Abstract:

An abbreviation of the cardinal aspects of all recorded deeds, mortgages, leases and other instruments affecting the title to a particular piece of land.

Abut:

To touch or border upon. A piece of land bordering on a street or an adjoining piece of property is said to abut such street or property. 

Appraise:

From Latin "appretiare" meaning to set or fix a value. To judge or estimate the value of real estate. 

Assessed
Valuation:

The estimated value of property for tax purposes, usually fixed by the tax assessor.

Closing:

In some areas called a "settlement". The process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed and/or delivered, an accounting between the parties is made, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to.

Conveyance:

The transfer of title to property from one person to another.

Deed:

An instrument, of various forms, by which title to real estate is conveyed from one party to another.

Easement:

A right held by a person to enjoy or make limited use of another’s real property.

Eminient
Domain:

The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value.

Encroachment:

The extension of a structure from the real estate to which it belongs across a boundary line and onto adjoining property.

Encumbrance:

A claim, right, or lien upon the title to real estate, held by someone other than the real estate owner.

Escrow:

The depositing with an impartial third party called the escrow agent (usually the title company) of anything pertaining to a real estate transaction including money and documents of all kinds which are to be disbursed and delivered to the rightful parties by the escrow agent when all conditions of the transaction have been met.

Fiduciary:

A person who bears a special relationship of trust, confidence, and responsibility to others, such as trustee or agent.

Filing:

This term relates to the delivery of real estate instruments to a recorder for recordings.

First
Mortgage:

A mortgage having priority as a lien over any other mortgage or lien on the same property.

Grant:

A transfer of real estate, between individuals, by deed.

Homestead:

(1) Property designated by the head of the family as his home, which is protected by law from forced sale to pay his debts. (2) Land claimed by a settler under the National Homestead Act. (3) Under some state laws, the real estate upon which one’s home is situated.

HUD:

Required form by the Department of Housing and Urban Development which summarizes the financial portion of the real estate transaction.

Indemnity:

Insurance against possible loss or damage. A title insurance policy is a contract of indemnity.

Indenture:

A deed or other real estate contract executed between two or more parties.

Lender’s
Title
Insurance:

Insurance, typically paid by the borrower, which protects the lender against claims and losses that may arise if the title is unmarketable or defective. There are many defects that cannot be discovered by the title examination alone.

Lien:

The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage, or by operation of law, such as a mechanic’s lien.

Marketable
Title:

A title which a court of equity considers to be so free of material defects and liens that it will force the title’s acceptance by questioning purchaser. Also known as a merchantable title.

Market Value:

An average between the highest price which a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing, but not compelled to sell, would accept.

Mechanic’s
Lien:

A lien on real estate, created by operation of law, which secures the payment of debts due to persons who perform labor or services or furnish materials incident to the construction of buildings and improvements on the real estate.

Owner’s
Title
Insurance:

A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against, or in marketability of the owner’s title.

Quit Claim
Deed:

A deed which does not imply that the grantor holds title, but which surrenders and gives to the grantee any possible interest or rights which the grantor may have in the property.

Real Estate:

Land, including all inherent natural attributes and any man-made improvements of a permanent nature placed thereon.

Record Title:

The aspects of a title which appear in the public records as distinguished from unrecorded title aspects and interests.

Restrictions:

Often called restrictive covenants. Provisions in a deed or other instrument whereby an owner of land prohibits or restricts certain use, occupation, and improvement of the land.

Search:

In title industry parlance, a careful exploration and perusal of the public records in an effort to find all recorded instruments relating to a particular chain of title.

Second
Mortgage:

A mortgage ranking in priority immediately below a first mortgage.

Survey:

The map or plot drawn by a surveyor which represents the property surveyed and shows the results of a survey.

Title:

(1) A combination of all the elements that constitute the highest legal right to won, possess, use, control, enjoy, and dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.

Title Order:

An order that is taken from the lender requesting the title company to begin the title search and prepare a loan for closing.

Title Search:

A search and perusal of the public records for recorded instruments which affect the title to a particular piece of land.