A B C D E
F G H I
J K L M
N O P Q
R S T U
V W
Abandonment:
Abstract:
Abstract of Judgement:
Abstract of Title:
Abatement:
Acceleration Clause:
Accomodation Recording:
Acknowledgement:
Adjustable Mortgage Loans (AML'S):
Administrator:
Adverse Possession:
Affidavit:
Agent:
Agreement of Sale:
All-Inclusive Rate:
ALTA: (American Land Title Association)
Amendment:
Amortized Loan:
Annual Percentage Rate (A.P.R.):
Appraisal:
Approved Attorney:
Assumption:
Back Title Letter or Certificate:
Bankruptcy:
Beneficiary:
Blanket Mortgate or Trust Deed:
Bona Fide Purchaser:
Branch:
Breach of Contract:
Building Contract:
Buydown:
Capitalization Rate:
Certificate of Title:
Close of Escrow:
Closing:
Cloud on Title:
Coinsurance:
Collateral:
Collateral Security:
Commitment:
Community Driveway:
Community Property:
Comparable Sales:
Condemnation:
Conservator:
Constructive Notice:
Conveyance:
Corporation:
Covenant:
Covenants, Conditions and Restrictions:
Debt:
Debtor:
Decree of Distribution:
Deed:
Deed of Trust or Trust Deed:
Deed Restrictions:
Defect:
Defective Title:
Demand Note:
Deposit:
Description:
Earnest Money Deposit:
Easement:
Effective Demand:
Eminent Domain:
Encroachment:
Encumbrance:
b) Encumbrances other than liens which are limitations on the ownership of the land
(such as conditions, restrictions, reservations, easements, etc.).
Endorsement:
Equity:
Escheat:
Escrow:
Estate:
Execution:
Executor:
Fee Simple:
File and Use:
Fixed Rate Mortgage:
Foreclosure:
Forfeiture of Title:
Full Disclosure:
"Good Faith" or "Mortgage Savings" CLAUSE:
Good Faith Purchaser or Mortgagee:
Grant:
Grantee:
Grantor:
Grant Deed:
Guardian:
Hazard Insurance:
Homestead:
Impounds:
Indemnity:
Judgment Lien:
Land Contract:
Lease:
Legal Description:
Lender:
Lien:
Mechanics Lien:
Mortgage:
Mortgagee:
Mortgagor:
Note:
Obligee:
Obligor:
Original Cost:
Owner's Policy:
Parcel:
Partnership:
Party Wall:
Patent:
Personal Property (movable):
"P.I.Q.":
PITI:
PLAT:
Power of Attorney:
"PRE," "PRELIM" OR Preliminary Report:
Priority:
Priority Inspection:
Public Domain:
Public Records:
Quitclaim Deed:
Quiet Title:
Real Property (immovable):
Reconveyance:
Recording:
Reinsurance:
Restrictions:
Right of Way:
Sale and Leaseback
Search
Separate Property:
Squatter:
Starter:
Street Improvement Bonds:
Subdivision:
Subordination Agreement:
Surface Rights:
Survey:
Tax Deed:
Tax Sale:
Testate:
Title:
Title Insurance:
Title Report:
Title Search :
Trustee:
Trustor:
Underwritten Company:
The voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with an intent to abandon (give up the interest).
A summary.
A summary of money judgment obtained in court. (When this summary or abstract is recorded in the county recorder's office, in some states the judgment becomes a lien on the debtor's property, both presently owned or after-acquired.)
A summary prepared by a licensed
abstractor of all documents recorded in the public records of the political subdivision
where the land is located. An abstract in some states or areas is reviewed by an attorney
or other experienced title examiner to determine the status of title. Virtually every
abstractor today provides actual copies of the records rather than an abstract of each
document
A reduction or decrease. Usually
applies to a decrease of assessed valuation of ad valorem taxes after the assessment, and
levy
Clause in a deed of trust or
mortgage, which "accelerates," or hastens, the time when the indebtedness
becomes due. For example, some deeds of trust contain a provision (an acceleration clause)
stating that the note shall become due immediately upon the sale of the land or upon
failure to pay interest or an installment of principal and interest
Recording of instruments with the
county recorder by a title company merely as a convenience to a customer and without
assumption of responsibility for correctness or validity.
A formal declaration before a duly
authorized officer (such as a notary public) by a person who has executed an instrument
that such execution is his own act and deed. An acknowledgment is necessary to entitle an
instrument (with certain specific exceptions) to be recorded, to impart constructive
notice of its contents and to entitle the instrument to be used as evidence without
further proof. The certificate of acknowledgment is attached to the instrument or
incorporated therein.
