|
|
| |
| Abandonment - Assumption
|
| Abandonment: |
| The voluntary relinquishment of rights
of ownership or another interest (such as an easement) by failure
to use the property, coupled with an intent to abandon (give up
the interest). |
| Abstract: |
| A summary. |
| Abstract of Judgement: |
| A summary of money judgment obtained in
court. (When this summary or abstract is recorded in the county
recorder's office, in some states the judgment becomes a lien on
the debtor's property, both presently owned or after-acquired.) |
| Abstract of Title: |
| A summary prepared by a licensed abstractor
of all documents recorded in the public records of the political
subdivision where the land is located. An abstract in some states
or areas is reviewed by an attorney or other experienced title examiner
to determine the status of title. Virtually every abstractor today
provides actual copies of the records rather than an abstract of
each document |
| Abatement: |
| A reduction or decrease. Usually applies
to a decrease of assessed valuation of ad valorem taxes after the
assessment, and levy |
| Acceleration Clause: |
| Clause in a deed of trust or mortgage,
which "accelerates," or hastens, the time when the indebtedness
becomes due. For example, some deeds of trust contain a provision
(an acceleration clause) stating that the note shall become due
immediately upon the sale of the land or upon failure to pay interest
or an installment of principal and interest |
| Accommodation Recording: |
| Recording of instruments with the county recorder
by a title company merely as a convenience to a customer and without
assumption of responsibility for correctness or validity. |
| Acknowledgement: |
| A formal declaration before a duly authorized officer
(such as a notary public) by a person who has executed an instrument
that such execution is his own act and deed. An acknowledgment is
necessary to entitle an instrument (with certain specific exceptions)
to be recorded, to impart constructive notice of its contents and
to entitle the instrument to be used as evidence without further
proof. The certificate of acknowledgment is attached to the instrument
or incorporated therein. |
| Adjustable Mortgage Loans (AML'S): |
| Mortgage loans under which the interest rate is periodically
adjusted to more closely coincide with current rates. The amounts
and times of adjustment are agreed to at the inception of the loan.
Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM'S),
Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate
Index). |
| Administrator: |
| A person appointed by the probate court to carry out
the administration of a decedent's estate when the decedent has
left no will. If a woman is appointed, she is called an administratrix.
|
| Adverse Possession: |
| A process of acquiring title to real property
by possession for a certain (statutory) period of time, in addition
to fulfilling other conditions. |
| Affidavit: |
| A written statement or declaration, sworn to before
an officer who has authority to administer an oath. |
| Agent: |
| One who has authorization, either expressed
or implied, to act for or represent another party, usually in business
matters, such as issuing title insurance policies on behalf of a
title insurer for a portion of the premium. |
| Agreement of Sale: |
| A written contract entered into between
the seller (vendor) and buyer (vendee) for sale of real property
(land) on an installment or deferred payment plan. It is also known
as an agreement to convey, a long form Security Agreement or a real
estate installment contract. |
| All-Inclusive Rate: |
| Rate which includes charges for title insurance, searching
or abstract fees and examination fees. |
| ALTA: (American Land Title Association)
|
| Organization composed of title insurance firms which
sets standards for the industry, including title insurance policy
forms used on a national basis. |
| Amendment: |
| A change either to alter, add to, or correct part
of an agreement without changing the principal idea or essence.
|
| Amortized Loan: |
| A loan that is paid off, both interest and principal,
by regular payments that are equal or nearly equal. |
| Annual Percentage Rate (A.P.R.): |
| The yearly interest percentage of a loan,
as expressed by the actual rate of interest paid. For example: 6%
add-on interest would be much more than 6% simple interest, even
though both would say 6%. The A.P.R. is disclosed as a requirement
of federal truth in lending statutes. |
| Appraisal: |
| An estimate of value of property resulting from analysis
of facts about the property; an opinion of value. |
| Approved Attorney: |
| An attorney whose opinion is acceptable
to a title company as the basis for issuance of a title insurance
policy by the insurer. The insurer, rather than the attorney, executes
the policy. |
| Assumption: |
| The act of conveying real property; taking
title to a property with the Buyer assuming liability for paying
an existing note secured by a deed of trust against the property.
