A
ABSTRACT - An abbreviation of the cardinal aspects of all recorded deeds,
mortgages, leases and other instruments affecting the title to a particular
piece of land.
ABSTRACTING - The process of making and compiling an abstract.
ABSTRACTER - The person or company engaged in making abstracts.
ABSTRACTER'S CERTIFICATE - A certificate appearing at the end of an
abstract in which the abstracter states the time period and scope of the
search made for instruments among the public records. In some states it
has the effect of limiting the abstracter's liability.
ABSTRACT CONTINUATION - (Also known as Abstract Extension and also
as Supplemental Abstract.) A partial abstract beginning at the terminal
date of an existing abstract and showing instruments recorded between
such terminal date and a subsequent date.
ABSTRACT OF TITLE - Just a longer name for an abstract.
ABSTRACT PLANT - There are a hundred different types. Basically it is an
index of the recorded instruments in a county or political subdivision
geographically grouped according to land description so that all of the
instruments affecting a piece of land can be immediately found under the
indexed heading of such land. (See also "Title Plant")
ABUT - To touch or border upon. A piece of land bordering on a street or
an adjoining piece of property is said to abut such street or property.
ACCRETION - A natural increase of land along the shores of a body of
water.
ACKNOWLEDGEMENT - (1) Generally, the act of the maker or makers of a
real estate instrument in going before a Notary Public or other judicial
officer and acknowledging that they signed such instrument without fear or
compulsion, and for the purposes expressed in such instrument. The
laws making provision for acknowledgments incident to real estate
papers were enacted to help prevent forgeries or undue advantage taken
over the makers of such instruments. Forms and procedures incident to
acknowledgments vary from state to state, some being considered
probate procedures in which the probity or authenticity of the instrument is
proven. (2) Generally, a form of certificate made by a notary public or
judicial officer, appended to deeds, mortgages, leases and other real
estate instruments, certifying that the maker or makers of such
instruments appeared before the notary or judicial officer and
acknowledged that they signed the instrument without compulsion or fear
and for the purposes indicated in the instrument.
ADMINISTER - To pay the debts and wind up the business of a deceased
person's estate. Also, to handle and dispose of properties of an estate by
an executor, administrator or trustee in conformity with legal procedures
and provisions of wills or trust instruments.
ADMINISTRATOR - A person appointed by a probate court to administer
the estate of a person who dies intestate; that is without leaving a will.
ADVERSE POSSESSION - The unauthorized occupation of land belonging
to another, by a person who does not have the consent of the owner. Said
occupier is said to hold possession adversely to the rights and interests
of the owner. In most states, by operation of law, title to the land becomes
vested in such occupier after a fixed number of years of peaceful
occupancy.
AFFIDAVIT - A written statement made under oath before a notary public or
other judicial officer.
AGENCY - An individual or corporation authorized to act for another person
or corporation. The scope of an agency depends upon the authority given
to the agent.
AGENT - On who, having received authority from another, acts in such
other person's behalf within the scope of such authority.
AGREEMENT - A legally binding compact made between two or more
persons.
ALLODIAL TENURE - The absolute ownership of real estate which is
subject to inheritance by the owner's heirs or to disposition by the owner
as he sees fit, as contrasted with the feudal system of ownership. Allodial
tenure is characteristic of ownerships in the United States.
ALLUVION - The increasing of land, especially along river banks, caused
by the natural deposit and build-up of sediment. Such sediment is called
alluvium.
AMORTIZATION - This term has developed through French and Old
English from the Latin words "mors" or "mort" meaning death or dead. It is
the killing off of an existing debt by regular partial payments. The word
"mortgage" is also derived from the same Latin root.
ANNUITY - Derived from the Latin word "annus" meaning year. The annual
or yearly payment of income. Such payments are made to individuals
under certain types of insurance policies and sometimes under the
provisions of wills and trust estates.
APPRAISE - From Latin "appretiare" meaning to set or fix a value. To judge
or estimate the value of real estate.
APPRAISAL - The act, also the published results, of appraising.
APPROVED ATTORNEY - A practicing lawyer whose examinations of title
and title opinions are acceptable to a title insurance company as a basis
for the issuance of its title insurance policies.
APPURTENANCE - A minor right or privilege that is incident to, but outside
of, the principal property such as a right-of-way to a highway across the
land of another. Water rights are also an example.
APPURTENANT - Belonging to, or accessory to, or incident to a principal
property.
ARBITRATION - the process by which parties who cannot agree among
themselves submit the dispute to the judgment of an impartial party.
ARBS - An abbreviation of "arbitraries." A title industry word, used primarily
in abstract plants and title plants, which refers to simplified forms of land
descriptions arbitrarily used in indexing such plants in lieu of the more
involved and complex descriptions contained in deeds, mortgages and
other real estate instruments. Arbitrary descriptions are often found in
areas where land ownerships are highly irregular and are of all manner of
shapes and sizes and are described by metes and bounds. Such tracts
are usually laid out on an area map and each tract is given an arbitrary
name or number. All instruments affecting a given tract are indexed under
the arbitrary name or number.
ASSESSED VALUATION - The estimated value of property for tax
purposes, usually fixed by the tax assessor.
ASSESSMENT - (1) The act of fixing the amount of taxes or special
improvement charges. (2) The amount of taxes or special improvement
charges. Special improvement charges are usually for the costs of streets,
sidewalks, sewers, etc.
ASSIGNEE - For example, the person who receives ownership of a contract
or a mortgage by transfer from another.
ASSIGNMENT - (1) The act of transferring ownership of something from
one person to another. (2) The instrument or paper by which one person
transfers ownership of a right or an object to another.
ASSIGNOR - For example, the person who transfers ownership of a
contract or mortgage to another.
ATTACH - The act of a sheriff or other court officer in taking possession of
a person or property under the authority and direction of a writ or order
issued by a court.
ATTACHMENT - A legal remedy to aid collection of a debt, usually
incidental to a lawsuit against the debtor wherein the court issues a writ of
attachment under the authority and direction of which the sheriff seizes
property of the debtor and holds same pending the outcome of the lawsuit,
keeping the property available for sale to pay any money judgment entered
in such lawsuit.
ATTORNEY'S OPINION - The written statement of an attorney setting forth
what he believes to be the condition of a real estate title.
AVIGATION EASEMENT - An easement over private property which abuts
and extends out from the end of airport runways with said easement
restricting the graduated height of agricultural crops, bushes, trees and
other objects in the take off and landing path of aircraft.
AVULSION - A change or shift in a water boundary resulting in loss of land
by an owner and the acquiring of such land by another.
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B
BACK TITLE LETTER - Also called "Back Title Certificate" in some areas,
and "Starter" in others. Where titles have been previously examined up to a
certain date by reliable examiners, title companies sometimes give
subsequent examiners of such titles a letter which sets forth the condition
of the title at the time of the previous examination and authorizes them to
begin their subsequent examination with the terminal date of the previous
examination (See Tacking-on).
BANKRUPTCY - A proceeding in U.S. District court wherein assets of a
debtor unable or unwilling to pay his debts are applied by an officer of the
court in satisfaction of creditor claims.
BAR - (1) The attorneys at law, taken collectively in a municipality, county,
state, or the nation. (2) To defeat; to prevent.
BARGAIN AND SALE DEED - Sometimes called "fee simple deed." A deed
of conveyance which presumes that the grantor holds title, but which
makes no warranty with respect to the title.
BENEFICIARY - A person who is entitled to receive funds or property under
the terms and provisions of a will or trust or insurance policy.
BILL OF SALE - The instrument by which title to personal property is
transferred or conveyed.
BINDER - (1) Sometimes called "Preliminary Certificate." It is a preliminary
report as to the condition of a title and a commitment to issue a title
insurance policy in a certain manner when certain conditions are met. (2)
Also, a deposit in escrow of a small part of the purchase price of real
estate as evidence of good faith and to bind an agreement to purchase.
BLANKET MORTGAGE - A mortgage which covers all of a class of property
or all of the property of the mortgagor. For example, railroads sometimes
give mortgages on all of their cars and locomotives presently owned or to
be acquired in the future, without specifically describing them. Or they may
give a mortgage on all the assets of the railroad company.
BOND - (1) A written promise to pay to the bearer or owner a stated sum of
money at a specified time, with interest usually represented by interest
coupons attached to the bond. Coupons may be clipped as they mature
and presented for payment. Bonds are sometimes in the form of
Certificates of Indebtedness. Bonds are often secured by real estate
mortgages. (See Promissory Note.) (2) A written commitment
assuring the payment of a stipulated sum of money or the amount of
damages in the event of an adverse happening. (3) A certificate of debt
issued by a government or corporation guaranteeing payment to bearer of
a specified sum of money, plus interest, on a specified future date.
BROKER - One who acts as an agent for another in negotiating sales or
purchases in return for a fee or commission.
BROKERAGE - A fee or commission paid to a broker.
BUILDING CODE - Laws specifying the type, kind, area and manner of
construction of buildings, and prohibiting construction or repair of
buildings in violation of such specifications. (Also See Zoning Ordinances)
BUILDING LINE - (See set-back line.) A line inside the boundary lines of a
piece of real estate beyond which no building may be constructed.
Building lines may be established by municipal ordinances, restrictions,
and subdivision plats.
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C
CERTIFICATE OF TITLE - A certificate issued by a title examiner stating the
condition of a title. Usually more formal than an attorney's opinion.
CHAIN OF TITLE - Beginning with a conveyance out of an original source of
title such as a government, each succeeding deed, will or other medium
which conveys and transfers the title to succeeding owners constitutes a
link in the chain of title. The chain of title is the composite of all such links.
CHATTEL - Another name for personal property as distinguished from real
estate. An article of movable property. Also, the term applied to slaves and
women before their emancipation.
CLAIM - A right to assert, or the assertion of, a demand for payment of
money due; or the surrender or delivery of possession of property or the
recognition or some right. A demand for something as one's rightful due.
CLOSING - In some areas called a "settlement". 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.
CLOSING STATEMENT - A summation, in the form of a balance sheet,
made at a closing, showing the amounts of debits and credits to which
each party to a real estate transaction is entitled.
CLOUD ON TITLE - An irregularity, possible claim, or encumbrance which,
if valid, would adversely affect or impair the title.
CODICIL - An amendment, revision, supplementation, or cancellation of a
will.
CO-INSURANCE - Literally, two or more policies of title insurance issued by
different insurers, each covering a portion of the same risk, with
interlocking provisions and which, when taken together, provide total
coverage of the risk.
COMMISSION - The amount due a real estate broker or mortgage loan
broker for services performed in
such capacity. The term also applies to regulatory tribunals such as Real
Estate Commissions.
COMMON LAW - The system of laws originated and developed in England
which was the outgrowth of customs, usages and arbitrary court decisions
as distinguished from written laws enacted by legislative bodies.
CONDEMN - (1) The legal declaration of a government that something is
unfit for further use or existence, or constitutes a peril to life, health, safety
or well-being of the public, and ordering its removal or destruction, such
as declaring a building unfit for use and a menace to health and public
safety and ordering its destruction, or to order the slaughter of diseased
animals. (2) The selection of private property by a government or public
service corporation for acquisition for public or quasi-public use.
CONDEMNATION - (1) The taking of private property for public or
quasi-public use, with compensation to the owner, under the right of
eminent domain. All governments and so-called public service
corporations, such as railroads and electric companies, have the right to
condemn and take private property. (2) The destruction by government of
private property which imperils the life, health or safety of the public.
CONDITIONS - This term is first cousin to restrictions and reservations. It
refers to provisions in deeds and other real estate instruments which
provisions make a particular right contingent upon the occurrence of some
future event.
