Title Insurance Glossary
It is important as you are searching for a mortgage to understand the terms that may impact you and terms that will have directly to do with your title insurance. These terms are designed to help you through the title insurance maze.
Abstract of Title - A title abstract provides a brief summary of any and all transactions which might impact the title of a specific property.
Affidavit - A statement in writing that someone has sworn is correct to the best of their knowledge.
All Inclusive Title Insurance - Assures that all title insurance charges are included in the price that is quoted.
Assumption - Mortgage payments are taken over by a new person but the original borrower remains the person who is liable to the mortgage company for the debt.
Deed - When ownership is transferred from one person to another a deed provides a written record of that transfer.
Deed of Trust - When you obtain a mortgage in the South you will often see this term - it is an instrument that is used to secure real estate loans and allows a mortgage company to foreclose faster on the property than they would if they used just the mortgage.
Due on Sale Clause - When a property is sold or transferred and a mortgage is still outstanding on the property this provision requires that the loan be paid in full upon that sale or transfer.
Equity - Any balance of the properties value which exceeds the amount owed for mortgage or other liens against the property is termed owners equity.
Escrow - Allowing a person who is not involved in a property transaction to handle not only funds on behalf of the buyer and seller but also to handle documentation on their behalf. May also refer to funds that are kept on account by a mortgage company to ensure that payments of real estate taxes and/or insurance are paid on time and in full. Any items that are required to be escrowed as part of your mortgage must be disclosed on a settlement sheet when you are signing your mortgage documents.
Grantee - Acquisition of an interest in property by transferring a deed, a grant or other legally binding written agreement.
Grantor - Person who transfers interest in a property via a deed, grant or other legally binding written instrument to anther party.
Hazard Insurance - Insurance that protects a homeowner from fire and other similar damage as well as protection in the event that someone falls or is injured on your property.
Heir - A person who may have a claim against an interest in property, land, or other interest of a person who dies without a will.
Instrument - Any document that is written may be deemed an instrument.
Judgment - Any order that is passed down by a court.
Lien - A charge, a claim, a hold that is allowed upon land or property owed by a debtor.
Real Property - Buildings and the land that they are built on.
Reissue Rate - Title Insurance Premium that may be available at a reduced rate in cases where the person who currently owns the property was previously insured by the same insurer.
Survey - Land measurement to determine description, size and location of land and the resulting maps or drawings.
Title - The record of who owns and possesses a piece of land and the accompanying buildings.
Title Insurance Binder or Commitment - A policy designation that commits or binds the insurance company when certain conditions are met.
Title Search - Public records, court decisions and other records are examined to gain knowledge of ownership of any real estate.
Will - A written document properly witnessed, providing for the distribution of property owned by the deceased.