| 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. |
| |
| Back
Title Letter or Certificate - Buydown |
Top |
| 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). |
| |
| Capitalization
Rate - Covenants, Conditions and Restrictions |
Top |
| 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. |
| |
| Debt
- Description |
Top |
| 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. |
| |
| Earnest
Money Deposit - Executor |
Top |
| 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." |
| |
| Fee
Simple - Full Disclosure |
Top |
| 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. |
| |
| Good
Faith - Guardian |
Top |
| "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. |
| |
| Hazard
Insurance - Homestead |
Top |
| 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. |
| |
| Impounds
- Indemnity |
Top |
| 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. |
| |
| Judgment
Lien |
Top |
| Judgment Lien: |
| A lien against the property of a judgment
debtor. An involuntary lien. |
| |
| Land
Contract - Lien |
Top |
| 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. |
| |
| Mechanics
Lien - Mortgagor |
Top |
| 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. |
| |
| Note |
Top |
| 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. |
| |
| Obligee
- Owner's Policy |
Top |
| 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. |
| |
| Parcel
- Public Records |
Top |
| 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. |
| |
| Quitclaim
Deed - Quiet Title |
Top |
| 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. |
| |
| Real
Property - Right of Way |
Top |
| 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. |
| |
| Sale
and Leaseback - Survey |
Top |
| 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. |
| |
| Tax
Deed - Trustor |
Top |
| 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. |
| |
| Underwritten
Company |
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| 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. |
| |
| Variable
Interest Rate - Vesting |
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| 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. |
| |
| Waive
- Warranty Deed |
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| 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. |