CONDOMINIUM - A group or complex of residential units in the nature of
apartments wherein each unit is separately and individually owned, the
unit owners owning together the commonly used appurtenances such as
gardens, sidewalks, supporting and dividing elements, elevators, and
hallways. It is also possible for condominiums to encompass business
buildings, office buildings, and manufacturing plants.
CONDOMINIUM UNIT - A residential unit in a condominium complex.
CONSTRUCTIVE EVICTION - The inability of a purchaser or lessee to
obtain possession because of an outstanding right or superior title.
CONTRACT - Same as "agreement", but usually more formal.
CONVEYANCE - The transfer of title to property from one person to another.
CORPOREAL - Of material, tangible nature.
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.
CURTESY - A right which a husband has in his wife's property at her death.
It does not prevail in all states.
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D
DEDICATION - The setting aside of certain land by the owner and declaring
it to be for some public use, accompanied by the acceptance of such use
by the public. Example: Streets, sidewalks, parks.
DEED - An instrument, of various forms, by which title to real estate is
conveyed from one party to another.
DEED BOOK - A book among the public records in which deeds are
recorded.
DEED RESTRICTION - A restriction contained in a deed which limits the
use or occupancy of the real estate or the type, size, purpose and location
of improvements to be constructed on it.
DEFAULT - Failure to perform a promised task or to pay an obligation
when due.
DEFEASANCE - Making void all rights under a contract or deed. The term
has developed from an old French word meaning defeat or destroy.
DEFECT - A blemish, imperfection or deficiency. A defective title is one that
is irregular and faulty.
DEFICIENCY JUDGMENT - When property at a mortgage foreclosure sale
does not bring enough money to pay the mortgage debt plus costs of
foreclosure, the court will enter a deficiency judgment against the
mortgage debtor for the difference between the sale price and the
mortgage debt plus costs.
DEMISE - (1) Death. (2) To transfer title to property or an interest in property
by will or lease.
DEPOSIT AGREEMENT - Sometimes called "Deposit Receipt." An
agreement, used in some areas, prepared by real estate agents and
signed by purchaser and seller acknowledging that a sale has been
agreed to and that, in order to bind the deal, a certain amount of good faith
money has been deposited by the purchaser with the agent or a title
company. Such agreements are often as comprehensive, with respect to
terms of sale, as regular real estate sales agreements.
DEPRECIATION - Loss in value occasioned by ordinary wear and tear;
destructive action of the elements; or functional or economic
obsolescence.
DEVISE - A gift of real estate made by a will.
DEVISEE - One who is given real estate under a will.
DISPOSSESS - To deprive one of the possession and use of real estate.
DOMINANT ESTATE - The property for the benefit of which a right-of-way
easement exists across another's adjoining piece of land is said to be the
dominant estate. The land across which the easement runs is said to be
the servient estate.
DOWER - A right which a wife has in her husband's property effective at the
time of his death.
DRAW - A partial advance of the proceeds of a construction loan
mortgage, to which the borrower is entitled when construction reaches a
certain specified stage.
DRESSER DRAWER TITLE - When an owner neglects to record his deeds
and other real estate papers
and places them instead in dresser drawers, or in a show box in a closet,
or under the mattress, and there is nothing of record which shows any title
in the supposed owner, his title is often referred to as a Dresser Drawer
Title.
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E
EARNEST MONEY - The advance, by a purchaser, or a small part of the
purchase price as evidence of good faith.
EASEMENT - A right held by a person to enjoy or make limited use of
another's real property.
EGRESS - The right to a path or right-of-way over which a person may leave
or go away from his own real estate.
EJECTMENT - (1) Eviction or dispossession. (2) A law suit to regain
possession of real estate held by another.
EMINENT DOMAIN - The right of a government to take privately owned
property for public purposes under condemnation proceedings upon
payment of its reasonable value.
ENCROACHMENT - The extension of a structure from the real estate to
which it belongs across a boundary line and onto adjoining property.
ENCUMBRANCE - A claim, right, or lien upon the title to real estate, held by
someone other than the real estate owner.
EQUITABLE RIGHTS - Rights established primarily by court decisions
based upon principles of fairness, honesty, justness and morality and not
upon enacted law or common law.
EQUITY - A system of jurisprudence supplementing the common law and
enacted law under which justice, impartiality, and fairness is applied in
circumstances not covered by enacted or common law.
EQUITY OF REDEMPTION - The right of one who has mortgaged his
property to redeem that property upon payment of the mortgage debt, and
especially the right to redeem within a reasonable time after the due date.
EROSION - The wearing away of land surfaces by forces of nature such as
winds and water.
ESCHEAT - The reversion of property to the state when an owner dies
leaving no legal heirs, devisees or claimants.
ESCROW - Technically, this term strictly refers to a deed delivered to a
third person to be held by him until the fulfillment or performance of some
act or condition by the grantee. In title industry parlance it means the
depositing with an impartial third party called the escrow agent (usually
the title company) of anything pertaining to a real estate transaction
including money and documents of all kinds which are to be disbursed
and delivered to the rightful parties by the escrow agent when all
conditions of the transaction have been met.
ESCROW AGREEMENT - A written agreement usually made between
buyer, seller, and escrow agent, but sometimes only between one person
and the escrow agent. It sets forth the conditions to be performed
incident to the object deposited in escrow, and gives the escrow agent
instructions with respect to the disposition of the object so deposited.
ESTATE - (1) A sizable piece of rural land usually with a large house and
other pretentious improvements. (2) The whole of one's possessions,
especially all of the property, assets, debts, and liabilities left by a
deceased or bankrupt person. (3) The nature and extent of an owner's
rights in real estate.
ESTATE BY ENTIRETIES - An estate or interest in real estate predicated
upon the legal fiction that a husband and wife are one person. A
conveyance or devise to them (unless contrary intent is expressed) vests
title in them as one person. Upon the death of either husband or wife, full
title passes to the survivor.
ESTOPPEL - A legal restraint which stops or prevents a person from
contradicting or reneging on his previous position or previous assertions
or commitments.
ET UX - Abbreviations of Latin "et uxor" meaning "and wife". Joe Doaks et
ux means Joe Doaks and wife.
ET VIR - A Latin term meaning "and husband." Jane Allen et vir means
Jane Allen and husband.
EVICTION - To expel or oust a person, by legal process, from possession
of real estate.
EXAMINATION - In title industry parlance, to peruse and study the
instruments and muniments incident to a chain of title and to determine
their effect and condition in order to reach a conclusion as to the status of
the title.
EXAMINER - Usually referred to, in title industry parlance, as title examiner.
One who examines and determines the condition and status of real estate
titles.
EXCEPTION - In title industry parlance, a provision in a title insurance
binder or policy which excludes liability regarding a specified title defect or
an outstanding lien or encumbrance.
EXECUTE - (1) To create and make valid a real estate instrument. A deed
is said to be executed when it is signed, sealed, witnessed and delivered.
(2) To perform or do whatever is required.
EXECUTION - The act of executing. (See Execute.)
EXECUTOR - A person named in a will to carry out its provisions.
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F
FALSE PERSONATION - The act of a person who falsely and fraudulently
claims to be another person.
FALSIFICATION - The forging, altering, or counterfeiting of a document, or
knowingly making untruthful statements or misrepresentations.
FEE SIMPLE - The highest degree of ownership which a person can have
in real estate. An interest in real estate which gives the owner unqualified
ownership and full power of disposition.
FEUDAL SYSTEM - A political and economic system which prevailed in
Europe based upon the
Glossary-10
relation of overlord to vassal. The feudal lord held paramount title to the
land. The interest in land acquired by vassals was impermanent, and title
always reverted to the lord upon the vassal's death.
FIDUCIARY - A person who bears a special relationship of trust,
confidence, and responsibility to others, such as a trustee or agent.
FILING - In title industry parlance, this term relates to the delivery of real
estate instruments to a recorder for recordings.
FIRST MORTGAGE - A mortgage having priority as a lien over any other
mortgage or lien on the same property.
FIXTURE - Personal property which is permanently attached to real estate
such as plumbing fixtures. So long as a fixture is permanently attached, it
is usually regarded as part of the real estate.
FORECLOSURE - A legal proceeding for the collection of real estate
mortgages and other types of liens on real estate, which results in cutting
off the right to redeem the mortgaged property and usually involves a
judicial sale of the property to pay the mortgage debt.
FORESHORE - Land between the low water mark and high water mark,
covered and uncovered by the ebb and flow of the tide.
FORFEIT - (1) Money or a right which a person loses upon failure to
perform an agreement, obligation, or duty. (2) The act of losing money or a
right as described.
FORGED - Fraudulently executed, counterfeited.
FORGERY - The fraudulent signing of another's name to an instrument
such as a deed or mortgage or check.
FRAUD - A deception deliberately practiced in order to obtain an unfair or
unlawful gain.
FRAUDULENT - Obtained, performed, or characterized by deceit or fraud.
FREEHOLD - A life estate or a fee simple estate.
FRONT FOOT - A unit of measurement, one foot in length, along the front
boundary line of a piece of property which measurement, when assigned
a dollar value, is a factor in determining the total value or sale price of the
tract.
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G
GENERAL WARRANTY - A warranty provision in a deed or mortgage or
other real estate instrument containing all of the common law items of
warranty. Also known as a full warranty.
GORE - A sliver of land usually of triangular shape between two tracts,
resulting from failure of land descriptions to adjoin.
GRANT - A transfer of real estate, between individuals, by deed. A transfer
of real estate from a sovereign by patent or royal decree.
GRANTEE - One to whom a grant is made.
Glossary-11
GRANTOR - One who makes a grant.
GUARANTY - An agreement in which a guarantee or assurance of a state
of facts or the performance of an objective or obligation is given.
GUARDIAN - A person who is legally responsible for the care and
management of the person or property of one who is legally incompetent
to manage his own affairs.
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H
HABENDUM CLAUSE - That provision in deeds which begins with the
words "to have and to hold" and which, in effect, defines the quality of the
estate or interest which is being conveyed to the grantee.
HAZARD - A danger, peril or risk. Incident to title insurance, it relates to the
risk assumed under a title insurance policy.
HEIR - A person who inherits or who is entitled to inherit real estate by
provisions of law or under the provisions of a will.
HEREDITAMENTS - Any and all kinds of estates, interest, and rights in real
estate which can be inherited.
HIATUS - In title industry parlance, a separation, gap or unaccounted for
area. Usually a strip of land between two tracts where the two tracts do not
adjoin because of faulty descriptions. (See "gore").
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.
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I
IMPROVEMENT LIENS - Liens imposed by municipalities on real estate
which has been directly benefited by municipal improvements such as the
construction of streets, sidewalks and sewer lines. Such liens secure
payment of the proportionate costs of such improvements.
INCHOATE - Immature; not fully developed; an early stage; incomplete;
only partially existing. An inchoate right of dower held by a wife matures
and becomes exercisable only upon the death of her husband.
INCORPOREAL - Having no material substance or form, but existing in the
eyes of the law.
INDEMNITY - Insurance against possible loss or damage. A title
insurance policy is a contract of indemnity.
INDENTURE - A deed or other real estate contract executed between two
or more parties.
INDEX - (1) An alphabetical listing in the public records of the names of
parties to recorded real estate instruments together with the book and
page number of the record. (2) The listing in abstract and title plants of
recorded real estate instruments in groups according to land descriptions,
known as a geographic index. (3) The alphabetical listing in abstract and
title plants, by names of the parties, of all recorded instruments which
affect but do not describe particular real estate, such as judgments,
powers of attorney,
wills and probate proceedings. Such indexes are known by various
names such as General Index, Judgment Index, and Name Index.
INGRESS - The right or permission to enter; also the means or place of
entry such as a right-of-way across adjoining land.
IN GROSS - A type of offbeat easement which is not attached to a
dominant estate and is in the nature of a personal right rather than an
interest in real estate. It is not assignable or inheritable.