Mortgage loans under which the
interest rate is periodically adjusted to more closely coincide with current rates. The
amounts and times of adjustment are agreed to at the inception of the loan. Also called:
Adjustable Rate Loans, Adjustable Rate Mortgages (ARM'S), Flexible Rate Loans, Variable
Rate Loans. (See also: Indexing, Rate Index).
A person appointed by the probate
court to carry out the administration of a decedent's estate when the decedent has left no
will. If a woman is appointed, she is called an administratrix.
A process of acquiring title to
real property by possession for a certain (statutory) period of time, in addition to
fulfilling other conditions.
A written statement or declaration,
sworn to before an officer who has authority to administer an oath.
One who has authorization, either
expressed or implied, to act for or represent another party, usually in business matters,
such as issuing title insurance policies on behalf of a title insurer for a portion of the
premium.
A written contract entered into
between the seller (vendor) and buyer (vendee) for sale of real property (land) on an
installment or deferred payment plan. It is also known as an agreement to convey, a long
form Security Agreement or a real estate installment contract.
Rate which includes charges for
title insurance, searching or abstract fees and examination fees.
Organization composed of title
insurance firms which sets standards for the industry, including title insurance policy
forms used on a national basis.
A change either to alter, add to,
or correct part of an agreement without changing the principal idea or essence.
A loan that is paid off, both
interest and principal, by regular payments that are equal or nearly equal.
The yearly interest percentage of a
loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest
would be much more than 6% simple interest, even though both would say 6%. The A.P.R. is
disclosed as a requirement of federal truth in lending statutes.
An estimate of value of property
resulting from analysis of facts about the property; an opinion of value.
An attorney whose opinion is
acceptable to a title company as the basis for issuance of a title insurance policy by the
insurer. The insurer, rather than the attorney, executes the policy.
The act of conveying real property;
taking title to a property with the Buyer assuming liability for paying an existing note
secured by a deed of trust against the property.
See Starter.
A special proceeding under federal,
or in some instances state, laws by which the property of a debtor is protected by the
court and may be divided among the debtor's creditors and the debtor.
See Deed of Trust.
A mortgage or trust deed that
covers more than one lot or parcel of real property, and often an entire subdivision. As
individual lots are sold, a partial reconveyance from the blanket mortgage is ordinarily
obtained.
One who buys property in good
faith, for fair value, and without notice of any adverse claim or right of third parties.
A subordinate or division office of
First American Title Insurance Company, as opposed to an affiliate, agent, subsidiary or
underwritten firm associated with the Company.
Failure to perform a contract, in
whole or part, without legal excuse.
An agreement between an owner or
lessee and a building contractor, setting forth terms relative to the construction of a
proposed structure.
A payment to the lender from the
seller, buyer, third party, or some combination of these, causing the lender to reduce the
interest rate during the early years of a loan. The buydown is usually for the first one
to five years of the loan. (See also: Certificate Backed Mortgage).
The percentage (acceptable to an
average buyer) used to determine the value of income property through capitalization.
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.
The date the documents are recorded
and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner,
and title insurance becomes effective.
The final procedure in the real
estate sales process, where the sale and pertinent loan are completed by the execution of
documents for recording. In some areas, this procedure is known as the closing of escrow.
An irregularity, possible claim, or
encumbrance which, if valid, would adversely affect or impair the title.
Ordinary coinsurance is defined as
a transaction under which each of two or more insurers assumes a designated portion of the
liability for the total risk and is liable for only such portion of any loss beginning at
the first dollar of loss. (See Reinsurance.)
By or at the side, additional or
auxiliary. Mistakenly used to mean collateral security.
Most commonly used to mean some
security in addition to the personal obligation of the borrower.
A binding contract with a title
company to issue a specific title policy, showing only those exceptions contained in the
commitment and any intervening matters after the date of the commitment and prior to the
effective date of the policy. The commitment contains all information included in the
preliminary title report, plus a list of the title company's requirements to insure the
transaction. It also includes the standard exceptions from coverage that will appear in
the policy.
A driveway which is jointly owned,
used and maintained by two or more persons. Usually, a portion of each owner's property is
burdened by the driveway.
Property acquired by husband, wife
or both during marriage which gives each spouse an interest in the property whether each
appears in title or not.
Sales that have similar
characteristics as the subject property, used for analysis in the appraisal. Commonly
called "comps."
The taking of private property by
the government for public use - as for a street or a storm drain - upon making just
compensation to the owner. This right or power of government to take property for a
necessary public use is called "eminent domain."
A person appointed by the court to
care for the person and/or property of an incompetent adult or an adult unable to care for
their person or property because of health.
