Glossary of Terms

A recorded document, executed by those claiming a homestead exemption, giving up said homestead. Not applicable to all states and procedure must be according to local statutes.

A summary; an abridgement. Before the use of photo static copying public records were kept by abstracts of recorded documents.

A summary of the essential provisions of a court judgment which when recorded in the county recorder’s office creates a lien upon the property of the defendant in that county, both presently owned or after acquired.

A compilation of the recorded documents relating to a parcel of land from which an attorney may give an opinion as to the condition of title. Still in use in some states but giving way to the use of title insurance.

To touch or border upon. A piece of land bordering on a street or an adjoining property is said to abut such street or property.

Clause used in an installment note and Mortgage (or Deed of Trust) which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender’s consent, destruction of the property (see WASTE) or other event which endangers the security of the loan (see ALIENATION CLAUSE).

The right to enter and leave a tract of land from a public way. "Often-times the right to enter and leave over the lands of another."

The right of an owner to an increase in his property by natural means (such as a riparian owner’s right to an abandoned river bed, rights of alluvium and relict ion, etc.) or artificially by improvements.

The recording of documents with the county recorder by a title insurance company, without liability (no insurance) on the part of the company, but merely as a convenience to a customer.

The gradual addition to the shore of bank of a waterway. The land generally becomes the property of the owner of the shore or bank except where statutes specify otherwise.

A written declaration by a person executing an instrument, given before an officer authorized to give an oath (usually a notary public), stating that the execution is of his own volition.

A measure, usually of land, equal to 160 square rods (43,560 square feet) in any shape.

A court action to establish ownership to real property. Although technically not an action to remove a cloud on title. The two actions are usually referred to as "Quiet Title" actions (see CLOUD ON TITLE).

 A person appointed by a probate court to settle the affairs of an individual dying without a will. "The term is administration if such a person is a woman."

Money advanced by a Mortgagee (beneficiary under a Deed of Trust) to pay the mortgagor’s (trustor’s) obligations of taxes, insurance or other items necessary to protect the secured property.

A method of acquiring title by possession under certain conditions. Generally, possession must be actual, under claim of right, open, continuous, notorious, exclusive, and hostile (knowingly against the rights of the owner). Exact time (years) of possession and specific requirements (such as payment of property taxes) vary with the statutes of each state.

A written statement or declaration sworn to before an officer who has authority to administer an oath.

A document which establishes of record the death of a decease joint tenant and establishes vesting in surviving joint tenant(s).

Legal doctrine by which property automatically vests in a grantee when the grantor acquires title to the property after the deed has been executed and delivered.

Have two separate meanings depending on area of the country. In some states it is synonymous with a purchase agreement (see PURCHASE AGREEMENT. In other states it is synonymous with a land contract (see LAND CONTRACT).

Used frequently, e.g., California Fair Housing Law aka Rumford Act.

A type of acceleration clause calling for a debt under a Mortgage or Deed of Trust to be due in its entirety upon transfer of ownership of the secured property. Also called a "due-on-sale" clause.

A second or junior Trust Deed with a face value of both the amount it secures and the balance due under the first Trust Deed. The beneficiary under the all-inclusive collects a payment based on its face value and then pays the first beneficiary. It is most effective when the first has a lower interest rate then the second since the beneficiary under the all-inclusive gains the difference between the interest rates or the trustor under the wrap-around may obtain a lower rate than if refinancing (See WRAP-AROUND).

An organization composed of title insurance companies which have adopted certain insurance policy forms to standardize coverage on a national basis.

A change either to correct an error or to alter a part of an agreement without changing the principle idea or essence.

Payment of a debt or obligation in equal installments over a given period so that at the end of the period the debt is completely extinguished (opposite of a balloon payments).

An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

A written report by an appraiser containing his opinions as to the value of a property and the reasoning leading to the opinion. The factual data supporting the opinion, such as comparables, appraisal formulas and qualifications of the appraiser, will also be set forth.

An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the issuance of title insurance policies.

Something belonging to something else, either attached or not, such as a barn to a house or an easement to land. The appurtenance is part of the property and passes with it upon sale or other transfer.

