Acknowledgment Formal declaration before a public official that one has signed a document. Prior to recording real estate legal documents, such as grant deeds and deeds of trust, a Notary Public acknowledges the person's signature on the document. Quiet Title A court action to establish ownership of real property. A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions.
Most ARMs have periodic interest rate and payment caps, as well as a life cap.
ARM's may also be referred to as AML's or VRM's. Agent Person authorized to act on behalf of another in dealings with third parties. An agreement between parties for the sale of real estate. In some states it is synonymous with a Purchase Agreement or Land Contract. In Texas it is known as an Earnest Money Contract.