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Our Education Center is now open with new information, categories, links, and downloads. Find out everything you need to know about title insurance and your real estate closing - stop by and check it out!

If you can't find the term you are looking for, may we suggest checking the ALTA (American Land Title Association) Glossary, which can be opened in a new window by clicking here.

Abstract of Title
A summary of the public records affecting the title to a particular piece of land. An attorney or title insurance company officer creates the abstract of title by examining all recorded instruments (documents) relating to a specific piece of property, such as easements, liens, mortgages, etc.

Acknowledgment
a formal declaration before a notary public or qualified officer that the person signing a document is doing so voluntarily and using his or her legal name and signature; popularly called notarizing.

Affidavit
a written statement or declaration that is sworn to or affirmed before somebody who has the authority to administer an oath or affirmation.

Assignment
a transfer in writing of one's interest in something, as to assign an interest in a promissory note and deed of trust.

Attorney in fact
one who holds a power of attorney from another allowing him or her to execute a legal document, such as a deed, mortgage, on behalf of the grantor.

ALTA
American Land Title Association
ALTA Title Insurance Policy
American Land Title Association combination of various policies and endorsements that lenders usually require when making a loan; expands normal coverage to include unrecorded mechanic's liens, unrecorded physical easements, facts not revealed by a physical survey, water and mineral rights, and the right of parties in possession such as buyers who have recorded claims and tenants.

Beneficiary
a person who is eligible to receive funds or property under the terms and provisions of a will or trust or insurance policy.

Chain of Title
The history of ownership of a parcel of real estate; each deed or other instrument transferring the title is called a link and all of these links make up the chain of title.

Closing
In some areas called "settlement" or "escrow." 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.  (Read about closings here)

Conveyance
the transfer of title to property from one person to another.

Covenant
a formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in a warranty deed.

Covenants, Conditions, and Restrictions
often associated with condominium documents. Limitations sometimes put on the use and enjoyment of real property. This is done by agreements contained in deeds and other documents.

Deed
a written document that transfers title to property; there are several different types; a grant deed, the most common, is simply used to convey property; a gift deed is used to make a gift of property; a quitclaim deed is used to transfer an interest owned in a property and contains no warranties; a tax deed is used to convey title held by the state, and a deed of reconveyance is used to convey legal title back to the borrower from the trustee.

Easement
a right of one person to make limited use of another's property, for example, the right to cross a property and maintain a road or right-of-way to install and maintain public utility services.

Encroachment
extension of an improvement onto the lane of another.

Endorsement
addition to or modification of a title insurance policy, which expands or changes the coverage of the policy, fulfilling specific requirements of the insured

Exception
a conditional item listed on a preliminary title report and affecting the title; would be excluded from coverage by a title insurance policy.

 
Execute
to give validity by signing documents so that an intention may be completed.

Executor
a person named in a will to carry out its provisions.

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

Instrument
a written legal document such as a contract, a promissory note, a deed, or a grant.

Insurable Title
a property title that a title insurance company is willing to insure.

Joint Tenancy
one way for several persons to hold title; joint tenants own an undivided equal interest and have equal rights to use the entire property; they are said to have the right of survivorship, that is, they inherit the property automatically upon the death of the other joint tenant; this right if the principal distinction between a joint tenancy and a tenancy in common.

Judgment
a court's final decree, generally resulting in a lien; may encumber the sale of a property and must be satisfied before it can be sold.

Legal description
a description of land recognized by law and based on government surveys, spelling out the exact boundaries of the entire piece of land; should so thoroughly identify a parcel that it cannot be confused with any other.

Lien
A legal claim upon property for the payment of a debt; a money encumbrance; such as, a mortgage lien, a judgment lien, or a mechanic's lien.

Notary Public
person who acknowledges oaths, such as the signing of a grant deed or deed of trust; must be duly appointed by the property authorities.

Owner's Policy
a policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, or liens against the owner's title.

Power of Attorney
the authority given one person by another to act on his or her behalf.

Satisfaction
the payment of a debt or fulfillment of an obligation. May be an instrument executed by the holder of a lien, debt or obligation which acknowledges payment or fulfillment

Settlement
time at which property purchase is finalized, closing costs paid, deed exchanged and money disbursed; also called closing and close of escrow.  (What happens at closing)

Subordination agreement
a written agreement that changes the priority of documents, making for example, one deed of trust subordinate to another.

Subdivision
an area of land lay 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

Tax Lien
the lien which is imposed upon real estate by operation of law which secures the payment of real estate taxes.

Tenancy in Common
a form for taking title when two or more people buy property and own it together with either equal or unequal shares; if any one of the tenants in common dies, his or her interest passes to his or her heirs, not to the remaining tenants.

Title Agent
A representative of a title underwriter, one who "writes" the policies of the actual insurer or underwriter.

Title Commitment
A document that reflects all of the title research done on property. Its purpose is to inform all parties of any encumbrances affecting the property and to commit to insure property, subject to certain stated requirements.

 
Title Insurance
A policy of indemnity issued by a title insurance underwriter or its agent that insures a buyer or lender against monetary loss or damage due to errors in the title as described in the policy and undeterminable facts that affect title such as fraud, forgery, unrecorded documents, unknown heirs, and many other factors.

Waiver
the release of a right to require something to take place, such as the waiver of a contingency found in the purchase agreement.