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Glossary
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a
abstract continuation
A partial abstract beginning at the terminal date of an existing abstract and showing instruments recorded between
such terminal date and a subsequent date.
abstract of title
Also called simply "Abstract". A historical summary of all of the recorded instruments and
proceedings that affect the title of property. myClosingSPACE.com will prepare an abstract of title prior to granting a
title insurance policy after examining all recorded documents for a property.
abstracter’s certificate
A certificate appearing at the end of an abstract in which the abstracter states the time period and scope of the
search made for instruments among the public records. In some states it has the effect of limiting the
abstracter’s liability.
abstracting
Is the process of compiling an Abstract of Title. myClosingSPACE.com offers abstracting services as well as
title insurance.
abstracter
This is a company that is engaged in the creation of an abstract of title.
abut
To touch or border upon. For example, a piece of land bordering on a street or an adjoining property is said to abut such street or property.
acknowledgment
Generally, the act of the maker or makers of a real estate instrument in going before a Notary Public or other judicial officer and acknowledging that they signed such instrument without fear or compulsion, and for the purposes expressed in such instrument.
administer
To pay the debts and complete the business of a deceased person's estate. These duties are usually handled by an appointee of the court called an administrator.
administrator
A person appointed by a probate court to administer the estate of a person who dies intestate (without a living will).
adverse possession
A means of acquiring title to real estate where an occupant has been in actual, open, Notorious, exclusive, hostile, and continuous occupancy of property for the period required by state law. Statutes of limitation in most U.S. states allow an adverse possessor to acquire legal title if the owner does not seek timely possession.
affidavit
A voluntary statement in writing, sworn to before a notary public or other officer.
allodial title
A concept in some systems of property law. It describes a situation where real property is owned free and clear of any encumbrances, including liens, mortgages and tax obligations. Allodial title is inalienable, in that it cannot be taken by any operation of law for any reason whatsoever.
alluvian
The increasing of land, especially along river banks, caused buy the natural deposit and build up of sediment.
amortization
The payment of debts, such as a mortgage, over time through regularly scheduled payments.
annuity
A contract or agreement by which one receives fixed payments on an investment for a lifetime or for a specified number of years.
appraisal
To judge or estimate the value of real estate.
approved attorney
A practicing lawyer whose examinations of title and title opinions are acceptable to a title insurance company as a
basis for the issuance of its title insurance policies.
appurtenance
An incidental right (as a right-of-way) attached to a principal property right and passing in possession with it. In real estate it can include an improvement on the property or water rights among other features.
appurtenant
Belonging to a principal property.
arbitraries
Usually abbreviated as "ARBS" in the title industry. Arbitraries are simplified descriptions of property features in the indexing of titles instead of the more detailed and complex descriptions used in mortgages and deeds.
arbitration
The process by which parties who cannot agree among themselves submit the dispute to the judgment of an impartial
party.
assessed Valuation
This is the estimated property tax value on a property. The assessed value is normally estimated by a tax assessor.
assessment
Refers to taxes or special improvement charges such as costs associated with street, sidewalk, or sewer repairs and improvements. Assessment bonds refer to the obligation to pay for these improvements.
assessor
A county or local authority who sets the value of a property for tax purposes.
assignee
The person or persons who are receiving ownership of a contract or a mortgage through a transfer from another person or persons.
assignment
A written note that transfers the ownership or rights to a contract or a mortgage to another person.
assignor
The person or persons transferring ownership of a contract or mortgage to another person or persons in an assignment.
attach
The process of a court appointed officer taking possession of a person or property under the authority of a court issued writ or order.
attachment
Used as an aid to the collection of a debt where a court appointed officers following a court ordered writ or order takes possession of the property of the debtor. The property is held pending the fulfillment of a lawsuit to collect the debt.
attorney's opinion
The written statement of an attorney setting forth what he believe to be the condition of a real estate title.
ALTA
Acronym for the American Land Title Association.
avulsion
A change or shift in a water boundary resulting in loss of land by an owner and the acquiring of such land by another.
Avigation Easement
An easement over private property which abuts and extends out from the end of airport runways with said easement restricting the graduated height of agricultural crops, bushes, trees, and other objects in the take off and landing path of aircraft.
b
back title certificate
Sometimes referred to as Starter or Back Title Letter. It is a certificate issued by title companies to title examiners allowing them to examining the title from the terminal date of a previous examination by a reliable examiner.
bankruptcy
A proceeding in the US District Court wherein assets of a debtor unable or unwilling to pay his debts are applied by an officer of the court in satisfaction of creditor claims.
beneficiary
A person or persons entitled to receive funds or property under the terms and provisions of a will, trust, or insurance policy.
bill of sale
Instrument by which the title if personal property is transferred to another party. A bill of sale only refers to personal property and does not include real estate or real property.
blanket mortgage
This is a type of mortgage policy that covers all of the property of a mortgager without specifically naming them in the mortgage contract.
bond
A written commitment to pay the owner a stated sum of money at a certain time with interest. Interest is normally represented by interest coupons attached to the bond.
broker
One who acts as an agent for another in negotiating sales or purchases in return for a fee or commission.
brokerage
A fee or commission paid to a broker.
building code
Local, state, and federal laws related to the construction and repair of buildings. Building codes can include the type of materials that can be used, the manner in which buildings should be built or repaired, and many other aspects of the construction process.
butler rebate (only available in florida)
Refers to the Florida Supreme Court case of CHICAGO TITLE INSURANCE CO.vs. S. CLARK BUTLER. In this case the Supreme Court ruled that it was unconstitutional to not allow title insurance companies to give rebates to customers. myClosingSPACE.com is one of the only title companies that includes the Butler Rebate in all title insurance policies issued.
