This material is provided by Wesctor
A
Abstract of Title
A summary of all recorded transactions affecting a
particular tract of land.
Access
The right to enter and leave a tract of land from a public
Roadway or over the lands of another.
Accretion
The gradual build up of lands by natural forces such as
wind, wave, or water.
Acknowledgment
The act by which a party executing a legal document
goes before an authorized officer or notary public and
declares the same to be his voluntary act and deed.
Acre
A tract of land measuring 43,560 square feet.
Administrator/Administratrix
A man/woman appointed by a probate court to settle
the affairs of an individual dying without a will.
Adverse Possession
A claim made against the lands of another by virtue of
continuous, open, adverse, and notorious occupancy of
said lands by the claimant.
Affidavit
A sworn statement in writing.
Agent
A person or company that has the authority and power
to act on behalf of another or to transact business for
another for a specific purpose, e.g., a title agent under
contract with Westcor Land Title is an agent for the
purpose of issuing policies of title insurance.
Air Rights
The right to ownership of everything above the physical
surface of the land.
ALTA
American Land Title Association, a national association
of title insurance companies, agents, abstractors,
and attorneys who specialize in real property law
that advocates on behalf of the title insurance and
abstracting industry. ALTA is headquartered in
Washington, D.C.
Appurtenance
Anything so affixed to land or used with it that it will be
included when the land is conveyed.
ARM
Adjustable Rate Mortgage, also see “Variable Rate
Mortgage.”
Assessment
The imposition of a tax, charge, or levy, usually
according to established rates.
Assessor
A public official who evaluates property for the purpose
of taxation.
Assignee
One to whom a transfer of interest is made. For
example, the assignee of a mortgage or contract.
Assignor
One who makes an assignment. For example, the
assignor of a mortgage or contract.
Assumable Mortgage
A mortgage that, by its terms, allows a new owner
of the encumbered property to take over the loan
repayment obligations.
Assumed Mortgage
A loan in which the buyer assumes the obligations of a
pre-existing mortgage on a property.
Attachment
Legal seizure of property to force payment of a debt.
Attorney in Fact
One who has been appointed by a power of attorney
from another person granting the authority to execute
legal documents, such as deeds, mortgages, etc.,
on behalf of the grantor of the power. To affect real
estate transaction, the power of attorney must be
notarized and recorded in the land records of the
county where the involved property is located. Policy
amounts reflect either the fair market value of each
property/site or were computed on a uniformly applied
loan-to-value ratio.
B
Balloon Mortgage
A mortgage that is amortized over a specific period of
years, but requires a lump-sum payment in full at an
earlier date.
Bankrupt
A person, who, through a court proceeding, is relieved
from the personal obligation to pay most debts after
surrender of all assets to a court-appointed trustee.
Bureau of Land Management
The branch of government in charge of surveying and
managing public lands.
C
CC&R’s
Conditions, Covenants, and Restrictions. Also see
“Conditions and Restrictions.”
Chain
A term of land measurement being 66 feet in length.
Chain of Title
A term applied to that series of transactions and
documents of record affecting the title to a particular
parcel of land.
Clear Title
Description of property that is not encumbered or
burdened with liens or claims.
Closing
Also known as “escrow” or “settlement.” The ceremony
in which legally binding documents such as deeds and
mortgages are signed and exchanged. Closing is most
commonly associated with the purchase and financing
of real estate.
Clouded Title
An encumbered title.
Commitment to Insure
A report issued by a title insurance company or its
agent, committing the title insurance company to issue
the form of policy designated in the commitment upon
compliance with and satisfaction of requirements set
forth in the commitment.
Condemnation
Taking private property for public use through
court proceedings.
Condition or Conditions
A provision in a deed or a will that upon the occurrence
or failure to occur of a specified event, the title of the
purchaser or devisee will be limited, enlarged, changed,
or terminated.
Conditions and Restrictions
A common term used to designate the limitation on the
use to which land may be put; and providing penalties
for failure to comply.
Condominium
A system of individual fee ownership of units in a
multi-unit structure, combined with joint ownership of
common areas of the structure and land.
Consolidated Mortgage
Occurs in refinancing. Remaining balance from original
mortgage is incorporated into new mortgage. A
Consolidation, Extension and Modification Agreement
(CEMA) is typically used in New York to document a
refinance transaction.
Contract for Deed
Also known as an Installment Sale Agreement, a written
agreement to sell and purchase real estate in which
title is retained by the seller until the purchaser has
completed making the required payments.
Convey
The act of transferring title to another via a deed.
Conveyance
An instrument by which title to property is transferred;
a deed.
Cooperative
A residential multi-unit building owned by and operated
for the benefit of persons living within. Often referred to
as a co-op, ownership is typically in a corporation, the
stock of which is owned by the residents.
