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Index:
A B
C D
E F
G H
I J
K L
M N
O P
Q R
S T
U V
W X
Y Z
Abandonment
The voluntary relinquishment of rights of ownership or another interest
(such as an easement) by failure to use the property, coupled with an
intent to abandon (give up the interest).
Abstract
A summary.
Abstract
of Judgement
A summary of money judgment obtained in court. (When this summary or abstract
is recorded in the county recorder's office, in some states the judgment
becomes a lien on the debtor's property, both presently owned or after-acquired.)
Index
Abstract
of Title
A summary prepared by a licensed abstractor of all documents recorded
in the public records of the political subdivision where the land is located.
An abstract in some states or areas is reviewed by an attorney or other
experienced title examiner to determine the status of title. Virtually
every abstractor today provides actual copies of the records rather than
an abstract of each document Index
Abatement
A reduction or decrease. Usually applies to a decrease of assessed valuation
of ad valorem taxes after the assessment, and levy. Index
Acceleration
Clause
Clause in a deed of trust or mortgage, which "accelerates," or hastens,
the time when the indebtedness becomes due. For example, some deeds of
trust contain a provision (an acceleration clause) stating that the note
shall become due immediately upon the sale of the land or upon failure
to pay interest or an installment of principal and interest. Index
Accomodation
Recording
Recording of instruments with the county recorder by a title company merely
as a convenience to a customer and without assumption of responsibility
for correctness or validity. Index
Acknowledgement
A formal declaration before a duly authorized officer (such as a notary
public) by a person who has executed an instrument that such execution
is his own act and deed. An acknowledgment is necessary to entitle an
instrument (with certain specific exceptions) to be recorded, to impart
constructive notice of its contents and to entitle the instrument to be
used as evidence without further proof. The certificate of acknowledgment
is attached to the instrument or incorporated therein. Index
Adjustable
Mortgage Loans (AML'S)
Mortgage loans under which the interest rate is periodically adjusted
to more closely coincide with current rates. The amounts and times of
adjustment are agreed to at the inception of the loan. Also called: Adjustable
Rate Loans, Adjustable Rate Mortgages (ARM'S), Flexible Rate Loans, Variable
Rate Loans. (See also: Indexing, Rate Index). Index
Administrator
A person appointed by the probate court to carry out the administration
of a decedent's estate when the decedent has left no will. If a woman
is appointed, she is called an administratrix. Index
Adverse
Possession
A process of acquiring title to real property by possession for a certain
(statutory) period of time, in addition to fulfilling other conditions.
Index
Affidavit
A written statement or declaration, sworn to before an officer who has
authority to administer an oath. Index
Agent
One who has authorization, either expressed or implied, to act for or
represent another party, usually in business matters, such as issuing
title insurance policies on behalf of a title insurer for a portion of
the premium. Index
Agreement
of Sale
A written contract entered into between the seller (vendor) and buyer
(vendee) for sale of real property (land) on an installment or deferred
payment plan. It is also known as an agreement to convey, a long form
Security Agreement or a real estate installment contract. Index
All-Inclusive Rate
Rate which includes charges for title insurance, searching or abstract
fees and examination fees. Index
ALTA
(American Land Title Association) Organization composed of title insurance
firms which sets standards for the industry, including title insurance
policy forms used on a national basis. Index
Amendment
A change either to alter, add to, or correct part of an agreement without
changing the principal idea or essence. Index
Amortized
Loan
A loan that is paid off, both interest and principal, by regular payments
that are equal or nearly equal. Index
Annual
Percentage Rate (A.P.R.)
