Abstract of title

Is a written history of the title to a property, based on the title search, which informs a buyer whether anyone else has a legal claim to the property.

Clear title

A title to the property that shows it is free of liens or legal challenges to ownership has a legal claim to the property.

Closing

The completion of a real estate transaction and the documents are recorded at the local recorder's office, or when all of the documents are signed.

Closing costs

Is the cost associated with the purchase or refinance of a home, such as mortgage fees, title insurance, appraisal and inspection fees and points, which must be paid at closing.

Deed

A legal document that transfers real estate from one party (seller) to another (buyer).

Deed of trust

An instrument used to transfer title of property to a trust or security for the loan, which serves as protection for the lender in case the borrower defaults.

Escrow account

A special account maintained by the lender/title company containing money to use to pay the special costs on the owner's mortgage or property as these costs become due (for example, taxes, hazard insurance, flood insurance, mortgage insurance, or title insurance).

HUD-1 settlement statement

A document that provides an itemized listing of the funds that were paid at closing, such as real estate commissions, loan fees, points, and initial escrow amounts.

Lien

Any claim against a property such as the following: including mortgages, unpaid taxes, or other unpaid charges. A lien must be paid when a property is sold. The lien must be filed or recorded with the local county government in order to attach to a property.

Recording

The noting in the clerks office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, which makes it a part of the public record.

Refinance transaction

The process of paying off one loan with the proceeds from a new loan and using the same property as security.

Release of lien

A document provided by a lender when a debt is fully repaid. When the release of lien is filed, the lien is removed from public records and clear title is issued.

Settlement (Closing)

The process by which all financial dealings and contractual arrangements, such as the payment of debts, making of adjustments, disbursement of money, and preparation of a new deed, are completed for the buyer and seller.

Title

Evidence of the right of property ownership, which can be held solely, jointly, in common, or in corporate or partnership form.

Title company

A company that performs and insures title searches, which is usually selected by the seller and may work as a lender's agent.

Title examination

A review that requires the examination of public records or an abstract of title and will reveal a property's previous owners as well as any encumbrances.

Title Insurance

A review that examines public records or an abstract of title. A title examination will reveal a property's previous owners as well as any encumbrances.

Title Search

An examination or search of public records, laws, and court actions to verify that the seller of a property is its legal owner and to disclose all claims or encumbrances that exist on the property.