G

Gain-Profit - Important for tax purposes when realized from the sale of a capital asset.

Gap Commitment - A commitment to loan the difference between the floor amount of a take out loan and the full amount. The commitment is issued to enable a construction lender to loan the full amount of a take out commitment, rather tan only the floor amount.

Gap Financing - (1) Interim financing. (2) A loan between the floor amount and full amount of a take out loan. (See Gap Commitment).

Garnishment - A legal proceeding under which a person's money in control of another (such as salary) is taken for payment of a debt. The amount which may be taken is set by statute (usually as a percentage), and, in most states, a judgement is necessary before garnishment.

General Contractor - One who contracts for the construction of an entire building or project, rather than for a portion of the work. The general contractor hires subcontractors, such as plumbing contractors, electrical contractors, etc., coordinates all work, and is responsible for payment to the said subcontractors.

General Index (G.I.) - A title insurance company term for the books used to find liens against individuals which may effect real property, but which are not recorded against the property being insured, such as liens against a buyer.

General Lien - (1) A lien such as a tax lien or judgment lien which attaches to all property of the debtor rather than the lien of, for example, a trust deed, which attaches only to specific property. (2) The right of a creditor to hold personal property of a debtor for payment of a debt not associated with the property being held. Must be done under an agreement since against general precepts of law.

General Partner - A member of a partnership who has authority to bind the partnership and share sin the profits and losses. A partnership must have at least one general partner and may have more, as well as limited partners.

General Partnership - A partnership made up of general partners, without special (limited) partners. (See also Limited Partnership; Partnership).

Gift - A voluntary transfer of property without valuable consideration.

Gift Deed - A deed for nominal consideration.

Gift Letter - A letter to HUD from the donor (giver) stating that a gift of money has been made to the buyer in order to purchase specific property The relationship of the donor and donee is stated, as well as the amount of the gift.

Gift Tax - A federal and sometimes a state tax on inter vivos transfers without consideration.

GNMA (Ginnie Mae) - Government National Mortgage Association. A federal association, working with F.H.A., which offers special assistance in obtaining mortgages, and purchases mortgages in a secondary capacity.

Good Faith - Something done with good intentions, without knowledge of fraudulent circumstances, or reason to inquire further.

"Good Faith or Mortgage Savings" Clause - A clause in CC & R's which provides that " a violation thereof shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value."

Good Faith Purchaser or Mortgagee - A person who buys or lends in good faith, that is, without notice of any existing problem, where value is paid or lent.

Good Will-A salable asset of a business, based on its reputation rather than its physical assets.

Gore-A small parcel of land, usually triangular in shape, resulting form the failure of a legal description to join 2 tracts. (Also called Hiatus).

Government Lots-Irregularly shaped parcels of land, usually fronting on water, which could not practically be divided into sections under government survey.

Government Survey-The survey from which our present system of townships, sections, etc., was developed.

Graded Tax-A property tax designed to promote local development by increasing the tax rate on land and decreasing it on improvements.

Grandfather Clause-The clause in a law permitting the continuation of a use, business, etc., which, when established, was permissible but, because of a change in the law, is now not permissible. (See also Nonconforming Use).

Grant - A transfer of real estate, between individuals, by deed. A transfer of real estate from a sovereign is accomplished by patent or royal decree.

Grant Deed - One of the many types of deeds used to transfer real property. Contains warranties against prior conveyances or encumbrances. When title insurance is purchased, warranties in a deed are of little practical significance.

Grantee - One to whom a grant is made. Generally, the buyer. See Deed.

Grantor - One who grants property or property rights. See Deed.

Grantor-Grantee Index - The record of the passing of title to all the properties in a county as kept by the county recorder's office. Property is checked by tracing the names of the sellers and buyers (chain of title). Title companies usually have more efficient methods by keeping records according to property description, rather than people's names.

Guardian - A person appointed by a court to manage the person and/or property of one who is legally incompetent to handle his/her own affairs.

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