Pierre Money Mart Blog

Restrictive Covenants
Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may “run with the land,” binding all subsequent purchasers of the land, or may be “personal” and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.)
Invoice Price
The price the dealer pays to buy a car from the manufacturer, exclusive of hold backs or other discounts.Very seldom is the bottom line of the cost to dealers.
Credit Scoring System
A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.
Pink Slip
A vehicle’s title certificate.
Net Effective Income
The borrower’s gross income minus federal income tax.
Tax
As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
Rate
See Interest Rate.
Certificate of Title
A certificate issued by a title company or a written opinion by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence.
Late Payment
A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.
Verification of Employment
A document signed by the borrower’s employer verifying his/her position and salary.