INSTALLMENT CONTRACT - A real estate purchase agreement providing
for the payment of the purchase price in several successive payments
such as monthly payments.
INSTRUMENT - Any written document by which something is done
regarding rights or interests in real estate.
INSURER - One that insures, sometimes called an underwriter, such as a
title insurance company.
INTERESTS - Estates, rights, or legal claims in and to real estate.
INTESTATE - Dying without leaving a legal will.
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J
JOINT TAKE-OFF - When a group of title companies shares the cost of one
take-off made for the use and benefit of each member of the group, it is
called a joint take-off.
JOINT TENANTS - Two or more persons who hold title to real estate
jointly, with equal rights to share in its enjoyment during their respective
lives with the provision that upon the death of a joint tenant, his share in
the property passes to the surviving tenants, and so on, until the full title is
vested in the last survivor. A joint tenant cannot legally sell or encumber
his interest without the consent or joinder of all of the other joint tenants.
JUDGMENT - A conclusion or determination by a court of law usually
awarding the payment of money or relief of some kind to one of the parties
to a lawsuit.
JUDICIAL - Of or pertaining to courts of law or the administration of justice.
JUNIOR MORTGAGE - A mortgage lower in lien priority than a first
mortgage.
JURISDICTION - (1) the right and power of courts to interpret and apply the
law. (2) The legal power of control over persons and property. (3) A
geographical area in which a court has power and authority to act.
JURISPRUDENCE - A system of laws. The science or philosophy of the law.
K
KAPUT - Destroyed, incapacitated, useless, terminated.
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L
LACHES - Material delay or negligence in the timely assertion of one's
rights. Laches is a legal principle under which one is barred from
asserting or claiming a right.
LAND - The solid ground of the earth as distinguished from the sea.
LAND CONTRACT - A contract between buyer and seller for the purchase
and sale of land, the purchase price usually being payable in installments
over a considerable period.
LANDLORD - (1) A person from whom a tenant leases land or buildings.
(2) One who runs a rooming house or inn.
LATENT - Existing, but lying hidden or concealed.
LEASE - An agreement granting the use or occupancy of land during a
specified period in exchange for rent.
LEASEHOLD - (1) Property held by lease. (2) The estate or interest in real
estate created by a lease.
LEGAL - (1) Relating to or concerned with the law. (2) The conformity with
or permitted by law.
LESSEE - A tenant holding a lease.
LESSOR - One who gives a lease to a lessee.
LIABILITY - A legal obligation or responsibility for the payment of a loss or
damages or a debt.
LICENSE - In title industry parlance, permission to go upon or use the
land of another, the permission being a personal privilege and not
constituting an interest in the land.
LIEN - The liability of real estate as security for payment of a debt. Such
liability may be created by contract, such as a mortgage, or by operation of
law, such as a mechanics lien.
LIFE ESTATE - An estate of ownership in real estate which exists only
during the term of a certain person's life.
LINEAL - (1) Being in the direct line of descent and inheritance from an
ancestor. (2) A direct line as related to a measurement.
LIS PENDENS - A pending lawsuit. A lis pendens notice is legal notice to
the world that a lawsuit is pending.
LISTING - (1) Placing real estate with a broker for sale or lease. (2) A
conditional agreement to pay a commission to the broker if and when he
finds a qualified buyer or tenant.
LITIGATION - Legal proceedings, a lawsuit in which a dispute is submitted
to a court for determination.
LOSS - (1) In title industry parlance, damage suffered by a person
resulting from defects in or liens upon his title to real estate. (2) Money
paid by a title insurance company in settlement of policy claims.
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M
MARKETABLE TITLE - A title which a court of equity considers to be so free
of material defects and liens that it will force the title's acceptance by
questioning purchaser. Also known as a merchantable title.
MARKET VALUE - An average between the highest price which a buyer,
willing but not compelled to buy, would pay and the lowest price a seller,
willing, but not compelled to sell, would accept.
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.
MEETING OF MINDS - The state that exists when all parties to a contract
agree to the exact terms thereof.
METES AND BOUNDS - A land description in which boundaries are
described by courses, directions, distances, and monuments.
MORTGAGE - (From the Latin Terms "mors" and "mort" meaning death or
dead.) A temporary conditional pledge of property to a creditor as security
for the payment of a debt which may be killed or cancelled by payment.
MORTGAGE BOOK - A book in the public records in which mortgages are
recorded.
MORTGAGEE - The holder of a mortgage. The party to whom a mortgage
is made.
MORTGAGEE POLICY - (Sometimes called a mortgage policy.) A policy of
title insurance insuring the holder of a mortgage against loss occasioned
by the impairment or invalidity of the lien of such mortgage or because of
defects in, superior liens upon, or unmarketability of the title.
MORTGAGOR - A person who mortgages property. A person who executes
a mortgage.
MULTIPLE LISTING - The pooling, in a central bureau, of listings of
properties for sale, which listings are held individually by members of a
group of real estate brokers, with the agreement that any member of the
group may sell the properties and in case of a sale, the commission will
be divided among the broker making the sale, the broker who filed the
listing, and the bureau.
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N
NEGLIGENCE - The omission of or failure to use reasonable precaution,
care, or action.
NEGOTIABLE - Capable of being legally transferred by endorsement from
one person to another, such endorsement carrying with it, without written
provisions, implications of certain contractual obligations.
NET LISTING - The listing, with a broker, of real estate for sale for a
specified price, net to the seller, exclusive of commission and closing
costs.
NOTE - See Promissory Note.
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O
OFFICIAL RECORD BOOK - One of a set of books in the public records in
which is recorded all papers filed for record. Such books supplant deed
books and mortgage books.
OPINION - In title industry parlance, referred to as title opinion. The
conclusion and judgement of a skilled person as to the status of a title,
based upon a title examination.
OWNER'S 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.
P
PAROL - Orally, by word of mouth. For example, if a landowner gives
another verbal permission to gather firewood from such land, or
permission to hunt game thereon, such verbal permission would be
called a parol license. Also, a witness who testifies by word of mouth in
court is said to give parol testimony as contrasted to written evidence
which may be introduced in the case, such as original deeds, wills,
correspondence, or other documents.
PAROL GIFT - A gift made orally, by word of mouth as contrasted to one
made in writing.
PARTITION - In title industry parlance, a lawsuit between joint owners of
real estate in which the court either divides the property between them or
orders the property sold and divides the proceeds between them.
PARTY WALL - A wall built along the boundary line of adjoining properties
and shared by the respective property owners or tenants.
PERCENTAGE LEASE - A lease of property in which the rental is based
upon the volume of sales made by the lessee on the leased property.
PERIMETER - (1) The boundary lines enclosing a tract of land. (2) The
length of the boundary lines enclosing a tract of land.
PERSONAL PROPERTY - Temporary or movable property as
distinguished from real estate.
PERSONALTY - Personal property.
PLAT BOOK - One in a set of books in the public records in which maps,
plats, and copies of surveys are recorded.
POLICE POWER - The inherent authority of a government to impose
restrictions upon private property or private rights for the sake of public
welfare, order, and security.
POLICY - See Owner's Policy and Mortgagee Policy.
POWER OF ATTORNEY - A legal instrument authorizing one to act as
another's agent or attorney.
PRELIMINARY CERTIFICATE - See Binder.
PREMIUM - (1) The amount payable for an insurance policy. (2) A sum of
money or bonus paid in addition to the regular price.
PRESCRIPTION - In the broad sense of modern times, the gaining of
some right or interest in real estate through long and continuous adverse
use, usually for a period prescribed by statute, such as the acquisition of
an easement by the unlicensed and adverse use of a path, roadway, or
utility lines across another property.
PRINCIPAL - (1) A sum of money owed as a debt upon which interest is
payable. (2) A person who empowers another to act as his representative
or agent. (3) The person having prime responsibility for an obligation as
distinguished from one who acts as a surety or endorser.
PROBATE - A legal procedure in which the validity and probity of a
document, such as a will, is proven.
PROMISSORY NOTE - A written promise to pay or repay a specified sum
of money at a stated time, or on demand, to a named person. In addition
to the payment of principal, a promissory note usually provides for the
payment of interest.
PROPERTY - (1) Something tangible or intangible capable of being owned
and controlled. (2) Lands or chattels in which a person owns some right,
title, or interest to the exclusion of all others.
PUBLIC RECORDS - The transcriptions in a recorder's office of
instruments which have been recorded, including the indexes pertaining
to them.
PUBLIC TRUSTEE - A public official to whom title to real estate may be
conveyed by trust deed to be held by him as security for repayment of a
loan. Usually found in areas where trust deeds are used as security
instruments in lieu of mortgages.
PURCHASE MONEY MORTGAGE - A mortgage given by a purchaser to a
seller on the subject property to secure payment of a part of the purchase
price.
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Q
QUASI - To some degree, almost, partially, somewhat. Also resembling
but not quite being the thing in question.
QUIET ENJOYMENT - (1) One of the common law warranties. (2)
Assurance that one's title, possession, or use of real estate will not be
disturbed or disrupted by a legitimate cause or adverse right.
QUIET TITLE SUIT - A lawsuit brought by an owner of real estate for the
purpose of cancelling, wiping out, and putting a quietus upon supposedly
immaterial, inconsequential, and unenforceable claims and interests
which cloud his title.
QUIETUS - Final disposition, settlement, or elimination of a claim or debt.
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 may have in the property.
R
RATE - This term, when used in the title industry, usually refers to the rate
for title insurance. In this sense it means the cost per dollar unit of title
insurance. For example, the rate for a ten thousand dollar title insurance
policy is (so many) dollars. A rate schedule is the respective costs of
dollar units of title insurance listed on an ascending scale.
REAL ESTATE - Land, including all inherent natural attributes and any
man-made improvements of a permanent nature placed thereon.
REAL PROPERTY - See Real Estate.
REALTOR - A copyrighted trade name which can be legally used only by
those persons belonging to the National Association of Real Estate
Boards.
REALTY - Another name for real estate.
RECORDING - The act of a recorder of receiving and transcribing, in a
book or on film of the public records, instruments affecting the title to real
estate.
RECORDS - See Public Records.
RECORD TITLE - The aspects of a title which appear in the public records
as distinguished from unrecorded title aspects and interests.
REDEMPTION - See Equity or Redemption.
REINSURANCE - Insurance insuring an insurer. When an insurance
company has issued a policy and does not want to be fully exposed to
loss for the full amount of the policy, such company may purchase a
reinsurance policy from another insurance company to insure that first
company against a part or all of the loss which the first company may have
to pay under its policy.
RELEASE - (1) To relieve from debt or security or abandon a right, such as
the release of a mortgage lien from a part or all of the land mortgaged. (2)
The instrument affecting a release.
RELEASE OF DOWER - (1) The deed or other instrument by which a wife
releases her inchoate dower rights in land. (2) The act of releasing dower.
RELEASE OF LIEN - (1) The instrument by which a lien is released from
the real estate which it encumbers. (2) The act of releasing a lien.
REMAINDER - An estate or interest in land which comes into being upon
the termination of an existing estate or interest. When a grantor conveys a
life estate to "A" with remainder to "B", it means that "A" has a part of the
absolute title and "B" has the remainder. Also, that "A" will own the property
during his natural life, but at his death, instead of the property going to
"A's" heirs or devisees, it goes to "B".
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.
RESTRICTIVE COVENANTS - (See Restrictions.)
REVERSION - (1) The return of an estate or interest to a grantor or lessor
after the grant or lease has expired. (2) The interest retained by a fee
simple owner of real estate after granting a terminable estate or interest in
such property to another. For example, when a fee simple owner gives a
lease to a tenant, the interest which the owner has left is known as the
reversion. (3) A provision accompanying restrictive covenants in a deed,
which provision stipulates that in the event the restrictions are violated, title
to the property shall revert to the grantor.