See
http://www.floridasupremecourt.org/decisions/pre2004/ops/sc95312.pdf for more detail on the Butler Rebate. This rebate is only available in Florida.
c
certificate of occupancy
This certificate is issued by the local government and documents the legally permitted use of the property.
For example, the Certificate of Occupancy will detail a two story home, with a garage used as a single family home.
The Certificate of Occupancy is listed as a separate item because each district charges a different fee.
certificate of title
Written certificate by a title examiner or attorney showing the condition of a title.
chain of title
Basically the historical records of a piece of property from the original owner to the current owner. Each transfer of title ownership represents a “link” and the composite of all of the links create the chain.
chattel
Another name for personal property. Real Estate is not considered Chattel.
claim
The legal recognition of a right to demand payment for money due.
clear title
A title that is free of liens, judgments, or encumbrances as to the ownership of a property.
closing
Also called settlement. Closing is the process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed and/or delivered. An accounting between the parties is made, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to.
closing statement
Shows the amounts of debits and credits to which each party to a real estate transaction is entitled. This is a balance that is given at the closing of a real estate transaction.
cloud on title
An irregularity, possible claim, or encumbrance, which, if valid, would adversely affect or impair the title.
co-insurance
Two or more title insurance policies issued by separate insurers each covering a different portion of the risk but when taken together provide total coverage.
codicil
An amendment, revision, supplementation, or cancellation of a will.
commission
The amount due a real estate broker or mortgage loan broker for services performed in such capacity. The term also applies to regulatory tribunals such as real estate commissions.
commitment of title
Guarantees that a title company will issue title insurance.
common areas
All the areas in a condominium or planned unit development that are not specifically reserved for the individual owners such as walkways and parking lots.
common law
A system of laws developed from usages, customs, and court decisions as opposed to written laws established by legislative bodies.
condemnation
The taking of private property for public or quasi-public use, with compensation to the owner, under the right of eminent domain. Can also describe the taking or destruction of private property for the health or safety of the public.
conditions
Provisions in real estate instruments which make a particular right contingent upon the occurrence of some future event.
confirmation of sale
Refers to court approval of the sale of property by an executor, administrator, guardian, or conservator.
constructive eviction
The inability of a purchaser or lessee to obtain possession because of an outstanding right or superior title.
conveyance
The transfer of property title from one person or persons to another.
covenant
A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in a warranty deed.
d
dedication
When an owner sets aside land and declares it for public use that is accepted by the public for the specified use.
deed
A document that transfers title of real estate from one party to another. There are various types of deeds (grant deed, gift deed, quitclaim deed, tax deed, and deed of reconveyance) and they are explained throughout this glossary.
deed book
This is a book in the public records used to record deeds.
deed of reconveyance
Refers to a specific type of deed that conveys title back to a borrower once a mortgage has been paid off. Until the conveyance the title is held by a trustee.
deed restriction
A restriction contained in a deed which limits the use or occupancy of the real estate or the type, size, purpose and location of improvements to be constructed on it.
default
Failure to perform a promised task or to pay an obligation when due.
defect
A defective title is one that is irregular and faulty.
deficiency judgment
A judgment against a debtor at a foreclosure sale when the property does not bring enough money to pay for the mortgage debt and the foreclosure costs.
deposit agreement
An agreement, used in some areas, prepared by real estate agents and signed by purchaser and seller acknowledging that a
sale has been agreed to and that, in order tot bind the deal, a certain amount of good faith money has been
deposited by the purchaser with an agent or a title company.
depreciation
Loss of value in a property through normal wear and tear or other factors.
devise
A gift of property or real estate through a will.
devisee
One who is given real estate under a will.
dispossess
To deprive a person of the possession and use of real estate.
dominant estate
The property retained when the owner splits off and conveys part of the property to another party but retains some rights such as an easement for access (a driveway) or utilities. The property sold off upon which there is the easement is called the servient estate. These are also called dominant tenement and servient tenement, respectively.
draw
A partial advance of the proceeds of a construction loan mortgage, to which the borrower is entitled when construction reaches a specified stage.
e
earnest money
The advance of a small part of the purchase price by the buyer as evidence of good faith.
easement
The right of one property owner to make limited use of another property owner’s property.
egress
The right to an easement allowing a person to depart from and enter their property.
eminent domain
The power of a governmental entity to take private real estate for public use, with or without the permission of the owner. The owner of the property is paid the reasonable value of the property being taken.
encroachment
The extension of a structure or an improvement across a boundary line and onto adjoining property.
encumbrance
A claim, right, or lien upon the title to real estate, held by someone other than the real estate owner. The title search will find any encumbrances on a property.
endorsement
An endorsement is attached to a title policy when it is the insurer’s intention to alter or modify the provisions of the policy so that the insured receives greater coverage, and insurer has incurred a greater liability, than existed under the unendorsed policy.
equitable rights
Rights established primarily by court decisions based upon principles of fairness, honesty, justness and morality, and not upon enacted law or common law.
equitable title
The right to legal title for a person who has agreed to purchase in a real estate transaction.