The yearly interest percentage of a loan, as expressed by the actual rate
of interest paid. For example: 6% add-on interest would be much more than
6% simple interest, even though both would say 6%. The A.P.R. is disclosed
as a requirement of federal truth in lending statutes. Index
Appraisal
An estimate of value of property resulting from analysis of facts about
the property; an opinion of value. Index
Approved
Attorney
An attorney whose opinion is acceptable to a title company as the basis
for issuance of a title insurance policy by the insurer. The insurer,
rather than the attorney, executes the policy. Index
Assumption
The act of conveying real property; taking title to a property with the
Buyer assuming liability for paying an existing note secured by a deed
of trust against the property. Index
Back
Title Letter or Certificate
See Starter. Index
Bankruptcy
A special proceeding under federal, or in some instances state, laws by
which the property of a debtor is protected by the court and may be divided
among the debtor's creditors and the debtor. Index
Basis
or Tax Basis
Beneficiary
As used in a Trust Deed, the Beneficiary is the Lender. Index
Blanket
Mortgate or Trust Deed
A mortgage or trust deed that covers more than one lot or parcel of real
property, and often an entire subdivision. As individual lots are sold,
a partial reconveyance from the blanket mortgage is ordinarily obtained.
Index
Bona
Fide Purchaser
One who buys property in good faith, for fair value, and without notice
of any adverse claim or right of third parties. Index
Boot
Branch
A subordinate or division office of Golden Escrow Company, as opposed
to an affiliate, agent, subsidiary or underwritten firm associated with
the Company. Index
Breach
of Contract
Failure to perform a contract, in whole or part, without legal excuse.
Index
Building
Contract
An agreement between an owner or lessee and a building contractor, setting
forth terms relative to the construction of a proposed structure. Index
Buydown
A payment to the lender from the seller, buyer, third party, or some combination
of these, causing the lender to reduce the interest rate during the early
years of a loan. The buydown is usually for the first one to five years
of the loan. (See also: Certificate Backed Mortgage). Index
Capitalization
Rate
The percentage (acceptable to an average buyer) used to determine the
value of income property through capitalization. Index
Cash
Out
Certificate
of Title
In areas where attorneys examine abstracts or chains of title, a written
opinion, executed by the examining attorney, stating that title is vested
as stated in the abstract. Index
Close
of Escrow
The date the documents are recorded and title passes from Seller to Buyer.
On this date, the Buyer becomes the legal owner, and title insurance becomes
effective. Index
Closing
The final procedure in the real estate sales process, where the sale and
pertinent loan are completed by the execution of documents for recording.
In some areas, this procedure is known as the closing of escrow. Index
Closing
costs
The numerous expenses which buyers and sellers normally incur to complete
a transaction in the transfer of ownership of real estate. These costs
are in addition to price of the property and are items prepaid at the
closing day. Index
Cloud
on Title
An irregularity, possible claim, or encumbrance which, if valid, would
adversely affect or impair the title. Index
Coinsurance
Ordinary coinsurance is defined as a transaction under which each of two
or more insurers assumes a designated portion of the liability for the
total risk and is liable for only such portion of any loss beginning at
the first dollar of loss. (See Reinsurance.) Index
Collateral
By or at the side, additional or auxiliary. Mistakenly used to mean collateral
security. Index
Collateral
Security
Most commonly used to mean some security in addition to the personal obligation
of the borrower. Index
Commitment
A binding contract with a title company to issue a specific title policy,
showing only those exceptions contained in the commitment and any intervening
matters after the date of the commitment and prior to the effective date
of the policy. The commitment contains all information included in the
preliminary title report, plus a list of the title company's requirements
to insure the transaction. It also includes the standard exceptions from
coverage that will appear in the policy. Index
Community
Driveway
A driveway which is jointly owned, used and maintained by two or more
persons. Usually, a portion of each owner's property is burdened by the
driveway. Index
Community Property
Property acquired by husband, wife or both during marriage which gives
each spouse an interest in the property whether each appears in title
or not. Index
Comparable
Sales
Sales that have similar characteristics as the subject property, used
for analysis in the appraisal. Commonly called "comps." Index
Condemnation
The taking of private property by the government for public use - as for
a street or a storm drain - upon making just compensation to the owner.
