GLOSSARY

A

Abstract of title

A condensed history or summary of public records relating to the title to a particular parcel of land.

Appurtenances

Anything annexed to land or used with it that it will pass with the conveyance of the land.

Assessed valuation

The valuation placed upon land for purposes of taxation. Valuation does not necessarily correspond to the market valuation.

Assessment

A special tax imposed on owners of land y governing bodies for the purpose of paying for improvements (sewer lines, sidewalks, street paving, etc.) which benefit the land.

Assessor

A public official who evaluates property for the purpose of taxation. (In Florida, Property Appraiser)

Assignment

A transfer or making over to another of the whole of any property, real or personal. Often used in transferring interests of a mortgagee or of a lessee.

Assignee

One to whom a transfer of interest is made; e.g. the assignee of the mortgage or contract.

Assignor

One who makes an assignment; e.g. the assignor of a mortgage or contract.

Attorney in fact

One who holds a power of attorney from another allowing him to execute legal documents on behalf of the grantor of the power.

B

A person designated to receive some benefit from the trust estate.

Binder or commitment

An enforceable agreement that, upon satisfaction of the requirements stated in the binder, the insurer will issue the specified title insurance policy subject only to the exceptions stated in the binder. A binder sets forth status of title as of a particular date.

Bond

(1)Insurance agreement under which one party becomes surety to pay, within stated limits, financial loss caused to another by specified acts or defaults of a third party.
(2)Interest bearing security evidencing a long term debt, issued by a government or corporation, and sometimes secured by a lien on property.

C

A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.

Clear title

One which is not encumbered or burdened with defects.

Closing

(1)Process by which all the parties to a real estate transaction conclude the details of a sale or mortgage; includes the signing and transfer of documents and distribution of funds.
(2)Condition in description of real property by courses and distances at the boundary lines where the lines meet to include all the tract of land.

Closing costs

Miscellaneous expense involved in closing a real estate transaction, over and above the price of the land; e.g. pro rata taxes, insurance, recording fees, etc.

Cloud on title

An outstanding claim or encumbrance adversely affecting the marketability of title.

Community property

The process by which property of a private owner is taken for a public use, without his consent, but upon the award and payment of just compensation, being in the nature of a forced sale and condemner stands toward owner as buyer toward seller.

Conditions and restrictions

A common term used to designate the uses to which land may not be put and providing penalties for failure to comply. Commonly used by land subdividers on newly subdivided areas.

Condominium

A system of individual fee ownership of units in a multi-unit project, combined with joint ownership of common areas of the structure and land.

Contract of sale

Agreement to sell and purchase under which title is withheld from the purchaser until such time as the required payments to the seller have been completed.

Convey

The act of deeding or transferring title to another.

Conveyance

A document which transfers an interest in real property from one person to another, e.g., a deed.

Cotenancy

Ownership of the same interest in a particular parcel of land by more than one person.

Covenant

Agreement between the parties in a deed whereby one party promises either (1) the performance or nonperformance of certain acts with respect to the land or (2) that a given state of thing with respect to the land is so; e.g., covenant that the land will be used only for residential purposes.

D

Deed

A written document by which the ownership of land is transferred from one person to another.

Deed of trust

A conveyance of a land title by a maker of a note (the debtor) to a third party, a trustee, as collateral security for the payment of the note with the condition that the trustee shall reconvey the title to the debtor upon payment of the note, and with power in the trustee to sell the land and pay the note in the even of a default on the part of the debtor. Also called a trust deed.

Deficiency judgment

A judgment against a person liable for the debt secured by a mortgage in an amount by which the funds derived from a foreclosure or trustee’s sale are less than the amount due on the debt.

Delivery

The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by the seller.

Devise

A gift of land by will or to give land by will.

Devisee

The person to whom real property is given by a will.

Dower

A wife’s life estate in the property of her deceased husband. The reverse of curtesy.

Draw

Disbursement of a portion of the mortgage loan. Usually applies to construction loans when partial advances are made as improvements to the property progress.

E

An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property.

Encumbrance

Any right or interest in land held by persons other than the fee owner which lessens the value of the fee title; e.g., judgment liens, easements, mortgages, restrictions.

Endorsement

Form issued by the insurer at the request of the insured which changes terms or items in an issued policy or commitment.

Escrow

Money, securities, documents or other property deposited with a third disinterested party who completes the transaction in accordance with the instructions of the parties.

Exceptions

(1)Matters affecting title to a particular parcel of realty which are excluded from coverage of the particular title insurance policy.
(2)In legal descriptions that portion of lands to be deleted or excluded.

F

An estate in which the owner is entitled to the entire property, with unconditional power of disposition during his life, and which descends to his heirs upon his death, if he dies without a will.

