Title Insurance Glossary

Title Insurance Glossary


A


Abstract of Title
A summary of the public records
affecting the title to a particular piece of land. An attorney or title
insurance company officer creates the abstract of title by examining
all recorded instruments (documents) relating to a specific piece of
property, such as easements, liens, mortgages, etc.
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.
Accretion
a natural increase of land along the shores of a body of water.
Acknowledgment
a formal declaration before a notary public
or qualified officer that the person signing a document is doing so
voluntarily and using his or her legal name and signature; popularly
called notarizing.
Actual notice
Information that can be observed, heard, or otherwise sensed.
Administer
to pay the debts and finalize up the business of a deceased person's estate.
Adverse Possession
acquisition of title to real property through continued occupation over a period of time (usually five years); title acq
uired in this way is not considered marketable until established by court proceedings against the owner of record.
Affidavit
a written statement or declaration that is
sworn to or affirmed before somebody who has the authority to
administer an oath or affirmation.
Agreement
a legally binding contract made between two or more persons.
Allodial Tenure
the absolute ownership of real estate
which is subject to inheritance by the owner's heirs or to disposition
by the owner as he sees fit, as contrasted with the feudal system of
ownership. Allodial tenure is characteristic of ownership in the United
States.
Alluvion
the increasing of land, especially along river
banks, caused by the natural deposits and build-up of sediment. Such
sediment is called alluvian.
Appurtenance
anything incidental or belonging to land
that might be considered part of the property, such as an improvement
or an easement for ingress and egress.
Appurtenant
belonging to.
Arbitraries
"ARBS"
a word used in the title industry which refers to simplified forms of
land descriptions arbitrarily used in indexing in title plants in lieu
of the more involved and complex descriptions contained in deeds,
mortgages and other real estate instruments.
Assessed valuation

value placed on property by the count assessor; used as a basis for computing property taxes.
Assessment bond

an obligation to pay for costs of local improvements such as sidewalks, sewers, or street lighting.
Assignee
the person who receives ownership of a contract by transfer by another
Assignment
a transfer in writing of one's interest in something, as to assign an interest in a promissory note and deed of trust.
Attach
the act of a sheriff or other court officer in
taking possession of a person or property under the authority and
direction of a write or order issued by a court.
Attorney in fact
one who holds a power of attorney from another allowing him or her
to execute a legal document, such as a deed, mortgage, on behalf of the
grantor.
Attorney's Opinion
the written statement of an attorney setting forth what he believe to be the condition of a real estate title.
ALTA

American Land Title Association
ALTA Title Insurance Policy
American Land Title
Association combination of various policies and endorsements that
lenders usually require when making a loan; expands normal coverage to
include unrecorded mechanic's liens, unrecorded physical easements,
facts not revealed by a physical survey, water and mineral rights, and
the right of parties in possession such as buyers who have recorded
claims and tenants.
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.

B

Back Title Letter
Also called "Back Title Certificate" in some areas, and "Starter"
in others. When title have been previously examined up to a certain
date by reliable examiners, title companies sometimes give subsequent
examiners of such titles a letter which sets forth the condition of the
title at the time of the previous examination and authorizes them to
begin their subsequent examination with the terminal date of the
previous examination.
Bargain and Sale Deed
also called "Fee Simple Deed." A deed of conveyance which presumes
that the grantor holds title, but which makes no warranty with respect
to the title.
Beneficiary
a person who is eligible to receive funds or property under the terms and provisions of a will or trust or insurance policy.
Bill of Sale
the instrument by which title to personal property (not real property) is transferred.
Binder
written confirmation of insurance coverage provided by an insurer prior to issuance of the actual policy.
Bond
a written promise to pay to the bearer or owner a
stated sum of money at a specified time, with interest usually
represented by interest coupons attached to the bond. Also a written
commitment assuring the payment of a stipulated sum of money. A certificate of debt
issued by a government or corporation guaranteeing payment to bearer of
a specified sum of money, plus interest, on a specified future date.
Book and page
the
location of a recorded document in an office of records referenced by
separate book number and page number, and within that book, documents
are listed chronologically and alphanumerically. Frequently replaced by
document number or official records.
Bundle of Rights
a
framework designed to help understand the concept of liens,
encumbrances, and rights in title to real estate, and how they are
separate but interelate.