This right or power of government to take property for a necessary public
use is called "eminent domain." Index
Conservator
A person appointed by the court to care for the person and/or property
of an incompetent adult or an adult unable to care for their person or
property because of health. Index
Constructive
Notice
Notice imparted by the public records of the county when documents entitled
to recording are recorded. Index
Conveyance
An instrument in writng, such as a deed or trust deed, used to transfer
(convey) title to property from one person to another. Index
Corporation
An entity authorized by law and established by a group of people, the
stockholders, which is endowed with certain rights, privileges and duties
similar to an individual. Index
Covenant
(1) A formal agreement or contract between two parties in which one party
gives the other certain promises and assurances, such as the covenant
of warranty in a warranty deed. (2) Agreements or promises contained in
deeds and other instruments for performance or nonperformance of certain
acts, or use or nonuse of property in a certain manner. Index
Covenants,
Conditions and Restrictions
Commonly called "CC & R's" the term usually refers to a written recorded
declaration which sets forth certain covenants, conditions, restrictions,
rules or regulations established by a subdivider or other landowner to
create uniformity of buildings and use within tracts of land or groups
of lots. The restrictions also can be established by deed. CC & R's are
sometimes referred to as private zoning. Index
Debt
Money owing from one person to another. Index
Debtor
One who owes a debt. Index
Decree
of Distribution
A probate court decree which determines how the estate of a decedent shall
be distributed. Index
Deed
Written document by which an estate or interest in real property is transferred
from one person to another. The person who transfers the interest is called
the "grantor." The one who acquires the interest is called the "grantee."
Examples of deeds are grant deeds, administrators' deeds, executors' deeds,
quitclaim deeds, etc. The deed to use depends on the language of the deed,
the legal capacity of the grantor and other circumstances. Index
Deed
of Trust or Trust Deed
A written document by which the title to land is conveyed as security
for the repayment of a loan or other obligation. It is a form of mortgage.
The landowner or debtor is called the "trustor." The party to whom the
legal title is conveyed (and who may be called on to conduct a sale thereof
if the loan is not paid) is the "trustee." The lender is the "beneficiary."
When the loan is paid off, the trustee is asked by the beneficiary to
issue a "recon" or reconveyance. This reconveyance corresponds to the
release that the holder of a mortgage executes when the mortgage is paid
off. Index
Deed
Restrictions
Limitations in the deed to a property that dictate certain uses that may
or not be made of the property. Index
Defect
A blemish, imperfection or deficiency. A defective title is one that is
irregular and faulty. Index
Defective
Title
(1) Title to a negotiable instrument obtained by fraud. (2) Title to real
property which lacks some of the elements necessary to transfer good title.
Index
Deferred
Exchanges .
Simultaneous Exchanges . Nonsimultaneous
Exchanges . Exchanges
. Starker Exchanges
Demand
Note
A note having no date for repayment, but due on demand of the lender.
Index
Deposit
(1) Money given by the buyer with an offer to purchase. Shows good faith.
Also called earnest money. (2) A natural accumulation of resources (oil,
gold, etc.) which may be commercially recovered and marketed. Index
Description
The exact location of a piece of real property stated in terms of lot,
block, tract, part lot, metes and bounds, recorded instruments, or U.S.
Government survey (sectionalized). This is also referred to as legal description
of property. Index
Direct
Lender
Direct lenders can approve and lend their
own money. They able to make loan commitments as well as give loan approvals.
Direct lenders are capable of dealing directly with the customer.
Index
Direct
Deeding
Disqualified
Person
Earnest
Money Deposit
Down payment made by a purchaser of real estate as evidence of good faith;
a deposit or partial payment. Index
Easement
A right or interest in the use of the land of another which entitles the
holder to some use, privilege or benefit, such as to place pole lines,
pipe lines or roads thereon. Index
Effective
Demand
A qualifying term meaning the ability to pay as well as desire to buy.
Index
Eminent
Domain
The right of a government to take privately owned property for public
purposes under condemnation proceedings upon payment of its reasonable
value. See Condemnation. Index
Encroachment
The presence of an improvement such as a building, a wall, a fence or
other fixture which overlaps onto the property of an adjoining owner.