equity
The difference between the market value of the property and any outstanding encumbrances.
equity of redemption
The right of a mortgagor to redeem the mortgaged property upon payment of the mortgage debt.
escheat
The reversion of property to the state when an owner dies leaving no legal heirs, devisees, or claimants.
escrow
The depositing with an impartial third party called the escrow agent of anything pertaining to a real estate transaction including money and documents of all kinds which are to be disbursed and delivered to the rightful parties by the escrow agent when all conditions of the transaction have been met.
escrow agreement
A written agreement usually made between buyer, seller, and escrow agent, but sometimes between only one person and
the escrow agent. It sets forth the conditions to be performed incident to the object deposited into escrow, and
gives the escrow agent instructions with respect to the disposition of the object so deposited.
estate
The nature and extent of an owner's rights in real estate.
estate by Entireties
An estate or interest in real estate predicated upon the legal fiction that a husband and wife are one person. A conveyance or devise to them vests title in them as one person. Upon the death of either husband or wife, full title passes to the survivor.
estoppel
A legal restraint which stops or prevents a person from contradicting or reneging on his previous position or previous assertions or commitments.
eviction
To expel a person from possession of real estate by legal process.
examination
To study the instruments incident to a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title.
exception
A provision in a title insurance policy which excludes liability regarding a specified title defect or an outstanding lien or encumbrance. Sometimes called exclusion.
execute
To create and make valid a real estate instrument.
f
false personation
The act of s person who falsely and fraudulently claims to be another person.
falsification
The forging, altering, or counterfeiting of a document.
fee simpleThe amount of interest in real estate which gives the owner unqualified ownership and full power of disposition.
fee simple deed
A deed of conveyance which presumes that the grantor holds title, but which makes no warranty with respect to the title.
fiduciary
A person in a position of trust and confidence, for instance a principal and broker. A broker as a fiduciary owes certain loyalty that cannot be breached.
filing The delivery of real estate instruments to a recorder for recordings.
first mortgage
A mortgage having priority as a lien over any other mortgage or lien on the same property.
fixture
Personal property which is permanently attached to real estate. Plumbing is an example of a fixture.
foreclosure
A legal process that deprives a mortgagor of interest in a property because of failure to comply with the
terms of the mortgage. A Foreclosure normally involves the sale of the property to pay the debt.
foreshore
Land between the low water mark and high water mark, covered and uncovered by the ebb and flow of the tide.
forgery
The fraudulent signing of another's name to an instrument such as a deed or mortgage or check.
fraud
A deception deliberately practiced in order to obtain an unfair or unlawful gain.
fraudulent
Obtained, performed, or characterized by deceit or fraud.
freehold
A life estate or a fee simple estate.
front Foot
A unit of measurement, one foot in length, along the front boundary line of a piece of property which measurement, when assigned a dollar value, is a factor in determining the total value or sale price of the tract.
g
general plan restrictions
Restrictions on the use of property imposed for the benefit of more than one parcel of property.
general index
In a title plant, an alphabetical listing used to find recorded instruments that affect but do not describe a parcel of real property, such as judgments, powers of attorney and probate proceedings.
general warranty
A warranty provision in a deed or mortgage or other real estate instrument containing all of the common law items of warranty. Also known as a Full Warranty.
Gift Deed
Instrument which transfers legal title to property for nominal consideration.
Gore
A sliver of land usually of triangular shape between two tracts, resulting from failure of land descriptions to adjoin.
Grant
A transfer of real estate by deed.
Grantee
The person to whom a grant is made.
Grantor
The person who makes the grant.
Guaranty
An agreement in which a guarantee or assurance of a set of facts or the performance of an objective or obligation is given.
Guardian
A person who is legally responsible for the care and management of the person or property of one who is legally incompetent to manage his own affairs.
H
Habendum Clause
The provision in a deed which begins with the words "to have and to hold" and which, in effect, defines the quality of the estate or interest which is being conveyed to the grantee.
Hazard
Relates to the risk assumed under a title insurance policy.
Heir
A person who inherits or who is entitled to inherit real estate by provisions of law or under the provisions of a will.
Hereditaments
Any estates, interest, and rights in real estate which can be inherited.
Hiatus
In title industry parlance, a separation, gap, or unaccounted for area. Usually a strip of land
between two tracts where the two tracts do not adjoin because of faulty descriptions (Gore).
Homestead
Under some state laws, the real estate upon which one's home is situated.
I
Improvement Liens
Liens imposed by municipalities on real estate which has been directly benefited by municipal improvements such as the construction of streets, sidewalks and sewer lines. Such liens secure payment of the proportionate costs of such improvements.
Inchoate Dower
A wife's interest in her husband's real estate during his life which may become a right of dower upon his death.
Incorporeal
Having no material substance or form, but existing in the eyes of the law.
Indemnity
Insurance against possible loss or damage.
Indenture
A deed or other real estate contract executed between two or more parties.
Index
An alphabetical listing in the public records of names of parties to recorded real estate instruments together with the book and page number of the record. The listing in abstract and title plants of recorded real estate instruments in groups according to land descriptions, known as a geographic index. The alphabetical listing in abstract and title plants, by names of the parties, of all recorded instruments which affect but do not describe particular real estate, such as judgments, powers of attorney, will and probate proceedings. Such indexes are known by various names such as General Index, Judgment Index, and Name Index.
Inflation Endorsement
An addition to Owner’s Title Insurance that adjusts the amount of coverage for cost of living changes.