C

Certificate of Title
Written opinion by an attorney that ownership of a particular property is as stated in his or her certificate.
Chain of Title
The history of ownership of a parcel of real estate; each deed or other instrument transferring the title is called a link and all of these links make up the chain of title.
Chattel
personal property.
Claim
a right to assert a demand for payment of money due; or the
surrender or delivery of possession of property or the recognition of
some right.
Clear Title
title that is free of liens or legal questions as to ownership of the property
Closer
an attorney or other person responsible for orchestrating a
closing, often including drafting legal documents, receipting and
explaining documents, handling funds, and meting terms of the purchase
agreement, lender requirements, and Title Company.
Closing
In some areas called "settlement" or "escrow." 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.
Cloud on Title
An irregularity, possible claim, or encumbrance, which, if valid, would adversely affect or impair the title.
Commitment of title
similar to preliminary title report; 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; includes walkways,
parking lots, and yards.
Competent
legally qualified.
Concurrent escrow
occurring simultaneously, at the same time; real estate exchanges often must be recorded concurrently.
Condemnation
the taking of private property for public use.
Conditions
specifications detailed in a deed; they may cover such things as setbacks, types of dwellings, etc.
Confirmation of sale
court approval of the sale of property by an executor, administrator, guardian, or conservator
Contiguous- being in actual contact; adjoining or touching.
Constructive notice
notice given to the general public by the county records.
Co tenancy
ownership shared by more than one person; tenancy in common and joint tenancy are both co tenancy arrangements.
Contract for Deed - (land contract)
An agreement to sell and purchase under which the legal title is
withheld from the purchaser until such time as the required payments to
the seller have been completed.
Conveyance
the transfer of title to property from one person to another.
County Assessor
one who sets value of property for taxation purposes.
County Records
a system for recording documents in permanent books or records at
the county court house; maintained by each county and provided by law.
Open to public examination.
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.
Covenants, Conditions, and Restrictions
often associated with condominium documents. Limitations sometimes
put on the use and enjoyment of real property. This is done by
agreements contained in deeds and other documents.
Curtesy
a right which a husband has in his wife's property at her death. It does not prevail in all states.
Cut Out
the term applied when a parcel or a portion of the property is taken or "cut-out" from a larger parcel on an arbitrary map.

D

Decree of Distribution
The final declaration of the rights of heirs to receive the property of an estate.
Dedication
the setting aside of certain land by the owner and declaring it to
be for some public use, accompanied by the acceptance of such use by
the public. For example: streets, sidewalks, or parks.
Deed
a written document that transfers title to property; there are
several different types; a grant deed, the most common, is simply used
to convey property; a gift deed is used to make a gift of property; a
quitclaim deed is used to transfer an interest owned in a property and
contains no warranties; a tax deed is used to convey title held by the
state, and a deed of reconveyance is used to convey legal title back to
the borrower from the trustee.
Deed of Reconveyance
a legal instrument that conveys title from a trustee back to the borrower under a mortgage once the mortgage has been paid off.
Deed of Trust
security for a property loan; deed the property to a third party (trustee0 to hold until the loan is paid.
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.
Deemer period- refers to the way a state regulates rate filing by
title companies, in other words, how approval is obtained for rate
filings by the regulatory authorities.
Default
failure to make good on a promise, such as failure to make payments on a note or to live up to the terms of a contract.
Defect
a blemish, imperfection or deficiency. A defective title is one that is irregular and faulty.
Deficiency Judgment
a personal judgment in a foreclosure action for whatever amount
remains owing after the foreclosure sale of an encumbered property.
Description
a reference to certain maps, plats, and other instruments that are
recorded with the county and serve to make positive property
identification.
Devise
to give property by will; a devisee is the beneficiary to whom the property is willed and the devisor (more commonly called the testator) is the deceased person through whom the property is devised. A gift of real estate by a will.
Dispossess
to deprive one of the possession and use of real estate.
Divest
to deprive of a right or title.
Documentary Stamps
tax applicable to property transfers and affixed to the grant deed;
varies from county to county, city to city; sometimes called a transfer
tax