Index
Encumbrance
A right or claim upon real property (land) held by one other than the
property owner. Encumbrances are divided into two classes, as follows:
a) Liens (mortgages, deeds of trust, mechanics' liens, local taxes, assessments,
judgments, attachments, etc.). b) Encumbrances other than liens which
are limitations on the ownership of the land (such as conditions, restrictions,
reservations, easements, etc.). Index
Endorsement
Addition to or modification of a title insurance policy which expands
or changes coverage of the policy, fulfilling specific requirements of
the insured. Index
Equity
(1) A legal doctrine based on fairness, rather than strict interpretation
of the letter of the law. (2) The market value of real property, less
the amount of existing liens. If for example, you put 20 percent down
on a house, you have 20 percent in your property. Over time, you earn
more equity as you pay down the balance of your loan. (3) Any ownership
investment (stocks, real estate, etc.) as opposed to investing as a lender
(bonds, mortgages, etc.). Index
Escheat
The reversion of property to the state when an owner dies leaving no legal
heirs, devisees or claimants. Index
Escrow
An independent third party, such as Golden Escrow Inc., who acts as the
agent for buyer and seller, or for borrower and lender, carrying out instructions
of both and disbursing documents and funds. Escrow closes and the transfer
of property or document is completed upon fulfillment of certain conditions
specified in the written instructions, whereupon the necessary deeds and
other instruments are recorded. Index
Estate
(1) The interest or nature of the interest which one has in property,
such as a life estate, the estate of a decreased, real estate, etc. (2)
A large house with substantial grounds surrounding it, giving the connotation
of belonging to a wealthy person. Index
Exchanges
. Simultaneous
Exchanges . Nonsimultaneous
Exchanges . Deferred
Exchanges . Starker
Exchanges
Exchange
Agreement
Exchange
Balance . Interest
on Exchange Balance
Exchange
Cooperation Clause
Exchange
Period
Execution
An order directing a sheriff, constable, marshal or court-appointed commissioner
to enforce a money judgment against the property of a debtor. This officer,
if necessary, may sell the property to satisfy the judgment. Index
Executor
A person appointed in a will and affirmed by the probate court to cause
a distribution of the decedent's estate in accordance with the will. (The
one who makes the will is called a "testator.") If a woman is appointed,
she is referred to as the "executrix." Index
Fee
Simple
An estate under which the owner is entitled to unrestricted powers to
dispose of the property, and which can be left by will or inherited. Commonly,
a synonym for ownership. Index
File
and Use
In most states, title insurers file rate schedules, title insurance policies
and endorsement forms with the State Insurance Department or other state
agency and then may use such items or rates starting within a specified
period of time after filing. Rates so filed usually are mandatory. Index
Fixed
Rate Mortgage
A mortgage having a rate of interest which remains the same for the life
of the mortgage. Index
Foreclosure
The sale of property used as security for a debt after default in payment.
Index
Forfeiture
of Title
A common penalty for the violation of conditions or restrictions imposed
by the seller upon the buyer in a deed or other proper document. For example,
a deed may be granted upon the condition that if liquor is sold on the
land, the title to the land will be forfeited (that is, lost) by the buyer
(or some later owner) and will revert to the seller. Index
Forms
of Security
Full
Disclosure
In real estate, revealing all the known facts which may affect the decision
of a buyer or tenant. A broker must disclose known defects in the property
for sale or lease. Index
"Good
Faith" or "Mortgage Savings" CLAUSE
A clause in CC & R's which provides that " a violation thereof shall not
defeat or render invalid the lien of any mortgage or deed of trust made
in good faith and for value." Index
Good
Faith Purchaser or Mortgagee
A person who buys or lends in good faith, that is, without notice of any
existing problem, where value is paid or lent. Index
Grant
A transfer of real estate, between individuals, by deed. A transfer of
real estate from a sovereign is accomplished by patent or royal decree.
Index
Grantee
See Deed. Index
Grantor
See Deed. Index
Grant
Deed
One of the many types of deeds used to transfer real property. Contains
warranties against prior conveyances or encumbrances. When title insurance
is purchased, warranties in a deed are of little practical significance.
