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Real Estate Title
Recorded documents and terms
Term | Definition |
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ABSTRACT | An abbreviation of the cardinal aspects of all recorded deeds, mortgages, leases and other instruments affecting the title to a particular piece of land |
ABSTRACTING | The process of making and compiling an abstract |
ABSTRACTOR | The person or company engaged in making abstracts |
APPRAISAL | An estimate of value of property from analysis of facts about the property; an opinion of value |
ATTORNEY’S OPINION | The written statement of an attorney setting forth what he believes to be the condition of a real estate title |
BASIC RATE | When referring to title insurance, the basic rate is the rate charged to a consumer who does not qualify for a reduced rate |
CERTIFICATE OF TITLE | In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney stating that title is vested as stated in the abstract |
CHAIN OF TITLE | Beginning with a conveyance out of an original source of title which conveys and transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links |
CLAIM | A right to assert, or the assertion of, a demand for payment of money due; or the surrender or delivery of possession of property or the recognition or some right. A demand for something as one’s rightful due |
CLOSING | 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, and the papers are recorded |
CLOUD ON TITLE | An irregularity, possible claim, or encumbrance which, if valid, would affect or impair the title |
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 |
DEED | A written document by which title to real estate is conveyed from one party to another |
DEED BOOK | A book among the public records in which deeds are recorded |
DEFAULT | Failure to perform a promised task or to pay an obligation when due |
DEFECT | A blemish, imperfection or deficiency. A defective title is one that is irregular and faulty |
EARNEST MONEY | Down payment or a small part of the purchase price made by a purchaser as evidence of good faith |
EASEMENT | A right held by a person to enjoy or make limited use of another’s real property |
EGRESS | he right to a path or right-of-way over that a person may leave or go away from his own real estate |
EJECTMENT | A law suit to regain possession of real estate held by another. |
EMINENT DOMAIN | The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value |
ENCROACHMENT | The extension of a structure from the real estate to which it belongs 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 |
ESTATE | The whole of one’s possessions, especially all of the property, assets, debts, and liabilities left by a deceased or bankrupt person |
EXAMINATION | In title industry terms, to peruse and study the instruments in a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title |
EXAMINER | Usually referred to, in title industry terms, as title examiner. One who examines and determines the condition and status of real estate titles |
EXCEPTIONS | Insurance policies include a list of items excluded from coverage. Items excluded from coverage can be found in section two of Schedule B of the policy |
FEE SIMPLE | The highest degree of ownership that a person can have in real estate. An interest in real estate that gives the owner unqualified ownership and full power of disposition |
FIRST MORTGAGE | A mortgage having priority as a lien over any other mortgage or lien on the same property |
FORECLOSURE | A legal proceeding for the collection of real estate mortgages and other types of liens on real estate, which results in cutting off the right to redeem the mortgaged property and usually involves a judicial sale of the property to pay the mortgage debt |
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 |
HEIR | A person who inherits or who is entitled to inherit real estate by provisions of law or under the provisions of a will |
INTESTATE | Dying without leaving a legal will |
INGRESS | The right or permission to enter; also the means or place of entry such as a right-of-way across adjoining land |
JOINT TENANTS | Two or more persons who hold title to real estate jointly, with equal rights to share in its enjoyment during their respective lives with the provision that upon the death of a joint tenant, his share in the property passes to the surviving tenants |
JUDGMENT | A conclusion or determination by a court of law usually awarding the payment of money or relief of some kind to one of the parties to a lawsuit |
LEASE | An agreement granting the use or occupancy of land during a specified period in exchange for rent. |
LIEN | The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage, or by operation of law, such as a mechanics lien |
LIS PENDENS | A pending lawsuit. A lis pendens notice is legal notice to the world that a lawsuit is pending |
LOAN POLICY | A policy of title insurance issued to the mortgage lender insuring against loss by defects in, liens against, or unmarketability of title |
MARKETABLE TITLE | A title that 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. Also known as a merchantable title |
MECHANIC’S LIEN | A lien on real estate, created by operation of law, 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 |
METES AND BOUNDS | Describing boundaries by using courses, directions, distances and monuments |
MORTGAGE | A temporary conditional pledge of property to a creditor as security for the payment of a debt that may be cancelled by payment |
OPINION | In title industry terms, referred to as title opinion. The conclusion and judgment of a skilled person as to the status of a title, based upon a title examination |
