Title Search Glossary
Abstract of Title: A short summary of the history of title of a real property. It will include deeds and titles of prior owners as well as any encumbrances, liens or conveyances.
Abstractor's Certificate: A certification in the abstract states the time period
and scope of the search made from the public records.
Abstract Plant: A repository of information relating to title of specific properties and used by title search companies whose business is to facilitate the search to clear title.
Accretion: A natural growth of land along the shores due to the actions of a body of water.
Acknowledgement: A signed and notarized statement. A Notary will witness the signature and affirm that is genuine and signed of free will. Documents are not Accepted unless they are acknowledged.
Adverse Possession: Acquiring title to real property by possession and paying the taxes without the permission of the owner.
After Acquired Title: Any benefits that come to the property after the sale and must accrue to the new owner (buyer).
Agency: When an individual is authorized to act as the principal’s representative when dealing with a third party.
Agent: An individual appointed by another that has the authority to represent the principal during a transaction.
All-Inclusive Title insurance: A premium quote for Title insurance that
includes all charges.
Alluvium: The soil that builds up due to sediment deposits. See Accretion.
American Land Title Association: An association of title insurance companies
that sets industry standards.
Amortization: The repayment of a loan through regular periodic payment. IE: monthly mortgage payments.
Amortization Schedule: The schedule of individual payments showing both principal’s contribution and debt service for the life of the loan.
Amortization Term: Refers to the length of the loan or payment schedule until it is fully paid.
Appraisal: An estimate of value that is supported by using comparable properties in similar areas. Appraisal Report: A written report supporting the estimated value of the subject property.
Appurtenance: Rights and improvements that pass with the land but are not part of the land.
Assessment: The act of determining of the value of a property for tax purposes. To establish a base for the tax rolls.
Assignee: The person who receives a right or ownership a benefit or right.
Assignment: The transfer of a claim, benefit or contract from one person to another.
Assignor: The person who transfers a right or ownership, benefit or right.
Assumption: A mortgage that allows a new owner to make the payments. The original borrower remains liable for the debt.
Attach: A court order or judicial proceeding that seizes a property and keeps the property under the courts jurisdiction until a settlement is reached.
Attorney in Fact: A disinterested third party who has been authorized and is competent to act on behalf of another in legal matters.
Avulsion: A loss of land by one owner to another owner due to the tearing away by the action of water.
Base Line: A survey line running east to west and used to map and define property boundaries.
Beneficiary: The lender in a deed of trust.
Bill of Sale: A written agreement by which title to personal property is
transferred.
Binder: A preliminary report of the status of title and a commitment to issue a title insurance policy if conditions are met.
Blanket Mortgage: A mortgage creating a lien against two or more tracts of real property
Building Line: The boundary lines of a piece of real property. Property cannot extend beyond this line.
Certificate of Title: A formal document by the title examiner indicating the condition of title. It will not protect against undisclosed liens, parties in possession, survey disputes or hidden defects in the records.
Chain of Title: Each new deed transfers the title to succeeding owners. This chronological chain of events is the chain of title.
Chattel: Personal property.
Chattel Real: Personal property attached to real property such as a lease.
Close of Escrow: The date the documents are recorded and title passes from Seller to Buyer.
Closing: The sale is completed and all costs including an origination fee, discount points, appraisal fee, title search, insurance and taxes are paid.
Closing Statement: A summary statement detailing the debts and credits of each party in a real estate transaction.
Cloud on Title: When there is some doubt to ownership being free of debt, encumbrances or other possible owners.
Color or Title: When title appears on the surface to be valid but is not.
Co-Insurance: When more than one title insurance company spreads risk by insuring a percentage of the whole. The full coverage of a property is shared by more than one company.
Community Property: Property acquired during marriage by either spouse which gives each spouse a real interest by law in some states.
Condemn: Government may acquire property and pay the owner a fair market value, also known as eminent domain.
Condominium: Ownership of an individual interest in an apartment unit and an undivided interest in common areas, such as elevators, hallways or land.
Conditions: An understanding making a something dependent on the occurrence of some other event. Condition Precedent: A condition in which something must occur before a transaction can take place.Condition Subsequent: A condition in which if something occurs in the future that event can cause property to revert back to the original owner.
Constructive Notice: The recording of a deed or taking possession of real property.
Cooperative: An apartment owner has purchased shares in a corporation which holds title to the entire apartment building, a shareholder.
Conveyance: The transfer of title to property from one person to another.
Covenant: A contract or understanding between two or more parties in which one party pledges certain promises and assurances
Covenants, Conditions and Restrictions (CC&R’s): The document that sets forth rules or regulations designed to establish a common understanding or uniform use of property.
Dedication: When an owner gives property to be used for the public good and it is accepted by a public entity.
Declaration of Homestead: A recorded document that protects a homeowner from judgments.