|
| INDEX |
| Back Title
Letter or Certificate - Buydown |
| Back Title Letter or Certificate: |
| See Starter. |
| Bankruptcy: |
| A special proceeding under federal, or
in some instances state, laws by which the property of a debtor
is protected by the court and may be divided among the debtor's
creditors and the debtor. |
| Beneficiary: |
| See Deed of Trust. |
| Blanket or Trust Deed: |
| A mortgage or trust deed that covers more
than one lot or parcel of real property, and often an entire subdivision.
As individual lots are sold, a partial reconveyance from the blanket
mortgage is ordinarily obtained. |
| Bona Fide Purchaser: |
| One who buys property in good faith, for fair value,
and without notice of any adverse claim or right of third parties.
|
| Branch: |
| A subordinate or division office of First
American Title Insurance Company, as opposed to an affiliate, agent,
subsidiary or underwritten firm associated with the Company. |
| Breach of Contract: |
| Failure to perform a contract, in whole or part, without
legal excuse. |
| Building Contract: |
| An agreement between an owner or lessee and a building
contractor, setting forth terms relative to the construction of
a proposed structure. |
| Buydown: |
| A payment to the lender from the seller,
buyer, third party, or some combination of these, causing the lender
to reduce the interest rate during the early years of a loan. The
buydown is usually for the first one to five years of the loan.
(See also: Certificate Backed Mortgage). |
| INDEX |
| Capitalization
Rate - Covenants, Conditions and Restrictions |
| Capitalization Rate: |
| The percentage (acceptable to an average buyer) used
to determine the value of income property through capitalization.
|
| Certificate of Title: |
| In areas where attorneys examine abstracts
or chains of title, a written opinion, executed by the examining
attorney, stating that title is vested as stated in the abstract.
|
| Close of Escrow: |
| The date the documents are recorded and
title passes from Seller to Buyer. On this date, the Buyer becomes
the legal owner, and title insurance becomes effective. |
| Closing: |
| The final procedure in the real estate
sales process, where the sale and pertinent loan are completed by
the execution of documents for recording. In some areas, this procedure
is known as the closing of escrow. |
| Cloud on Title: |
| An irregularity, possible claim, or encumbrance which,
if valid, would adversely affect or impair the title. |
| Coinsurance: |
| Ordinary coinsurance is defined as a transaction
under which each of two or more insurers assumes a designated portion
of the liability for the total risk and is liable for only such
portion of any loss beginning at the first dollar of loss. (See
Reinsurance.) |
| Collateral: |
| By or at the side, additional or auxiliary. Mistakenly
used to mean collateral security. |
| Collateral Security: |
| Most commonly used to mean some security in addition
to the personal obligation of the borrower. |
| Commitment: |
| A binding contract with a title company
to issue a specific title policy, showing only those exceptions
contained in the commitment and any intervening matters after the
date of the commitment and prior to the effective date of the policy.
The commitment contains all information included in the preliminary
title report, plus a list of the title company's requirements to
insure the transaction. It also includes the standard exceptions
from coverage that will appear in the policy. |
| Community Driveway: |
| A driveway which is jointly owned, used
and maintained by two or more persons. Usually, a portion of each
owner's property is burdened by the driveway. |
| Community Property: |
| Property acquired by husband, wife or both during
marriage which gives each spouse an interest in the property whether
each appears in title or not. |
| Comparable Sales: |
| Sales that have similar characteristics
as the subject property, used for analysis in the appraisal. Commonly
called "comps." |
| Condemnation: |
| The taking of private property by the
government for public use - as for a street or a storm drain - upon
making just compensation to the owner. This right or power of government
to take property for a necessary public use is called "eminent
domain." |
| Conservator: |
| A person appointed by the court to care
for the person and/or property of an incompetent adult or an adult
unable to care for their person or property because of health. |
| Constructive Notice: |
| Notice imparted by the public records of the county
when documents entitled to recording are recorded. |
| Conveyance: |
| An instrument in writing, such as a deed
or trust deed, used to transfer (convey) title to property from
one person to another. |
| Corporation: |
| An entity authorized by law and established
by a group of people, the stockholders, which is endowed with certain
rights, privileges and duties similar to an individual. |
| Covenant: |
| (1) A formal agreement or contract between
two parties in which one party gives the other certain promises
and assurances, such as the covenant of warranty in a warranty deed.