Ingress
The right or permission to enter; also the means or place of entry such as a right of way across adjoining land.
In Gross
A type of easement that is considered a personal right rather than being part of the estate.
Installment Contract
An agreement providing the payment for a purchase in several successive payments.
Instrument
A written legal document in the real estate transaction process.
Insurable Title
A real estate title that an insurance company is willing to insure.
Insurer
An entity that insures. Can also be referred to as an underwriter.
Interests
Estates, rights, or legal claims in and to real estate.
Inter Vivos TrustA living trust.
Intestate
A person who has died without leaving a will.
J
Joint Protection Policy
A title insurance policy insuring the interest of both owner and lender.
Joint Take-Off
When a group of title companies shares the cost of one take-off made for the use and benefit of each member of the group.
Joint Tenancy
A way for more than one person to hold rights to equal interest in a real estate title. They inherit the property automatically upon the death of the other joint tenant.
Judgment
The formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded, it usually becomes a general lien on the property of the defendant.
Judicial
Of or pertaining to courts of law or the administration of justice.
Judicial Foreclosure
A type of foreclosure that requires court proceedings.
Junior Mortgage
A mortgage lower in lien priority than a first mortgage.
Jurat
Certificate of an officer stating that a sworn statement is genuine stating when, where and before whom the statement was sworn. A jurat commonly appears at the bottom of an affidavit.
Jurisdiction
The right and power of courts to interpret and apply the law.
Jurisprudence
A system of laws.
L
Laches
Material delay or negligence in the timely assertion of one's rights.
Land
The solid ground of the earth as distinguished from the sea.
Land Contract
A type of mortgage in which the seller retains the original loan and the buyer makes monthly payments to the seller to cover the amount of the original loan and any new mortgage. No transfer of title occurs until the loan is fully paid, and thus no equity is established until the debt is completely paid off.
Landlord
A person from whom a tenant leases land or buildings.
Latent
Existing, but lying hidden or concealed.
Lease
An agreement granting the use or occupancy of land during a specified period in exchange for rent.
LeaseholdProperty held by a lease.
Leasehold Estate
An estate created by a lease for a certain period of time.
Legal
Relating to or concerned with the law.
Legal Description
A description of land recognized by law and based on government surveys, spelling out the exact boundaries of the entire piece of land.
Lender's Policy
This policy protects the lender's valid mortgage lien on the subject property against any undiscovered liens or
title issues. This policy is issued for the original amount of the mortgage. The fee for this policy is state
regulated. When refinancing, a discounted re-issue rate is charged based on the prior mortgage or original purchase
price.
Lessee
A tenant holding a lease.
Lessor
One who gives a lease to a lessee.
Liability
A legal obligation or responsibility for the payment of a loss, damages, or debt.
License
Permission to go upon or use the land of another.
Lien
A legal claim or attachment against property as security for payment of an obligation.
Lien Theory States
States where here legal title of mortgaged property resides with the mortgagor (borrower), with the mortgage as a lien against the property.
Life Estate
An interest in real property for the life of a living person. After death the interest then reverts back to the grantor or on to a third party.
Lineal
Being in the direct line of descent and inheritance from an ancestor.
Lis PendensLegal notice of a pending lawsuit.
Listing
Placing real estate with a broker for sale or lease.
Littoral Rights
Rights to shoreline property on a large body of water.
Litigation
Legal proceedings, a lawsuit in which a dispute is submitted to a court for determination.
Loss
Damage suffered by a person resulting from defects in or liens upon his title to real estate or the money paid by a title insurance company to settle claims.
Lot Book Guarantee
A Lot Book Guarantee is a one time only report. It shows the status of title through a particular date and time.
M
Marketable Title
A title which a court of equity considers to be so free of material defects and liens that it will force the title's acceptance by questioning purchaser.
Market Value
An average between the highest price which a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing, but not compelled to sell, would accept.
Mechanic's Lien
A lien, which secures the payment of debts due to persons who perform labor or services or furnish materials incident to the construction of buildings and improvements on the real estate.
Meeting of Minds
The state that exists when all parties to a contract agree to the exact terms thereof.
Metes & Bounds
The use of physical features of the local geography, along with directions and distances, to define and describe the boundaries of a parcel of land.
Mineral Rights
Ownership rights to the minerals or other precious resources, in one's property. The privilege of gaining income from the sale of oil, gas, and other valuable resources found on land.
Mortgage
A temporary conditional pledge of property to a creditor as security for the payment of a debt which may be killed or cancelled by payment.
Mortgage Book
A book in public records in which mortgages are recorded.
Mortgage Insurance
Insurance required to be paid for by the borrower to protect the lender in the event payments are not made on time.
Mortgage Tax
Mortgage Tax is charged by the local and/or state government and is computed as a percentage of the total loan
amount. In certain states, Mortgage Tax may occasionally be reduced by a method of consolidating previous loans
commonly know as a CEMA transaction.
Mortgagee
The holder of a mortgage.
Mortgagee Policy
A policy of title insurance insuring the holder of a mortgage against loss occasioned by the impairment or invalidity of the lien of such mortgage or because of defects in, superior liens upon, or unmarketability of the title.
Mortgagor
A person who mortgages property.