Notice imparted by the public
records of the county when documents entitled to recording are recorded.
An instrument in writng, such as a
deed or trust deed, used to transfer (convey) title to property from one person to
another.
An entity authorized by law and
established by a group of people, the stockholders, which is endowed with certain rights,
privileges and duties similar to an individual.
(1) A formal agreement or contract
between two parties in which one party gives the other certain promises and assurances,
such as the covenant of warranty in a warranty deed. (2) Agreements or promises contained
in deeds and other instruments for performance or nonperformance of certain acts, or use
or nonuse of property in a certain manner.
Commonly called "CC &
R's" the term usually refers to a written recorded declaration which sets forth
certain covenants, conditions, restrictions, rules or regulations established by a
subdivider or other landowner to create uniformity of buildings and use within tracts of
land or groups of lots. The restrictions also can be established by deed. CC & R's are
sometimes referred to as private zoning.
Money owing from one person to
another.
One who owes a debt.
A probate court decree which
determines how the estate of a decedent shall be distributed.
Written document by which an estate
or interest in real property is transferred from one person to another. The person who
transfers the interest is called the "grantor." The one who acquires the
interest is called the "grantee." Examples of deeds are grant deeds,
administrators' deeds, executors' deeds, quitclaim deeds, etc. The deed to use depends on
the language of the deed, the legal capacity of the grantor and other circumstances.
A written document by which the
title to land is conveyed as security for the repayment of a loan or other obligation. It
is a form of mortgage. The landowner or debtor is called the "trustor." The
party to whom the legal title is conveyed (and who may be called on to conduct a sale
thereof if the loan is not paid) is the "trustee." The lender is the
"beneficiary." When the loan is paid off, the trustee is asked by the
beneficiary to issue a "recon" or reconveyance. This reconveyance corresponds to
the release that the holder of a mortgage executes when the mortgage is paid off.
Limitations in the deed to a
property that dictate certain uses that may or not be made of the property.
A blemish, imperfection or
deficiency. A defective title is one that is irregular and faulty.
(1) Title to a negotiable
instrument obtained by fraud. (2) Title to real property which lacks some of the elements
necessary to transfer good title.
A note having no date for
repayment, but due on demand of the lender.
(1) Money given by the buyer with
an offer to purchase. Shows good faith. Also called earnest money. (2) A natural
accumulation of resources (oil, gold, etc.) which may be commercially recovered and
marketed.
The exact location of a piece of
real property stated in terms of lot, block, tract, part lot, metes and bounds, recorded
instruments, or U.S. Government survey (sectionalized). This is also referred to as legal
description of property.
Down payment made by a purchaser of
real estate as evidence of good faith; a deposit or partial payment.
A right or interest in the use of
the land of another which entitles the holder to some use, privilege or benefit, such as
to place pole lines, pipe lines or roads thereon.
A qualifying term meaning the
ability to pay as well as desire to buy.
The right of a government to take
privately owned property for public purposes under condemnation proceedings upon payment
of its reasonable value. See Condemnation.
The presence of an improvement such
as a building, a wall, a fence or other fixture which overlaps onto the property of an
adjoining owner.
A right or claim upon real property
(land) held by one other than the property owner. Encumbrances are divided into two
classes, as follows:
a) Liens (mortgages, deeds of trust,
mechanics' liens, local taxes, assessments, judgments,
attachments, etc.).
Addition to or modification of a
title insurance policy which expands or changes coverage of the policy, fulfilling
specific requirements of the insured.
(1) A legal doctrine based on
fairness, rather than strict interpretation of the letter of the law. (2) The market value
of real property, less the amount of existing liens. (3) Any ownership investment (stocks,
real estate, etc.) as opposed to investing as a lender (bonds, mortgages, etc.).
The reversion of property to the
state when an owner dies leaving no legal heirs, devisees or claimants.
An independent third party, such as
First American Title, who acts as the agent for buyer and seller, or for borrower and
lender, carrying out instructions of both and disbursing documents and funds. Escrow
closes and the transfer of property or document is completed upon fulfillment of certain
conditions specified in the written instructions, whereupon the necessary deeds and other
instruments are recorded.
(1) The interest or nature of the
interest which one has in property, such as a life estate, the estate of a decreased, real
estate, etc. (2) A large house with substantial grounds surrounding it, giving the
connotation of belonging to a wealthy person.
An order directing a sheriff,
constable, marshal or court-appointed commissioner to enforce a money judgment against the
property of a debtor. This officer, if necessary, may sell the property to satisfy the
judgment.
A person appointed in a will and
affirmed by the probate court to cause a distribution of the decedent's estate in
accordance with the will. (The one who makes the will is called a "testator.")