(2) Agreements or promises contained in deeds and other instruments
for performance or nonperformance of certain acts, or use or nonuse
of property in a certain manner. |
| Covenants, Conditions and Restrictions:
|
| Commonly called "CC & R's"
the term usually refers to a written recorded declaration which
sets forth certain covenants, conditions, restrictions, rules or
regulations established by a subdivider or other landowner to create
uniformity of buildings and use within tracts of land or groups
of lots. The restrictions also can be established by deed. CC &
R's are sometimes referred to as private zoning. |
| INDEX |
| Debt
- Description |
| Debt: |
| Money owing from one person to another. |
| Debtor: |
| One who owes a debt. |
| Decree of Distribution: |
| A probate court decree which determines
how the estate of a decedent shall be distributed. |
| Deed: |
| Written document by which an estate or
interest in real property is transferred from one person to another.
The person who transfers the interest is called the "grantor."
The one who acquires the interest is called the "grantee."
Examples of deeds are grant deeds, administrators' deeds, executors'
deeds, quitclaim deeds, etc. The deed to use depends on the language
of the deed, the legal capacity of the grantor and other circumstances.
|
| Deed of Trust or Trust Deed: |
| A written document by which the title
to land is conveyed as security for the repayment of a loan or other
obligation. It is a form of mortgage. The landowner or debtor is
called the "trustor." The party to whom the legal title
is conveyed (and who may be called on to conduct a sale thereof
if the loan is not paid) is the "trustee." The lender
is the "beneficiary." When the loan is paid off, the trustee
is asked by the beneficiary to issue a "recon" or reconveyance.
This reconveyance corresponds to the release that the holder of
a mortgage executes when the mortgage is paid off. |
| Deed Restrictions: |
| Limitations in the deed to a property that dictate
certain uses that may or not be made of the property. |
| Defect: |
| A blemish, imperfection or deficiency. A defective
title is one that is irregular and faulty. |
| Defective Title: |
| (1) Title to a negotiable instrument obtained by fraud.
(2) Title to real property which lacks some of the elements necessary
to transfer good title. |
| Demand Note: |
| A note having no date for repayment, but due on demand
of the lender. |
| Deposit: |
| (1) Money given by the buyer with an offer
to purchase. Shows good faith. Also called earnest money. (2) A
natural accumulation of resources (oil, gold, etc.) which may be
commercially recovered and marketed. |
| Description: |
| The exact location of a piece of real
property stated in terms of lot, block, tract, part lot, metes and
bounds, recorded instruments, or U.S. Government survey (sectionalized).
This is also referred to as legal description of property. |
| INDEX |
| Earnest
Money Deposit - Executor |
| Earnest Money Deposit: |
| Down payment made by a purchaser of real estate as
evidence of good faith; a deposit or partial payment. |
| Easement: |
| A right or interest in the use of the land of another
which entitles the holder to some use, privilege or benefit, such
as to place pole lines, pipe lines or roads thereon. |
| Effective Demand: |
| A qualifying term meaning the ability to pay as well
as desire to buy. |
| Eminent Domain: |
| The right of a government to take privately
owned property for public purposes under condemnation proceedings
upon payment of its reasonable value. See Condemnation. |
| Encroachment: |
| The presence of an improvement such as
a building, a wall, a fence or other fixture which overlaps onto
the property of an adjoining owner. |
| Encumbrance: |
A right or claim upon real property (land) held by
one other than the property owner. Encumbrances are divided into
two classes, as follows:
a) Liens (mortgages, deeds of trust,
mechanics' liens, local taxes, assessments, judgments, attachments,
etc.).