REVERTER CLAUSE - (See Reversion (3).)
RIGHT - A power, privilege, prerogative, estate, or interest incident to real
estate.
RIGHT OF WAY - (1) The right to pass over property owned by another,
usually based upon an easement. (2) A path or thoroughfare over which
passage is made. (3) A strip of land over which facilities such as
highways, railroads, or power lines are built.
RIPARIAN OWNER - One who owns the upland bordering on a stream or
other body of water.
RIPARIAN RIGHTS - The many rights of a person in, to, and over the
banks, bed, shallows, shore, and water of a stream or body of water upon
which his land borders.
RISK - Exposure to loss. A title insurance company assumes the risk
incident to a possible title loss when it insures the owner of the title.
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S
SALE AGREEMENT - A contract entered into between a buyer and seller,
setting forth the terms, provisions, and conditions of a sale of real estate.
SALES CONTRACT - (See Sale Agreement.)
SATISFACTION - (1) The payment of a debt or fulfillment of an obligation.
(2) An instrument executed by the holder of a lien, debt or obligation which
acknowledges payment or fulfillment. For example, a satisfaction of a
mortgage sometimes is referred to as a satisfaction piece.
SEARCH - In title industry parlance, a careful exploration and perusal of
the 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. See Junior Mortgage.
SECURITY - Assurance against the default or non-payment of a debt or
obligation which makes the enforcement of a promise or an obligation
more certain than the personal commitment of the debtor or obligator.
Usually the pledge of property.
SEISIN - (Also spelled Seizin) An Old English term meaning legal
possession or the right to legal possession of real estate under a
freehold title.
SERVIENT ESTATE - Incident to an easement, the property upon or across
which an easement exists. (See Dominant Estate.)
SERVITUDE - A right or interest in a piece of real estate, which right or
interest serves or benefits another unrelated property. For example, an
easement across one piece of property which serves another piece of
property is said to constitute a servitude regarding the property upon which
it is located.
SET ASIDE - To declare invalid or void; to annul. For example, a court may
set aside an erroneous judgment or decree.
SETBACK LINE - (See Building Line.)
SETTLEMENT - (See Closing.)
SKY LEASE - A lease of air space above a piece of land. The ownership of
land extends down to the center of the earth and up to the sky. Space
above the land can, therefore, be leased or sold. Cantilever or bridge type
buildings which do not depend on the lessor's land for support may be
built in such air space.
SOVEREIGNTY - Supreme political power or authority.
SPECIAL ASSESSMENT - (See Improvement Liens.)
SPECIAL WARRANTY DEED - A deed which warrants the title only with
respect to acts of the grantor and the interests of anyone claiming by,
through, or under him.
SPECIFIC PERFORMANCE - A lawsuit in which the court compels one of
the parties to perform or carry out the provisions of a contract into which he
has entered.
SPECULATIVE BUILDER - One who constructs buildings for sale without
having firm purchase commitments. Speculative building is quite common
in residential housing developments and in condominiums.
SQUATTER - One who settles upon unoccupied land without legal claim
or authority. (See Adverse Possession.)
STARTER - (See Back Title Letter.)
STATUTE OF LIMITATIONS - A statute setting a time limit on the
enforcement of a right or on the collection of a debt in certain cases.
SUBDIVISION - An area of land laid 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.
SUBJACENT - A term applied to land or property lying contiguous to, but at
a lower level than, another piece of property.
SUBLET - To rent property which one holds by lease, to another.
SUBORDINATION - Giving a lien or interest an inferior status. For
example, an existing mortgage may be subordinated to the lien of a new
construction loan mortgage in which case the construction loan mortgage
becomes a prior lien.
SUBROGATION - The legal doctrine under which the law substitutes one
creditor or claimant for
another. When a title insurance company pays a claim under a title
insurance policy, it is entitled to step into the shoes of the insured with
respect to any rights the insured may have against parties who warranted
the title to him.
SUIT - Usually meaning a lawsuit.
SUIT TO QUIET TITLE - (See Quiet Title Suit.)
SURETY - (1) A person who agrees to be responsible for a debt or
obligation of another. (2) The pledge or agreement by which one
undertakes responsibility for the debt or obligation of another.
SURVEY - (1) To determine the location, boundaries, area, or the
elevations of land and structures upon the earth's surface by means of
courses in relation to the North Star, and the measuring of angles and
distances by using the techniques of geometry and trigonometry. (2) The
map or plat drawn by a surveyor which represents the property surveyed
and shows the results of a survey.
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T
TACKING ON - Beginning a subsequent title examination, in point of time,
at the end of a previous title examination. (See Back Title Letter.)
TAKE-OFF - An abbreviated copy of the principal features of recorded
instruments, required for the purposes of indexation in an abstract plant or
for purposes of making abstracts or examining titles.
TAKE-OUT - A written commitment or agreement given by a permanent
mortgage lender to a temporary mortgage lender under which the
permanent lender agrees to purchase mortgages made by the temporary
lender.
TAX LIEN - The lien which is imposed upon real estate by operation of law
which secures the payment of real estate taxes.
TENANT - (1) Usually one who holds possession of real estate under a
lease. (2) In a broader sense, one who holds or possesses lands and
tenements by any kind of title.
TENANTS IN COMMON - Two or more persons in whom title to a single
piece of real estate is vested in such a manner that they have a common
or equal right to possession and enjoyment of the property, but each holds
a separate individual interest or estate in the property. Each owner may
sell or encumber his respective interest or dispose of it by will, and if he
dies without leaving a will, his heirs inherit his undivided interest.
TENANT AT SUFFERANCE - One who continues to hold possession of
real estate after his authorized term of occupancy has expired.
TENANT AT WILL - A tenant whose occupancy of real estate is subject to
the will of the owner.
TENEMENT - (1) A building or complex of buildings containing residential
rental units. (2) A run-down, low-rental apartment or flat building or
rooming house. (3) Real property held by a person under a right or
authority conferred by an owner.
TESTAMENT - Commonly used in the phrase "last will and testament" and
generally considered synonymous with will. Technically speaking, it is a
document providing for the disposition of one's
personal property upon his death.
TESTATE - Having made a legally valid will and leaving it at death.
THIRD PARTY - A term usually applied to persons who are not principal
parties to a contract or other instrument, but who have some right, interest
or duty which such contract or instrument affects. For example, where a
sale contract between buyer and seller of real estate provides that the
money and documents involved in the transaction will be deposited with a
title company pending the closing of the deal, the title company becomes
a third party to the transaction.
TITLE - (1) A combination of all the 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.
TITLE ASSURANCE - Assurance of title afforded by abstracts, attorneys'
opinions, title insurance, and surveys.
TITLE COVENANTS - Covenants ordinarily inserted in conveyances and in
transfers of title to real estate for the purpose of giving protection to the
purchaser against possible insufficiency of the title received. A group of
such covenants known as "common law covenants" includes: (a)
covenants against encumbrances; (b) covenant for further assurance (in
other words, to do whatever is necessary to rectify title deficiencies); (c)
covenant of good right and authority to convey; (d) covenant of quiet
enjoyment (see Quiet Enjoyment); (e) covenant of seisin; (f) covenant of
warranty. (See Warranty, also see Covenant).
TITLE DEFECT - (1) Any possible or patent claim or right outstanding in a
chain of title which is adverse to the claim of ownership. (2) Any material
irregularity in the execution or effect of an instrument in the chain of title.
TITLE EXAMINATION - (See Examination.)
TITLE EXAMINER - (See Examiner.)
TITLE INSURANCE - Indemnity against loss resulting from defects in or
liens upon a title.
TITLE INSURER - A company which insures the title to real estate.
TITLE PLANT - (1) In many areas, synonymous with Abstract Plant. (See
Abstract Plant.) (2) A geographically filed assemblage of title information
which is to help in expediting title examinations, such as copies of
previous attorneys' opinions, abstracts, tax searches, and copies or
take-offs of the public records.
TITLE SEARCH - A search and perusal of the public records for recorded
instruments which affect the title to a particular piece of land. (See also
Abstract and Examination.)
TITLE SEARCHER - One who searches titles.
TITLE UNDERWRITER - Synonymous with Title Insurer.
TOMBSTONE TITLE - A title, the validity of which relies upon information
gleaned from one or more tombstones, such as the fact of an owner's
death, the name of his surviving wife, the date of his death, and
sometimes the identity of a deceased owner in cases where a person of
the same name claims title.
TORRENS - A system wherein public officials by statute promulgate a
system of land registration and title certification. The system incorporates
a provision for court action to perfect titles if necessary.
TRUNK TITLE - (See Dresser Drawer Title.)
TRUST DEED - An instrument in the nature of a mortgage which secures
the payment of a debt. Distinguished from a mortgage in that the title is
transferred to, and held by, a trustee for the benefit of the holder of the debt.
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U
UNDERWRITER - An insurance company which issues insurance policies
either to the public or to another insurer.
USURY - (1) Any premium, profit, bonus, fee, or charge which is
demanded, required, or extracted by a lender in excess of legal interest on
money loaned.
V
VENDEE - The purchaser under a sale contract of real estate.
VENDOR - The seller under a sale contract of real estate.
VOID - Binding on no-one, kaput, constituting a nullity. Something which is
conclusively of no effect, the defect of which is not subject to being waived,
revitalized or cured by confirmation or ratification.
VOIDABLE - Sufficiently defective to make void, the deficiency, however,
being curable by confirmation or ratification.
W
WAIVER - The voluntary and intentional relinquishment of a known right,
claim, or privilege.
WARRANTY - In a broad sense, it is an agreement or undertaking by a
seller to be responsible for present or future losses of the purchaser
occasioned by deficiency or effect in quality, condition, or quantity of the
thing sold. In a stricter sense, it is the provision or provisions in a deed,
lease, or other instrument conveying or transferring an estate or interest in
real estate under which the seller becomes liable to the purchaser for
defects in or encumbrances on the title. (See Title Covenants.)
WARRANTY DEED - A deed containing one or more title covenants. (See
Title Covenants.)
WAREHOUSING - In title industry parlance, the temporary funding and
holding by a lending institution of mortgages originated by a mortgage
broker until such time as the mortgage market improves or until the
mortgage broker accumulates a sufficient amount of mortgages to interest
a permanent mortgage purchaser.
WAY OF NECESSITY - Generally, an easement for a roadway which the
owner of a landlocked tract is entitled to acquire across adjoining land in
order to provide a means of ingress and egress with respect to the
landlocked property.
WILL - (1) An instrument executed by a competent person, in the manner
prescribed by law, whereby he makes disposition of his property to take
effect on and after his death. (2) A holographic will is a will entirely written
and signed by the testator in his own handwriting. In some states some of
the legal requirements regarding the execution of wills do not apply in
cases of holographic wills. (3) A nuncupative will is one made orally
before witnesses, usually during the testator's last hours of life. Under
English law, sailors and soldiers may make nuncupative wills any time
during their military service.
WRIT - A formal legal document issued by a court ordering or prohibiting
the performance of some action. There are at least a hundred different
kinds of writs each covering a different action or subject. In most writs, an
officer of the court, such as a sheriff, is directed to serve the writ or carry
out its directions.
WRIT OF EXECUTION - A direct command from the court to the sheriff to
carry out the action required in the writ. It may be to hang a convicted
criminal, or to seize property and sell it to pay a money judgment.
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Z
ZONING ORDINANCES - Laws passed by local governments regulating the
size, type, structure, nature and use of buildings. Zoning ordinances, often
referred to as zoning laws and zoning regulations, are divided into two
classes: (1) those which regulate the height or bulk of buildings within
certain designated zones or districts - in other words, those which relate to
structural and architectural design, and (2) those which prescribe the type
of buildings which may be constructed, and the use to which buildings
within certain designated zones or districts may be put.
