Earnest Money Deposit - Executor Index
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, , 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 Index
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 Index
"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 Index
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 Index
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 Index
Judgment Lien:
A lien against the property of a judgment debtor. An involuntary lien.
  
Land Contract - Lien Index
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 Index
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 Index
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 Index
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 Index
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 Index
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 Index
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.

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