b) Encumbrances other than liens which are
limitations on the ownership of the land (such as conditions,
restrictions, reservations, easements, etc.).
|
| Endorsement: |
| Addition to or modification of a title insurance policy
which expands or changes coverage of the policy, fulfilling specific
requirements of the insured. |
| Equity: |
| (1) A legal doctrine based on fairness,
rather than strict interpretation of the letter of the law. (2)
The market value of real property, less the amount of existing liens.
(3) Any ownership investment (stocks, real estate, etc.) as opposed
to investing as a lender (bonds, mortgages, etc.). |
| Escheat: |
| The reversion of property to the state when an owner
dies leaving no legal heirs, devisees or claimants. |
| Escrow: |
| An independent third party, such as First
American Title, who acts as the agent for buyer and seller, or for
borrower and lender, carrying out instructions of both and disbursing
documents and funds. Escrow closes and the transfer of property
or document is completed upon fulfillment of certain conditions
specified in the written instructions, whereupon the necessary deeds
and other instruments are recorded. |
| Estate: |
| (1) The interest or nature of the interest
which one has in property, such as a life estate, the estate of
a decreased, real estate, etc. (2) A large house with substantial
grounds surrounding it, giving the connotation of belonging to a
wealthy person. |
| Execution: |
| An order directing a sheriff, constable,
marshal or court-appointed commissioner to enforce a money judgment
against the property of a debtor. This officer, if necessary, may
sell the property to satisfy the judgment. |
| Executor: |
| A person appointed in a will and affirmed
by the probate court to cause a distribution of the decedent's estate
in accordance with the will. (The one who makes the will is called
a "testator.") If a woman is appointed, she is referred
to as the "executrix." |
| INDEX |
| Fee Simple
- Full Disclosure |
| Fee Simple: |
| An estate under which the owner is entitled
to unrestricted powers to dispose of the property, and which can
be left by will or inherited. Commonly, a synonym for ownership.
|
| File and Use: |
| In most states, title insurers file rate
schedules, title insurance policies and endorsement forms with the
State Insurance Department or other state agency and then may use
such items or rates starting within a specified period of time after
filing. Rates so filed usually are mandatory. |
| Fixed Rate Mortgage: |
| A mortgage having a rate of interest which remains
the same for the life of the mortgage. |
| Foreclosure: |
| The sale of property used as security for a debt after
default in payment. |
| Forfeiture of Title: |
| A common penalty for the violation of
conditions or restrictions imposed by the seller upon the buyer
in a deed or other proper document. For example, a deed may be granted
upon the condition that if liquor is sold on the land, the title
to the land will be forfeited (that is, lost) by the buyer (or some
later owner) and will revert to the seller. |
| Full Disclosure: |
| In real estate, revealing all the known facts which
may affect the decision of a buyer or tenant. A broker must disclose
known defects in the property for sale or lease. |
| INDEX |
| Good Faith
- Guardian |
| "Good Faith" or "Mortgage
Savings" CLAUSE: |
| A clause in CC & R's which provides
that " a violation thereof shall not defeat or render invalid
the lien of any mortgage or deed of trust made in good faith and
for value." |
| Good Faith Purchaser or Mortgagee:
|
| A person who buys or lends in good faith, that is,
without notice of any existing problem, where value is paid or lent.
|
| Grant: |
| A transfer of real estate, between individuals, by
deed. A transfer of real estate from a sovereign is accomplished
by patent or royal decree. |
| Grantee: |
| See Deed. |
| Grantor: |
| See Deed. |
| Grant Deed: |
| One of the many types of deeds used to
transfer real property. Contains warranties against prior conveyances
or encumbrances. When title insurance is purchased, warranties in
a deed are of little practical significance. |
| Guardian: |
| A person appointed by a court to manage the person
and/or property of one who is legally incompetent to handle his/her
own affairs. |
| INDEX |
| Hazard Insurance
- Homestead |
| Hazard Insurance: |
| Real estate insurance protecting against
fire, some natural causes, vandalism, etc., depending upon the policy.
