Glossary of terms

Abstract of Title: A condensed history of the title to a parcel of land consisting of material that in any manner affects that parcel, covering any and all documents recorded. THIS IS NOT A TITLE POLICY AND DOES NOT AFFORD RE-ISSUE CREDIT.

Access: The right to enter and leave a tract of land.

Assumable Mortgage: A mortgage which, by its terms, allows a new owner to take over its obligation.

Blanket Mortgage: A single mortgage which covers more than one parcel of real estate.

Chain of Title: A term applied to the past series of transactions and documents affecting the title to a particular piece of land.

Clear Title: One which is not encumbered or burdened by defects.

Cloud on Title: An apparent defect in title, indicating an outstanding interest in land that can be proven to be invalid.

Commitment to Insure: Preliminary report issued before the actual policy - Said report shows the condition of title and steps necessary to complete the transfer of title as contemplated by buyer and seller.

Conditions and Restrictions: A common term used to designate the uses to which the land may not be put, and providing penalties for failure to comply.

Contract for Deed (Agreement for Deed): A contract wherein an owner agrees to deliver title upon performance by a buyer of certain agreed to conditions, such as payment of the purchase price over a specific period of time.

Easement: The legal right by one (individual, company, etc.) to enter upon another’s property; it is considered to be an interest in real property.

Encroachment: An infringement on another’s right as a result of physical intrusion onto the property of that owner. Only a survey will reveal that encroachment.

Encumbrance: A charge, claim or lien against the title to real property.

Escrow: A procedure whereby a disinterested third party handles the legal documents and funds on behalf of a seller and buyer.

Fee Simple Estate: The highest type of interest a person can have in land. Absolute ownership (subject to laws) with the right to dispose of or pass onto heirs at owner’s sole discretion.

Grantee: One receiving title to real property, such as the purchaser; a person to whom a “grant” is made.

Grantor: One granting title, via deed or other instrument, such as the seller.

Indemnify: To make payment for loss.

Instrument: A formal, written document such as a deed, contract, lease, or will

Joint Tenancy: Concurrent ownership of real estate by two or more persons with rights of survivorship. Each owner owns 100% of the property. Also known as “Tenancy by the Entireties” most often used when husband and wife own property together, but may be used for unmarried persons as well.

Judgment: The final determination by a court of law regarding the matter presented.

Lien: A form of encumbrance which usually makes real property the security of payment of a debt or discharge of an obligation, i.e., judgments, tax liens, mortgages, mechanic’s liens, etc.

Life Estate: A grant or reservation of right of use, occupancy and ownership for the life of an individual on real property.

Lis Pendens: A notice recorded in the Official Records of a County, indicating that a suit is pending in the Civil Courts affecting the lands therein described.

Marketable Title: A good title about which there is NO fair or reasonable doubt- Clear Title

Mechanic’s Lien: A claim, created by statute, existing in favor of mechanics for other person who have performed work on, or have furnished material for the erection or repair of a building or other improvements on real property.

Metes & Bounds: Measurement of a piece of real property in feet, yards, chains, mile, etc. covering the entire piece to its natural and/or artificial boundaries (lakes, rivers, roads, etc.) Used in legal descriptions by surveyors.

Mortgage Policy: The form of title insurance policy which insures the validity, enforceability and priority of a specific mortgage for a mortgage (lender). Does not provide title protection for an owner.

Owner’s Policy: The form of title insurance policy that insures a named owner against loss by reason of defects, liens and encumbrances or lack of marketability of the title. The title company issuing the policy will also defend and cover any and all claims against the owner’s title.

Plat: A map of plan of a subdivision indicating individual lots.

Premises Clause: A granting clause in a deed.

Purchase Money Mortgage: A mortgage given by a buyer to a seller as a portion (or all) of the purchase price.

Quiet Title: A legal action to resolve a title dispute by presenting all claims in court.

Quit- Claim Deed: A deed which relinquishes any and all right, title and interest in real property which the grantor may have.

Right-of- Way: The right of passage over another’s property.

Riparian Rights: The rights of owners in and to the water (in some cases, land under the water) abutting their property.

Satisfaction: The discharge of an obligation by payment to a party of sums due.

Tenancy by the Entireties: Concurrent (joint) ownership of real estate by two or more people, with rights of survivorship. Each owns 100% of the property. Most often used for Husband and Wife ownership, but not regulated solely for married persons.

Tenancy in Common: Concurrent ownership of real estate by two or more persons where ownership interest is proportionate, i.e., two persons = each owns 50% unless otherwise specified. In case of death, ownership goes to decedents’ heirs, not to the other owner.

Title: The evidence or right by which a person has ownership/possession of real property.

Title Insurance: An insurance, which indemnifies the holder, to the amount of the policy for any loss, not exempted on the policy, or sustained by reason of error or defect in title.

Title Search: An examination of public records, laws and court decisions to disclose the current facts regarding ownership of real estate.

Warranty: To stipulate or guarantee by an express covenant that the title to a grantee shall be good and his possession undisturbed.