GLOSSARY 589

GLOSSARY 589

before the contract was entered into. RESCISSION OF CONTRACT — The abrogation or annulling of contract; the revocation or repealing of contract by mutual consent by parties to the contract, or for cause by either party to the contract. RESERVATION — A right retained by a grantor in conveying property. future replacement and major maintenance of the common area and facilities. 2) With regard to mortgage loans, an accumulation of funds, collected by the lender from the borrower as part of each monthly mortgage payment, an amount allocated to pay property taxes and insurance when they are due.