A map drawn by a title company to be used in locating property in areas where legal descriptions are difficult and complex. Areas are arbitrarily subdivided usually by ownership at a given time into lots which are numbered. Recorded documents are then posted to these arbitrary lots by the same "arb" number.

Code set by the County Tax Assessor referring to tax rate area which reflects everything that determines area tax multiplier which in turn determines individual taxes.

Value placed upon property for property tax purposes by the tax assessor.

(2) A levy against property in addition to general taxes usually for improvements such as streets, sewers, etc.

A public official who evaluates property for the purpose of taxation.

An arbitrary number given to each taxable parcel of land by the county for tax assessment purposes.

One who receives an assignment (pl. assigns).

A transfer to another of any property, real or personal, or of any rights or estates in said property. Common assignments are of Leases, Mortgages and Deeds of Trust but the general term encompasses all transfers of title.

A clause in a Trust Deed which gives the beneficiary the right to collect rents of the secured property in the event of a default.

Outdated document which a creditor used to encumber a debtor’s real property. Does not carry non-judicial rights to sell.

One who makes an assignment.

Agreement by a buyer to assume the liability under an existing note secured by a Mortgage or Deed of Trust. The lender usually must approve the debtor in order to release the existing debtor (usually the seller) from liability.

An obligation undertaken by the purchaser of land to be personally liable for payment of an existing note secured by a mortgage. As between the lender and the original borrower, the original borrower remains liable on the mortgage note.

One who holds a power of attorney from another allowing him to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.

A written opinion by an attorney that ownership of the particular parcel of land is as stated in his opinion.

An act of seizing persons or property by judicial order to bring them within the custody of the court. Most commonly the seizure of property to furnish security for a debt in connection with a pending action.

A sudden and substantial tearing away of land by water and the deposit of said land as an addition to the land of another owner. The original boundaries apply and ownership of the land in question remains in the original owner.

A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity so that a principal sum known as "balloon" is due at maturity.

Proceedings under federal bankruptcy statutes by which the property of a debtor is seized by the court and divided among his creditors. Voluntary bankruptcy is petitioned by the debtor, involuntary by the creditors.

A survey line used in the government survey to establish township lines. The base line runs East and West through a principal meridian (line running North and South).

An estate, the right to possession of which has been postponed, such as a devise under a will. More commonly, an estate, the legal ownership of which has not yet vested as under a land contract (an equitable estate).

The equitable rather than legal ownership of property such as under a land contract.

(2) In states in which Deeds of Trust are commonly used instead of Mortgages, the lender (mortgagee) is called the beneficiary.

Written instructions by a beneficiary under a Deed of Trust stating and demanding the amount necessary for issuance of a reconveyance whether a full or partial amount.

A statement by a lender under a Deed of Trust setting forth the pertinent information necessary to assume said Deed of Trust such as the unpaid balance, monthly payment and interest rate.

An enforceable agreement that upon satisfaction of the requirements, which are, 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.

(2) A Trust Deed covering all real property of the trustor both present and future. When used in this meaning, it is also called a "general Deed of Trust".

In some states a part of a subdivision legal description such as Lot 1, Block 1, Tract 1.

State board charged with the duty to bring equitable uniformity to the various local property tax assessments.

A line fixed at a certain distance from the front and/or sides of a lot or at a certain distance from a road or street, which line marks the boundary of the area within which no part of any building may project. This line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases. By building codes or by zoning ordinances.

The branch of government in change of surveying public lands.

A term used in some areas to describe the restrictive limitations which may be placed on property. In other areas simply called restrictions.

Proof from the county seat that a person is authorized in that state as a notary public.

Evidence of redeeming (buying back) a property by the owner after losing it through a judicial sale. The time limit for redemption is set by statute.

Certificate issued to the buyer at a judicial sale (such as a tax sale) which will entitle the buyer to a Deed upon confirmation of the sale by the court if the land is not redeemed within a specified time.

A true copy attested to be true by the officer holding the original.

A term of land measurement being 66 feet in length.

The chronological order of conveyance of a parcel of land from the original owner (usually the government) to the present owner.

In real estate measurements (surveying) a chain is 66 feet long or 100 links (each link being 7.92 inches). The measurement may change when used in fields other than surveying.

