Glossary of Terms
Abstract of Title - A brief history of the title extracted from documents bearing on the title status, prepared by the Title Company.
Assumable Mortgage- A sellerÂ’s mortgage that can be taken over by the buyer with no change in terms.
Blanket Mortgage- A mortgage which covers more than one piece of real estate, usually building lots. A developer can use the proceeds from the sale of individual lots to pay off the blanket mortgage. A “partial release” clau stipulates the conditions whereby the mortgagee will release the debt, parcel by parcel (lot by lot).Â
Chain of Title- Sequence of previous title transfers regarding a certain property.
Cloud on Title- A title with any form of a defect or error.
Encroachment- Unauthorized use of another personÂ’s property.
Encumbrance- Any lien, claim, or liability affecting the title affecting the title of real property.Â
Escrow Account – An account in a bank, t itle company, credit union, savings association, or trust company used solely for safekeeping customer funds and not for the deposit of personal funds.
Grantee- The receiver of the real estate.
Grantor- The one yielding the title to the grantee.
Indemnify- To compensate for loss or damage.
Joint Tenancy- An estate or interest owned by more than one person, each having equal rights to possession and enjoyment; in the case of the death of one owner, the property rights of that owner is conveyed to the remaining owners.
Lien- A claim on a property as payment of debt.
Lis Pendens- A suit that is pending legal action.
Metes & Bounds- One way of describing the legal description of property. The other two methods are the Government Survey System and the Lot and Block method.Â
Mortgage Insurance Policy- A title insurance policy that protects the mortgage lender from a borrower defaulting on payment.
Quiet Title- A suit or action in a court to remove defect, cloud, or claim against the title by the seller or anyone else.
Quit Claim Deed- A document in which a grantor relinquishes a present interest, claim, or title to property to a grantee.
Satisfaction- A document indicating the borrower has paid the mortgage in full.
Tenants in Common- Real property owned by two or more people and shared equally. If one dies, his or her share goes to heirs and not to other owners.
Warranty Deed- A deed in which the seller guarantees a clean title.