Foreclosure

Legal process by which a mortgagor of real property is deprived of his interest in that property due to failure to comply with terms and conditions of the mortgage.

G

General warranty deed

See Warranty deed.

Grantee

Person who acquires an interest in land by deed, grant, or other written instrument.

Grantor

Person who, by a written instrument, transfers an interest in land to another.

H

Terminology used in deeds and wills to provide that the recipient receives a "fee simple estate" in lands rather than a lesser interest.

I

Land title which a title insurance company is willing to insure.

J

Two or more persons holding real estate jointly for life with right of survivorship.

Judgment

Court's final detennination of the rights of the parties in an action.

Judgment lien

Statutory lien created by recording an abstract or certified copy of a money judgment.

L

A grant of the use of land for a specified term in consideration of the payment of a monthly or annual rental.

Leasehold

Estate in realty held under a lease for a fixed term of years.

Lease-purchase

The least popular form of financing. With a lease-purchase, the seller agrees to lease the property for a short period of time and at the end of the period the buyer may purchase the property at a specified price. Usually, the buyer makes a deposit which may later be used as part of the down payment. Depending upon the contract, all or a portion of the lease payments may also apply to the purchase price. A lease-purchase may also be called a “lease with option to buy.” In addition to the terms above, in an option the buyer would have the “right of first refusal” if the seller decided to sell the property prior to the time the option matures.

Lessee

One who takes lands upon a lease.

Lessor

One who grants lands under a lease.

Lien

Claim or charge on property of another for payment of a debt, obligation, or duty’ e.g. mortgage liens, judgment liens, mechanics’ liens.

M

An interest in minerals in land. A right to take minerals or a right to receive a royalty.

Mortgage

Instrument whereby an owner conditionally transfers title of his property to another as security for payment of a debt. The owner retains possession and use of the land. Upon the payment of the debt, the mortgage becomes void.

Mortgagor

Person borrowing money from the mortgagee and who signs the mortgage as security.

N

Official authorized by law to take acknowledgments (attest by his hand and official seal to the identity of persons executing documents).

O

The right to possess and use property to the exclusion of others.

Owner’s policy

Title insurance policy insuring the owner against loss due to any defect of title not excepted or excluded from the policy.

P

Instrument in writing by which one person, the principal, authorizes another, the attorney-in-fact, to act for him in specific actions described in the instrument.

Public records

Records which under the recording laws impart constructive notice of matters relating to land.

Q

Deed transferring whatever interest the maker of the deed may have in a particular parcel of land.

R

(1) Resale of property;
(2) Document evidencing the extinguishment of the lien of a Deed of Trust; may be full or partial.

Release

Deed from the mortgagee or trustee of a deed of trust which releases specific property from the lien of the mortgage or deed of trust.

Restriction

Provision in a deed or will or in a "Declaration of Condition, Reservations, and Restrictions" which limits in some way the right to use land or convey its title; e.g., building setback lines and limitations to residential uses.

S

Deed containing a covenant whereby the seller agrees to protect the buyer against being dispossessed because of any adverse claims to the land by the seller, or anyone claiming through him.

T

Deed given to a purchaser at public sale of land for non-payment of taxes. Conveys only such title as the defaulting taxpayer had and does not convey good title to that extent unless statutory procedures for the sale were strictly followed.

Tenancy by the entirety

Created by a conveyance to husband and wife, whereupon each becomes seized and possessed of the entire estate and after the death of one the survivor takes the whole.

Tenancy in common

An estate or interest in land held by two or more persons each having equal rights of possession and enjoyment but without any right of survivorship between the owners.

Time-share

System of individual fee ownership of units in a multi-unit project, combined with joint ownership of common areas of the structure and land, for a specified period of time and shared with other owners of the same structure and land; usually used in "vacation packages" wherein a purchase is made for exclusive use of the property for one or more weeks per year.

Title

Evidence of a person's right or extent of his interest in property.

Title defect

Any legal right held by others to claim property or to make demands upon the owner.

Title insurance

Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.

Title search

Examination of public records, laws, and court decisions to determine current ownership of and encumbrances upon a parcel of land.

V

Purchaser of real or personal property; buyer.

Vendor

Seller of real or personal property.

Vest

To become owned by.

W

Agreement and assurance, binding upon the grantor of real property for himself and his heirs to the effect that he is the owner and will defend the title given.

Warranty deed

Deed in which the seller implicitly or specifically agrees to protect the buyer against certain matters of title, usually including one or more of the following: lawful ownership of the property; rights of conveyance and quiet possession; freedom from all encumbrance, warranty and defense of premises against all lawful claims.