Multiple Listing
The pooling, in a central bureau, of listings of property for sale, which listings are held individually by member
of a group of real estate brokers, with the agreement that any member of the group may sell the properties and in case
of a sale, the commission will be divided among the broker making the sale, the broker who filed the listing, and
the bureau.
Muniments of Title
Written evidences of title such as a deed which an owner of land possesses and could use to prove his or her title to the land.
N
Negligence
The omission of or failure to use reasonable precaution, care, or action.
Negotiable
A certificate that is transferable by delivery and which, in the case of a registered certificate, has been duly endorsed and guaranteed. Transferable from one party to another.
Net Listing
Listing agreement where the broker's commission is an amount above a net price set by the owner. If that price is not met, a commission is not earned.
Non-Recurring Closing Costs
Fees that are paid only once, usually at closing, such as title insurance or points.
Notary
A public officer licensed by the state to attest to and certify the validity of signatures of others. Often referred to as a notary public.
Notice of Default
The written notice sent by a lender to a borrower stating that the borrower has not met his obligations under the loan contract and the lender may take legal action to enforce the agreement.
Notice of Nonresponsibility
Notice relieving an owner from mechanic's liens for work on property not ordered by that owner.
O
Official Record Book
Set of books in the public records in which is recorded all papers filed for record. Such books supplant deed books and mortgage books.
Offset Statement
A statement by an owner or a lien holder concerning the liens against a property.
Opinion of Title
The conclusion and judgment of a skilled person as to the status of a title, based upon a title examination.
Owner's Policy
A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against, or unmarketablility of the owner's title.
P
Parcel
Land fitting in a single description.
Parol
Orally, by word of mouth.
Partial Reconveyance
The release of part of someone's interest in real property secured by a mortgage or deed of trust.
Partition
A lawsuit between joint owners of real estate in which the court either divides the property between them or orders the property sold and divides the proceeds between them.
Party Wall
A wall built along the boundary line of adjoining properties and shared by the respective property owners or tenants.
Percentage Lease
A lease of property in which the rental is based upon the volume of sales made by the lessee on the leased property.
Perimeter
The boundary lines enclosing a tract or land. The length of the boundary lines enclosing a tract of land.
Personal Property
Temporary or movable property as distinguished from real estate.
Plat Book
One in a set of books in the public records in which maps, plats, and copies of surveys are record
Plat Map
A map of a town, section or subdivision indicating the location and boundaries of individual properties.
Possession Date
The day on which a property's new owner is actually entitled to occupy that property.
Power of Attorney
A legal instrument authorizing one to act as another's agent or attorney.
Preliminary Report
A report showing the current status of a property and the condition under which a title company is willing to insure title as of a specified date.
Premium
The amount payable for an insurance policy.
Prescription
The gaining of some right in real estate through long and continuous adverse use, usually for a period prescribed by statute, such as the acquisition of an easement by the unlicensed and adverse use of a path, roadway, or utility lines across another property.
Principal
A sum of money owed as a debt upon which interest is payable.
Priority
Priority is established by the order in which documents affecting a property are recorded.
Probate
A legal procedure in which the validity and probity of a document, such as a will, is proven.
Promissory Note
A written promise to pay or repay a specified sum of money at a stated time, or on demand, to a named person. In addition to the payment of principal, a promissory note usually provides for the payment of interest.
Property
Lands in which a person owns some right, title, or interest to the exclusion of all others.
Property, Tax and Name Searches
This is a search of all public land and court records affecting a property and all people and parties to a
transaction. The records are required to compile the Title report, the first step in obtaining a Title Insurance
policy. The Title report is a summary of all records discovered issued in the format of a "commitment."
Public Records
The transcriptions in a recorder's office of instruments which have been recorded, including the indexes pertaining to them.
Public Trustee
A public official to whom title to real estate may be conveyed by trust deed to be held by him as security for repayment of a loan.
Purchase Money Mortgage
A mortgage given by a purchaser to a seller on the subject property to secure payment of a part of the purchase price.
Q
Quasi
To some degree, almost, partially, somewhat. Also resembling but not quite being the thing in question.
Quiet Enjoyment
One of the common law warranties. Also, assurance that one's title, possession, or use of real estate will not be disturbed or disrupted by a legitimate cause or adverse right.
Quiet Title Suit
A lawsuit brought by an owner of real estate for the purpose of canceling, wiping out, and putting a quietus upon supposedly immaterial, inconsequential, and unenforceable claims and interest which cloud his title.
Quietus
Final disposition, settlement, or elimination of a claim or debt.
Quit Claim Deed
A deed in which the grantor releases any claim he or she may have on a property.
R
Rate
In the title insurance industry it refers to the cost per dollar unit of title insurance.
Real Estate
Land, including all inherent natural attributes and any man made improvements of a permanent nature placed thereon.
Real Estate Contract
An agreement to sell and purchase real property under which title is held by a third party in escrow for the seller until such time as the required payments to the seller have been made by the buyer.
Real Property
Land, from the center of the earth and extending above the surface indefinitely, including all inherent natural attributes and any man-made improvements of a permanent nature place thereon.
Realtor
A copyrighted trade name which can be legally used only for those persons belonging to the National Association of Real Estate Boards.
Realty
A brief term for real property.
Reconveyance
An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed.
Record Title
The aspects of a title which appear in the public records as distinguished from unrecorded title aspects and interests.
Recording
Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.