Buyer often adds liability insurance and extended coverage for personal
property. |
| Homestead: |
| A statutory protection from execution
or the establishment of title by occupation of real property in
accordance with the laws of various states or the Federal Government.
|
| INDEX |
| Impounds
- Indemnity |
| Impounds: |
| A trust type of account established by
lenders for the accumulation of borrower's funds to meet periodic
payments of taxes, mortgage insurance premiums, and/or future insurance
policy premiums, required to protect their security. |
| Indemnity: |
| Insurance against possible loss or damage. A title
insurance policy is a contract of indemnity. |
| INDEX |
| Judgment
Lien |
| Judgment Lien: |
| A lien against the property of a judgment
debtor. An involuntary lien. |
| INDEX |
| Land Contract
- Lien |
| Land Contract: |
| An installment contract for the sale of land whereby
the seller (vendor) holds legal title and the buyer (vendee) has
equitable title until the sales price is paid in full. |
| Lease: |
| An agreement by which an owner of real
property (lessor) gives the right of possession to another (lessee),
for a specified period of time (term) and for a specified consideration
(rent). |
| Legal Description: |
| A description of land recognized by law,
based on government surveys, spelling out the exact boundaries of
the entire piece of land. It should so thoroughly identify a parcel
of land that it cannot be confused with any other. |
| Lender: |
| Any person or entity advancing funds which are to
be repaid. A general term encompassing all mortgagees, and beneficiaries
under deeds of trust. |
| Lien: |
| An encumbrance against property for money, either
voluntary or involuntary. All liens are encumbrances but all encumbrances
are not liens. |
| INDEX |
| Mechanics
Lien - Mortgagor |
| Mechanics Lien: |
| A lien created by statute for the purpose
of securing priority of payment for the price or value of work performed
and materials furnished in construction or repair of improvements
to land, and which attaches to the land as well as the improvements.
|
| Mortgage: |
| (1) To hypothecate as security, real property
for the payment of a debt. The borrower (mortgagor) retains possession
and use of the property. (2) The instrument by which real estate
is hypothecated as security for the repayment of a loan. |
| Mortgagee: |
| The party lending the money and receiving the mortgage.
|
| Mortgagor: |
| The party who borrows the money and gives the mortgage.
|
| INDEX |
| Note |
| Note: |
| A unilateral agreement containing an express
and absolute promise of the signer to pay to a named person, or
order, or bearer, a definite sum of money at a specified date or
on demand. Usually provides for interest and, concerning real property,
is secured by a mortgage or trust deed. |
| INDEX |
| Obligee - Owner's
Policy |
| Obligee: |
| One to whom an obligation (promise) is owned. |
| Obligor: |
| One who legally binds (obligates) oneself, such as
the maker of a promissory note. |
| Original Cost: |
| The purchase price of property, paid by the present
owner. The present owner may or may not be the first owner. |
| 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. |
| INDEX |
| Parcel - Public
Records |
| Parcel: |
| Any area of land contained within a single description.
|
| Partnership: |
| An association of two or more persons who have contracted
to join in business and share the profits. |
| Party Wall: |
| A wall generally erected on a property boundary or
between two lots for the common benefit and use of the property
owners on either side. |
| Patent: |
| A conveyance of title to land by the Federal or State
Government. |
| Personal Property (movable): |
| Any property that is not designated by law as real
property (i.e., money, goods, evidences of debt, rights of action,
furniture, automobiles). |
| "P.I.Q.": |
| A title term referring to Property In Question. |
| PITI: |
| A payment that combines Principal, Interest, Taxes,
and Insurance. |
| PLAT: |
| A plan, map or chart of a tract or town site dividing
a parcel of land into lots. |
| Power of Attorney: |
| A document by which one person (called
the "principal") authorizes another person (called the
"attorney-in-fact") to act for him/her in a specific manner
in designated transactions. |
| "PRE," "PRELIM"
OR Preliminary Report: |
| A written report issued by a title company,
preliminary to issuing title insurance, which shows the recorded
condition of title of the property in question. See Commitment.