Covenant
An agreement written into deeds and other instruments
promising performance or non-performance of certain
acts, or stipulating certain uses or non-uses of the
property.
Cul-de-Sac
The terminus of a street or alley to provide a circular
turn around for vehicles.
D
Deed
A written document by which the ownership of land is
transferred from one person to another.
Deed of Trust
An instrument used in many states in place of a
mortgage. Property is transferred to a trustee by the
trustor (borrower), in favor of the beneficiary (lender)
and reconveyed (satisfied) upon payment in full. Also
see “Mortgage”.
Delivery
The final and absolute transfer of a deed from seller to
buyer in such a manner that it cannot be recalled by the
seller. A necessary requisite to the transfer of title.
Devise
The disposition of land by will. A term used for real
estate and never for personal property.
Due on Sale Clause
Provision in a Mortgage or Deed of Trust which requires
loan to be paid in full if property is sold or transferred.
E
Earnest Money
Advance payment of part of the purchase price to bind a
contract for property.
Easement
An interest in land owned by another that entitles the
holder to a specific limited use, such as installing or
maintaining utilities, or crossing the property.
Egress
The right to leave a tract of land. Often used
interchangeably with access. See “Access.”
Eminent Domain
The power of the state to take private property for public
use upon payment of just compensation.
Encroachment
A fixture, such as a house, driveway, wall, or fence,
which intrudes upon another’s real property.
Encumber
To burden a parcel of land with a lien or charge such as
a mortgage.
Encumbrance
A lien, liability, or charge upon a parcel of land.
Escheat
A reversion of property to the state in cases where an
individual dies without heirs or devisees.
Escrow
A procedure whereby a disinterested third party handles
legal documents and funds on behalf of a seller
and buyer.
Estate
A person’s ownership interest in real property. For
probate terminology, the Estate refers to all the assets
of a decedent.
Examination of Title
The interpretation of the record title to real property
based on the title search or abstract.
Exception
In legal descriptions, a portion of lands to be deleted or
excluded. For title insurance terminology, an “exception”
is an objection to title or encumbrance on title which is
excluded from coverage in the title insurance policy.
Executor
A person appointed by the probate court to carry out the
terms of a will. The term is “executrix” if such a person
be a woman.
F
Fee Simple Estate
The greatest interest in a parcel of land that is possible
to own. Sometimes designated simply as “Fee.”
FHA Guarantee
An insurance contract in which HUD, through The
Federal Housing Administration, insures that the named
lender will recover a specific percentage of the loan
amount from the insurer (FHA) in the event the loan
goes into default.
Financing Statement
A document prepared for filing with the Register of
Deeds or Secretary of State indicating that personal
property or fixtures is encumbered by a security interest.
Referred to as a UCC-1.
Fixtures
Any item of property so attached to real property that it
is legally considered part of the real property.
Forfeiture of Title
Provision in a Deed creating a condition which will
cause title to be passed to another in the event certain
circumstances occur or fail to occur.
G
Graduated Payment Mortgage
A loan in which monthly payments are relatively small
in the beginning years and gradually increase in dollar
amount over the life of the mortgage.
Grantee
A person who acquires an interest in land by deed, grant,
or other written instrument.
Grantor
A person who, by a written instrument, transfers to
another an interest in land.
Guardian
One appointed by the court to administer the affairs of
an individual not capable of administering his or her
own affairs.
H
Harbor Line
An arbitrary line set by authorities on navigable rivers,
beyond which wharves and other structures may not be
built. Also designated as line of navigation.
Heir
One who might inherit or succeed to an interest in land
under the rules of law applicable where an individual
dies without leaving a will.
HUD-1
The HUD-1 is a type of settlement statement which,
prior to the TILA-RESPA Integrated Disclosure (TRID)
Rule, was required for use with all federally-related
mortgage loans. It has been replaced by the “Closing
Disclosure” as a required form, but the HUD-1 will
continue to be used for reverse mortgages, HELOC
transactions, and other transactions which do not
involve federally related mortgage loans. In cases where
the Closing Disclosure is required, the ALTA Settlement
Statement is available for use to function as a balance
sheet of the settlement.
I
Improvements
Additions to raw lands that tend to increase value, such
as buildings, streets, sewer, etc.
Inchoate Dower
The interest which the law gives a wife in the real
property of her husband. This is an interest which ripens
upon the death of the husband in certain jurisdictions.
Inchoate Curtesy
The interest which the law gives a husband in the real
property of his wife. This is an interest which ripens
upon the death of the wife in certain jurisdictions.
Indemnify
To make payment for a loss or to hold another harmless
from loss.
Ingress
The right to enter a tract of land. Often used
interchangeably with access. Also see “Access.”
Insurance
A contract of indemnity against specified perils.
Interim Financing
Temporary or short-term loans. Often used
with new construction. Usually replaced with a
permanent mortgage.