.
Dominat Estate
the property for the benefit of which a right-of-way easement
exists across another's adjoining piece of land is said to be the dominant estate. The land across which the easement runs is said to be the servient estate.
Dower
a right which a wife has in her husband's property effective at the time of his death.

E

Easement
a right of one person to make limited use of another's property,
for example, the right to cross a property and maintain a road or
right-of-way to install and maintain public utility services.
Easement Appurtenant
created for the benefit of a parcel of land; belong with the land.
Easement in Gross
an easement that is not appurtenant to any one parcel; for example, public utility easement.
Egress
A means for departing from one's own property without trespassing on another person's property, as applied to an easement.
Eminent Domain
the government's right to acquire private property for public, or
quasipublic use through condemnation; requires full compensation.
Encroachment
extension of an improvement onto the lane of another.
Endorsement
addition to or modification of a title insurance policy, which
expands or changes the coverage of the policy, fulfilling specific
requirements of the insured
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
title of the purchaser under a contract of sale or the right to acquire the legal title.
Erosion
the wearing away of land surfaces by forces of nature such as wind and water.
Escheat
The government's right to take property when someone dies with no will and no heirs.
Estate
the degree, quantity, nature and extent of a person's interest in a property.
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 vest 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.
Et Al
and others.
Et UX
abbreviations of Latin "et uxor" meaning "and wife."
Et Vir
a Latin term meaning "and husband."
Examination
as used in the title industry means to study and interpret the
instruments related to the chain of title of a property and to
determine their effect and condition in order to reach a conclusion as
to the status of the title.
Examiner
the title examiner.
Exception
a conditional item listed on a preliminary title report and
affecting the title; would be excluded from coverage by a title
insurance policy.
Exclusion
also known as an exception. The deduction or subtraction from inclusion.
Execute
to give validity by signing documents so that an intention may be completed.
Executor
a person named in a will to carry out its provisions.