A lien on personal property (also called a Security Interest or Financing Statement).

One, which is not encumbered or burdened with defects.

An invalid encumbrance on real property, which if valid, would affect the rights of the owner. For example: "A" sells Lot 1, Tract 1 to "B". The Deed is mistakenly drawn to read Lot 2, Tract 1. A cloud is created on Lot 2 by the recording of the erroneous Deed. The cloud may be removed by Quitclaim Deed or if necessary by court action.

Often referred to as "settlement". The process of completing a real estate transaction during which deeds, mortgages, leases or other required instruments are signed or delivered. Additionally, the accounting between parties is made, monies disbursed and recording of all pertinent documents prepared.

Insurance in which more than one insurer shares a part of a single risk. Insurance with another of a risk. Coinsurance is usually affected by separate contracts of insurance by separate companies, each of which undertakes a fractional part of the whole risk.

Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral.

That which gives the appearance of good title but actually contains some defect. For example, a conveyance given without the grantor having good title.

That which is designated by zoning ordinances as "commercial", not for residential use.

A report issued by a title insurance company, or its agent, showing the condition of the title and committing the title insurance company to issue a form policy as designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.

The area owned in common by the owners of condominiums or planned unit development homes in a subdivision.

Property owned in common by a husband and wife which has not acquired as separate property. A classification of property peculiar to certain states.

Properties used as comparisons to determine the value of a specific property.

Taking private property for public use through court proceedings.

In real property law some limiting restriction to a Grant or Conveyance of property stating that upon the happening or not happening or a stated event the estate shall be changed in some manner.

A sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract usually payment-in-full (see LAND CONTRACT).

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 sub-dividers on newly plated areas.

A structure of two or more units in which the interior space of which are individually owned and the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior walls, floor and ceiling. The balance of the property is called the common area.

A person appointed by the court to protect and preserve the lands and property of an individual physically incapacitated or otherwise not able to handle his own affairs.

Notice given by publishing in a newspaper, recording or other method which legally notifies the parties involved but may not actually notify them.

One who under the terms of a Will or Trust may or may not share in the estate upon the happening of an uncertain event. For example, "A" leaves property to "B" when "B" reaches age 30 stipulating that if "B" dies before age 30 the property goes to "C". "C" is the contingent beneficiary.

An 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.

A Deed issued by the state usually at the time property is sold due to tax delinquency.

The act of deeding or transferring title to another.

Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged or assigned.

A residential multi-unit building owned by and operated for the benefit of persons living within.

A lot contiguous to two intersecting streets and for purposes of value having access to both streets.

Ownership of the same interest in a particular parcel of land by more than one person; e.g., tenancy in common, joint tenancy, tenancy by the entireties.

A mortgage placed on property by the county to secure aid given to indigent persons. Usually paid upon sale of the property (also called Indigent Mortgage).

Public recorded documents by which notice is given of changes of title, liens and other matters affecting real estate.

Generally almost any written agreement. Most commonly in real estate, assurances set forth (express) in a Deed by the grantor or implied by law. For example, covenant against encumbrances, covenant, right-to-convey, etc.

One who is owed a debt.

The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turnaround for vehicles. In French "the bottom of the sack."

See DRIVE-BY APPRAISAL.

"Doesn’t Apply".

A complete title report issued within six months of the original report to the same customer.

An identification of the owner or owners of a business and the business name, not a partnership or corporation.

Money owing from one person to another.

One who owes a debt.

See HOMESTEAD.

A set of restrictions filed by a sub-divider to cover an entire tract or subdivision.

A written acknowledgement by one holding legal title to property that the property is held in trust for the benefit of another.

The final determination of the rights of heirs to receive the property of an estate.

The giving y an owner of private property for public use and the acceptance by the proper public authority. Most commonly the dedication by a builder of the streets in a subdivision.

Any one of many conveyance or financing instruments, but generally a conveyance instrument, given to pass fee title to property upon sale.

See RECONVEYANCE.

An instrument used in many state in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconvened upon payment-in-full.

Limitations on the use of property place in the conveyance Deed by the grantor which binds all future owners.

An omission or failure to perform a le