Recording Fees
After a closing, the Title Company records the mortgage as a lien on the property and the deed in the new owner's
name(s) in the local government records. The local and state governments charge a recording fee or tax to record
the mortgage, deed, and related documents in the public records. It is typically charged per page — a mortgage
can often contain twenty-five or more pages.
Recordation
Process of placing a document on file with the county recorder for everyone to see.
Recurring Closing Costs
Costs and fees that will be paid monthly or annually, such as fire insurance, interest, property taxes and mortgage insurance.
Redeem
Literally "to buy back". The act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.
Redemption
Reclaiming real property from someone who has taken legal title to it.
Redemption Period
Period of time in which borrower may redeem his or her property.
Reinsurance
A contract which one insurer makes with another to protect the first insurer, wholly or partially, against loss or liability by reason of a risk under a separate and distinct contract as insurer of a third party.
REIT
Real Estate Investment Trust. A product of federal tax legislation formed as a business trust, under a special state TRIT statute or as a corporation for the purpose in investing in real estate or mortgages on real estate.
Release
To relieve from debt or security or abandon a right.
Release Clause
Allows for the freeing of part of a property from the mortgage after a proportional amount of the mortgage has been paid.
Release of Dower
The release of dower was the wife's signing away her claim to the right she had in real property.
Release of Lien
A legal and recordable document which serves notice that a lien holder has released his lien.
Remainderman
Person who receives the interest in a life estate after the expiration, normally through death, of the original life tenant's interest.
REMIC
Real Estate Mortgage Investment Conduit. A product of 1986 federal tax legislation in which a business entity such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects to be treated as a REMIC. Qualification avoids treatment as a corporation for tax purposes.
Reservation
A particular right withheld by a grantor when conveying property.
RESPA
Real Estate Settlement Procedures Act. A federal law that requires lenders to provide home mortgage borrowers in advance with information of known or estimated settlement costs. RESPA also limits the amount lenders may require to be held in escrow for real estate taxes and insurance, requires the disclosure of known settlement costs to both buyers and sellers by the person conducting the settlement and outlaws certain referral fees.
Restrictions
Provisions in a deed or other instrument whereby an owner of land prohibits or restricts certain use, occupation, and improvement of the land.
Reverse Mortgage
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as security. A Special type of loan made to older homeowners to enable them to convert the equity in their home to cash to finance other needs.
Reversion
The residue of an estate left to the grantor or his heirs after termination of all prior estates and interests; the right of a lessor to recover possession of leased property upon the termination of the lease, with all subsequent rights to use and enjoy the property.
Right
A power, privilege, prerogative, estate, or interest incident to real estate.
Right of Survivorship
A right created by joint tenancy that states that, upon the death of one owner, the other immediately becomes the owner of the property.
Right of Way
The right which one has to pass across the lands of another. An easement.
Riparian Owner
One who owns the upland bordering on a stream or other body of water.
Riparian Rights
The rights of a person in, to, and over the banks, bed, shallows, shore and water of a stream or body of water upon which his land border.
S
Sale agreement
A contract entered into between a buyer and seller, setting forth terms, provisions, and conditions of a sale of real estate.
Satisfaction
Taking care of a debt or obligation by paying it; an entry made on the record, by a party in whose favor a judgment was rendered, declaring that the judgment has been paid.
Second Mortgage
A second loan on real estate that already has a mortgage. It is subordinate to the first mortgage. Usually it is of shorter term and often at a higher interest rate.
Section of Land
A parcel of land comprising one square mile or 640 acres.
Security
Property pledged to ensure payment of a debt; collateral.
Seisin
An old English term meaning legal possession or the right to legal possession of real estate under a freehold title.
Separate Property
Property that is held singly by either a husband or wife, described on a deed as sole and separate property.
Servient Estate
Land through which an easement runs or that is subject to the easement.
Servitude
Right in another person's property in the nature of an easement.
Set aside
To declare invalid or void.
Setback Lines
The minimum distance a building or other improvement must stand from property lines, in accordance with local zoning ordinances and deed restrictions.
Settlement
The conclusion of a transaction. In real estate, closing includes the delivery of a deed, the signing of notes and security instruments, and the disbursement of funds necessary to the sale or loan transaction.
Settlor
The person who creates a trust by donating property to be managed and administered by a trustee with the profits going to a beneficiary. Sometimes called donor.
Special Warranty Deed
A deed which warrants the title only with respect to acts of the grantor and the interests of anyone claiming by, through, or under him.
Specific Performance
A legal doctrine that enables a court to compel someone to perform according to his or her agreement.
Speculative Builder
One who constructs buildings for sale without having firm purchase commitments.
State & Local Transaction Taxes
The local and state government may charge a tax on the amount of the mortgage and a transfer tax when a property is sold or transferred. Other local & state taxes may be charged based on
transaction type, property type, purchase price or other variables.
State Transfer Tax
Transfer Tax is a tax charged by the local and/or state government when a property is sold or transferred.
While it is generally the responsibility of the seller, it is, at times, paid by the buyer as part of the
negotiated transaction.
Statute of Limitations
A law that sets the time within which parties must take action to enforce their rights.
Subdivision
An area of land laid out and divided into lots, blocks, and building sites, and in which public facilities are laid out, such as streets, alleys, parks, and easements for public utilities.
Subjacent
A term applied to land or property lying contiguous to, but at a lower level than, another piece of property.
Sublet
To rent property which one holds by lease, to another.
Subordination Agreement
An agreement by which a prior lien is made inferior to an otherwise junior lien.