Copyright © 2004-2007 American Land Title Association
ABSTRACT - An abbreviation of the cardinal aspects of all recorded deeds,
mortgages, leases and other instruments affecting the title to a particular
piece of land.
ABSTRACTING - The process of making and compiling an abstract.
ABSTRACTER - The person or company engaged in making abstracts.
ABSTRACTER'S CERTIFICATE - A certificate appearing at the end of an
abstract in which the abstracter states the time period and scope of the
search made for instruments among the public records. In some states it
has the effect of limiting the abstracter's liability.
ABSTRACT CONTINUATION - (Also known as Abstract Extension and also
as Supplemental Abstract.) A partial abstract beginning at the terminal
date of an existing abstract and showing instruments recorded between
such terminal date and a subsequent date.
ABSTRACT OF TITLE - Just a longer name for an abstract.
ABSTRACT PLANT - There are a hundred different types. Basically it is an
index of the recorded instruments in a county or political subdivision
geographically grouped according to land description so that all of the
instruments affecting a piece of land can be immediately found under the
indexed heading of such land. (See also "Title Plant")
ABUT - To touch or border upon. A piece of land bordering on a street or
an adjoining piece of property is said to abut such street or property.
ACCRETION - A natural increase of land along the shores of a body of
water.
ACKNOWLEDGEMENT - (1) Generally, the act of the maker or makers of a
real estate instrument in going before a Notary Public or other judicial
officer and acknowledging that they signed such instrument without fear or
compulsion, and for the purposes expressed in such instrument. The
laws making provision for acknowledgments incident to real estate
papers were enacted to help prevent forgeries or undue advantage taken
over the makers of such instruments. Forms and procedures incident to
acknowledgments vary from state to state, some being considered
probate procedures in which the probity or authenticity of the instrument is
proven. (2) Generally, a form of certificate made by a notary public or
judicial officer, appended to deeds, mortgages, leases and other real
estate instruments, certifying that the maker or makers of such
instruments appeared before the notary or judicial officer and
acknowledged that they signed the instrument without compulsion or fear
and for the purposes indicated in the instrument.
ADMINISTER - To pay the debts and wind up the business of a deceased
person's estate. Also, to handle and dispose of properties of an estate by
an executor, administrator or trustee in conformity with legal procedures
and provisions of wills or trust instruments.
ADMINISTRATOR - A person appointed by a probate court to administer
the estate of a person who dies intestate; that is without leaving a will.
ADVERSE POSSESSION - The unauthorized occupation of land belonging
to another, by a person who does not have the consent of the owner. Said
occupier is said to hold possession adversely to the rights and interests
of the owner. In most states, by operation of law, title to the land becomes
vested in such occupier after a fixed number of years of peaceful
occupancy.
AFFIDAVIT - A written statement made under oath before a notary public or
other judicial officer.
AGENCY - An individual or corporation authorized to act for another person
or corporation. The scope of an agency depends upon the authority given
to the agent.
AGENT - On who, having received authority from another, acts in such
other person's behalf within the scope of such authority.
AGREEMENT - A legally binding compact made between two or more
persons.
ALLODIAL TENURE - The absolute ownership of real estate which is
subject to inheritance by the owner's heirs or to disposition by the owner
as he sees fit, as contrasted with the feudal system of ownership. Allodial
tenure is characteristic of ownerships in the United States.
ALLUVION - The increasing of land, especially along river banks, caused
by the natural deposit and build-up of sediment. Such sediment is called
alluvium.
AMORTIZATION - This term has developed through French and Old
English from the Latin words "mors" or "mort" meaning death or dead. It is
the killing off of an existing debt by regular partial payments. The word
"mortgage" is also derived from the same Latin root.
ANNUITY - Derived from the Latin word "annus" meaning year. The annual
or yearly payment of income. Such payments are made to individuals
under certain types of insurance policies and sometimes under the
provisions of wills and trust estates.
APPRAISE - From Latin "appretiare" meaning to set or fix a value. To judge
or estimate the value of real estate.
APPRAISAL - The act, also the published results, of appraising.
APPROVED ATTORNEY - A practicing lawyer whose examinations of title
and title opinions are acceptable to a title insurance company as a basis
for the issuance of its title insurance policies.
APPURTENANCE - A minor right or privilege that is incident to, but outside
of, the principal property such as a right-of-way to a highway across the
land of another. Water rights are also an example.
APPURTENANT - Belonging to, or accessory to, or incident to a principal
property.
ARBITRATION - the process by which parties who cannot agree among
themselves submit the dispute to the judgment of an impartial party.
ARBS - An abbreviation of "arbitraries." A title industry word, used primarily
in abstract plants and title plants, which refers to simplified forms of land
descriptions arbitrarily used in indexing such plants in lieu of the more
involved and complex descriptions contained in deeds, mortgages and
other real estate instruments. Arbitrary descriptions are often found in
areas where land ownerships are highly irregular and are of all manner of
shapes and sizes and are described by metes and bounds. Such tracts
are usually laid out on an area map and each tract is given an arbitrary
name or number. All instruments affecting a given tract are indexed under
the arbitrary name or number.
ASSESSED VALUATION - The estimated value of property for tax
purposes, usually fixed by the tax assessor.
ASSESSMENT - (1) The act of fixing the amount of taxes or special
improvement charges. (2) The amount of taxes or special improvement
charges. Special improvement charges are usually for the costs of streets,
sidewalks, sewers, etc.
ASSIGNEE - For example, the person who receives ownership of a contract
or a mortgage by transfer from another.
ASSIGNMENT - (1) The act of transferring ownership of something from
one person to another. (2) The instrument or paper by which one person
transfers ownership of a right or an object to another.
ASSIGNOR - For example, the person who transfers ownership of a
contract or mortgage to another.
ATTACH - The act of a sheriff or other court officer in taking possession of
a person or property under the authority and direction of a writ or order
issued by a court.
ATTACHMENT - A legal remedy to aid collection of a debt, usually
incidental to a lawsuit against the debtor wherein the court issues a writ of
attachment under the authority and direction of which the sheriff seizes
property of the debtor and holds same pending the outcome of the lawsuit,
keeping the property available for sale to pay any money judgment entered
in such lawsuit.
ATTORNEY'S OPINION - The written statement of an attorney setting forth
what he believes to be the condition of a real estate title.
AVIGATION EASEMENT - An easement over private property which abuts
and extends out from the end of airport runways with said easement
restricting the graduated height of agricultural crops, bushes, trees and
other objects in the take off and landing path of aircraft.
AVULSION - A change or shift in a water boundary resulting in loss of land
by an owner and the acquiring of such land by another.
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B
BACK TITLE LETTER - Also called "Back Title Certificate" in some areas,
and "Starter" in others. Where titles have been previously examined up to a
certain date by reliable examiners, title companies sometimes give
subsequent examiners of such titles a letter which sets forth the condition
of the title at the time of the previous examination and authorizes them to
begin their subsequent examination with the terminal date of the previous
examination (See Tacking-on).
BANKRUPTCY - A proceeding in U.S. District court wherein assets of a
debtor unable or unwilling to pay his debts are applied by an officer of the
court in satisfaction of creditor claims.
BAR - (1) The attorneys at law, taken collectively in a municipality, county,
state, or the nation. (2) To defeat; to prevent.
BARGAIN AND SALE DEED - Sometimes called "fee simple deed." A deed
of conveyance which presumes that the grantor holds title, but which
makes no warranty with respect to the title.
BENEFICIARY - A person who is entitled to receive funds or property under
the terms and provisions of a will or trust or insurance policy.
BILL OF SALE - The instrument by which title to personal property is
transferred or conveyed.
BINDER - (1) Sometimes called "Preliminary Certificate." It is a preliminary
report as to the condition of a title and a commitment to issue a title
insurance policy in a certain manner when certain conditions are met. (2)
Also, a deposit in escrow of a small part of the purchase price of real
estate as evidence of good faith and to bind an agreement to purchase.
BLANKET MORTGAGE - A mortgage which covers all of a class of property
or all of the property of the mortgagor. For example, railroads sometimes
give mortgages on all of their cars and locomotives presently owned or to
be acquired in the future, without specifically describing them. Or they may
give a mortgage on all the assets of the railroad company.
BOND - (1) A written promise to pay to the bearer or owner a stated sum of
money at a specified time, with interest usually represented by interest
coupons attached to the bond. Coupons may be clipped as they mature
and presented for payment. Bonds are sometimes in the form of
Certificates of Indebtedness. Bonds are often secured by real estate
mortgages. (See Promissory Note.) (2) A written commitment
assuring the payment of a stipulated sum of money or the amount of
damages in the event of an adverse happening. (3) A certificate of debt
issued by a government or corporation guaranteeing payment to bearer of
a specified sum of money, plus interest, on a specified future date.
BROKER - One who acts as an agent for another in negotiating sales or
purchases in return for a fee or commission.
BROKERAGE - A fee or commission paid to a broker.
BUILDING CODE - Laws specifying the type, kind, area and manner of
construction of buildings, and prohibiting construction or repair of
buildings in violation of such specifications. (Also See Zoning Ordinances)
BUILDING LINE - (See set-back line.) A line inside the boundary lines of a
piece of real estate beyond which no building may be constructed.
Building lines may be established by municipal ordinances, restrictions,
and subdivision plats.
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C
CERTIFICATE OF TITLE - A certificate issued by a title examiner stating the
condition of a title. Usually more formal than an attorney's opinion.
CHAIN OF TITLE - Beginning with a conveyance out of an original source of
title such as a government, each succeeding deed, will or other medium
which conveys and transfers the title to succeeding owners constitutes a
link in the chain of title. The chain of title is the composite of all such links.
CHATTEL - Another name for personal property as distinguished from real
estate. An article of movable property. Also, the term applied to slaves and
women before their emancipation.
CLAIM - A right to assert, or the assertion of, a demand for payment of
money due; or the surrender or delivery of possession of property or the
recognition or some right. A demand for something as one's rightful due.
CLOSING - In some areas called a "settlement". 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.
CLOSING STATEMENT - A summation, in the form of a balance sheet,
made at a closing, showing the amounts of debits and credits to which
each party to a real estate transaction is entitled.
CLOUD ON TITLE - An irregularity, possible claim, or encumbrance which,
if valid, would adversely affect or impair the title.
CODICIL - An amendment, revision, supplementation, or cancellation of a
will.
CO-INSURANCE - Literally, two or more policies of title insurance issued by
different insurers, each covering a portion of the same risk, with
interlocking provisions and which, when taken together, provide total
coverage of the risk.
COMMISSION - The amount due a real estate broker or mortgage loan
broker for services performed in
such capacity. The term also applies to regulatory tribunals such as Real
Estate Commissions.
COMMON LAW - The system of laws originated and developed in England
which was the outgrowth of customs, usages and arbitrary court decisions
as distinguished from written laws enacted by legislative bodies.
CONDEMN - (1) The legal declaration of a government that something is
unfit for further use or existence, or constitutes a peril to life, health, safety
or well-being of the public, and ordering its removal or destruction, such
as declaring a building unfit for use and a menace to health and public
safety and ordering its destruction, or to order the slaughter of diseased
animals. (2) The selection of private property by a government or public
service corporation for acquisition for public or quasi-public use.
CONDEMNATION - (1) The taking of private property for public or
quasi-public use, with compensation to the owner, under the right of
eminent domain. All governments and so-called public service
corporations, such as railroads and electric companies, have the right to
condemn and take private property. (2) The destruction by government of
private property which imperils the life, health or safety of the public.
CONDITIONS - This term is first cousin to restrictions and reservations. It
refers to provisions in deeds and other real estate instruments which
provisions make a particular right contingent upon the occurrence of some
future event.
