Select the first letter of the word from the list above to jump to
appropriate section of the dictionary.
Abstract of Title A condensed
history or summary of all transactions affecting a
particular tract of land.
Access The right to enter and
leave a tract of land from a public way. Can include the right to enter and
leave over the lands of another.
Accretion The slow build-up of
lands by natural forces such as wind or water.
Acknowledgment The act by which
a party executing a legal document goes before an
authorized officer or notary public and declares the same to be his or her
voluntary act and deed.
Acre A tract of land 208.71 feet
square and containing 43,560 square feet of land.
Administrator A person appointed
by a probate court to settle the affairs of an individual dying without a will.
The term is "administratrix" if such a person is a woman.
Adverse Possession A claim made
against the lands of another by virtue of open and notorious possession of said
lands by the claimant.
Affidavit A sworn statement in
writing.
Agent A person or company that
has the power to act on behalf of another or to transact business for another,
e.g., a title agent under contract with Ambassador Title, Inc. to issue policies
of title insurance.
Air Rights The right to
ownership of everything above the physical surface of the land.
ALTA American Land Title
Association, a national association of title insurance companies, abstractors
and attorneys specializing in real property law. Its headquarters are in
Washington, D.C.
Appurtenance Anything so annexed
to land or used with it that it will pass with the conveyance of the land.
ARM Adjustable Rate Mortgage.
See "Variable Rate Mortgage."
Assessment The imposition of a
tax, charge or levy, usually according to established rates.
Assessor A public official who
evaluates property for the purpose of taxation.
Assignee One to whom a transfer
of interest is made. For example, the assignee of a mortgage or contract.
Assignor One who makes an
assignment. For example, the assignor of a mortgage or contract.
Assumable Mortgage A mortgage
which, by its terms, allows a new owner to take over its obligations.
Attachment Legal seizure of
property to force payment of a debt.
Attorney in Fact One who holds a
power of attorney from another allowing him or her to execute legal documents
such as deeds, mortgages, etc., on behalf of the grantor of the power.
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Balloon Mortgage A mortgage
that is amortized over a specific period of years, but requires a lump sum
payment in full at an earlier date.
Bankruptcy A federal court
proceeding in which debtors are relieved of liability for their debts after
surrender of their assets to a court appointed trustee .
Bureau of Land Management The
branch of government in charge of surveying and managing public
lands.
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C & R s Covenants,
Conditions and Restrictions.
See "Conditions and Restrictions ."
Chain A term of land measurement
that is 66 feet in length.
Chain of Title A term applied to
the past series of transactions and documents affecting the title to a
particular parcel of land.
Clear Title One which is not
encumbered or burdened with defects.
Closing Also known as
"escrow" or "settlement." The process of executing legally
binding documents, such as deeds and mortgages most commonly associated with the
purchase of real estate and the borrowing of money to assist in the purchase .
Clouded Title An encumbered
title.
Commitment to Insure A report
issued by a title insurance company, or its agent, committing the title
insurance company to issue the form of policy designated in the commitment upon
compliance with and satisfaction of requirements set forth in the commitment.
Common Interest Community (CIC) Ownership
characterized by mutual ownership of common areas, either jointly or through
membership in an association, e.g., condominiums, planned unit developments, and
town homes.
Company Loan Loan by employer to
facilitate relocation of employee. Usually short term .
Condemnation Taking private
property for public use through court proceedings .
Condition or Conditions A
proviso in a deed or will that, upon the happening or failure to happen of a
certain event, limits, enlarges, changes or terminates the title of the
purchaser or devisee.
Conditions and Restrictions A
common term used to designate conditions and restrictions on the use of land.
Includes penalties for failure to comply. Commonly used by land subdividers on
newly platted areas.
Condominium A system of
individual fee ownership of units in a multi-unit structure, combined with joint
ownership of common areas of the structure and land.
Conservator See "Guardian".
