In finance and real estate, commercial paper refers to negotiable financial instruments used in business transactions, most commonly promissory notes. These instruments represent a written, legally enforceable promise to pay a specified sum of money either on demand...

In real estate and finance, a commercial loan is a type of loan made by a commercial bank primarily for business purposes rather than for the purchase or financing of real property. These loans are often unsecured, meaning they are not backed by real estate or other...

In real estate law, color of title refers to a claim to ownership that appears to be valid based on a written document, such as a deed or court judgment, but is legally defective and does not convey true title. The defect may arise from issues such as improper...

In real estate and lending, collateral refers to marketable real or personal property that a borrower pledges to a lender as security for the repayment of a loan. The collateral gives the lender a legal claim to the property in the event the borrower defaults on the...

A code of ethics is a formal set of rules and principles that establishes standards of professional conduct for members of a particular profession and governs their responsibilities to clients, colleagues, and the public. It outlines expectations for honesty,...

In real estate, a cloud on title refers to any claim, lien, defect, or encumbrance that appears in the public record and could impair an owner’s clear ownership of property if it were determined to be valid. Although the encumbrance may be legally invalid or...

In real estate transactions, a closing statement is the detailed financial accounting that shows the final distribution of funds between the buyer and seller as of the day of closing. It itemizes all credits, debits, prorations, fees, and charges associated with the...

In real estate transactions, closing costs are the various expenses incurred by the buyer and seller that are necessary to complete the sale of property, in addition to the purchase price. These costs may include loan origination and discount fees, title search and...

In real estate transactions, closing is the formal process by which all parties finalize the sale or transfer of property and complete their contractual obligations. During closing, required documents (such as the deed, loan instruments, and settlement statements) are...

In real estate law, chattel real refers to a personal property interest that is closely connected to real property, most commonly a leasehold estate. Although it involves the use and possession of land or buildings, a chattel real is classified as personal property...