F

Fee Simple
the greatest interest one may hold in real property; usually means ordinary ownership of real estate and is sometimes called fee title.
Fiduciary
someone entrusted with financial responsibility in someone else's behalf.
Filing
relates to the delivery of real estate instruments to a recorder for recordings.
File and Use
title insurers in most states file rate schedules, policy forms,
and endorsement forms with the state insurance department; they may
then use those rates and forms after a specified waiting interval;
rates so filed are mandatory.
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 such as plumbing fixtures.
Foreclosure
a legal process that deprives a mortgagor of his or her interest in
a property because he or she has failed to comply with the terms of the
mortgage.
Forfeiture of title
common penalty for the violation of conditions or restrictions
imposed by the seller upon the buyer in a deed or other proper
document.
Forgery
the fraudulent signing of another's name to an instrument such as a deed or mortgage or check.
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, usually a tract containing many lots.
General Index
an index (kept in the plant) of all matters affecting persons or
corporations and their rights to do business and all matters of a
general nature which cannot be entered on the Lot Books because no
specific property is mentioned.
General Lien
A lien filed against the name of an individual, corporation, that
attaches to all properties owned by the individual, both real and
personal.
General Warranty
a warranty provision in a deed or mortgage or other real estate instrument containing all of the common law items of warranty.
Gift Deed
a deed granted out "of love and affection" rather than any material consideration.
Grant
to convey title of property by means of a deed; a grantor conveys a property to a grantee.
Grantee
one to whom a grant is made.
Grantor
a person who transfers by a written instrument, an interest in land.
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.
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.
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 kind of estate, interest, or rights in real estate which can be inherited.
Hiatus
a separation, gap or unaccounted for area. For example, usually a
strip of land between two tracts where the two tracts do not adjoin
because of faulty descriptions.
Homeowner's endorsement
an addition to a policy of title insurance that extends the normal
policy to cover items other than those stated in the standard policy;
may include such items as mineral rights and mechanic's liens.
Homestead
property designated by the head of a family as his home, which is
protected by law from forced sale to pay debts. Land claimed by a
settler under the National Homestead Act.
Hypothecate
to give a thing as security without giving up possession.
Implied
presumed or inferred, rather than expressed.
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
immature or not fully developed. Incomplete. An inchoate right of
dower held by a wife matures and becomes exercisable only upon the
death of her husband.
Indemnify
To agree to make payments for a loss.
Indemnity
insurance against possible loss or damage. A policy of title insurance is a contract of indemnity.
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 alphabe4tical 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
coverage that may be added to the standard owner's policy of title
insurance; it adjust the amount of coverage according to the
cost-of-living index.
Ingress
a means for entering one's own property without trespassing on another person's property, as applied to an easement.
In gross
an easement created for the benefit of an individual apart from the
ownership of the land; a public utility easement is one example. It is
not assignable or inheritable.
Instrument
a written legal document such as a contract, a promissory note, a deed, or a grant.
Insurable Title
a property title that a title insurance company is willing to insure.
Insured closing letter
A letter issued by a title underwriter to a lender or buyer accepting responsibility for certain closing (nontitle) issues.
Intermediate theory state
a state in which the security for the mortgage is based on the
title theory or deed of trust, but that requires the lender to
foreclose to obtain legal title.
Inter vivos trust
a living trust; inter vivos is a Latin expression meaning "among the living."
Interval ownership
same as time share ownership, or partial ownership.
Intestate
someone who has died with no will; the estate reverts to the next of kin.
Joint Protection Policy
a title insurance policy insuring the interest of both owner and lender.
Joint Tenancy
one way for several persons to hold title; joint tenants own an
undivided equal interest and have equal rights to use the entire
property; they are said to have the right of survivorship, that is,
they inherit the property automatically upon the death of the other
joint tenant; this right if the principal distinction between a joint
tenancy and a tenancy in common.
Judgment
a court's final decree, generally resulting in a lien; may
encumber the sale of a property and must be satisfied before it can be
sold.
Judicial
of or pertaining to courts of law or the administration of justice
Judicial foreclosure
type of foreclosure that requires court proceedings; mortgage
foreclosure requires court proceedings while deed-of-trust foreclosures
generally do not; state laws dictate.
Junior Lien
Any lien or mortgage that has less priority than another. May be a
judgment or a second or third mortgage filed after another lien.
Jurat
certificate of an officer, such as a notary public or magistrate,
who has witnessed someone's signature to a sworn document; also, that
part of an affidavit stating by whom, where, when, and before whom it