Deed: A legal document by which title is transferred from one party to another.
Deed Restriction: A restriction placed in a deed to limit the property’s use in some manner. It may be a limitation on building height or type of use.
Deed of Trust: The instrument used to secure a loan or mortgage on real estate.
Default: Failure to perform a task or to pay a debt as promised.
Defeasance: To void all rights of a contract or agreement.
Defect: A defective title has irregularities: It may be cloudy title or questions regarding creditors, liens or encumbrances.
Deficiency Judgment: A judgment against a borrower when the auction sale of the property doesn't bring enough money to pay off the balance of a debt.
Demise: A transfer of property or an interest by will.
Devise: One who receives a gift of real estate made by a will.
Devisee: One who is given a gift of real estate by will.
Defective Title: Title to real property which has some issues regarding ownership, claims or encumbrances that create doubts as to good title.
Dual Agent: When an agent represents both parties in a transaction.
Easement: A right to another's land for a specific purpose.
Easement in Gross: An easement that is not attached to a particular parcel, but many parcels, often associated with Public Utilities.
Egress: A right-of-way, to be able to exit ones property.
Eminent Domain: The right of government to take private property for the public good and compensation for the owner at fair market value.
Encroachment: The placement or overhang of a permanent improvement or structure onto another’s property without permission.
Encumbrance: A claim, right or lien against real property.
Equity: The value left in an asset after all debts and liens are fully paid.
Equitable Title: The interest held by a trustor until all mortgages and liens are paid.
Escheat: When a property owner dies and leaves no heirs, the property reverts to the state.
Escrow: After all the stipulations of the escrow agreement are met, the escrow agent distributes trust funds and all documents to the buyer and seller that where held in trust for the buyers and sellers.
Estate: The definition of an owner's legal interest in real estate.
Examination: To review and document the chain of title in order to determine the status of the title.
Exception: A clause in a title insurance policy excluding coverage against a possible liability such as a title defect.
Fee Simple: An interest in real estate whereby the owner has no restrictions on ownership or use.
Fee Simple Defeasable: An estate with some qualifications of ownership or use. Generally, under specific conditions this type of estate will return to the grantor
First Mortgage: A mortgage having priority as a lien over all mortgages or liens on that property. Junior Mortgage: A mortgage that is recorded after the first and has less priority than the first mortgage.
Fixture: Personal property which is permanently attached to real estate..
Foreclosure: A legal proceeding where there has been a default on a debt and a judicial sale of the property to pay off the mortgage debt.
Flag Lot: A parcel of real property that has the shape of a flag with a pole, the pole shape is the access way to the parcel (flag) which is surrounded by another parcel.
Gift Deed: A grant used to make a gift of property.
Grant Deed: A transfer by deed whereby the grantor promises that a property is not encumbered and has not previously been granted.
Grantee: An individual to whom a grant is given..
Grantor: The maker of a grant.
Ground Lease: A lease of the land but not the property on the land.
Guarantee of Title: A legal document assuring that title represents unclouded ownership.
Guarantor: One who guarantee's an obligation or a set of facts and is legally responsible for fulfilling it.
Homestead: A procedure used to protect a home from creditors and recorded with the county.
Improvement Liens: Liens placed on property by municipalities to pay for streets and sewers etc.
Indemnity: Insurance against a danger or risk.
Ingress: The place of entry into the land.
Interests: Rights or legal claims to real estate.
Interior Lot: A parcel that is surrounded by other lots with frontal footage.
Intestate: Dying without a legal will.
Joint Tenants: Two or more persons who hold title jointly with equal rights. Rights of survivorship: Assure that at the death of one joint owners share in the property passes to the surviving tenants, bypassing the will and probate.
Judgment: A court decision regarding the settlement between parties involved in a legal dispute.
Judgment Lien: A lien binding on all the real estate of a debtor.
Junior Mortgage: A mortgage lower in priority because it was recorded after the first mortgage. Junior Trust Deed: Any deed recorded after another deed and having less priority.
Judicial Foreclosure: A foreclosure issued by a court action.
Laches: A legal principle where waiting too long to go to court forfeits your right to do so.
Land Contract: A contract between buyer and seller that is payable in installments. The seller usually retains title but not possession until the land contract is paid in full.
Lease: An agreement granting the use or occupancy of property for a period of time in exchange for rent.
Legal Title: A title that is considered perfect and is marketable.
Lessee: A tenant holding a lease.
Lessor: The landlord.
License: Revocable permission to use a property
Lien: A claim against a property for the payment of a debt. Mortgages are liens against the property.
Life Estate: Ownership in real estate only during the term of a person's life. Upon death the property reverts back to the owner or to another person.
Lis Pendens: Recorded notice indicating a pending lawsuit.
Marketable Title: A salable title considered to be free of claims.