CONDOMINIUM - A group or complex of residential units in the nature of
apartments wherein each unit is separately and individually owned, the
unit owners owning together the commonly used appurtenances such as
gardens, sidewalks, supporting and dividing elements, elevators, and
hallways. It is also possible for condominiums to encompass business
buildings, office buildings, and manufacturing plants.
CONDOMINIUM UNIT - A residential unit in a condominium complex.
CONSTRUCTIVE EVICTION - The inability of a purchaser or lessee to
obtain possession because of an outstanding right or superior title.
CONTRACT - Same as "agreement", but usually more formal.
CONVEYANCE - The transfer of title to property from one person to another.
CORPOREAL - Of material, tangible nature.
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.
CURTESY - A right which a husband has in his wife's property at her death.
It does not prevail in all states.
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D
DEDICATION - The setting aside of certain land by the owner and declaring
it to be for some public use, accompanied by the acceptance of such use
by the public. Example: Streets, sidewalks, parks.
DEED - An instrument, of various forms, by which title to real estate is
conveyed from one party to another.
DEED BOOK - A book among the public records in which deeds are
recorded.
DEED RESTRICTION - A restriction contained in a deed which limits the
use or occupancy of the real estate or the type, size, purpose and location
of improvements to be constructed on it.
DEFAULT - Failure to perform a promised task or to pay an obligation
when due.
DEFEASANCE - Making void all rights under a contract or deed. The term
has developed from an old French word meaning defeat or destroy.
DEFECT - A blemish, imperfection or deficiency. A defective title is one that
is irregular and faulty.
DEFICIENCY JUDGMENT - When property at a mortgage foreclosure sale
does not bring enough money to pay the mortgage debt plus costs of
foreclosure, the court will enter a deficiency judgment against the
mortgage debtor for the difference between the sale price and the
mortgage debt plus costs.
DEMISE - (1) Death. (2) To transfer title to property or an interest in property
by will or lease.
DEPOSIT AGREEMENT - Sometimes called "Deposit Receipt." An
agreement, used in some areas, prepared by real estate agents and
signed by purchaser and seller acknowledging that a sale has been
agreed to and that, in order to bind the deal, a certain amount of good faith
money has been deposited by the purchaser with the agent or a title
company. Such agreements are often as comprehensive, with respect to
terms of sale, as regular real estate sales agreements.
DEPRECIATION - Loss in value occasioned by ordinary wear and tear;
destructive action of the elements; or functional or economic
obsolescence.
DEVISE - A gift of real estate made by a will.
DEVISEE - One who is given real estate under a will.
DISPOSSESS - To deprive one of the possession and use of real estate.
DOMINANT ESTATE - The property for the benefit of which a right-of-way
easement exists across another's adjoining piece of land is said to be the
dominant estate. The land across which the easement runs is said to be
the servient estate.
DOWER - A right which a wife has in her husband's property effective at the
time of his death.
DRAW - A partial advance of the proceeds of a construction loan
mortgage, to which the borrower is entitled when construction reaches a
certain specified stage.
DRESSER DRAWER TITLE - When an owner neglects to record his deeds
and other real estate papers
and places them instead in dresser drawers, or in a show box in a closet,
or under the mattress, and there is nothing of record which shows any title
in the supposed owner, his title is often referred to as a Dresser Drawer
Title.
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E
EARNEST MONEY - The advance, by a purchaser, or a small part of the
purchase price as evidence of good faith.
EASEMENT - A right held by a person to enjoy or make limited use of
another's real property.
EGRESS - The right to a path or right-of-way over which a person may leave
or go away from his own real estate.
EJECTMENT - (1) Eviction or dispossession. (2) A law suit to regain
possession of real estate held by another.
EMINENT DOMAIN - The right of a government to take privately owned
property for public purposes under condemnation proceedings upon
payment of its reasonable value.
ENCROACHMENT - The extension of a structure from the real estate to
which it belongs across a boundary line and onto adjoining property.
ENCUMBRANCE - A claim, right, or lien upon the title to real estate, held by
someone other than the real estate owner.
EQUITABLE RIGHTS - Rights established primarily by court decisions
based upon principles of fairness, honesty, justness and morality and not
upon enacted law or common law.
EQUITY - A system of jurisprudence supplementing the common law and
enacted law under which justice, impartiality, and fairness is applied in
circumstances not covered by enacted or common law.
EQUITY OF REDEMPTION - The right of one who has mortgaged his
property to redeem that property upon payment of the mortgage debt, and
especially the right to redeem within a reasonable time after the due date.
EROSION - The wearing away of land surfaces by forces of nature such as
winds and water.
ESCHEAT - The reversion of property to the state when an owner dies
leaving no legal heirs, devisees or claimants.
ESCROW - Technically, this term strictly refers to a deed delivered to a
third person to be held by him until the fulfillment or performance of some
act or condition by the grantee. In title industry parlance it means the
depositing with an impartial third party called the escrow agent (usually
the title company) of anything pertaining to a real estate transaction
including money and documents of all kinds which are to be disbursed
and delivered to the rightful parties by the escrow agent when all
conditions of the transaction have been met.
ESCROW AGREEMENT - A written agreement usually made between
buyer, seller, and escrow agent, but sometimes only between one person
and the escrow agent. It sets forth the conditions to be performed
incident to the object deposited in escrow, and gives the escrow agent
instructions with respect to the disposition of the object so deposited.
ESTATE - (1) A sizable piece of rural land usually with a large house and
other pretentious improvements. (2) The whole of one's possessions,
especially all of the property, assets, debts, and liabilities left by a
deceased or bankrupt person. (3) The nature and extent of an owner's
rights in real estate.
ESTATE BY ENTIRETIES - An estate or interest in real estate predicated
upon the legal fiction that a husband and wife are one person. A
conveyance or devise to them (unless contrary intent is expressed) vests
title in them as one person. Upon the death of either husband or wife, full
title passes to the survivor.
ESTOPPEL - A legal restraint which stops or prevents a person from
contradicting or reneging on his previous position or previous assertions
or commitments.
ET UX - Abbreviations of Latin "et uxor" meaning "and wife". Joe Doaks et
ux means Joe Doaks and wife.
ET VIR - A Latin term meaning "and husband." Jane Allen et vir means
Jane Allen and husband.
EVICTION - To expel or oust a person, by legal process, from possession
of real estate.
EXAMINATION - In title industry parlance, to peruse and study the
instruments and muniments incident to a chain of title and to determine
their effect and condition in order to reach a conclusion as to the status of
the title.
EXAMINER - Usually referred to, in title industry parlance, as title examiner.
One who examines and determines the condition and status of real estate
titles.
EXCEPTION - In title industry parlance, a provision in a title insurance
binder or policy which excludes liability regarding a specified title defect or
an outstanding lien or encumbrance.
EXECUTE - (1) To create and make valid a real estate instrument. A deed
is said to be executed when it is signed, sealed, witnessed and delivered.
(2) To perform or do whatever is required.
EXECUTION - The act of executing. (See Execute.)
EXECUTOR - A person named in a will to carry out its provisions.
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F
FALSE PERSONATION - The act of a person who falsely and fraudulently
claims to be another person.
FALSIFICATION - The forging, altering, or counterfeiting of a document, or
knowingly making untruthful statements or misrepresentations.
FEE SIMPLE - The highest degree of ownership which a person can have
in real estate. An interest in real estate which gives the owner unqualified
ownership and full power of disposition.
FEUDAL SYSTEM - A political and economic system which prevailed in
Europe based upon the
Glossary-10
relation of overlord to vassal. The feudal lord held paramount title to the
land. The interest in land acquired by vassals was impermanent, and title
always reverted to the lord upon the vassal's death.
FIDUCIARY - A person who bears a special relationship of trust,
confidence, and responsibility to others, such as a trustee or agent.
FILING - In title industry parlance, this term relates to the delivery of real
estate instruments to a recorder for recordings.
FIRST MORTGAGE - A mortgage having priority as a lien over any other
mortgage or lien on the same property.
FIXTURE - Personal property which is permanently attached to real estate
such as plumbing fixtures. So long as a fixture is permanently attached, it
is usually regarded as part of the real estate.
FORECLOSURE - A legal proceeding for the collection of real estate
mortgages and other types of liens on real estate, which results in cutting
off the right to redeem the mortgaged property and usually involves a
judicial sale of the property to pay the mortgage debt.
FORESHORE - Land between the low water mark and high water mark,
covered and uncovered by the ebb and flow of the tide.
FORFEIT - (1) Money or a right which a person loses upon failure to
perform an agreement, obligation, or duty. (2) The act of losing money or a
right as described.
FORGED - Fraudulently executed, counterfeited.
FORGERY - The fraudulent signing of another's name to an instrument
such as a deed or mortgage or check.
FRAUD - A deception deliberately practiced in order to obtain an unfair or
unlawful gain.
FRAUDULENT - Obtained, performed, or characterized by deceit or fraud.
FREEHOLD - A life estate or a fee simple estate.
FRONT FOOT - A unit of measurement, one foot in length, along the front
boundary line of a piece of property which measurement, when assigned
a dollar value, is a factor in determining the total value or sale price of the
tract.
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G
GENERAL WARRANTY - A warranty provision in a deed or mortgage or
other real estate instrument containing all of the common law items of
warranty. Also known as a full warranty.
GORE - A sliver of land usually of triangular shape between two tracts,
resulting from failure of land descriptions to adjoin.
GRANT - A transfer of real estate, between individuals, by deed. A transfer
of real estate from a sovereign by patent or royal decree.
GRANTEE - One to whom a grant is made.
Glossary-11
GRANTOR - One who makes a grant.
GUARANTY - An agreement in which a guarantee or assurance of a state
of facts or the performance of an objective or obligation is given.
GUARDIAN - A person who is legally responsible for the care and
management of the person or property of one who is legally incompetent
to manage his own affairs.
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H
HABENDUM CLAUSE - That provision in deeds which begins with the
words "to have and to hold" and which, in effect, defines the quality of the
estate or interest which is being conveyed to the grantee.
HAZARD - A danger, peril or risk. Incident to title insurance, it relates to the
risk assumed under a title insurance policy.
HEIR - A person who inherits or who is entitled to inherit real estate by
provisions of law or under the provisions of a will.
HEREDITAMENTS - Any and all kinds of estates, interest, and rights in real
estate which can be inherited.
HIATUS - In title industry parlance, a separation, gap or unaccounted for
area. Usually a strip of land between two tracts where the two tracts do not
adjoin because of faulty descriptions. (See "gore").
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.
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I
IMPROVEMENT LIENS - Liens imposed by municipalities on real estate
which has been directly benefited by municipal improvements such as the
construction of streets, sidewalks and sewer lines. Such liens secure
payment of the proportionate costs of such improvements.
INCHOATE - Immature; not fully developed; an early stage; incomplete;
only partially existing. An inchoate right of dower held by a wife matures
and becomes exercisable only upon the death of her husband.
INCORPOREAL - Having no material substance or form, but existing in the
eyes of the law.
INDEMNITY - Insurance against possible loss or damage. A title
insurance policy is a contract of indemnity.
INDENTURE - A deed or other real estate contract executed between two
or more parties.
INDEX - (1) An alphabetical listing in the public records of the names of
parties to recorded real estate instruments together with the book and
page number of the record. (2) The listing in abstract and title plants of
recorded real estate instruments in groups according to land descriptions,
known as a geographic index. (3) The alphabetical listing in abstract and
title plants, by names of the parties, of all recorded instruments which
affect but do not describe particular real estate, such as judgments,
powers of attorney,
wills and probate proceedings. Such indexes are known by various
names such as General Index, Judgment Index, and Name Index.
INGRESS - The right or permission to enter; also the means or place of
entry such as a right-of-way across adjoining land.
IN GROSS - A type of offbeat easement which is not attached to a
dominant estate and is in the nature of a personal right rather than an
interest in real estate. It is not assignable or inheritable.