Contract for Deed An agreement
to sell and purchase under which title is held as security by the seller until
such time as the required payments to the seller have been completed.
Convey The act of deeding or
transferring title to another.
Conveyance An instrument by
which title is transferred; a deed. Also, the act of transferring title.
Cooperative A residential
multi-unit building owned by a corporation in which each unit is occupied by a
member of the corporation pursuant to a lease or occupancy agreement .
Covenant An agreement written
into deeds and other instruments promising performance or non-performance of
certain acts, or stipulating certain uses or non-uses of the property.
Cul-de-Sac The terminus of a
street or alley. Usually laid out by modern engineers to provide a circular turn
around for vehicles.
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Deed A written document by
which the ownership of land is transferred from one person to another.
Deed of Trust See "
Mortgage."
Delivery The final and absolute
transfer of a deed from seller to buyer in such a manner that it cannot be
recalled by the seller. A necessary requisite to the transfer of title.
Devise The disposition of real
property by will.
Due on Sale Clause Provision in
a mortgage or deed of trust which requires loan to be paid in full if property
is sold or transferred.
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Earnest Money Advance payment
of part of the purchase price to bind a contract for property.
Easement An interest in land
owned by another that entitles its holder to a specific limited use, such as
laying a sewer, putting up electric power lines, or crossing the property.
Egress The right to leave a
tract of land. Often used interchangeably with "access."
Eminent Domain The power of the
state to take private property for public use upon payment of just compensation.
Encroachment A trespass or
intrusion onto anothers property, usually by a structure, wall or fence.
Encumber To burden a parcel of
land with a lien or charge, e.g., a mortgage.
Encumbrance A lien, liability or
charge upon a parcel of land.
Escheat A reversion of property
to the state in those cases where an individual dies without heirs or devisees,
and, in some states, without a will.
Escrow A pro c e d u re whereby
a disinterested third party handles legal documents and funds on behalf of a
seller and buyer, and delivers them upon performance by the parties.
Estate A persons possessions.
The extent of a persons interest in real property.
Examination of Title The
investigation and interpretation of the record title to real property based on
the title search or abstract.
Exception In legal descriptions,
that portion of land to be deleted or excluded. The term often is used in a
different sense to mean an objection to title or encumbrance on title.
Executor A person appointed by
the probate court to carry out the terms of a will. The term is
"executrix" if that person is a woman.
Extended Mortgage One in which
the due date of a mortgage is extended for a longer period, often at a higher
interest rate than the original mortgage.
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Fannie Mae Federal National
Mortgage Association (also FNMA) is a private corporation, federally chart e re
d to provide financial products and services that increase the availability and
affordability of housing by purchasing mortgage loans.
Fee Simple Estate The greatest
interest in a parcel of land that it is possible to own. Sometimes designated
simply as "Fee."
Federal Housing Administration (FHA) Guarantee An
insurance contract in which HUD through FHA insures that the named lender will
recover a specific percentage of the loan amount from the insurer (FHA) in the
event that the loan goes bad.
Financing Statement A document
filed with the Register of Deeds or Secretary of State securing the title to
personal property.
Fixtures Any item of property so
attached to real property that it becomes a part of the real property.
Flood Certification A common
term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard
Determination Form (SFHDF). This determines whether land or a building is
located within a Special Flood Hazard Area for purposes of flood insurance
requirements under the National Flood Insurance Pro g r a m .
Forfeiture of Title Provision in
a deed creating a condition which will cause title to be passed to another
should certain circumstances occur.
Freddie Mac Federal Home Loan
Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered
by Congress that purchases mortgage loans.
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Ginnie Mae Government National
Mortgage Association (also GNMA) is a wholly-owned United States corporation
that guarantees privately issued securities backed by pools of mortgages insured
by FHA (Federal Housing Administration), FMHA (Farmers Home Administration)
or VA (Veterans Administration).
Graduated Payment Mortgage A
loan in which monthly payments are relatively small in the beginning and
gradually increase in dollar amount over the life of the mortgage.