OWNER’S POLICY | This policy is purchased for a one-time fee and protects a homeowner’s investment in a property for as long as they or their heirs have an interest in the property |
POWER OF ATTORNEY | A legal instrument authorizing one to act as another’s agent or attorney |
PRELIMINARY TITLE REPORT | A report prepared prior to issuing a title insurance policy that shows the ownership of a specific parcel of land. It includes information about liens and encumbrances that will not be covered under a title insurance policy |
PROBATE | A legal procedure in which the validity and probity of a document, such as a will, is proven |
PUBLIC RECORDS | The transcriptions in a recorder’s office of instruments that have been recorded, including the indexes pertaining to them |
QUIT CLAIM DEED | A deed that does not imply the grantor holds title, but which surrenders and gives to the grantee any possible interest or rights that the grantor may have in the property |
RECORD TITLE | The aspects of a title that appear in the public records as distinguished from unrecorded title aspects and interests |
RIGHT OF WAY | (1) The right to pass over property owned by another, usually based upon an easement. (2) A path or thoroughfare over which passage is made. (3) A strip of land over which facilities such as highways, railroads, or power lines are built |
SEARCH | A careful exploration and inspection of the public records in an effort to find all recorded instruments relating to a particular chain of title |
SECOND MORTGAGE | A mortgage ranking in priority immediately below a first mortgage |
SPECIAL WARRANTY DEED | A deed that warrants the title only with respect to acts of the seller and the interests of anyone claiming by, through, or under him |
SUBDIVISION | An area of land 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 |
SURVEY | The map or plat drawn by a surveyor that represents the property surveyed and shows the results of a survey |
TAX LIEN | The lien that is imposed upon real estate by operation of law that secures the payment of real estate taxes |
TENANCY 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 |
TENANT | (1) Usually one who holds possession of real estate under a lease. (2) In a broader sense, one who holds or possesses lands and tenements by any kind of title |
TENANTS IN COMMON | Two or more persons in whom title to a single piece of real estate is vested in such a manner that they have a common or equal right to possession and enjoyment of the property, but each holds a separate individual interest or estate in the property |
TITLE | (1) A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy, and dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law |
TITLE COMMITMENT | An offer to issue a title insurance policy. The title commitment will describe the various conditions, exclusions and exceptions that will apply to that particular policy |
TITLE DEFECT | 1) Any possible or patent claim or right outstanding in a chain of title that is adverse to the claim of ownership. (2) Any material irregularity in the execution or effect of an instrument in the chain of title |
TITLE EXAMINATION | To peruse and study the instruments in a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title |
TITLE INSURANCE | Is insurance that protects purchasers of real estate and mortgages against loss from defective titles, liens and encumbrances |
TITLE PLANT | A geographically filed assemblage of title information which is to help in expediting title examinations, such as copies of previous attorneys’ opinions, abstracts, tax searches, and copies or take-offs of the public records |
TITLE SEARCH | A search and perusal of the public records for recorded instruments that affect the title to a particular piece of land. (See also Abstract and Examination.) |
TITLE SEARCHER | One who searches titles |
UNDERWRITER | An insurance company that issues insurance policies either to the public or to another insurer |
VESTING | How ownership of title is taken |
WARRANTY DEED | A deed containing one or more title covenants |
TRUSTEE'S DEED | A trustee's deed is a deed to be executed by a person serving as a trustee in their appointed capacity. A trustee's deed is often used, for example, by a trustee in bankruptcy to sell real property of the debtor |
TAX SALE DEED | A legal document that grants ownership of a property to a government body when the property owner does not pay the taxes due on the property |
DEED IN LIEU OF FORECLOSURE | A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage |
DEED OF GIFT | A signed document that voluntarily and without recompense transfers ownership of real, personal, or intellectual property – such as a gift of materials – from one person or institution to another |
GRANTOR | A person or institution that makes a grant or conveyance |
GRANTEE | A person to whom a grant or conveyance is made |
LENDER | An organization or person that lends money |
CREDITOR | A person or company to whom money is owed |
DEBTOR | A person or institution that owes a sum of money |
MORTGAGEE | The lender in a mortgage, typically a bank |
DEED OF TRUST | A type of secured real-estate transaction that some states use that involves three parties: a lender, a borrower, and a trustee |
ASSIGNMENT | A document which indicates that a mortgage has been transferred from the original lender or borrower to a third party |
SUBORDINATION AGREEMENT | A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another |
MATURITY DATE | The date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due |