Glossary Of Title Terms
Abstract of Judgment
- A summary of the essential provisions of a court judgment, which when recorded in the county recorder’s office creates a lien upon the property of the defendant in that county, both presently owned or after acquired.
Closing
- In regard to real estate sales, this is the final procedure in which documents are executed and recorded along with funds being disbursed to the appropriate parties causing the sale and/or loan to be complete.
Commitment
- The written guaranty by a title company committing (Title Commitment) said company to issue title insurance on a specific property once certain requirements have been met. The requirements are outlined in the commitment, along with the items which will be excluded from coverage (the “subject to” section of the title commitment).
Community Property
- Property owned in common by husband and wife, which was not acquired as separate property.
Deed
- Generally a conveyance instrument used to pass fee title to property upon sale.
Deed of Trust
- An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed (released) upon payment in full.
Easement
- A right granted to a utility or individual for the purpose of use, ingress, egress or other special use.
Escrow
- The contract between two parties which is governed and controlled by an independent disinterested third party (the title company) under which the requirements are met to transfer real property ownership from one party to the other.
Guardian
- An individual appointed by the courts to manage the affairs of a minor or incompetent.
Encumbrance
- A claim, lien, charge of liability attached to and binding real property. Any right to or interest in land which may exist in one other than the owner, but which will not prevent the transfer of fee title.
Legal
- The legal description of a property includes the street address, lot number, block number, section or phase, subdivision name, volume and page of the map records of the county. A specific description of the property that cannot be used to describe any other property in that county.
Lien
- An encumbrance against property for money whether voluntary or involuntary. All liens are encumbrances, but all encumbrances are not liens.
Mechanic's Lien
- A lien created by statute for the purpose of securing priority of payment for the price or value of work preformed and materials furnished in construction or repair of improvements to land, and which attaches to the land, as well as the improvements.
Ownership
- Name of owner of record on real property.
Plat
- Refers to map of records of a subdivision showing lot dimension, street setbacks, etc.
Power of Attorney
- An authority by which one person (principal) enables another (attorney in fact) to act for him. Specific Power of Attorney specifies property, buyer, price and terms.
Title Insurance
- Protects a homeowner from any loss incurred due to a defect in title, such as forgeries, liens on the property, errors of recording clerks and legal errors.
Title Plant
- A duplicate set of public records maintained by a title company.
Title Search
- An inspection of publicly available records and documents to determine the current ownership and title condition for a property.