INSTALLMENT CONTRACT - A real estate purchase agreement providing
for the payment of the purchase price in several successive payments
such as monthly payments.
INSTRUMENT - Any written document by which something is done
regarding rights or interests in real estate.
INSURER - One that insures, sometimes called an underwriter, such as a
title insurance company.
INTERESTS - Estates, rights, or legal claims in and to real estate.
INTESTATE - Dying without leaving a legal will.
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J
JOINT TAKE-OFF - When a group of title companies shares the cost of one
take-off made for the use and benefit of each member of the group, it is
called a joint take-off.
JOINT TENANTS - Two or more persons who hold title to real estate
jointly, with equal rights to share in its enjoyment during their respective
lives with the provision that upon the death of a joint tenant, his share in
the property passes to the surviving tenants, and so on, until the full title is
vested in the last survivor. A joint tenant cannot legally sell or encumber
his interest without the consent or joinder of all of the other joint tenants.
JUDGMENT - A conclusion or determination by a court of law usually
awarding the payment of money or relief of some kind to one of the parties
to a lawsuit.
JUDICIAL - Of or pertaining to courts of law or the administration of justice.
JUNIOR MORTGAGE - A mortgage lower in lien priority than a first
mortgage.
JURISDICTION - (1) the right and power of courts to interpret and apply the
law. (2) The legal power of control over persons and property. (3) A
geographical area in which a court has power and authority to act.
JURISPRUDENCE - A system of laws. The science or philosophy of the law.
K
KAPUT - Destroyed, incapacitated, useless, terminated.
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L
LACHES - Material delay or negligence in the timely assertion of one's
rights. Laches is a legal principle under which one is barred from
asserting or claiming a right.
LAND - The solid ground of the earth as distinguished from the sea.
LAND CONTRACT - A contract between buyer and seller for the purchase
and sale of land, the purchase price usually being payable in installments
over a considerable period.
LANDLORD - (1) A person from whom a tenant leases land or buildings.
(2) One who runs a rooming house or inn.
LATENT - Existing, but lying hidden or concealed.
LEASE - An agreement granting the use or occupancy of land during a
specified period in exchange for rent.
LEASEHOLD - (1) Property held by lease. (2) The estate or interest in real
estate created by a lease.
LEGAL - (1) Relating to or concerned with the law. (2) The conformity with
or permitted by law.
LESSEE - A tenant holding a lease.
LESSOR - One who gives a lease to a lessee.
LIABILITY - A legal obligation or responsibility for the payment of a loss or
damages or a debt.
LICENSE - In title industry parlance, permission to go upon or use the
land of another, the permission being a personal privilege and not
constituting an interest in the land.
LIEN - The liability of real estate as security for payment of a debt. Such
liability may be created by contract, such as a mortgage, or by operation of
law, such as a mechanics lien.
LIFE ESTATE - An estate of ownership in real estate which exists only
during the term of a certain person's life.
LINEAL - (1) Being in the direct line of descent and inheritance from an
ancestor. (2) A direct line as related to a measurement.
LIS PENDENS - A pending lawsuit. A lis pendens notice is legal notice to
the world that a lawsuit is pending.
LISTING - (1) Placing real estate with a broker for sale or lease. (2) A
conditional agreement to pay a commission to the broker if and when he
finds a qualified buyer or tenant.
LITIGATION - Legal proceedings, a lawsuit in which a dispute is submitted
to a court for determination.
LOSS - (1) In title industry parlance, damage suffered by a person
resulting from defects in or liens upon his title to real estate. (2) Money
paid by a title insurance company in settlement of policy claims.
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M
MARKETABLE TITLE - A title which a court of equity considers to be so free
of material defects and liens that it will force the title's acceptance by
questioning purchaser. Also known as a merchantable title.
MARKET VALUE - An average between the highest price which a buyer,
willing but not compelled to buy, would pay and the lowest price a seller,
willing, but not compelled to sell, would accept.
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.
MEETING OF MINDS - The state that exists when all parties to a contract
agree to the exact terms thereof.
METES AND BOUNDS - A land description in which boundaries are
described by courses, directions, distances, and monuments.
MORTGAGE - (From the Latin Terms "mors" and "mort" meaning death or
dead.) A temporary conditional pledge of property to a creditor as security
for the payment of a debt which may be killed or cancelled by payment.
MORTGAGE BOOK - A book in the public records in which mortgages are
recorded.
MORTGAGEE - The holder of a mortgage. The party to whom a mortgage
is made.
MORTGAGEE POLICY - (Sometimes called a mortgage policy.) A policy of
title insurance insuring the holder of a mortgage against loss occasioned
by the impairment or invalidity of the lien of such mortgage or because of
defects in, superior liens upon, or unmarketability of the title.
MORTGAGOR - A person who mortgages property. A person who executes
a mortgage.
MULTIPLE LISTING - The pooling, in a central bureau, of listings of
properties for sale, which listings are held individually by members of a
group of real estate brokers, with the agreement that any member of the
group may sell the properties and in case of a sale, the commission will
be divided among the broker making the sale, the broker who filed the
listing, and the bureau.
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N
NEGLIGENCE - The omission of or failure to use reasonable precaution,
care, or action.
NEGOTIABLE - Capable of being legally transferred by endorsement from
one person to another, such endorsement carrying with it, without written
provisions, implications of certain contractual obligations.
NET LISTING - The listing, with a broker, of real estate for sale for a
specified price, net to the seller, exclusive of commission and closing
costs.
NOTE - See Promissory Note.
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O
OFFICIAL RECORD BOOK - One of a set of books in the public records in
which is recorded all papers filed for record. Such books supplant deed
books and mortgage books.
OPINION - In title industry parlance, referred to as title opinion. The
conclusion and judgement of a skilled person as to the status of a title,
based upon a title examination.
OWNER'S 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.
P
PAROL - Orally, by word of mouth. For example, if a landowner gives
another verbal permission to gather firewood from such land, or
permission to hunt game thereon, such verbal permission would be
called a parol license. Also, a witness who testifies by word of mouth in
court is said to give parol testimony as contrasted to written evidence
which may be introduced in the case, such as original deeds, wills,
correspondence, or other documents.
PAROL GIFT - A gift made orally, by word of mouth as contrasted to one
made in writing.
PARTITION - In title industry parlance, a lawsuit between joint owners of
real estate in which the court either divides the property between them or
orders the property sold and divides the proceeds between them.
PARTY WALL - A wall built along the boundary line of adjoining properties
and shared by the respective property owners or tenants.
PERCENTAGE LEASE - A lease of property in which the rental is based
upon the volume of sales made by the lessee on the leased property.
PERIMETER - (1) The boundary lines enclosing a tract of land. (2) The
length of the boundary lines enclosing a tract of land.
PERSONAL PROPERTY - Temporary or movable property as
distinguished from real estate.
PERSONALTY - Personal property.
PLAT BOOK - One in a set of books in the public records in which maps,
plats, and copies of surveys are recorded.
POLICE POWER - The inherent authority of a government to impose
restrictions upon private property or private rights for the sake of public
welfare, order, and security.
POLICY - See Owner's Policy and Mortgagee Policy.
POWER OF ATTORNEY - A legal instrument authorizing one to act as
another's agent or attorney.
PRELIMINARY CERTIFICATE - See Binder.
PREMIUM - (1) The amount payable for an insurance policy. (2) A sum of
money or bonus paid in addition to the regular price.
PRESCRIPTION - In the broad sense of modern times, the gaining of
some right or interest in real estate through long and continuous adverse
use, usually for a period prescribed by statute, such as the acquisition of
an easement by the unlicensed and adverse use of a path, roadway, or
utility lines across another property.
PRINCIPAL - (1) A sum of money owed as a debt upon which interest is
payable. (2) A person who empowers another to act as his representative
or agent. (3) The person having prime responsibility for an obligation as
distinguished from one who acts as a surety or endorser.
PROBATE - A legal procedure in which the validity and probity of a
document, such as a will, is proven.
PROMISSORY NOTE - A written promise to pay or repay a specified sum
of money at a stated time, or on demand, to a named person. In addition
to the payment of principal, a promissory note usually provides for the
payment of interest.
PROPERTY - (1) Something tangible or intangible capable of being owned
and controlled. (2) Lands or chattels in which a person owns some right,
title, or interest to the exclusion of all others.
PUBLIC RECORDS - The transcriptions in a recorder's office of
instruments which have been recorded, including the indexes pertaining
to them.
PUBLIC TRUSTEE - A public official to whom title to real estate may be
conveyed by trust deed to be held by him as security for repayment of a
loan. Usually found in areas where trust deeds are used as security
instruments in lieu of mortgages.
PURCHASE MONEY MORTGAGE - A mortgage given by a purchaser to a
seller on the subject property to secure payment of a part of the purchase
price.
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Q
QUASI - To some degree, almost, partially, somewhat. Also resembling
but not quite being the thing in question.
QUIET ENJOYMENT - (1) One of the common law warranties. (2)
Assurance that one's title, possession, or use of real estate will not be
disturbed or disrupted by a legitimate cause or adverse right.
QUIET TITLE SUIT - A lawsuit brought by an owner of real estate for the
purpose of cancelling, wiping out, and putting a quietus upon supposedly
immaterial, inconsequential, and unenforceable claims and interests
which cloud his title.
QUIETUS - Final disposition, settlement, or elimination of a claim or debt.
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 may have in the property.
R
RATE - This term, when used in the title industry, usually refers to the rate
for title insurance. In this sense it means the cost per dollar unit of title
insurance. For example, the rate for a ten thousand dollar title insurance
policy is (so many) dollars. A rate schedule is the respective costs of
dollar units of title insurance listed on an ascending scale.
REAL ESTATE - Land, including all inherent natural attributes and any
man-made improvements of a permanent nature placed thereon.
REAL PROPERTY - See Real Estate.
REALTOR - A copyrighted trade name which can be legally used only by
those persons belonging to the National Association of Real Estate
Boards.
REALTY - Another name for real estate.
RECORDING - The act of a recorder of receiving and transcribing, in a
book or on film of the public records, instruments affecting the title to real
estate.
RECORDS - See Public Records.
RECORD TITLE - The aspects of a title which appear in the public records
as distinguished from unrecorded title aspects and interests.
REDEMPTION - See Equity or Redemption.
REINSURANCE - Insurance insuring an insurer. When an insurance
company has issued a policy and does not want to be fully exposed to
loss for the full amount of the policy, such company may purchase a
reinsurance policy from another insurance company to insure that first
company against a part or all of the loss which the first company may have
to pay under its policy.
RELEASE - (1) To relieve from debt or security or abandon a right, such as
the release of a mortgage lien from a part or all of the land mortgaged. (2)
The instrument affecting a release.
RELEASE OF DOWER - (1) The deed or other instrument by which a wife
releases her inchoate dower rights in land. (2) The act of releasing dower.
RELEASE OF LIEN - (1) The instrument by which a lien is released from
the real estate which it encumbers. (2) The act of releasing a lien.
REMAINDER - An estate or interest in land which comes into being upon
the termination of an existing estate or interest. When a grantor conveys a
life estate to "A" with remainder to "B", it means that "A" has a part of the
absolute title and "B" has the remainder. Also, that "A" will own the property
during his natural life, but at his death, instead of the property going to
"A's" heirs or devisees, it goes to "B".
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.
RESTRICTIVE COVENANTS - (See Restrictions.)
REVERSION - (1) The return of an estate or interest to a grantor or lessor
after the grant or lease has expired. (2) The interest retained by a fee
simple owner of real estate after granting a terminable estate or interest in
such property to another. For example, when a fee simple owner gives a
lease to a tenant, the interest which the owner has left is known as the
reversion. (3) A provision accompanying restrictive covenants in a deed,
which provision stipulates that in the event the restrictions are violated, title
to the property shall revert to the grantor.
