- Abstract:
-
A history of all transactions shown in the public
records affecting a particular tract of land.
- Closing:
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This is the final meeting, at which the property is
officially purchased, paid for, and signed over. A closing may take
place at a lawyer's office, a bank or at the title insurer's office.
- Commitment:
-
A document issued by a title insurance company that
contains the conditions under which a policy of title insurance will
be issued.
- Earnest Money:
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A deposit of funds by the purchaser of a piece of real
estate as evidence of good faith.
- Easement:
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A right to use all or part of the land owned by
another for a specific purpose. An easement may, for example, entitle
its holder to install and maintain sewer or utility lines.
- Escrow:
-
A method of closing a real estate transaction in which
all required documents and funds are placed with a third party for
processing and disbursement.
- Fee Simple Deed:
-
The absolute ownership of a parcel of land. The
highest degree of ownership that a person can have in real estate,
which gives the owner unqualified ownership and full power of
disposition.
- Lien:
-
A financial claim on the property. A lien gives a
third party the right to a portion of the money from the property's
sale. The most common type of a lien is a mortgage, because the bank
has a right to a refund of their money from the property's value.
However, liens can also be filed by unpaid contractors
("mechanic's liens"), or courts ("judgments").
- Loan Policy:
-
Also called "mortgagee policy." A title
insurance policy insuring a mortgagee, or beneficiary under a deed of
trust, against loss caused by invalidity or unenforceability of a
lien, or loss of priority of the mortgage or deed of trust.
- Mortgage:
-
A type of lien, in which a bank or a person lends the
money to buy a property. The property itself is the collateral in a
mortgage, so that the lender can take the property if the owner
doesn't comply with the mortgage's terms.
- Owner's Policy:
-
A policy of title insurance insuring an owner of real
estate against loss occasioned by defects in, liens against, or
unmarketablility of the owner's title.
- Quit Claim Deed:
-
A deed that does not imply that the grantor holds
title, but that surrenders and gives to the grantee any possible
interest or rights that the grantor may have in the property.
- Recording:
-
The noting in a public office of the details of a
legal document- such as a deed or mortgage- affecting the title to
real estate. When such an instrument is properly recorded, it is
considered to be a matter of public record. Legally, that means that
all subsequent purchasers are deemed to have constructive knowledge of
that information.
- Search:
-
A careful exploration and perusal of the public
records in an effort to find all recorded instruments relating to a
particular chain of title.
- Tax Deferred Exchange:
-
A method by which a property owner trades one property
for another without having to pay any federal income taxes on the
transaction.
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