Index
Guarantees
Guardian
A person appointed by a court to manage the person and/or property of
one who is legally incompetent to handle his/her own affairs. Index
Hazard
Insurance
Real estate insurance protecting against fire, some natural causes, vandalism,
etc., depending upon the policy. Buyer often adds liability insurance
and extended coverage for personal property. Index
Homestead
A statutory protection from execution or the establishment of title by
occupation of real property in accordance with the laws of various states
or the Federal Government. Index
Identification
Period
Impounds
A trust type of account established by lenders for the accumulation of
borrower's funds to meet periodic payments of taxes, mortgage insurance
premiums, and/or future insurance policy premiums, required to protect
their security. Index
Indemnity
Insurance against possible loss or damage. A title insurance policy is
a contract of indemnity. Index
Intermediary
or Qualified Intermediary
Judgment
Lien
A lien against the property of a judgment debtor. An involuntary lien.
Index
Land
Contract
An installment contract for the sale of land whereby the seller (vendor)
holds legal title and the buyer (vendee) has equitable title until the
sales price is paid in full. Index
Lease
An agreement by which an owner of real property (lessor) gives the right
of possession to another (lessee), for a specified period of time (term)
and for a specified consideration (rent). Index
Legal
Description
A description of land recognized by law, based on government surveys,
spelling out the exact boundaries of the entire piece of land. It should
so thoroughly identify a parcel of land that it cannot be confused with
any other. Index
Lender
Any person or entity advancing funds which are to be repaid. A general
term encompassing all mortgagees, and beneficiaries under deeds of trust.
Index
Letter
of Credit
Lien
An encumbrance against property for money, either voluntary or involuntary.
All liens are encumbrances but all encumbrances are not liens. Index
Material
and Substantial Contingency
Mechanics
Lien
A lien created by statute for the purpose of securing priority of payment
for the price or value of work performed and materials furnished in construction
or repair of improvements to land, and which attaches to the land as well
as the improvements. Index
Mortgage
(1) To hypothecate as security, real property for the payment of a debt.
The borrower (mortgagor) retains possession and use of the property. (2)
The instrument by which real estate is hypothecated as security for the
repayment of a loan. Index
Mortgage
Broker
Mortgage brokers arrange residential mortgages.
They don't lend money and can't approve loans or make loan commitments.
Their role is to bring borrowers and lenders together. Brokers keep tabs
on the mortgage market through ties to local, regional and national lenders
and can refer a future borrower to a mortgage banker, saving institutions
or commercial banks. Index
Mortgagee
The party lending the money and receiving the mortgage. Mortgagor: The
party who borrows the money and gives the mortgage. Index
MIP
The payment made by a borrower to the lender
for transmittal to HUD to help defray the cost of FHA mortgage insurance
program and to provide a reserve fund to protect lenders against loss
in ... Index
Nonsimultaneous
Exchanges . Deferred
Exchanges . Exchanges
. Simultaneous
Exchanges . Starker
Exchanges
Note
A unilateral agreement containing an express and absolute promise of the
signer to pay to a named person, or order, or bearer, a definite sum of
money at a specified date or on demand. Usually provides for interest
and, concerning real property, is secured by a mortgage or trust deed.
Index
Obligee
One to whom an obligation (promise) is owned. Index
Obligor
One who legally binds (obligates) oneself, such as the maker of a promissory
note. Index
Original
Cost
The purchase price of property, paid by the present owner. The present
owner may or may not be the first owner. Index
Owner's
Policy
A policy of title insurance usually insuring an owner of real estate against
loss occasioned by defects in, liens against or unmarketability of the
owner's title. Index
Parcel
Any area of land contained within a single description. Index
Part
Sale/Part Exchange
Partnership
An association of two or more persons who have contracted to join in business
and share the profits. Index
Party
Wall
A wall generally erected on a property boundary or between two lots for
the common benefit and use of the property owners on either side. Index
Patent
A conveyance of title to land by the Federal or State Government. Index
Personal
Property (movable)
Any property that is not designated by law as real property (i.e., money,
goods, evidences of debt, rights of action, furniture, automobiles). Index
"P.I.Q."
