Dictionary

• Annuity

  A regular monthly installment of the mortgage loan, which includes a principal as well as an interest. The proportion of the principal and the interest in the installment change over the time.

• Financial standing

  Credit worthiness of a client (an ability to repay).

• Debtor

  A person, who is paying off a liability (a loan or a credit).

• Maturity

  A before agreed period, in which the loan/credit is repaid by the client.

• Interest rate fixation

  A period, in which the agreed interest rate is valid, i.e. a period, in which a client is going to pay the same annuity.

• Mortgage

  A lien right to a real-estate ensuring receivables resulting from a contract concerning a mortgage loan.

• Principal

  Corresponds to the amount of the loan granted by a bank excluding interest.

• Real-estate cadastre

  An entity, which is authorized to register all the real-estate on the territory of the Czech Republic, including the registration of all changes related to real-estate (e.g. a transfer of ownership rights, registration of a lien right, etc.).

• Consolidation

  A settlement of an existing loan or a credit by a new loan granted to the same entity.

• Letter of ownership

  A document containing all the information concerning a real-estate. Information about the owner, such as what is the proportion of the ownership of the person in question of the relevant real-estate (a house, an apartment, a garden, including its area, and registration number), a type of acquisition of the real-estate by its owner, any rights burdening the real-estate (lien right, an option to a purchase, real burden, etc). It is a public document, i.e. anyone can apply for it. The only condition is a payment of a stamp (currently CZK 100).

• Proposal for registration

  A document, based on which the real-estate cadastre carries out the registration in the letter of ownership, e.g. records a transfer of an ownership right or a registration of a lien right for a real-estate resulting from a loan/credit.

• Real-estate

  Land and buildings connected with the ground by a firm foundation, e.g. apartments, houses, etc.

• Appraisal of a real-estate

  Appraisal of a real-estate made out by a contractual appraiser of the bank, which assesses the market value.

• Interest rate validity

  See Interest rate fixation.

• Guarantor

  A person (physical entity - Individual or a legal entity), which undertakes to take over the repayment of a loan (credit), in case the obligation is not paid off properly and in a timely manner by the debtor/co-debtor.

• Co-debtor

  A person, who participates in a repayment of an obligation (a loan or a credit).

• Interest

  A premium of the bank for lending money (principal).

• Creditor

  A person or an entity, which lent money.

• Blockage of payment (immobilization) of an indemnification

  Priority right for a settlement of receivables resulting from an indemnification in favour of a physical/legal entity.

• Mortgager

  A real-estate owner, who agreed to the fact that his/her real-estate is to be used for securing a loan/credit, i.e. concluded a mortgage contract to the real-estate.

• Lien right

  A right to a property (movable, immovable), to a receivable, securities, or a trademark. A collateral of a  receivable – in case the debtor fails to repay, the lien creditor is authorized to seek a settlement by executing the mortgaged property.

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