If a woman is appointed, she is referred to as the "executrix."
An estate under which the owner is
entitled to unrestricted powers to dispose of the property, and which can be left by will
or inherited. Commonly, a synonym for ownership.
In most states, title insurers file
rate schedules, title insurance policies and endorsement forms with the State Insurance
Department or other state agency and then may use such items or rates starting within a
specified period of time after filing. Rates so filed usually are mandatory.
A mortgage having a rate of
interest which remains the same for the life of the mortgage.
The sale of property used as
security for a debt after default in payment.
A common penalty for the violation
of conditions or restrictions imposed by the seller upon the buyer in a deed or other
proper document. For example, a deed may be granted upon the condition that if liquor is
sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or
some later owner) and will revert to the seller.
In real estate, revealing all the
known facts which may affect the decision of a buyer or tenant. A broker must disclose
known defects in the property for sale or lease.
A clause in CC & R's which
provides that " a violation thereof shall not defeat or render invalid the lien of
any mortgage or deed of trust made in good faith and for value."
A person who buys or lends in good
faith, that is, without notice of any existing problem, where value is paid or lent.
A transfer of real estate, between
individuals, by deed. A transfer of real estate from a sovereign is accomplished by patent
or royal decree.
See Deed.
See Deed.
One of the many types of deeds used
to transfer real property. Contains warranties against prior conveyances or encumbrances.
When title insurance is purchased, warranties in a deed are of little practical
significance.
A person appointed by a court to
manage the person and/or property of one who is legally incompetent to handle his/her own
affairs.
Real estate insurance protecting
against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often
adds liability insurance and extended coverage for personal property.
A statutory protection from
execution or the establishment of title by occupation of real property in accordance with
the laws of various states or the Federal Government.
A trust type of account established
by lenders for the accumulation of borrower's funds to meet periodic payments of taxes,
mortgage insurance premiums, and/or future insurance policy premiums, required to protect
their security.
Insurance against possible loss or
damage. A title insurance policy is a contract of indemnity.
A lien against the property of a
judgment debtor. An involuntary lien.
An installment contract for the
sale of land whereby the seller (vendor) holds legal title and the buyer (vendee) has
equitable title until the sales price is paid in full.
An agreement by which an owner of
real property (lessor) gives the right of possession to another (lessee), for a specified
period of time (term) and for a specified consideration (rent).
A description of land recognized by
law, based on government surveys, spelling out the exact boundaries of the entire piece of
land. It should so thoroughly identify a parcel of land that it cannot be confused with
any other.
Any person or entity advancing
funds which are to be repaid. A general term encompassing all mortgagees, and
beneficiaries under deeds of trust.
An encumbrance against property for
money, either voluntary or involuntary. All liens are encumbrances but all encumbrances
are not liens.
A lien created by statute for the
purpose of securing priority of payment for the price or value of work performed and
materials furnished in construction or repair of improvements to land, and which attaches
to the land as well as the improvements.
(1) To hypothecate as security,
real property for the payment of a debt. The borrower (mortgagor) retains possession and
use of the property. (2) The instrument by which real estate is hypothecated as security
for the repayment of a loan.
The party lending the money and
receiving the mortgage.
The party who borrows the money and
gives the mortgage.
A unilateral agreement containing
an express and absolute promise of the signer to pay to a named person, or order, or
bearer, a definite sum of money at a specified date or on demand. Usually provides for
interest and, concerning real property, is secured by a mortgage or trust deed.
One to whom an obligation (promise)
is owned.
One who legally binds (obligates)
oneself, such as the maker of a promissory note.
The purchase price of property,
paid by the present owner. The present owner may or may not be the first owner.
A policy of title insurance usually
insuring an owner of real estate against loss occasioned by defects in, liens against or
unmarketability of the owner's title.
Any area of land contained within a
single description.
An association of two or more
persons who have contracted to join in business and share the profits.
A wall generally erected on a
property boundary or between two lots for the common benefit and use of the property
owners on either side.
A conveyance of title to land by
the Federal or State Government.
Any property that is not designated
by law as real property (i.e., money, goods, evidences of debt, rights of action,
furniture, automobiles).
A title term referring to Property
In Question.
A payment that combines Principal,
Interest, Taxes, and Insurance.
A plan, map or chart of a tract or
town site dividing a parcel of land into lots.
A document by which one person
(called the "principal") authorizes another person (called the
"attorney-in-fact") to act for him/her in a specific manner in designated
transactions.
A written report issued by a title
company, preliminary to issuing title insurance, which shows the recorded condition of
title of the property in question. See Commitment.