|
| Priority: |
| The order of preference, rank or position
of the various liens and encumbrances affecting the title to a particular
parcel of land. Usually, the date and time of recording determine
the relative priority between documents. |
| Priority Inspection: |
| A title term referring to the type of
inspection made in connection with insuring a new construction loan.
In making the inspection of the property, the title company must
be assured that the work of improvement had not yet begun when the
lender's deed of trust was recorded. |
| Public Domain: |
| Land owned by the government and belonging to the
community at large. |
| Public Records: |
| The transcriptions in a recorder's office of instruments
which have been recorded, including the indexes pertaining to them.
|
| INDEX |
| Quitclaim Deed
- Quiet Title |
| Quitclaim Deed: |
| A deed operating as a release; intended
to pass any title, interest, or claim which the grantor may have
in the property, but not containing any warranty of a valid interest
or title in the grantor. |
| Quiet Title: |
| To free the title to a piece of land from
the claims of other persons by means of a court action called a
"quiet title" action. The court decree obtained is a "quiet
title" decree. |
| INDEX |
| Real Property
- Right of Way |
| Real Property (immovable): |
| Land, from the center of the earth and
extending above the surface indefinitely, including all inherent
natural attributes and any man-made improvements of a permanent
nature place thereon. For example: minerals, trees, buildings, appurtenant
rights. |
| Reconveyance: |
| An instrument used to transfer title from
a trustee to the equitable owner of real estate, when title is held
as collateral security for a debt. Most commonly used upon payment
in full of a trust deed. Also called a deed of reconveyance or release.
|
| Recording: |
| Filing documents affecting real property
as a matter of public record, giving notice to future purchasers,
creditors, or other interested parties. Recording is controlled
by statute and usually requires the witnessing and notarizing of
an instrument to be recorded. |
| Reinsurance: |
| A contract which one insurer makes with
another to protect the first insurer, wholly or partially, against
loss or liability by reason of a risk under a separate and distinct
contract as insurer of a third party. Reinsurance differs from coinsurance
in that, in the case of reinsurance, only one insurer has a direct
contractual relationship with the insured, and that insurer (commonly
referred to as the "lead insurer") purchases reinsurance
in order to lessen or spread the risk. The "lead insurer"
will assume a risk up to a limit (the amount of which is referred
to as the "retention") and any loss which exceeds this
limit would be borne by the reinsurers. In the case of coinsurance,
each coinsurer has a direct contractual relationship with the insured,
and the risk is shared in agreed-upon proportions from the first
dollar of loss. |
| Restrictions: |
| Often called restrictive covenants. Provisions
in a deed or other instrument whereby an owner of land prohibits
or restricts certain use, occupation or improvement of the land.
