GLOSSARY OF TERMS
TITLE INSURANCE & REAL ESTATE
Please note that these definitions are intended as a general guide and may vary based on specific local laws and regulations.
A type of insurance that protects property owners and lenders against any claims or losses resulting from defects in the title or ownership of a property.
An examination of public records to determine the history of ownership and any potential issues or encumbrances that may affect the title of a property.
A legal document that transfer the ownership of a property from one party to another.
A process where a neutral third party holds funds, documents, and instructions during a real estate transaction until all conditions are met and the transaction is completed.
The final step of a real estate transaction, where the transfer of ownership is completed, and all necessary documents are signed and funds are disbursed.
A legal claim or right against a property, typically used as security for a debt or obligation.
Any issue or cloud on the title that may affect the property's ownership rights or marketability.
CHAIN OF TITLE
The history of ownership transfers for a property, documented through a series of deeds and other recorded documents.
A legal right that grants a person or entity the use of another person's property for a specific purpose, such as access or utilities.
ABSTRACT OF TITLE
A summary of the history of a property's ownership, including deeds, mortgages, liens, and other relevant information.
A measurement and mapping of a property's boundaries, structures, and other physical features.
A loan used to finance the purchase of a property, with the property itself serving as collateral for the loan.
HOMEOWNERS ASSOCIATION (HOA)
An organization that manages and enforces rules and regulations for a community or development.
An evaluation of a property's value conducted by a qualified appraiser.
A company that specializes in title searches, underwriting title insurance policies, and facilitating real estate closings.
A title that is free from any defects, liens, or encumbrances, allowing for the property to be easily bought or sold.
QUIET TITLE ACTION
A legal proceeding to resolve any competing claims or disputes over the ownership of a property and estbalish clear title.
A map or survey that illustrates the division of land into lots or parcels within a larger tract.
The unauthorized intrusion of a structure or improvement onto a neighboring property.
REAL ESTATE AGENT
A licensed professional who represents buyers or sellers in real estate transactions, assisting with the buying, selling, or leasing of properties.
The process of obtaining preliminary approval for a mortgage loan based on an individual's creditworthiness and financial information.
The act of transferring ownership of a property from one party to another.
The legal power of a government entity to take private property for public use, with fair compensation provided to the property owner.
A deposit made by a buyer to demonstrate their serious intent to purchase a property.
REAL ESTATE INVESTMENT TRUST (REIT)
A company that owns, operates, or finances income-generating real estate properties, allowing investors to own shares of the company.
The division of land into specific zones or districts with designated allowable uses and restrictions.
TENANCY IN COMMON
A form of property ownership where multiple individuals have an undivided interest in the property, with no right of survivorship.
A contractual agreement that grants temporary possession and use of property to a tenant in exchange for rent payments.
The initial payment made by a buyer toward the purchase price of a property, typically a percentage of the total cost.
REAL ESTATE BROKER
A licensed professional who acts as an intermediary between buyers and sellers in real estate transactions, overseeing the negotiation and closing process.