The order of preference, rank or
position of the various liens and encumbrances affecting the title to a particular parcel
of land. Usually, the date and time of recording determine the relative priority between
documents.
A title term referring to the type
of inspection made in connection with insuring a new construction loan. In making the
inspection of the property, the title company must be assured that the work of improvement
had not yet begun when the lender's deed of trust was recorded.
Land owned by the government and
belonging to the community at large.
The transcriptions in a recorder's
office of instruments which have been recorded, including thees pertaining to them.
A deed operating as a release;
intended to pass any title, interest, or claim which the grantor may have in the property,
but not containing any warranty of a valid interest or title in the grantor.
To free the title to a piece of
land from the claims of other persons by means of a court action called a "quiet
title" action. The court decree obtained is a "quiet title" decree.
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. For example: minerals,
trees, buildings, appurtenant rights.
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.
Also called a deed of reconveyance or release.
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.
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.
Reinsurance differs from coinsurance in that, in the case of reinsurance, only one insurer
has a direct contractual relationship with the insured, and that insurer (commonly
referred to as the "lead insurer") purchases reinsurance in order to lessen or
spread the risk. The "lead insurer" will assume a risk up to a limit (the amount
of which is referred to as the "retention") and any loss which exceeds this
limit would be borne by the reinsurers. In the case of coinsurance, each coinsurer has a
direct contractual relationship with the insured, and the risk is shared in agreed-upon
proportions from the first dollar of loss.
Often called restrictive covenants.
Provisions in a deed or other instrument whereby an owner of land prohibits or restricts
certain use, occupation or improvement of the land.
(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.
A situation in which the grantor in
a deed to a parcel of property sells it and retains possession by simultaneously leasing
it from the grantee.
In title industry parlance, a
careful exploration and examination of the public records in an effort to find all
recorded instruments relating to a particular chain of title.
Real property owned by one spouse
exclusive of any interest of the other spouse.
One who settles upon unoccupied
land without legal claim or authority. (See Adverse Possession.)
A copy of the last policy or report
issued by a title insurer which described the title to land upon which a new search is to
be made. In some states, this is called a back title letter or back title certificate.
Interest-bearing bonds issued,
usually by a city or county, to secure the payment of assessments levied against land to
pay for street improvements. The property owner may pay off the particular assessment
against the property, or may allow the assessment to "go to bond" and pay
installments of principal and interest over a period of years, usually at the city or
county treasurer's office. The holder of a bond received payments from these offices.
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.
An agreement by which one
encumbrance (for example, a mortgage) is made subject to another encumbrance (for example,
a mortgage) is made subject to another encumbrance (perhaps a lease). To
"subordinate" is to "make subject to," or to make of lower priority.
Rights to enter upon and use the
surface of a parcel of land, usually in connection with an oil and gas lease or other
mineral lease. They may be "implied" by the language of the lease (no explicit
reservation or exception of the surface rights) or "explicitly" set forth.
The measurement by a surveyor of
real property which delineates the boundaries of a parcel of land. An ALTA survey
additionally delineates the exact location of all improvements, encroachments, easements
and other matters affecting the title to the property in question. A survey may be
required by a title insurance company whenever the company is requested to issue an ALTA
Extended Coverage Policy.
A deed executed by the tax
collector to the state, county or city when no redemption is made from a tax sale.
Property on which current county
taxes have not been paid is "sold to the state." No actual sale takes place -
the title is transferred to the state and the owner may redeem it by paying taxes,
penalties and costs. If it has not been redeemed within five years, the property (referred
to as "tax sold property") is actually deeded to the state. (Similar
"sales" to cities take place for unpaid city taxes.)
Leaving a legally valid will at
death. See Intestate.
(1) A combination of all the
elements that constitute a legal right to own, possess, use, control, enjoy and dispose of
real estate or a right or interest therein. (2) The rights of ownership recognized and
protected by the law.
Insured statement of the condition
of title or ownership of real property. For a one-time-only premium, the named insured and
their heirs are protected against title defects, liens and encumbrances existing as of the
date of the policy and not specifically excluded from it. In the event of a claim, the
title company provides legal defense from the policyholder and pays any covered losses
incurred as a result of such claim.
See Preliminary Report.
A review of all recorded documents
affecting a specific parcel of land to determine the present condition of title. An
experienced title officer or attorney reviews and analyzes all material relating to the
search, then determines the sufficiency and status of title for insurance of a title
insurance policy.
See Deed of Trust.
See Deed of Trust.
A title firm which conducts title
searches but is not qualified to insure, and therefore issues policies of a qualified
title insurer (underwriter) in return for a portion of the premium.