was sworn.
Jurisdiction
the right and power of courts to interpret and apply the law. Also, the legal power of control over persons and property.
Leasehold estate
an estate created by a lease for a certain period of time; in contrast to a fee simple estate, it is a lesser interest.
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;
should so thoroughly identify a parcel that it cannot be confused with
any other.
Lien
A legal claim upon property for the payment of a debt; a money
encumbrance; such as, a mortgage lien, a judgment lien, or a mechanic's
lien.
Lien theory states
states in which the mortgagor (borrower) retains legal title to the
property; lender (mortgagee) has a lien on the property as security for
the debt.
Lien waiver
A document provided by a contractor, subcontractor, or materialman,
showing that they have been paid for their work and are waiving rights
to file a lien.
Life Estate
use of property only during a person's lifetime; this interest may
be sold, encumbered, or leased, but only for the term of the life
estate.
Lis Pendens
legal notice that litigation is pending on a certain property and
that anyone obtaining an interest in the property after the notice date
may be bound by the judgment.
Littoral rights
rights to shoreline property on a large body of water, such as an ocean or lake.
Loss
as referred to in the title industry, damage
suffered by a person resulting from defects or liens upon his title to
real estate. Also could be money paid by a title insurance company in
settlement of policy claims.
Lot book report
a short title company report providing the property owner's name, the vesting, the property's legal desrip5ion, and a plat map.
Marketable title
A "good" title, one where there is no reasonable doubt as to the
interest held in land; one that can be readily transferred to another
party.
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 that s subcontractor, laborer, or supplier of materials may
put on a property after furnishing labor or materials to improve the
property without being paid.
Meeting of Minds
the state that exists when all parties to a contract agree to the exact terms thereof.
Metes and bounds
A description of land by measures and distances. It must have a
known point of beginning, define the perimeter of a parcel, and return
to the point of beginning to be legally acceptable.
Mineral Rights
ownership of minerals found on a property.
Minor
a person under 18 years of age.
Mortgagee Policy
a policy of title insurance insuring the hold of a mortgage against
loss caused by the impairment or invalidly of the lien of such mortgage
or because of defects in, superior liens upon, or unmarketability of
the title.
Mortgage insurance
insurance r4quired to be paid for by the borrower to protect the
lender in the event payment s are not made on time; most often required
when the loan amount exceeds 80% of the purchase price.
Muniments of Title
deeds and other original documents showing a chain of title.
Mutual Consent
approval of both parties to terms of a contract.
Negligence
the omission of or failure to use reasonable precaution, care or action
Negotiable
capable of being assigned or transferred by endorsement' checks, drafts, and notes are all negotiable.
Non-recurring closing costs
fees and costs that are paid only once, usually at closing, such as title insurance or points.
Notary Public
person who acknowledges oaths, such as the signing of a grant deed
or deed of trust; must be duly appointed by the property authorities.
Notice of completion
document recorded to give constructive notice that a building job has been completed
Notice of Default
a formal recorded declaration that a default has occurred; starts foreclosure proceedings.
Notice of Nonresponsibility
notice recorded by an Owner of real property that he will not be
responsible for payment of mechanics' liens for work contracted by
another.
Official Records
a master set of books kept by the county recorder in which copies
of all recorded documents in that county are stored; may be microfilmed.
Offset statement
a statement by an owner or a lien holder concerning the liens against a property
Opinion of title
an attorney's written evaluation of the condition of title to real
property, based upon a careful examination of the abstract of title.
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.
Parcel
land fitting in a single description
Parcel Map
A map of a given area, designed, drawn, and labeled for the
purposed of identifying parcels and distinguishing them from one
another in a given area. May be called a subdivision map or a plat map
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 long the boundary line of adjoining properties and shared by the respective property owners or tenants
Perimeter
the boundary lines enclosing a tract or land. Also the length of the boundary lines enclosing a tract of land.
Personal property
which which is not real property; curtains, furniture, appliances, and other items not attached permanently to the property.
Personalty
personal property
Plat Book
one in a set of books in the public records in which maps, plats, and copies of surveys are recorded.
Plat map
map of a land subdivision or housing development
Possession date
day when the buyer actually moves into the property; may be different from the close of escrow or recording date.
Power of Attorney
the authority given one person by another to act on his or her behalf.
Preliminary Certificate
same as a Binder Certificate
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
Prescription
doctrine by which easements are acquired through long, continuous, and exclusive use of possession of property
Priority
taking place in rank or order; taking precedence over; in real
estate transaction, priority is established by the order in which