Subrogation
Legal process by which an insurer who has paid a loss pursues any rights or recovery against a responsible third party in the name of the insured.
Subsurface Right
The right of ownership to things lying beneath the physical surface of the property.
Surety
A person who agrees to be responsible for a debt or obligation of another. Or, the pledge or agreement by which one undertakes responsibility for the debt or obligation of another.
Survey
A professional examination of a property. A survey usually will reveal the size of a property, its boundary distances, ground contours and where improvements or alterations have been made.
T
Tacking On
Beginning a subsequent title examination, in point of time, at the end of a previous title examination.
Take Off
An abbreviated copy of the principal features of recorded instruments, required for the purposes of indexation in an abstract plant or for purposes of making abstracts or examining titles.
Take Out
A written commitment or agreement given by a permanent mortgage lender to a temporary mortgage lender under which the permanent lender agrees to purchase mortgages made by the temporary lender.
Tax Deed
The instrument of conveyance when a government body sells a property to pay for arrears of taxes.
Tax Deferred Exchange
A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction.
Tax Lien
A kind of lien placed on property by a taxing authority when real estate taxes have not been paid.
Tax Sale
The public sale of a property by the government for nonpayment of taxes.
Tax Sale Number
A number assigned to a property in a tax sale.
Tax Service
A reporting service that notifies the lender in the event the borrower does not keep the property taxes current.
Tax Service Fee
A fee collected to set up third-party monitoring of the borrower's property tax payments. This is done to ensure that the payments are made on time and to prevent tax liens from occurring to the detriment of the lender.
Tax shelter
A term often applied to real estate investment, referring to various tax advantages.
Teaser Rate
A low, short-term interest rate offered on a mortgage to entice the borrower.
Tenancy by the Entirety
Ownership by a husband and wife in which they together hold title to the whole property with right of survivorship.
Tenancy in Common
A form for taking title when two or more people buy property and own it together with either equal or unequal shares; if any one of the tenants in common dies, his or her interest passes to his or her heirs, not to the remaining tenants.
Tenant
One who holds possession of real estate under a lease.
Tenant at Sufferance
Tenancy established when a person who had been a lawful tenant wrongfully remains in Possession of property after expiration of a Lease.
Tenancy at will
A tenancy in which a person is in possession of real estate with the permission of the owner, for a term of unspecified or uncertain duration, as when an owner permits a tenant to occupy a property until it is sold.
Tenement
A building or complex of buildings containing residential rental units.
Tenure
A common law term referring to the way in which a piece of property is held, such as a fee simple or leasehold.
Testate
One who has died leaving a will or one who has made a will.
Third Party
Usually applied to persons who are not principal parties to a contract or other instrument, but who have some right, interest or duty which such contract or instrument affects. A title company in a real estate transaction is considered a third party.
Title
The legal document conferring ownership of a piece of real estate.
Title Assurance
Assurance of title afforded by abstracts’, attorneys’ opinion, title insurance, and surveys.
Title Covenants
Covenants inserted in conveyances and in transfer of title to real estate for the purpose of giving protection to the purchaser against possible insufficiency of the title received.
Title Defect
Any title problem which clouds the property’s title. A title defect can be a lien, a person or entity that may have had interest in the property and never surrendered it, or any number of other situations making title less than perfect.
Title Exam
An examination of the public record to determine that the seller is the legal owner and there are no encumbrances affecting the property.
Title Forfeiture
The provision in a deed that accounts for title being passed to another, should certain terms not be met or certain circumstances occur.
Title Insurance
A policy issued by a title company after searching the title and which insures against loss resulting from defects of title to a specifically described parcel of real property or from the enforcement of liens existing against it at the time the policy is issued.
Title Insurance Binder
A title insurance company's written commitment to insure title to the property subject to the conditions and exclusions shown on the binder.
Title Insurance Premiums
Title Insurance Premiums are statutory rates regulated by the state for the policies and endorsements issued for all types of residential real estate transactions.
Title Insurance Underwriter
The title insurance underwriter is the entity that authorizes and issues authority for its agents to write title insurance policies. It is the entity that actually insures the property against title defects.
Title Insurer
A company which insures the title to real estate.
Title Plant
The information warehouse of a title company in which it has accumulated and is constantly updating title records of properties in its area which it can use to search title to real property.
Title Plant
The information warehou
Title Research and Documentation
This is a search of all public land and court records affecting a property and all people and parties
to a transaction. The records are required to compile the Title Report, the first step in obtaining a Title
Insurance policy. The Title report is a summary of all records discovered issued in the format of a "commitment."
Title Search
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.
Tombstone Title
A title, the validity of which relies upon information gleaned from one or more tombstones, such as fact of owner’s
death, the name of the surviving spouse, the date of death, and sometimes the identity of a deceased owner in cases
where a person of the same name claims title.
Torrens System
A method of registration of title to land with the appropriate public office, by which an official certificate at the office always shows the condition of the title and the person in whom it is vested.
Total Expense Ratio
The percentage of monthly debt obligations relative to gross monthly income.
Total Lender Fees
Fees required by the lender to obtain the loan, apart from other fees associated with transferring a property between buyer and seller.
Total Loan Amount
The base loan amount plus any financed closing costs.
Total Monthly Housing Costs
The sum of principal, interest, property taxes and, if applicable, private mortgage insurance (PMI) and either hazard insurance or homeowners' association dues.