REVERTER CLAUSE - (See Reversion (3).)
RIGHT - A power, privilege, prerogative, estate, or interest incident to real
estate.
RIGHT OF WAY - (1) The right to pass over property owned by another,
usually based upon an easement. (2) A path or thoroughfare over which
passage is made. (3) A strip of land over which facilities such as
highways, railroads, or power lines are built.
RIPARIAN OWNER - One who owns the upland bordering on a stream or
other body of water.
RIPARIAN RIGHTS - The many rights of a person in, to, and over the
banks, bed, shallows, shore, and water of a stream or body of water upon
which his land borders.
RISK - Exposure to loss. A title insurance company assumes the risk
incident to a possible title loss when it insures the owner of the title.
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S
SALE AGREEMENT - A contract entered into between a buyer and seller,
setting forth the terms, provisions, and conditions of a sale of real estate.
SALES CONTRACT - (See Sale Agreement.)
SATISFACTION - (1) The payment of a debt or fulfillment of an obligation.
(2) An instrument executed by the holder of a lien, debt or obligation which
acknowledges payment or fulfillment. For example, a satisfaction of a
mortgage sometimes is referred to as a satisfaction piece.
SEARCH - In title industry parlance, a careful exploration and perusal of
the 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. See Junior Mortgage.
SECURITY - Assurance against the default or non-payment of a debt or
obligation which makes the enforcement of a promise or an obligation
more certain than the personal commitment of the debtor or obligator.
Usually the pledge of property.
SEISIN - (Also spelled Seizin) An Old English term meaning legal
possession or the right to legal possession of real estate under a
freehold title.
SERVIENT ESTATE - Incident to an easement, the property upon or across
which an easement exists. (See Dominant Estate.)
SERVITUDE - A right or interest in a piece of real estate, which right or
interest serves or benefits another unrelated property. For example, an
easement across one piece of property which serves another piece of
property is said to constitute a servitude regarding the property upon which
it is located.
SET ASIDE - To declare invalid or void; to annul. For example, a court may
set aside an erroneous judgment or decree.
SETBACK LINE - (See Building Line.)
SETTLEMENT - (See Closing.)
SKY LEASE - A lease of air space above a piece of land. The ownership of
land extends down to the center of the earth and up to the sky. Space
above the land can, therefore, be leased or sold. Cantilever or bridge type
buildings which do not depend on the lessor's land for support may be
built in such air space.
SOVEREIGNTY - Supreme political power or authority.
SPECIAL ASSESSMENT - (See Improvement Liens.)
SPECIAL WARRANTY DEED - A deed which warrants the title only with
respect to acts of the grantor and the interests of anyone claiming by,
through, or under him.
SPECIFIC PERFORMANCE - A lawsuit in which the court compels one of
the parties to perform or carry out the provisions of a contract into which he
has entered.
SPECULATIVE BUILDER - One who constructs buildings for sale without
having firm purchase commitments. Speculative building is quite common
in residential housing developments and in condominiums.
SQUATTER - One who settles upon unoccupied land without legal claim
or authority. (See Adverse Possession.)
STARTER - (See Back Title Letter.)
STATUTE OF LIMITATIONS - A statute setting a time limit on the
enforcement of a right or on the collection of a debt in certain cases.
SUBDIVISION - An area of land laid 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.
SUBJACENT - A term applied to land or property lying contiguous to, but at
a lower level than, another piece of property.
SUBLET - To rent property which one holds by lease, to another.
SUBORDINATION - Giving a lien or interest an inferior status. For
example, an existing mortgage may be subordinated to the lien of a new
construction loan mortgage in which case the construction loan mortgage
becomes a prior lien.
SUBROGATION - The legal doctrine under which the law substitutes one
creditor or claimant for
another. When a title insurance company pays a claim under a title
insurance policy, it is entitled to step into the shoes of the insured with
respect to any rights the insured may have against parties who warranted
the title to him.
SUIT - Usually meaning a lawsuit.
SUIT TO QUIET TITLE - (See Quiet Title Suit.)
SURETY - (1) A person who agrees to be responsible for a debt or
obligation of another. (2) The pledge or agreement by which one
undertakes responsibility for the debt or obligation of another.
SURVEY - (1) To determine the location, boundaries, area, or the
elevations of land and structures upon the earth's surface by means of
courses in relation to the North Star, and the measuring of angles and
distances by using the techniques of geometry and trigonometry. (2) The
map or plat drawn by a surveyor which represents the property surveyed
and shows the results of a survey.
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T
TACKING ON - Beginning a subsequent title examination, in point of time,
at the end of a previous title examination. (See Back Title Letter.)
TAKE-OFF - An abbreviated copy of the principal features of recorded
instruments, required for the purposes of indexation in an abstract plant or
for purposes of making abstracts or examining titles.
TAKE-OUT - A written commitment or agreement given by a permanent
mortgage lender to a temporary mortgage lender under which the
permanent lender agrees to purchase mortgages made by the temporary
lender.
TAX LIEN - The lien which is imposed upon real estate by operation of law
which secures the payment of real estate taxes.
TENANT - (1) Usually one who holds possession of real estate under a
lease. (2) In a broader sense, one who holds or possesses lands and
tenements by any kind of title.
TENANTS IN COMMON - Two or more persons in whom title to a single
piece of real estate is vested in such a manner that they have a common
or equal right to possession and enjoyment of the property, but each holds
a separate individual interest or estate in the property. Each owner may
sell or encumber his respective interest or dispose of it by will, and if he
dies without leaving a will, his heirs inherit his undivided interest.
TENANT AT SUFFERANCE - One who continues to hold possession of
real estate after his authorized term of occupancy has expired.
TENANT AT WILL - A tenant whose occupancy of real estate is subject to
the will of the owner.
TENEMENT - (1) A building or complex of buildings containing residential
rental units. (2) A run-down, low-rental apartment or flat building or
rooming house. (3) Real property held by a person under a right or
authority conferred by an owner.
TESTAMENT - Commonly used in the phrase "last will and testament" and
generally considered synonymous with will. Technically speaking, it is a
document providing for the disposition of one's
personal property upon his death.
TESTATE - Having made a legally valid will and leaving it at death.
THIRD PARTY - A term usually applied to persons who are not principal
parties to a contract or other instrument, but who have some right, interest
or duty which such contract or instrument affects. For example, where a
sale contract between buyer and seller of real estate provides that the
money and documents involved in the transaction will be deposited with a
title company pending the closing of the deal, the title company becomes
a third party to the transaction.
TITLE - (1) A combination of all the 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.
TITLE ASSURANCE - Assurance of title afforded by abstracts, attorneys'
opinions, title insurance, and surveys.
TITLE COVENANTS - Covenants ordinarily inserted in conveyances and in
transfers of title to real estate for the purpose of giving protection to the
purchaser against possible insufficiency of the title received. A group of
such covenants known as "common law covenants" includes: (a)
covenants against encumbrances; (b) covenant for further assurance (in
other words, to do whatever is necessary to rectify title deficiencies); (c)
covenant of good right and authority to convey; (d) covenant of quiet
enjoyment (see Quiet Enjoyment); (e) covenant of seisin; (f) covenant of
warranty. (See Warranty, also see Covenant).
TITLE DEFECT - (1) Any possible or patent claim or right outstanding in a
chain of title which is adverse to the claim of ownership. (2) Any material
irregularity in the execution or effect of an instrument in the chain of title.
TITLE EXAMINATION - (See Examination.)
TITLE EXAMINER - (See Examiner.)
TITLE INSURANCE - Indemnity against loss resulting from defects in or
liens upon a title.
TITLE INSURER - A company which insures the title to real estate.
TITLE PLANT - (1) In many areas, synonymous with Abstract Plant. (See
Abstract Plant.) (2) A geographically filed assemblage of title information
which is to help in expediting title examinations, such as copies of
previous attorneys' opinions, abstracts, tax searches, and copies or
take-offs of the public records.
TITLE SEARCH - A search and perusal of the public records for recorded
instruments which affect the title to a particular piece of land. (See also
Abstract and Examination.)
TITLE SEARCHER - One who searches titles.
TITLE UNDERWRITER - Synonymous with Title Insurer.
TOMBSTONE TITLE - A title, the validity of which relies upon information
gleaned from one or more tombstones, such as the fact of an owner's
death, the name of his surviving wife, the date of his death, and
sometimes the identity of a deceased owner in cases where a person of
the same name claims title.
TORRENS - A system wherein public officials by statute promulgate a
system of land registration and title certification. The system incorporates
a provision for court action to perfect titles if necessary.
TRUNK TITLE - (See Dresser Drawer Title.)
TRUST DEED - An instrument in the nature of a mortgage which secures
the payment of a debt. Distinguished from a mortgage in that the title is
transferred to, and held by, a trustee for the benefit of the holder of the debt.
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U
UNDERWRITER - An insurance company which issues insurance policies
either to the public or to another insurer.
USURY - (1) Any premium, profit, bonus, fee, or charge which is
demanded, required, or extracted by a lender in excess of legal interest on
money loaned.
V
VENDEE - The purchaser under a sale contract of real estate.
VENDOR - The seller under a sale contract of real estate.
VOID - Binding on no-one, kaput, constituting a nullity. Something which is
conclusively of no effect, the defect of which is not subject to being waived,
revitalized or cured by confirmation or ratification.
VOIDABLE - Sufficiently defective to make void, the deficiency, however,
being curable by confirmation or ratification.
W
WAIVER - The voluntary and intentional relinquishment of a known right,
claim, or privilege.
WARRANTY - In a broad sense, it is an agreement or undertaking by a
seller to be responsible for present or future losses of the purchaser
occasioned by deficiency or effect in quality, condition, or quantity of the
thing sold. In a stricter sense, it is the provision or provisions in a deed,
lease, or other instrument conveying or transferring an estate or interest in
real estate under which the seller becomes liable to the purchaser for
defects in or encumbrances on the title. (See Title Covenants.)
WARRANTY DEED - A deed containing one or more title covenants. (See
Title Covenants.)
WAREHOUSING - In title industry parlance, the temporary funding and
holding by a lending institution of mortgages originated by a mortgage
broker until such time as the mortgage market improves or until the
mortgage broker accumulates a sufficient amount of mortgages to interest
a permanent mortgage purchaser.
WAY OF NECESSITY - Generally, an easement for a roadway which the
owner of a landlocked tract is entitled to acquire across adjoining land in
order to provide a means of ingress and egress with respect to the
landlocked property.
WILL - (1) An instrument executed by a competent person, in the manner
prescribed by law, whereby he makes disposition of his property to take
effect on and after his death. (2) A holographic will is a will entirely written
and signed by the testator in his own handwriting. In some states some of
the legal requirements regarding the execution of wills do not apply in
cases of holographic wills. (3) A nuncupative will is one made orally
before witnesses, usually during the testator's last hours of life. Under
English law, sailors and soldiers may make nuncupative wills any time
during their military service.
WRIT - A formal legal document issued by a court ordering or prohibiting
the performance of some action. There are at least a hundred different
kinds of writs each covering a different action or subject. In most writs, an
officer of the court, such as a sheriff, is directed to serve the writ or carry
out its directions.
WRIT OF EXECUTION - A direct command from the court to the sheriff to
carry out the action required in the writ. It may be to hang a convicted
criminal, or to seize property and sell it to pay a money judgment.
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Z
ZONING ORDINANCES - Laws passed by local governments regulating the
size, type, structure, nature and use of buildings. Zoning ordinances, often
referred to as zoning laws and zoning regulations, are divided into two
classes: (1) those which regulate the height or bulk of buildings within
certain designated zones or districts - in other words, those which relate to
structural and architectural design, and (2) those which prescribe the type
of buildings which may be constructed, and the use to which buildings
within certain designated zones or districts may be put.
Copyright © 2004-2007 American Land Title Association
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