current market rate of interest.

Vendee- Buyer.

Vendor- Seller.

Vestr- To become owned by.

W

Waiver of liens- See Lien waiver.

Warranty deed- A deed in which the grantor warrants or guarantees that good title is being conveyed.

Wraparound mortgage- A mortgage which secures a debt which includes the balance due on an existing senior mortgage and an additional amount advanced by the wraparound mortgagee. The wraparound mortgagee thereafter makes the amortizing payments on the senior mortgage. An example: A landowner has a mortgage securing a debt with an outstanding balance of $2,000,000. A lender now advances the same mortgagor a new $1,000,000 and undertakes to make the remaining payments due on the $2,000,000 debt. A $3,000,000 wraparound mortgage on the land is taken to secure this new $3,000,000 wraparound note.