account A written statement of money transactions, such as credits, debits, deposits, withdrawals and the like.  accrue To increase or accumulate, as with monetary payments.  accrued interest Interest which has been earned but which has not yet been paid.  agreement A coming together of two or more parties who assent to do something or incur some mutual obligation to one another.  assignment Transfer by one person to another of the rights and duties described in a contract entered into by the first person.  attestation Authenticating a document by signing it as a witness.  attorney-in-fact A person authorized to act on behalf of someone else in business dealings or for other purposes. Authority is given through a power of attorney.  beneficiary One who is named to receive money or other property, as in an insurance policy or will.  bequest A gift of money or personal property given through a will.  bill of sale Document indicating that ownership of property has been transferred from a seller to a buyer.  binding Imposing a continuing obligation or duty, usually by contract.  bond A type of insurance whereby a company or an individual agrees to provide reimbursement to another party for any loss suffered due to the actions of a third party.  codicils An amendment to a will, made after the original document is signed and witnessed. Codicils must also be signed and witnessed before they are valid.  community property Property acquired by a husband and/or wife during their marriage, with each holding a half interest. Only eight states use this method for determining the ownership of property.  consideration Something of value offered as an inducement to enter into a contract.  contest To challenge the validity of a matter or a document, such as a will.  corporation A business organization formed by one or more parties, with rights and liabilities separate from those of the parties that formed it.  covenant Any written agreement between two parties. In modern use, promises made in the conveyance of real estate.  creditor One to whom money is owed.  D/B/A An abbreviation for "Doing Business As".  debtor One who owes money to another.  default To fail to fulfill a contractual duty or obligation.  delinquent Late in fulfilling a contractual obligation, such as falling behind on repayment of a loan.  disinherit To deliberately exclude a person from taking anything under a will.  durable power-of-attorney Authority of one person (the attorney-in-fact) to act on behalf of another (the principal) even if the principal is incompetent and unable to handle his or her own affairs.  duress Undue force used to pressure a person to take some action he or she would not take otherwise.  encumbrance Anything which lessens property value or hinders its sale, such as a lien or mortgage.  equal monthly installments The amount of a loan's principal and total interest, repaid on a monthly basis and calculated by dividing principal and interest by the number of months between the date the loan is made and the date final payment is due.  equal shares Division of an estate into parts of identical size.  estate Everything a person owns when he or she dies.  executor Person designated in a will to carry out its terms upon the death of the person making the will.  fee simple Full and unrestricted ownership of real estate.  gift Property transferred by one person to another gratuitously and without consideration.  guardian Someone given legal custody of a person who has been found unable to care for himself or herself.  heir Any person who takes part of an estate through a person's will.  interest A charge for borrowing money, generally computed as a percentage of the amount borrowed.  landlord The owner of property that is leased or rented to another.  liable Legally obligated to perform some duty or take responsibility for failing to perform.  lien A legal claim against property to insure repayment of a debt incurred by the property owner.  maker One who borrows money on a promissory note.  minor A person under the legal age of majority, usually under 18 or 21 years old, depending on state law.  notary public An officer of the state who administers oaths and witnesses signatures on documents.  note A written promise to pay money to another.  occupant One who has actual use or possession of a property.  partnership Agreement of two or more people to operate a business, sharing the profits and the losses.  payee One to whom money is to be paid, as under a note.  personal property Anything a person owns other than real estate.  per stirpes "By the roots" inheritance which goes to the children of a deceased heir as his or her representative.  personal representative Another term for executor (see executor earlier in this chapter).  power of attorney Document giving one person (the attorney-in-fact) authority to act on behalf of another (the principal).  pre-payment penalty Money charged to a borrower to compensate a lender for loss of anticipated interest when a loan is paid before it is due.  premises The subject of a real estate conveyance or lease, such as a building, house or apartment.  principal 1) One who gives authority to another to act on his or her behalf. 2) The amount of money loaned to another.  probate The judicial determination that the will of a deceased person is valid and genuine.  promissory note A written promise to pay a specified sum of money to another at some date in the future.  real property Land and the things permanently fixed to the land, such as buildings and fences.  residuary estate That part of an estate which remains after all the other provisions of a will have been met.  revocation An act annulling an earlier act and making it void and unenforceable.  sole proprietorship Business owned by one person who receives all its profits and is responsible for all its losses.  statute A law enacted by the legislative branch of government.  successor One who takes the place of another, assuming the rights and obligations of the first.  tenant One who rents or leases from a landlord and is obligated to make rental payments.  testator One who makes a will.  trust A legal arrangement by which one person (the trustee) holds and manages property for the benefit of another.  trustee The person or institution appointed to manage a trust.  usury Interest charged to a borrower in excess of a legally established maximum rate.  VIN Vehicle Identification Number. Used to identify an automobile, truck or other motor vehicle.  warrant A guarantee of title to property and a promise to defend claims made against the property by others.