|
| 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. |
| INDEX |
| Sale and
Leaseback - Survey |
| Sale and Leaseback |
| A situation in which the grantor in a deed to a parcel
of property sells it and retains possession by simultaneously leasing
it from the grantee. |
| Search |
| In title industry parlance, a careful exploration
and examination of the public records in an effort to find all recorded
instruments relating to a particular chain of title. |
| Separate Property: |
| Real property owned by one spouse exclusive of any
interest of the other spouse. |
| Squatter: |
| One who settles upon unoccupied land without legal
claim or authority. (See Adverse Possession.) |
| Starter: |
| A copy of the last policy or report issued
by a title insurer which described the title to land upon which
a new search is to be made. In some states, this is called a back
title letter or back title certificate. |
| Street Improvement Bonds: |
| Interest-bearing bonds issued, usually
by a city or county, to secure the payment of assessments levied
against land to pay for street improvements. The property owner
may pay off the particular assessment against the property, or may
allow the assessment to "go to bond" and pay installments
of principal and interest over a period of years, usually at the
city or county treasurer's office. The holder of a bond received
payments from these offices. |
| 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. |
| Subordination Agreement: |
| An agreement by which one encumbrance
(for example, a mortgage) is made subject to another encumbrance
(for example, a mortgage) is made subject to another encumbrance
(perhaps a lease). To "subordinate" is to "make subject
to," or to make of lower priority. |
| Surface Rights: |
| Rights to enter upon and use the surface
of a parcel of land, usually in connection with an oil and gas lease
or other mineral lease. They may be "implied" by the language
of the lease (no explicit reservation or exception of the surface
rights) or "explicitly" set forth. |
| Survey: |
| The measurement by a surveyor of real
property which delineates the boundaries of a parcel of land. An
ALTA survey additionally delineates the exact location of all improvements,
encroachments, easements and other matters affecting the title to
the property in question. A survey may be required by a title insurance
company whenever the company is requested to issue an ALTA Extended
Coverage Policy. |
| INDEX |
| Tax Deed
- Trustor |
| Tax Deed: |
| A deed executed by the tax collector to the state,
county or city when no redemption is made from a tax sale. |
| Tax Sale: |
| Property on which current county taxes
have not been paid is "sold to the state." No actual sale
takes place - the title is transferred to the state and the owner
may redeem it by paying taxes, penalties and costs. If it has not
been redeemed within five years, the property (referred to as "tax
sold property") is actually deeded to the state. (Similar "sales"
to cities take place for unpaid city taxes.) |
| Testate: |
| Leaving a legally valid will at death. See Intestate.
|
| Title: |
| (1) A combination of all the elements
that constitute a legal right to own, possess, use, control, enjoy
and dispose of real estate or a right or interest therein. (2) The
rights of ownership recognized and protected by the law. |
| Title Insurance: |
| Insured statement of the condition of
title or ownership of real property. For a one-time-only premium,
the named insured and their heirs are protected against title defects,
liens and encumbrances existing as of the date of the policy and
not specifically excluded from it. In the event of a claim, the
title company provides legal defense from the policyholder and pays
any covered losses incurred as a result of such claim. |
| Title Report: |
| See Preliminary Report. |
| Title Search : |
| A review of all recorded documents affecting
a specific parcel of land to determine the present condition of
title. An experienced title officer or attorney reviews and analyzes
all material relating to the search, then determines the sufficiency
and status of title for insurance of a title insurance policy. |
| Trustee: |
| See Deed of Trust. |
| Trustor: |
| See Deed of Trust. |
| INDEX |
| Underwritten
Company |
| Underwritten Company: |
| A title firm which conducts title searches
but is not qualified to insure, and therefore issues policies of
a qualified title insurer (underwriter) in return for a portion
of the premium. |
| INDEX |
| Variable
Interest Rate - Vesting |
| Variable Interest Rate: |
| An interest rate that fluctuates with the current
cost of money; subject to adjustment if the prevailing rate moves
up or down. |
| Vendee: |
| See Agreement of Sale. |
| Vendor: |
| See Agreement of Sale. |
| Vendor's Lien: |
| An implied lien given by law to a vendor for the remaining
unpaid and unsecured part of a purchase price. |
| Venue: |
| Neighborhood; often used to refer to the
county or place in which an acknowledgment is made before a notary;
also refers to the county in which a lawsuit may be filed or tried.
|
| Vesting: |
| The names, status and manner in which
title of ownership is held with a fixed or determinable interest
in a particular parcel of real property; also that portion of a
title report or policy setting forth the above. |
| INDEX |
| Waive - Warranty
Deed |
| Waive: |
| To voluntarily and intentionally relinquish a known
right, claim or privilege. |
| Warranty Deed: |
| A deed used in many states to convey fee
title to real property. |
| INDEX |
