Real Estate Terms Glossary

Joint and Several Liability
An undertaking by a group of two or more people to be responsible, either individually or jointly, for any liability, which may exist after any member or members have failed to meet their obligations. For example, if a group of four people enter into a joint and several liability on a bank loan, then in the event of two of the members reneging on their obligations the remaining two members become fully responsible for the repayment of the loan.

Joint Tenancy
A method by which two or more people may have ownership of real property. It provides each party ownership in an undivided interest in the entire parcel, with both having the right to use all of it and the right of survivorship, which means that upon the death of one joint tenant, the other has title to it all. Procedurally, on the death of one joint tenant, title in the survivor is completed by recording an "affidavit of death of joint tenant," describing the property and the deceased tenant, with a death certificate attached, all of which is sworn to by the surviving joint tenant. This process avoids probate of the property, but may have some tax consequences, which should be explored with an accountant at the time of recording the original deed. If the owners do not want full title to the property to pass to the survivor, then joint tenancy should not be used. Joint tenancy (as well as any other common ownership) between a parent and a minor child should be avoided since the property cannot be transferred in the future without the parent becoming appointed as guardian of the child's estate by court order, and the property and the proceeds there from will be under court control until the child is 18. In community property states, some courts have found that joint tenancy presumes that the property is not community property (which could result in loss of estate tax limitation on the death of the first spouse to die), but proof of community interests can be established.

Judgment
A decision by a court of law. Monetary judgments can be recorded and then become liens against the property of a defendant.

Judgment Lien
Lien on a debtor's property that is granted to a creditor by a court judgment; lien may be enforced by having the sheriff seize the property and hold a sheriff's sale

Jumbo Loan
A loan for $333,700 or more in the continental United States (Alaska and Hawaii limits are higher). These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

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