This is a continuing series from my blog post on the 21st of August, Did You Know?.....Title Glossary A-C
The title industry has its own language. Many of the definitions are derived from Latin phrases. Many are commonplace words or idioms found in our daily language, but specific to land titles. Nonetheless, they are an important part of a real estate transaction. So, as an ongoing service....here is some useful stuff! Title glossary:
D
Deed- A document through which a conveyance of property is effected.
Deed Restriction- A covenant contained in a deed imposing limits on the use or occupancy of the real estate or the type, size, purpose or location of improvements to be constructed on it.
Devise- A gift of real estate made by a will.
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 that a wife has in her husband's property at the time of his death. Does not exist in all states.
E
Earnest Money- A deposit of funds by the purchaser of a piece of real estate as evidence of good faith. Easement- A right to use all or part of the land owned by another for a specific purpose. An easement may, for example, entitle its holder to install and maintain sewer or utility lines.
Eminent Domain- The right of a government to take privately owned property for public purposes under condemnation proceedings subject to payment of its fair market value.
Encroachment- Any building, improvement or structure located on one property (such as a wall, fence or driveway) that intrudes upon the property of another.
Encumbrance- Any interest, right, lien or liability attached to a parcel of land (such as unpaid taxes or an unsatisfied mortgage) that constitutes or represents a burden or charge upon the property.
F
Fee Simple Deed- The absolute ownership of a parcel of land. The highest degree of ownership that a person can have in real estate, which gives the owner unqualified ownership and full power of disposition.
Foreclosure- A legal proceeding in which real estate secured by a mortgage or deed of trust is sold to satisfy the underlying debt.
G
H
I
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 that 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."
J
Judgment- The determination of a court regarding the rights of parties in an action. A judgment of debt on a property owner can create a lien on all of that owner's land within a certain jurisdiction.
Junior Mortgage (or Lien) - A mortgage lower in lien priority than another.
K
L
Leasehold- The right to possession and use of land for a fixed period of time. The lease is the agreement that creates the right.
Lessee- A tenant holding a leasehold.
Lessor- A landlord; one who gives a leasehold to a lessee.
Lien- A monetary charge imposed on a property, usually arising from some debt or obligation.
Lien Waver- Also called "waiver of liens." A waiver of mechanics' lien rights, signed by contractors or subcontractors.
Link- In surveying, a length of 7.92 inches.
Lis Pendens- A legal notice intending to bind third parties of litigation claiming an interest in real estate.
M
Mechanic's Lien- A lien on real estate, created by operation of law, that 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.
Metes and Bounds- A land description in which boundaries are described by courses, directions, distances and monuments.
Mortgage- A conditioned pledge of property to a creditor as security for the payment of a debt.
Mortgage Insurance- Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price.
Mortgagee- The holder of a mortgage. The party to whom a mortgage is made, generally the lender. Mortgagee Policy- Also called "loan policy." A title insurance policy insuring a mortgagee, or beneficiary under a deed of trust, against loss caused by invalidity or unenforceability of a lien, or loss of priority of the mortgage or deed of trust.
Mortgagor- A person who mortgages property. A person who executes a mortgage, generally the property owner.
Multiple Listing- The pooling in a central bureau of listings of properties for sale. These 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 the case of a sale, the commission will be divided between the broker making the sale and the broker who filed the listing.
Muniments of Title- Written evidence (documents) that an owner possesses to prove his or her title to property.
Thanks for stopping by and stay sharp!
To your success
Until next time my friends,
LEADING EDGE TITLE SOLUTIONS
Matching experience with technology to give
you the edge to be a mortgage industry leader
Bo Hussung
Vice President of Sales
phone ~ 615-438-7300 fax ~ 678-261-1594
email me ~ bhussung@cogentca.com
web ~ www.cogentca.com
Comments(4)