Grantee A person who acquires an
interest in land by deed, grant, or other written instrument.
Grantor A person, who, by a
written instrument , transfers to another an interest in land.
Guardian One appointed by the
court to administer the affairs of an individual not capable of administering
his or her own affairs.
Harbor Line An arbitrary line
set by authorities on navigable rivers, beyond which wharves and other
structures may not be built. Also designated as line of navigation.
Heir One who might inherit or
succeed to an interest in land of an individual who dies without leaving a will
(intestate).
Hiatus A gap or space
unintentionally left, when attempting to describe adjoining parcels of land.
Home Equity Conversion Mortgage A
reverse or reverse annuity mortgage in which HUD through FHA guarantees that the
borrower will receive monthly payments from the insurer (FHA) in the event the
lender is unable to make payments to the borrower.
Home Repair Loan Used for
repairs and additions to existing structures without affecting existing mort g a
g e . Typically 10 years or less in length.
HUD 1 A form settlement
(closing) statement required by the U.S. Department of Housing and Urban
Development (HUD) where federally related mortgages are being made on
residential properties. It is a balance sheet showing the source of funds and
the distribution of funds in connection with the purchase and/or mortgaging of
residential property.
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Improvements Those additions to
raw lands tending to
Inchoate Dower The imperfect
interest which the law gives a wife in the lands of her husband. This is an
interest which upon the death of the husband may ripen into possession and use.
Most states have abolished dower rights.
Inchoate Curtesy The imperfect
interest which the law gives a husband in the lands of his wife. This is an
interest which upon the death of the husband may ripen into possession and use.
Most states have abolished dower rights.
Indemnify To make payment for a
loss.
Ingress The right to enter a
tract of land. Often used interchangeably with "access."
Insurance A contract of
indemnity against specified perils.
Insurance Loan When cash value
of a life insurance policy is borrowed by the insured.
Interim Financing Temporary or
short term loans. Often used with new construction. Usually replaced with
a permanent long-term mortgage.
Intestate Designates the estate
or condition of failing to leave a will at death. "To die intestate."
Joint Tenancy An estate where
two or more persons hold real estate jointly for life, the survivors to take the
interest of the one who dies.
Judgment A decree of a court. In
practice this is the lien or charge upon the lands of a debtor resulting from
the Court s award of money to a creditor.
See "Judgment Lien."
Judgment Docket The record book
of a County Clerk where a judgment is entered in order that it may become a lien
upon the property of the debtor.
Judgment Lien The charge upon
the lands of a debtor resulting from the decree of a court properly entered into
the judgment docket.
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Land Contract See "Contract
for Deed ."
Landmark Any conspicuous object
that helps establish land boundaries.
Lease A grant of the use of
lands for a term of years in consideration of the payment of a monthly or annual
rental.
Lenders Policy A form of
title insurance policy which insures the validity, enforceability and priority
of a lenders lien. This form does not provide protection for the owner.
Lessee One who takes lands upon
a lease.
Lessor One who grants lands
under a lease.
Lien A hold, claim, or charge
allowed a creditor upon the lands of a debtor. Some examples are mortgage liens,
judgment liens, mechanics liens.
Life Estate A grant or
reservation of the right of use, occupancy and ownership for the life of an
individual.
Link A term of land measurement
being 1/100th of a chain or 66/100ths of a foot.
Lis Pendens A notice recorded in
the official records of a county to indicate that a suit is pending affecting
the lands where the notice is recorded.
Loan Policy See "
Lenders Policy ."
Loss Payable Clause Provision
added to a Fire and Casualty Policy which says any loss will be paid to two or
more parties as their interest may appear. Usually the owner and the mortgage
lender.
Lot A part of a subdivision or
block having fixed boundaries ascertainable by reference to a plat or survey.
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Majority The age at which a
person is entitled to handle his or her own affairs.
