Abstract of Title – A summary of all recorded documents affecting title to a particular piece of property.  This summary includes all conveyances, actions, judgments, liens or liabilities, maps, plats and other record evidence of Title. 

Closing – The final steps of a real estate transaction.  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.  In some areas a closing is called a “settlement” or “passing papers”.

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

Deed – A conveyance of realty; a writing signed by Grantor, whereby title to realty is transferred from one to another. 

Easement – A right of use over the property of another. 

Encroachment – The extension of a structure from the real estate to which it belongs across a boundary line and onto adjoining property without legal authority. 

Escrow – A writing, deed money, stock, or other property delivered by the Grantor, Promisor or Obligor into the hands of a third person, to be held by the latter until the happening of a contingency or performance of a condition, and then by him delivered to the Grantee, Promisee, or Obligee.  A system of document transfer in which a Deed, Bond, or funds is delivered to a third person to hold until all conditions in a contract are fulfilled; e.g. delivery of deed to escrow agent under installment land sale contract until full payment for land is made.

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

Homestead – (1) Property designated by the head of a 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 (Closing Statement) – A summation, in the form of a balance sheet, made at the closing, showing the amounts of debts and credits to which each party to real estate transaction is entitled.

Indemnity – A contract or assurance by which a person engages to secure another against the loss from a future act.  A title insurance policy is a contract of indemnity. 

Junior Mortgage – A mortgage which is subordinate to another mortgage which is called the prior, senior or first mortgage.

Lien – A claim, encumbrance, or charge on property for payment of some debt, obligation or duty.  This liability may be created by contract, such as a mortgage, or by operation of law, such as a mechanic’s lien.

Loan or Lender’s Title Insurance Policy – A title insurance policy insuring a mortgagee or beneficiary under a Deed of Trust against loss caused by invalid title in the borrower or loss of priority of the Mortgage or Deed of Trust.

Marketable Title – A title which is free from encumbrances and any reasonable doubt as to its validity, and such as a reasonably intelligent person, who is well informed as to facts and their legal bearings, and ready and willing to perform his contract, would be willing to accept in exercise of ordinary business prudence.  In other words, title which can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

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 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. 

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 my 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 – A title to real estate, evidenced and provable by one or more conveyances or other instruments all of which are duly entered on the public records. 

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 – A careful exploration for and perusal of 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 plat drawn by a surveyor which represents the property surveyed and shows the results of the survey. 

Title – (1) A combination of all elements that constitute the highest legal right to own, 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.