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 seller¬’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).¬

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 person¬’s property.

Encumbrance- Any lien, claim, or liability affecting the title affecting the title of real property.¬

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.¬

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.