documents affecting a property are recorded and also by the language
contained in those documents.
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 setae 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 part of the purchase price.
Quasi
to some degree, almost, partially, somewhat.
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, 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 of debt.
Quit Claim Deed
a deed in which the grantor releases any claim he or she may have
on a property; most commonly used between spouses and in partnerships;
it contains no warranties.
Real Property
Term used to describe land and that which is permanently attached to the land; includes surface, subsurface and air rights.
Reconveyance
transfer of title from the trustee back to the real owner of
property; occurs when a loan has been paid in full; releases the
trustor (borrower) from any further liabilities for that debt
Recordation
process of placing a document on file with the county recorder for
everyone to see; said to give constructive notice of the document's
existence; claims against property usually are given a priority on the
basis of the time and date when they are recorded.
Recurring closing costs
costs and fees that will be paid monthly or annually, such as fire insurance, interest, property taxes and mortgage insurance.
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.
Release Clause
a stipulation allowing for the release of a specific piece of
property from a blanket lien that covers it and other property in
exchange for a specific payment
Release of Dower
the deed or other instrument by which a wife releases her inchoate dower rights in land.
Release of Lien
the instrument by which a lien is released from the real estate which it encumbers.
Remainderman
person who holds a future interest that exists in favor of a party
other than the grantor or his or her successors, as in a life estate
relationship.
Reservation
a particular right withheld by a grantor when conveying property.
Restrictions
provisions in a deed or other instrument whereby an owner of land
prohibits or restricts certain use, occupation, and improvement of the
land.
Reversion
the return of an estate or interest to a grantor or lessor after
the grant or lease has expired. Or, the interest retained by a fee
simple owner of real estate after granting a terminable estate or
interest in such property to another. For example, when a fee simple
owner gives a lease to a tenant, the interest which the owner has left
is known as the reversion. May also be a provision accompanying
restrictive covenants in a deed, which provision stipulates that in the
event the restrictions are violated, title to the property shall revert
to the grantor.
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 to cross or pass over a parcel of land; may be a right to
use a road or driveway, a right to construct power lines through the
property, or a right to put pipes underground.
Right, Title, and interest
term used in deeds to denote that the grantor is conveying all claims to a property.
Riparian Owner
one who owns the upland bordering on a stream or other body of water.
Riparian Rights
the many 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.
Satisfaction
the payment of a debt or fulfillment of an obligation. May be an
instrument executed by the holder of a lien, debt or obligation which
acknowledges payment or fulfillment
Search
a careful exploration and perusal of the public records in an
effort to find all recorded instruments relation to a particular chain
of title.
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
incident to an easement, the property upon or across which an easement exists.
Servitude
a right or interest in a piece of real estate, which right or
interest serves or benefits another unrelated property. For example, an
easement across one piece of property which serves another piece of
property is said to constitute a servitude regarding the property upon which it is located.
Setback
the minimum distance a building or other improvement must stand
from property lines, in accordance with local zoning ordinances and
deed restrictions.
Settlement
time at which property purchase is finalized, closing costs paid, deed exchanged and money disbursed; also called closing and close of escrow.
Settlor
one who creates an inter vivos or living trust
Specific Lien
A lien filed against a specific piece of real estate that does not
impact other real estate or personal property of the lienee. For
example, a mortgage or deed of trust, or a mechanic's lien.
Specific performance
a legal doctrine that enables a court to compel someone to perform
according to his or her agreement.
Statement of Identity- form often required by title company from buyer
and seller to ensure that items found in the title search apply to the
individuals in question
Statue of limitations
law specifying time limits for initiating enforceable legal action.
Subjacent
a term applied to land or property lying contiguous to, but at a lower level than, another piece of property
Subject to
to take title without paying off the existing loan or deed of
trust; original borrower remains ultimately responsible for repaying
the loan; the buyer (new borrower) does not make a formal agreement
with the lender.
Subordination agreement
a written agreement that changes the priority of documents, making for example, one deed of trust subordinate to another.
Subdivision
an area of land lay 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
Subrogation
the legal doctrine under which the law substitutes one creditor or
claimant for another. When a title insurance company pays a claim under
a title insurance policy, it is entitled to step into the shoes of the
insured with respect to any rights the insured may have against parties
