Glossary And Terms

GLOSSARY AND TERMS

Abstract of Title
A condensed history and summary of the title to land. Title Agencies review Abstracts of Title to insure there are no discrepancies and that the Title is clear.

Assessment
A valuation or a determination as to the value of the property. It is often used in connection with assessing property taxes or levying property taxes.

Appraisal
An estimate to determine the value or worth of property.

Beneficiary
One who benefits from the act of another. The person entitled to take proceeds upon the death of the insured. One who will inherit personal or real property.

Binder
Sometimes called a Title Commitment. A written memorandum of important terms of the contract, which gives temporary protection to the insured, pending further investigation of risk or until the policy is written.

Chain of Title
The report of all owners, encumbrances, and liens effecting in the history of title to a tract of land.

Clear Title
Real property ownership, clear of liens, encumbrances, defects or claims.

Closing
The day all costs are settled between parties involved in the sale of real estate. The day real property transfers to new owner.

Closing Costs
All costs to be paid by the buyer or seller the day of closing. These costs are in addition to the purchase price of the property.

Deed
A conveyance or realty; a writing signed by the grantor, whereby title to realty is transferred from one to another.

Deed Restriction
A provision in a deed is imposing restrictions or limits, on the use or occupancy of real property.

Easement Rights
A right of way granted to a person or company over or through a persons property/land. Utility companies are a good example, needing access to your property to work on lines or pipes.

Encumbrance
Liens, mortgages, zoning, claims, unpaid taxes, etc. on a title, preventing a clear title.

Escrow
Funds held by an escrow agent with special instructions when to transfer from one party to another.

Grantee
The party who is the buyer or recipient in the deed.

Grantor
The party who is the seller or giver in the deed.

HUD
U.S. Department of Housing and Urban Development.
Insures homes meet certain governmental standards.

Joint Ownership
Where as two parties are involved in the ownership of property.

Judgment
The judgment of a court against a certain person(s) or company(s) that can cause a lien on the title. In most cases, judgments must be satisfied.

Metes and Bounds
A land description in which directions describe boundaries, courses, distances, and monuments.

Owner Policy
A title insurance policy which protects the owner of the property against title defects.

Refinance
Obtaining a new mortgage for a property already owned. Mostly done to get lower interest rates from a competitor.

Survey
A measurement of boundaries of the land done by A Surveying Company. Its purpose is to resolve issues such as boundary disputes, elevations, and property lines.

Tax Lien
Claim on the property due to a tax debt owed.

Title
It is the ownership of land or property.

Title Insurance
A policy that is protecting the owner(s) against loss if there is a defect or claim against the ownership/title of the property.

Title Search
A search usually conducted in the public records of County Court Houses of a title to a piece of property.