Marketable Title A good title
about which there is no fair or reasonable doubt.
Mechanics Lien A lien allowed
by statute to contractors, laborers and material suppliers on buildings or other
structures upon which work has been performed or materials supplied.
Metes and Bounds A description
of land by courses and distances.
Minor One who because of
insufficient age or status is legally incapable of making contracts.
Monument of Survey Visible marks
or indications left on natural or other objects indicating the lines and
boundaries of a survey. May be posts, pillars, stones, cairns, and other such
objects. May also be fixed natural objects, blazed trees, roads and even a water
course.
Mortgage An instrument used to
encumber land as security for a debt.
Mortgage-Backed Security A
security evidencing either the ownership of an interest in a mortgage loan or
pools of mortgage loans, or a separate obligation secured by a mortgage loan or
pool of mortgage loans.
Mortgage Banker A specialized
lending institution that lends money solely with respect to real estate and
secures its loans with mortgages on the real estate.
Mortgage Broker A person or
company that buys and sells mortgages for another on commission or who arranges
for and negotiates mortgage contracts.
Mortgage Revenue Bonds Issued by
communities as a means of providing lower cost mortgage funds to certain
qualified borrowers.
Mortgagee The mortgage lender.
Mortgagees Policy See "Lenders
Policy ."
Mortgagor The mortgage borrower.
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Negative Amortization An actual
increase in the principal amount of real estate loan because of the addition of
matured but unpaid interest to the loan balance. Usually the result of monthly
payments which a re temporarily set at a lower than needed level.
Notary One authorized to take
acknowledgments.
See "Acknowledgment."
Note The instrument evidencing
the indebtedness secured by a security instrument such as a mortgage or deed of
trust.
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Owners Policy A policy of
title insurance which
Ownership The right to possess
and use property to the exclusion of others.
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Patent A document or grant by
which the federal or state government originally transferred title to public
lands to an individual. The first in the series of transfers by which title
comes down to present owners.
Personal Representative A person
appointed by the probate court to administer a decedents estate.
See also "Executor"
or "Administrator."
Plat or Plot A map representing
a piece of land subdivided into lots with streets shown there on.
P.M.I. Private Mortgage
Insurance. An insurance contract which insures that the named lender will re
cover a specific percentage of the loan amount from the insurer in the event the
loan goes bad. Many lenders require this on higher percentage loans.
Points A one-time special fee or
extra charge paid to a lender in order to secure a loan. Expressed as a
percentage of face amount of mortgage.
Policy A written contract of
title insurance.
Policyowner The insured on a
title insurance policy.
Power of Attorney An instrument
authorizing another to act on ones behalf as his or her agent or attorney.
Power of Sale A clause in a
will, mortgage, deed of trust or trust agreement authorizing the sale or
transfer of land in accordance with the terms of the clause.
Prorate To allocate between
seller and buyer their proportionate share of an obligation paid or due. For
example, a proration of real property taxes or fire insurance premiums.
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Quiet Title An action in a
proper Court to remove record defects or possible claims of other parties named
in the action.
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Range A part of the government
survey, being a strip of land six miles in width, and numbered east or west of
the principal meridian.
Real Property Land, together
with fixtures, improvements and appurtenances.
Realtorฎ A
federally registered collective membership mark which identifies a real estate
professional who is a member of the National Association of Realtors ฎ
a n d subscribes to its strict Code of Ethics.
Realty A brief term for real
property.
Redeem Literally "to buy
back." The act of buying back lands after a mortgage foreclosure, tax
foreclosure, or other execution sale.
Registered Land See "
Torrens Title ."
Reinsurance To insure again by
transferring to another insurance company all or part of an assumed liability,
thus spreading the loss risk any one company has to carry.
REIT Real Estate Investment
Trust. A product of federal tax legislation formed as a business trust, under a
special state REIT statute or as a corporation for the purpose of investing in
real estate or mortgages on real estate.