who warranted the title to him.
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
the map or plat drawn by a surveyor which represents the property
surveyed and shows the results of a survey. Shows the location,
boundaries, area, or the elevations of land and structures upon the
earth's surface by means of courses in relation to the North Pole, and
the measuring of angles and distances by using techniques of geometry
and trigonometry.
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
Tax Deed
the instrument of conveyance when a government body sells a property to pay for arrears of taxes
Tax Deferred Exchange
a method of postponing capital gains when disposing of real property by trading one property for another of like kind
Tax Lien
the lien which is imposed upon real estate by operation of law which secures the payment of real estate taxes.
Tax Sale Number
a number assigned to a property when property taxes are not paid on time; identifies that property on the delinquent tax roll.
Tax Service
a reporting service that notified the lender in the event the borrower does not keep the property taxes current
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 at Sufferance
one who continues to hold possession of real estate after his authorized term of occupancy has expired
Tenancy at will
a tenant who occupancy of real estate is subject to the will of the owner
Testate
having made a legally valid will and leaving it at death
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. For example, where a sale
contract between buyer and seller provides for the money and comments
involved to be deposited with a title company pending the closing of
the transaction, the title company becomes a third party in the deal.
Time-sharing
partial interest in a property allowing exclusive use for a specific time period.
Title
evidence of a person's right to property
Title Agent
A representative of a title underwriter, one who "writes" the policies of the actual insurer or underwriter.
Title Commitment
A document that reflects all of the title research done on
property. Its purpose is to inform all parties of any encumbrances
affecting the property and to commit to insure property, subject to
certain stated requirements.
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 possible or patent claim or right outstanding in a chain of
title which is adverse to the claim of ownership. Or, a material
irregularity in the execution or effect of an instrument in the chain
of title.
Title Insurance
A policy of indemnity issued by a title insurance underwriter or
its agent that insures a buyer or lender against monetary loss or
damage due to errors in the title as described in the policy and
undeterminable facts that affect title such as fraud, forgery,
unrecorded documents, unknown heirs, and many other factors.
Title Insurer
a company which insures the title to real estate
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 which affect the title to particular piece of land.
Title Searcher
one who searches titles
Title Underwriter
The title insurer who holds a statutory premium reserve and is responsible for claims on title under a title insurance policy.
Torrens System
a governmental title registration system that uses certificates of
title issued by a public official (the registrar of title) as evidence
of title
Trust Deed
an instrument in the nature of a mortgage which secures the payment
of a debt. Distinguished from a mortgage in that the title is
transferred to, and held by, a trustee for the benefit of the holder of
the debt.
Underwriter
an insurance company which issues insurance policies either to the
public or to another insurer. The actual company that holds reserves to
pay losses on title policies, as opposed to an agent, who sells the
policies of the underwriter. Also, can be the person responsible for
evaluating risk of title defects and determining conditions to the
commitment to insure.
Underwriting
the analysis completed by a lender to determine the worthiness of a requested loan.
Undivided interest
unsegregated interest of a co-owner in a whole property owned in common.
UPC
identification number for a specific property; also called assessor's tax parcel number, account number, or folio number.
Usury
charging an interest rate above the maximum allowed by state law.
Vendee
the purchaser under a sale contract of real estate.
Vendor
the seller, one who disposes of something.
Vest
to bestow or confer upon, as in the expression, "Title shall vest in ..."
Vestee
current recorded owner
Vested Interest
an interest that if fixed or determined.
Vesting
the manner in which title to real property is held.
Voluntary Lien
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.
Waiver
the release of a right to require something to take place, such as the waiver of a contingency found in the purchase agreement.
Warranty Deed
deed with written guarantees of title.
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.
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.
Writ
a formal legal document issued by a court ordering or prohibiting the performance of some action.
Writ of Execution
a direct command from the court to the sheriff to carry out the action required by the write.
Zoning
city or county regulations governing the use of property.
Zoning Ordinances
laws passed by local governments regulating the size, type,
structure nature and use of buildings. Often referred to as zoning laws
and zoning regulations, and divided into those which regulate the
height or bulk of buildings within certain designated zones or
districts and those which prescribe the type of buildings which may be
constructed, and the use to which buildings within certain designated
zones or distracts may be put.
Sourse: http://www.escrowhelp.com/glossary_title.html

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