Intestate
Designates the estate or condition of failing to leave a
will at death. “To die intestate.”
J
Joint Tenancy
Where two or more persons hold real estate jointly for
life, the survivors automatically acquire the interest of
the one who dies.
Judgment
A decree of a court. In practice, this is the lien or charge
upon the lands of a debtor resulting from the Court’s
award of money to a creditor. See “Judgment Lien.”
Judgment Docket
The record book of a County Clerk or Prothonotary
where a judgment is entered in order that it may become
a lien upon the property of the debtor.
Judgment Lien
The charge upon the lands of a debtor resulting from
the decree of a court properly entered in the judgment
docket.
L
Land Contract
See “Contract for Deed.”
Landmark
Any conspicuous object that helps establish land
boundaries.
Lease
A grant of the use of lands for a term of years in
consideration of the payment of a monthly or annual
rental fee.
Lender’s Policy
See “Mortgagee’s Policy.”
Lessee
One who takes lands upon a lease.
Lessor
One who grants lands under a lease.
Lien
A hold, claim, or a charge allowed a creditor upon the
lands of a debtor. Some examples are mortgage liens,
judgment liens, and mechanic’s liens.
Life Estate
A grant or reservation of the right of use, occupancy, and
ownership for the life of an individual.
Lis Pendens
A notice recorded in the official records of a county to
indicate that a lawsuit is pending affecting the title to
lands where the notice is recorded.
Loss Payable Clause
Provision added to an insurance policy which states that
a specified loss will be paid to one or more parties as
their interest may appear. Usually the owner and/or the
mortgage lender.
Lot
A measured parcel of land having fixed boundaries.
M
Majority
The age at which a person is entitled to handle his or her
own affairs.
Marketable Title
A good title about which there is no fair or
reasonable doubt.
Mechanic’s Lien
A lien allowed by statute to contractors, laborers,
and material suppliers (called “materialmen”) on
real estate upon which work has been performed or
materials supplied.
Metes and Bounds
A description of land by courses and distances.
Minor
One who, because of insufficient age or status, is legally
incapable of making contracts.
Monument of Survey
Visible marks or indications left on natural or other
objects indicating the lines and boundaries of a survey.
May be posts, pillars, stones, cairns, and other such
objects, but may also be fixed natural objects, trees,
roads and even a water course.
Mortgage
An instrument used to encumber land as security for
a debt.
Mortgage-Backed Security
A security evidencing either the ownership of an interest
in a mortgage loan or pool of mortgage loans, or a
separate obligation secured by a mortgage loan or pool
of mortgage loans.
Mortgage Banker
A specialized lending institution that lends money solely
with respect to real estate and secures its loans with
mortgages on the real estate.
Mortgage Broker
A person or company that sells mortgages for another
on commission or who arranges for and negotiates
mortgage contracts.
Mortgage Revenue Bonds
Bonds issued by communities as a means of providing
lower cost mortgage funds to certain qualified
borrowers.
Mortgagee
A designation for the mortgage lender.
Mortgagee’s Policy
A form of title insurance policy which insures the
Validity, enforceability, and priority of a mortgage
lender’s lien. This form does not provide protection for
the owner.
Mortgagor
A designation for the mortgage borrower.
N
Negative Amortization
An actual increase in the principal amount of a
mortgage loan because of the addition of matured but
unpaid interest to the loan balance.
Notary
A person authorized to perform certain legal formalities,
particularly acknowledging deeds, mortgages, and
affidavits. Also see “Acknowledgment.”
O
Owner’s Policy of Title Insurance
A policy of title insurance which insures an owner of realestate against financial loss from defects in title to real
property. See “Title Insurance.”
Ownership
The collection of rights allowing one to use and enjoy
property, including the right to convey it to others.
P
Patent
An instrument by which the government conveys a grant
of public land to a private person.
Plat
A map describing a piece of land and its features, such
as boundaries, lots, roads, and easements.
P.M.I.
Private Mortgage Insurance. An insurance contract that
provides money to the lender if the mortgagor defaults
on the mortgage payments.
Points
One percent of the face value of a loan, paid up front by
the mortgagor to the lender.
Policy
A title insurance policy insuring either an owner of real
property or a mortgagee secured by real property. See
“Title Insurance.”
Policyowner
The named insured in a title insurance policy.
Power of Attorney
A legal document granting someone authority to act as
agent or attorney-in-fact for the grantor or mortgagor.
Power of Sale
A power granted to sell real estate that the power
relates to. Most frequently found in a Will or Mortgage.
When found in a Mortgage, it is usually invoked by the
lender in the event of loan default.
Prorate
To divide, assess, and distribute a charge already paid
or coming due proportionately between buyer and seller.
