Glossary
The words, in plain English.
24 terms you’ll hear from attorneys, lenders, escrow and me, with the law or IRS publication behind them where there is one.
- Dissolution
- Oregon’s legal word for divorce. The court’s final decision is the judgment of dissolution.
- Petitioner and respondent
- The spouse who files is the petitioner; the other is the respondent. Oregon also lets spouses file together as co-petitioners.
- Status quo restraint
- Once the summons and petition are served, ORS 107.093 restrains both spouses from transferring, encumbering, concealing or disposing of property the other has an interest in, unless there is written consent or a court order. It lasts until judgment, dismissal or an order.
- Temporary orders
- Orders a court can make while a case is pending, including who uses the house and who pays the liens (ORS 107.095).
- Just and proper
- The standard an Oregon court uses to divide property in a divorce (ORS 107.105). The law presumes both spouses contributed equally to property acquired during the marriage, and that presumption can be rebutted.
- Equity
- What the house would sell for, minus what is owed on it and the costs of selling.
- Payoff
- The exact amount a lender needs to release its loan on the closing date. It is usually a little more than the balance on your statement.
- Buyout
- One spouse keeps the house and pays the other for their share, usually by refinancing.
- Refinance
- A new loan that pays off the old one. In a buyout it often puts the loan in one name.
- Assumption
- Taking over an existing loan. FHA loans can be assumed with lender approval; the original borrower stays liable unless the lender releases them.
- Release of liability
- The lender’s written agreement that someone no longer owes the loan. A divorce judgment alone is not a release.
- Quitclaim deed
- A deed that gives up whatever ownership a person has. It changes the title. It does not take anyone off the mortgage.
- Tenancy by the entirety
- How Oregon treats a deed to spouses unless the deed says otherwise (ORS 93.180).
- Partition
- A court process co-owners can use when they can’t agree; a court can order a sale when a property can’t be divided fairly (ORS 105.205).
- Comparative market analysis (CMA)
- A broker’s estimate of market value from recent nearby sales. Useful for pricing and settlement talks. It is not an appraisal.
- Appraisal
- A licensed appraiser’s opinion of value, usually what a lender relies on.
- Listing agreement
- The contract between the sellers and the broker’s firm: the price, the term and the fee, in writing.
- Initial agency disclosure pamphlet
- The state’s explanation of who a real estate broker works for. Oregon requires a broker to give it at first contact (ORS 696.820).
- Escrow
- The neutral company that holds the money and documents and pays everyone at closing, following signed instructions.
- Closing statement
- The line-by-line record of every dollar in the sale: price, payoffs, costs and what each seller receives.
- Home sale exclusion (Section 121)
- The federal rule that lets an owner exclude up to $250,000 of gain on a main home, or $500,000 for a married couple filing jointly, if they meet the tests. IRS Publication 523 explains it, including rules for divorced owners.
- Incident to divorce
- For federal tax purposes, a transfer within 1 year after the marriage ends, or one required by the divorce instrument and made within 6 years (IRS Publication 504).
- Basis
- The figure tax gain is measured from. A spouse who receives the house in a divorce takes over the other’s basis (IRS Publication 504).
- Deferred sale
- An agreement to sell later, for example after a set date, with the terms written into the settlement.
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