A title term referring to Property In Question. Index
PITI
A payment that combines Principal, Interest, Taxes, and Insurance. Index
PLAT
A plan, map or chart of a tract or town site dividing a parcel of land
into lots. Index
Points
A one time-only fee you pay in connection with your loan when obtaining
a purchase loan or a refinance loan. One point equals one percent of the
total amount you plan to borrow. Index
Power
of Attorney
A document by which one person (called the "principal") authorizes another
person (called the "attorney-in-fact") to act for him/her in a specific
manner in designated transactions. Index
"PRE,"
"PRELIM" OR Preliminary Report
A written report issued by a title company, preliminary to issuing title
insurance, which shows the recorded condition of title of the property
in question. See Commitment. Index
Priority
The order of preference, rank or position of the various liens and encumbrances
affecting the title to a particular parcel of land. Usually, the date
and time of recording determine the relative priority between documents.
Index
Priority
Inspection
A title term referring to the type of inspection made in connection with
insuring a new construction loan. In making the inspection of the property,
the title company must be assured that the work of improvement had not
yet begun when the lender's deed of trust was recorded. Index
Public Domain
Land owned by the government and belonging to the community at large.
Index
Public
Records
The transcriptions in a recorder's office of instruments which have been
recorded, including the indexes pertaining to them. Index
Quitclaim
Deed
A deed operating as a release; intended to pass any title, interest, or
claim which the grantor may have in the property, but not containing any
warranty of a valid interest or title in the grantor. Index
Qualified
Escrow or Qualified Trust
Qualified
Intermediary
Qualified
Intermediary exchange promise
Qualify
for a loan
A consumer pays a visit to a lender mortgage company, savings and loan,
bank or credit union. The lender will examine your credit record, tax
return, salary stubs, and other financial data to the meeting, along with
with your calculated net worth and monetary cash-flow assessments. Then
the lender can translate the results into manageable amount and determine
the types of mortgages that are right for you.
Index
Quiet
Title
To free the title to a piece of land from the claims of other persons
by means of a court action called a "quiet title" action. The court decree
obtained is a "quiet title" decree. Index
Real
Property (immovable):
Land, from the center of the earth and extending above the surface indefinitely,
including all inherent natural attributes and any man-made improvements
of a permanent nature place thereon. For example: minerals, trees, buildings,
appurtenant rights. Index
Reconveyance
An instrument used to transfer title from a trustee to the equitable owner
of real estate, when title is held as collateral security for a debt.
Most commonly used upon payment in full of a trust deed. Also called a
deed of reconveyance or release. Index
Recording
Filing documents affecting real property as a matter of public record,
giving notice to future purchasers, creditors, or other interested parties.
Recording is controlled by statute and usually requires the witnessing
and notarizing of an instrument to be recorded. Index
Reinsurance
A contract which one insurer makes with another to protect the first insurer,
wholly or partially, against loss or liability by reason of a risk under
a separate and distinct contract as insurer of a third party. Reinsurance
differs from coinsurance in that, in the case of reinsurance, only one
insurer has a direct contractual relationship with the insured, and that
insurer (commonly referred to as the "lead insurer") purchases reinsurance
in order to lessen or spread the risk. The "lead insurer" will assume
a risk up to a limit (the amount of which is referred to as the "retention")
and any loss which exceeds this limit would be borne by the reinsurers.
In the case of coinsurance, each coinsurer has a direct contractual relationship
with the insured, and the risk is shared in agreed-upon proportions from
the first dollar of loss. Index
Relinquished
Property
Replacement
Property
. Acquire
Replacement Property
Restrictions
Often called restrictive covenants. Provisions in a deed or other instrument
whereby an owner of land prohibits or restricts certain use, occupation
or improvement of the land. Index
Right
of Way
(1) The right to pass over property owned by another, usually based upon
an easement. (2) A path or thoroughfare over which passage is made. (3)
A strip of land over which facilities such as highways, railroads or power
lines are built. Index
Sale
and Leaseback
A situation in which the grantor in a deed to a parcel of property sells
it and retains possession by simultaneously leasing it from the grantee.
Index
Search
In title industry parlance, a careful exploration and examination of the
public records in an effort to find all recorded instruments relating
to a particular chain of title. Index
Separate
Property
Real property owned by one spouse exclusive of any interest of the other
spouse. Index
Simultaneous
Exchanges . Nonsimultaneous
Exchanges . Deferred
Exchanges . Exchanges
. Starker Exchanges
Squatter
One who settles upon unoccupied land without legal claim or authority.
