Abstract of Title – A condensed history or summary of all transactions affecting a particular tract of land.
All-Inclusive Title insurance – This means that most title insurance charges are included in one price.
Assumption – A mortgage that allows a new owner to take over payments. The original borrower remains liable on the mortgage note.
Deed – A written document by which the ownership of land is transferred from one person to another.
Deed of Trust – Instrument used to secure a loan on real estate. The major difference is in how foreclosures are handled. Foreclosures are much faster with a Deed of Trust than with a Mortgage.
Deposit or Earnest Money – Advance payment of part of the purchase price to bind a contract for property.
Escrow – A procedure whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer.
Grantee – A person who acquires an interest in land by deed, grant or other written instrument.
Grantor – A person who, by a written instrument, transfers to another interest in land.
In personam – Directed at specific persons rather than against property or generally for all people.
In rem – Pertaining to property or people in general.
Instrument – A written document.
Lein – A hold, a claim or charge allowed a creditor upon the lands of a debtor.
MIP – Mortgage Insurance Premium
Mortgage Note – An instrument used to encumber land as security for a debt. This document gives the mortgage company “in rem” jurisdiction over the mortgagor.
Note – A written promise to pay a certain amount of money, at a certain time, or in a certain number of installments. It usually provides for payment of interest and its payment is at times secured by a mortgage.
P.O.C. – Paid outside of closing. Sometimes the lender requests this money before settlement. If you pay any charges before settlement they should be written on the settlement sheet. They are written on the proper line outside of your column. They should also be marked P.O.C.
PMI – Private Mortgage Insurance
Power of Attorney – An instrument authorizing another to act on one’s behalf as his agent or attorney.
Pro-Rate – To allocate between seller and buyer their proportionate share of an obligation paid or due.
Real Property – Land and that which is affixed to it.
Reissue Rate – A reduced rate of title insurance premium applicable in cases where the owner of the land had been previously insured in an owner’s policy by the insurer within a certain time.
Survey – The process of measuring land to determine its size, location and physical description and the resulting drawing or map.
Tax service fee – A fee paid to the mortgage company to verify that they actually pay the real estate taxes.
Title – The evidence or right a person has to the ownership and possession of land.
Title Insurance – Insurance against loss or damage resulting in defects or failure of title to a particular parcel of real property.
Title Insurance Binder or Commitment – A report issued by a title insurance company binding or committing the title insurance company to issue the form of policy designated in the commitment or binder upon compliance with and satisfaction of requirements set forth in the commitment or binder.
Title Search – An examination of public records and court decisions to disclose the current facts regarding ownership of real estate.
Transfer Taxes – Money paid to the county and or state when property is sold.