Market Value: The price which a willing buyer would pay and a willing seller would sell without undue pressure.
Mechanic's Lien: A lien on real estate which secures the payment of debts due to contractors for services or materials used to improve a property
Metes and Bounds: A land description which the boundaries of a parcel are mapped by measuring direction and distance.
Mortgage: A legal pledge of property to a creditor as security for the payment of a debt.
Mortgagee: The lender of a mortgage.
Mortgage Loan Disclosure Statement: A statement detailing all the expenses and charges related to a loan.
Mortgagee Policy: Title insurance insuring the holder of a mortgage against loss due to imperfections discovered after the purchase.
Mortgagor: The borrower who mortgages property.
Naked Legal Title: Title that does not have the usual rights or privileges normally given to title holders.
Note: An agreement to make payments. It is like an IOU.
Notice of Trustee's Sale: A published notice by a trustee that a sale of real property to satisfy a debt will take place.
Owner's Policy: Title insurance usually insuring against loss of title by defects, liens or clouded title.
Party Wall: A wall built along adjoining properties and shared by two or more owners.
Perimeter: The boundary lines defining the outer shape of lot or parcel.
Personal Property: Movable property not affixed to real estate.
Plat Map: A map in the public records indicating the boundaries of all Property in a town or sub division.
Plottage: The combing of smaller lots to increase the size and value of a property.
Power of Attorney: A legal instrument authorizing one person to represent or act on the behalf of another.
Preliminary Title Report: An examination and report of the condition of title.
Premium Rate: The premium dollar cost for title insurance. The cost per thousands in dollar terms for title insurance coverage.
Probate: A legal process that determines clear title of the assets of a deceased person. The court can appoint an executer to determine the rightful heirs, pay legal claims of creditors and generally confirms the validity of a will. Probate Sale: A court approved sale of property of the deceased.
Public Grant: The conveyance of title by a government entity to an individual.
Quiet Enjoyment: The right of a new owner or a lessee to undisturbed use.
Quiet Title: A lawsuit brought by an owner of real estate to establish or remove a cloud on the title.
Quit Claim Deed: A deed surrendered by a grantor and giving a grantee any rights in a property.
Reconveyance Deed: Title returns to owner from the trustee when the mortgage is paid in full
Recording: Adding to the public records documents and deeds that impact the title of real property.
Reinsurance: When an insurance company has issued a policy it can choose to spread the risk of loss by having another insurance company insure that commitment.
Release: To relieve or surrender a debt or a right.
Reliction: When waters recedes and exposes the land.
Remainder: An interest in property which begins with the termination of an existing estate or interest.
Restrictions: Stipulations in an agreement that restrict the use of property.
Reversion: The owner retains the right to take back possession under certain specified agreements, such as the end of a lease.
Right of Way: The agreed upon right to access property owned by another
Riparian Rights: The rights of an owner or lessee to the shoreline and body of water upon which the land borders.
Satisfaction: The payment of a debt or obligation.
Sheriffs Deed: A deed given to the purchaser of real property when the property has been sold in a court action to pay off a debt.
Subdivision: Land that have been divided into lots, blocks and mapped accordingly.
Succession: When a person dies without a will, the property will pass by law to other family members.
Survey: Measuring the land to determine its size, shape and location.
T- Intersection Lot: A parcel shape that is along a street.
Tax Deed: A deed given to at a tax auction to the highest bidder.
Tax Lien: The lien related to non payment of taxes.
Tenants-in-Common: Two or more persons who hold title to one piece of real estate as undivided interest.
Third Party: A person who is not party to a contract but who has some right or interest in it. .
Title: Evidence of the rights of ownership.
Title Covenants: An agreement written into deeds for the transfers of title that promise to the purchaser protection against deficiencies of title.
Title Defect: A significant irregularity of ownership in the chain of title.
Title Plant: A repository of information relating to title of specific properties that title search companies whose business is to facilitate the search to clear title.
Title Underwriter: One who does the title search.
Title Search: The examination of all records specific to a property to determine if there are any liens or claims other than those already known.
Torrens: The certificate is the owner's evidence of title.
Trust Deed: A document where title of real property is held by a trustee as security for a debt.
Undivided Interest: A co-owners interest in a property along with other co-owners.
Underwriter: The insurance company.
Vendee: The buyer of real estate.
Vendor: The seller of real estate.
Void: An agreement that has no legal effect.
Voidable: An agreement that may be rejected by one or more of the parties if some defect in it isn’t cured
Waiver: To voluntarily give up a right or requirement.
Warranty Deed: A deed that guarantee's that title is not clouded and that the granter has the right to grantor has the right to grant or transfer the deed.
Warehousing: Financial institutions can hold or securitize mortgages for sale to a purchaser such as other financial institutions of mutual funds.
Writ of Execution: A judicial decision for the sheriff to act on the stipulations of the courts decision.
