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 Index
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 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 Index
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 Index
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.
  
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