REMIC Real Estate Mortgage
Investment Conduit. A product of 1986 federal tax legislation in which a
business entity such as a corporation, partnership, or trust in
which substantially all of the assets consist of qualified mortgages and
permitted investments, elects to be treated as a REMIC. Qualification avoids
treatment as a corporation for tax purposes.
Reverse or Reverse Annuity Mortgage A
mortgage for which the borrower pledges home equity in
return for regular (monthly) payments, rather than a lump sum distribution of
loan proceeds. Repayment is usually not required until the home is sold or the
borrowers estate is settled, provided the borrower continues to live in the
home and keeps current all taxes and insurance.
See also "Home Equity Conversion
Mortgage."
Right - of - Way The right which
one has to pass across the lands of another. An easement.
Riparian Rights to use of water
and waterways in adjoining lakes or rivers.
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Second Mortgage A second loan on
real estate that a l ready has a mortgage. It is subordinate to the first
mortgage. Usually of shorter term and often at a higher interest rate.
Section or Section of Land A
parcel of land comprising one square mile or 640 acres.
Set Back Lines Those lines which
delineate the required distances for the location of structures in relation to
the perimeter of the property.
Sub-surface Right The right of
ownership to things lying beneath the physical surface of the property.
Survey The process of measuring
land to determine its size, location and physical description and the resulting
drawing or map.
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Tenancy by the Entirety Ownership
by married persons where each owns the entire estate, with the survivor taking
the whole upon the others death.
Tenancy in Common An estate or
interest in land held by two or more persons, each having equal rights of
possession and enjoyment, but without any right of succession by survivorship
between the owners.
Tenant Any person occupying real
property with the owners permission.
Testament Another term for a
will. Commonly referred to as "last will and testament."
Testate The estate or condition
of leaving a will at death. "To die testate."
Testator A man who makes or has
made a testament or will.
Testatrix A woman who makes or
has made a testament or will.
Title The evidence of right
which a person has to the ownership and possession of land. Commonly considered
as a history of rights.
Title Defect Any legal right
held by others to claim property or to make demands upon the owner.
Title Insurance Insurance
against loss or damage resulting from defects or failure of title to a
particular parcel of real property.
Title Plant The total facilities
records, equipment, fixtures, and personnel required to function as a
title insurance operation. Technically, the organization of official records
affecting real property into a system which allows quick and efficient recovery
of title information.
Title Search An examination of
public records, laws, and court decisions to disclose the
current facts regarding ownership of real estate.
Torrens Title A system whereby,
after court proceedings, a certificate is issued setting forth the extent of the
applicants estate in land subject to the exceptions shown. Most popular in
the early 1900s, the system was adopted in 19 states. It is presently used
only in parts of six states.
Township A division of territory
six miles square, containing 36 sections or 36 square miles.
Tract A particular parcel of
land.
Trust A property right held by
one as a fiduciary for the benefit of another.
Trustee A person holding
property in trust as a fiduciary for the benefit of another.
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VA Guarantee An insurance
contract in which the Veterans Administration (VA) insures that the named lender
will recover a specific percentage of the loan amount from the insurer in the
event the loan goes bad.
Variable Rate Mortgage A loan in
which the interest rate fluctuates with the cost of funds or some other index.
Vendee A purchaser of real
property under land contract.
Vendor A seller of real property
under land contract.
Vest To pass to a person an
immediate right or interest. Title may be said to vest in John Smith.
Vestee A nonlegal term used by
title insurers to indicate the owner of real property in a policy or report.
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Warranty A promise by the
grantor of real property that he or she is the owner and will be responsible to
the buyer if title is other than as represented.
Will A written document providing
for the distribution of property owned by a person after his or her death.
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Zoning The right of a
municipality to regulate and determine the compatible character and use of
property.
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The terms contained on this page are defined in their most
commonly used form. We advise you to seek the counsel of an attorney if you seek
a more precise interpretation of these terms.
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