Trade Equity
Equity the applicant has in a currently owned property that will be used as all or part of the down payment on the subject transaction.
Transaction Broker
A real estate professional who is hired to help a buyer and seller reach an agreement. The transaction broker does not represent either the buyer or the seller.
Transaction Taxes & Recording Fees
After a closing, the Title Company records the mortgage as a lien on the property and the deed in the new owner's name(s) in the local government records. The local and state governments charge a fee or tax to record documents in the public records. The local and state government may also charge a tax on the amount of the mortgage and a transfer tax when a property is sold or transferred.
Transfer Tax
Tax applicable to property transfers and affixed to the grant deed; varies from county to county, city to city; sometimes called a transfer tax Documentary Stamps.
Triple Net Lease
A lease that requires the tenant to pay all expenses of the property being leased in addition to rent. Typical expenses covered in such a lease include taxes, insurance, maintenance and utilities.
Trust Deed
A mortgage instrument widely used across the United States involving 3 parties, the lender or beneficiary, the borrower or trustor, and independent stake holder or trustee. The trust deed is the security instrument for the note or debt.
Two-Step Mortgage
An adjustable mortgage with two interest rates: one for the first five or seven years of the loan, and the other for the remainder of the loan term.
U
U.S. Department of Housing and Urban Development
Also known as HUD. This federal agency oversees the Federal Housing Administration and a variety of housing and community development programs.
Underwriter
An insurance company which issues insurance policies either to the public or to another insurer.
Underwriting
The process in which lenders evaluate the risks posed by a particular borrower and set appropriate conditions for the loan.
Underwriting Fee
A fee charged by mortgage lenders to verify information on the loan application and make a final decision about whether or not to approve the loan.
Undivided Interest
The interest in property owned by tenants whereby each tenant has an equal right to enjoy the entire property.
Unilateral Contract
A one-sided contract. If one party makes a promise to do something, the second party is not legally required to perform. If the second party does comply, however, the first party is obligated to keep its promise.
Unrecorded Deed
A deed that transfers ownership from one party to another without being officially recorded.
Unsecured Loan
Any loan that is not backed by collateral.
UPC
Identification number for a specific property.
Upgrades
Options offered to buyers in a new-home project that go beyond the standard carpeting, lighting, finish carpentry, and other amenities.
Usury
Interest charged in excess of the legal rate established by law.
V
VA Loan
A loan through the Veterans Administration program, which allows most veterans to purchase a house without a down payment.
Variable Rate Mortgage
A mortgage with an interest rate that changes with fluctuations in such indexes as the prime rate, libor rate, or Treasury bill.
Vendee
The purchaser under a sale contract of real estate.
Vendor
The seller under a sale contract of real estate.
Verification of Deposit
As part of the loan process a lender may ask a borrower's bank to sign a statement verifying the borrower's account balances and history.
Verification of Employment
As part of the loan process a lender may ask the borrower's employer for confirmation of the borrower's position and salary.
Vest
To bestow or confer upon.
Vested Interest
A fixed interest in tangible or intangible property, although the right of possession, use and enjoyment may be postponed until some future date or until the happening of some specified event.
Vestee
A non-legal term used by title insurers to indicate the owner of real property in a policy or report.
Vesting
Denotes the manner in which title is held. Examples of common vesting are: Community Property, Joint Tenancy and Tenancy in Common.
Voidable Contract
A contract that may seem to be valid, but can be rejected by either one of the parties.
Voluntary Lien
A lien placed against real property by the voluntary act of the owner. Most commonly, a mortgage or deed of trust.
W
Waiver
The voluntary relinquishment of a right to one's own property or to a claim against another's property, or to any other legally enforceable right.
Warehouse Fee
A closing cost fee representing the lender's cost of holding a borrower's loan temporarily before it is sold on the secondary mortgage market.
Warehousing
The temporary funding and holding by a lending institution of mortgages originated by a mortgage broker until such time as the mortgage market improves or until the mortgage broker accumulates a sufficient amount of mortgages to interest a permanent mortgage purchaser.
Warranty
A legally binding promise to do something in the future.
Warranty Deed
A deed in which the grantor fully warrants clear title to the premises. Used in most real estate deed transfers, a warranty deed offers the greatest protection of any deed.
Way of Necessity
An easement for a roadway which the owner of a landlocked tract is entitled to acquire across adjoining land in order to provide a means of ingress and egress with respect to landlocked property.
Will
An instrument executed by a competent person, in the manner prescribed by law, whereby he makes disposition of his property to take effect on or after his death.
Wraparound Mortgage
A loan given to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both amounts are made to the lender who holds the wraparound loan.
Writ
A formal legal document issued by a court ordering or prohibiting the performance of some action.
Writ of Execution claim or lien which is registered with the local enforcement officer to enforce a judgment of a court. The officer is then required to enforce the judgment against the judgment debtor and any property owned by that debtor in the jurisdiction.
Y
Yield SpreadA form of compensation some brokers receive from a lender for originating and processing a loan.
z
Zero Lot Line
The positioning of a house near or on top of the lot boundary, resulting in little or no space between houses.
Zero Net When the seller receives little or no net proceeds from a property sale.
Zoning
An act of the city or county authorities by exercise of police powers in regulating, controlling or specifying the type of use to which the property may be put in specific areas.
Zoning Ordinances
The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.
Zoning Variance
A one-time modification of existing zoning law.
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