Q
Quiet Title
A lawsuit brought to establish a plaintiff‘s title to land by
compelling the adverse claimant to establish a claim or
be forever estopped from asserting it.
R
Range
A part of the Public Land Survey System (PLLS), a strip
of public land running due north to south, consisting of
a row of townships at 6-mile intervals. PLLS is used in
some capacity in most of the U.S. west of Ohio.
Real Property
Land and anything fixed thereon, usually buildings,
excluding anything that may be severed without damage
to the land.
Realtor
A member of the National Association of Realtors who
acts as an agent or broker for the sale and purchase
of Real Property. The term “Realtor” is a federallyregistered
collective membership mark.
Realty
Another term for real property. See “Real Property.”
Redemption
The statutory right of a defaulting mortgagor or taxpayer
to recover Real Property, within a specified period, after
a mortgage foreclosure or tax sale.
Registered Land
See “Torrens Title.”
Reinsurance
Insurance of all or part of one insurer’s risk by a
second insurer, who accepts the risk in exchange for a
percentage of the original premium.
REIT
Real Estate Investment Trust. A product of federal tax
legislation formed as a business trust, under a special
state REIT statute or as a corporation for the purpose of
investing in real estate or mortgages on real estate.
Right of Way
A legal right, established by usage or written agreement,
to pass through property owned by another. Also known
as an Easement.
Riparian Right
The right of a property owner whose property adjoins a
body of water or watercourse to use such water.
S
Second Mortgage
A mortgage that is junior in lien priority to a first
mortgage on the same property, but that is senior in lien
priority to any later mortgage. Usually of shorter term
and often at higher interest rate than a first mortgage.
Section
Under PLLS, a piece of land containing 640 acres, or 1
square mile.
Set Back Lines
Typically contained in zoning ordinances or deed
restrictions, the minimum amount of space required
between a lot line and a building line.
Subsurface Right
A landowner’s right of ownership to things lying below
the surface of the property. For example, gas and
mineral rights.
Survey
A map showing the results of measurements of a tract
of land and its boundaries and contents.
T
Tenancy by the Entirety
A form of joint tenancy available in certain states
wherein a single deed conveys Real Property to a
husband and wife together as one marital “entity.”
Tenancy in Common
A tenancy by two or more persons, in undivided shares,
each person having an equal right to possess the whole
property but no right of survivorship.
Tenant
One who holds or possesses Real Property with the
permission of the owner.
Testament
Another term for a Will but usually referring to the
portion related to personal property. See “Will.”
Testate
Having left a Will at death.
Testator
A man who has made a Will.
Testatrix
A woman who has made a Will.
Title
The evidence or right a person has to the ownership
of land.
Title Defect
An outstanding claim on Real Property that limits the
ability to sell the Realty. Also known as a “Clouded title”.
Title Insurance
Indemnity insurance against certain loss or damage
resulting from a covered defect or failure of title to a
particular parcel of Real Property.
Title Plant
A compilation of all recorded information to Real
Property in a specific geographical area, paralleling the
records of the county recorder’s office, which allows
for quick and efficient search and examination of title
records.
Title Search
A search of public records to determine whether any
defects or encumbrances exist in a given property’s
chain of title.
Torrens Title
A system for establishing title to Real Estate wherein an
owner first acquires an abstract of title and then applies
to a court for the issuance of a title certificate, which
serves as conclusive evidence of ownership. Most
popular in the early 1900s, it is presently used only in
parts of a handful of states.
Township
Under PLLS, a square tract 6 miles on each side,
containing 36 square miles of land.
Tract
A certain parcel of land.
Trust
A property interest held by one person at the request of
another for the benefit of a third party.
Trustee
One who holds legal title to property in trust for the
benefit of another and owes a fiduciary duty to that
beneficiary.
V
VA Guarantee
An insurance contract in which the Veterans
Administration (VA) insures that the named lender will
recover a specific percentage of the loan amount from
the insurer in the event the loan goes into default.
Variable Rate Mortgage
A mortgage loan in which the lender can periodically
adjust the mortgage’s interest rate.
Vendee
A purchaser of real property under a Contract for Sale or
similar agreement.
Vendor
A seller of real property under a Contract for Sale or
similar agreement.
Vest
To grant ownership of real property upon a person. Title
may be said to vest in Jane Doe.
Vestee
A non-legal term used by title insurers to indicate the
owner of Real Property in a policy or report.
W
Walkthrough
The final inspection of a home by the buyers before it’s
sold to make sure any requests for repairs have been
fulfilled before the closing papers are signed.
Warranty
A guarantee by the grantor of real property that he or
she holds clear title to a parcel of real estate and has a
right to sell it to the grantee. The extent of the guarantee
varies depending upon the form of deed used.
Will
A document by which a person directs his or her estate
to be distributed upon death.
Z
Zoning
Municipal regulations governing the use and character
of real property.