Definition of Terms
Abstract of Title: Condensed history of title to specific tract of real estate.
Attorney Opinion of Title: A legal opinion provided by an attorney after review of abstract.
Chain of Title: Written proof of the exchange of property from one owner to the next – originating with the first owner.
Conveyance: Transfer of title of land from one person to the next, and the way it is transferred.
Curatives: Curing the problems on title – including the proof that it is done.
Deed Restrictions: A restriction to a deed for the purpose of limiting the use of the land by future owners.
Defects: Any restriction, judgment, mortgage, lien, exception or encumbrance that may affect the property owners’ ability to transfer clear title to someone else.
Easements: A right given to someone else to use a piece of property that they do not own.
Encroachments: A fixture that extends on to property for which they do not own outright.
Encumbrances: Any claim on a property like an easement or lien that will diminish the value of the property.
Grantee: The buyer is usually the Grantee in the sale of property – they are being granted the ownership of the property.
Grantor: The seller is usually the Grantor in the sale of property – they are the one granting the property to the new owner
Liens: A debt that will be paid to creditors out of the property.
Marketable Title: Clear title which is reasonably free from the risk of litigation over possible clouds on title.
Mortgagee: A lending institution who loans money with property is the security for repayment.
Mortgagor: The person who borrows money and uses the property as security.
Note: Written word that documents a promise to pay back loaned money.
Recording: The entering or recording documents affecting the transfer of ownership of a property in the appropriate county clerks’ office.
RESPA: Real Estate Settlement Procedures Act.: This act outlines procedures to better serve and protect the rights of property owners and buyers
Restrictions: A limitation on the use of a piece of property.
Title: Evidence of ownership of a piece of property.
Title Search: An examination of public records to determine the ownership, including any encumbrances on a specific piece of property.