(See Adverse Possession.) Index
Starter
A copy of the last policy or report issued by a title insurer which described
the title to land upon which a new search is to be made. In some states,
this is called a back title letter or back title certificate. Index
Street
Improvement Bonds
Interest-bearing bonds issued, usually by a city or county, to secure
the payment of assessments levied against land to pay for street improvements.
The property owner may pay off the particular assessment against the property,
or may allow the assessment to "go to bond" and pay installments of principal
and interest over a period of years, usually at the city or county treasurer's
office. The holder of a bond received payments from these offices. Index
Subdivision
An area of land laid out and divided into lots, blocks, and building sites,
and in which public facilities are laid out, such as streets, alleys,
parks, and easements for public utilities. Index
Subordination
Agreement
An agreement by which one encumbrance (for example, a mortgage) is made
subject to another encumbrance (for example, a mortgage) is made subject
to another encumbrance (perhaps a lease). To "subordinate" is to "make
subject to," or to make of lower priority. Index
Surface
Rights
Rights to enter upon and use the surface of a parcel of land, usually
in connection with an oil and gas lease or other mineral lease. They may
be "implied" by the language of the lease (no explicit reservation or
exception of the surface rights) or "explicitly" set forth. Index
Survey
The measurement by a surveyor of real property which delineates the boundaries
of a parcel of land. An ALTA survey additionally delineates the exact
location of all improvements, encroachments, easements and other matters
affecting the title to the property in question. A survey may be required
by a title insurance company whenever the company is requested to issue
an ALTA Extended Coverage Policy. Index
Tax
Basis
Tax
Deed
A deed executed by the tax collector to the state, county or city when
no redemption is made from a tax sale. Index
Taxpayer
Tax
Sale
Property on which current county taxes have not been paid is "sold to
the state." No actual sale takes place - the title is transferred to the
state and the owner may redeem it by paying taxes, penalties and costs.
If it has not been redeemed within five years, the property (referred
to as "tax sold property") is actually deeded to the state. (Similar "sales"
to cities take place for unpaid city taxes.) Index
Testate
Leaving a legally valid will at death. See Intestate. Index
Title
(1) A combination of all the elements that constitute a legal right to
own, possess, use, control, enjoy and dispose of real estate or a right
or interest therein. (2) The rights of ownership recognized and protected
by the law. Index
Title Insurance
Insured statement of the condition of title or ownership of real property.
For a one-time-only premium, the named insured and their heirs are protected
against title defects, liens and encumbrances existing as of the date
of the policy and not specifically excluded from it. In the event of a
claim, the title company provides legal defense from the policyholder
and pays any covered losses incurred as a result of such claim. Index
Title
Report
See Preliminary Report. Index
Title
Search
A review of all recorded documents affecting a specific parcel of land
to determine the present condition of title. An experienced title officer
or attorney reviews and analyzes all material relating to the search,
then determines the sufficiency and status of title for insurance of a
title insurance policy. Index
Trustee
See Deed of Trust. Trustor: See Deed of Trust. Index
Underwritten
Company
A title firm which conducts title searches but is not qualified to insure,
and therefore issues policies of a qualified title insurer (underwriter)
in return for a portion of the premium. Index
Variable
Interest Rate
An interest rate that fluctuates with the current cost of money; subject
to adjustment if the prevailing rate moves up or down. Index
Vendee
See Agreement of Sale. Index
Vendor
See Agreement of Sale. Index
Vendor's
Lien
An implied lien given by law to a vendor for the remaining unpaid and
unsecured part of a purchase price. Index
Venue
Neighborhood; often used to refer to the county or place in which an acknowledgment
is made before a notary; also refers to the county in which a lawsuit
may be filed or tried. Index
Vesting
The names, status and manner in which title of ownership is held with
a fixed or determinable interest in a particular parcel of real property;
also that portion of a title report or policy setting forth the above.
Index
Waive
To voluntarily and intentionally relinquish a known right, claim or privilege.
Index
Warranty
Deed
A deed used in many states to convey fee title to real property. Index
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Glossary
of Terms