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198 Cards in this Set
- Front
- Back
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An abbreviation of the cardinal aspects of all recorded deeds, mortgages, leases and other instruments affecting the title to a particular piece of land.
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ABSTRACT
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The process of making and compiling an abstract.
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ABSTRACTING
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The person or company engaged in making abstracts.
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ABSTRACTER
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The unauthorized occupation of land belonging to another, by a person who does not have the consent of the owner. Said occupier is said to hold possession adversely to the rights and interests of the owner. In most states, by operation of law, title to the land becomes vested in such occupier after a fixed number of years of peaceful occupancy.
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ADVERSE POSSESSION
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When referring to title insurance, an all-inclusive rate is a rate that includes at least some part of the cost of researching the title or the cost of conducting the closing.
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ALL-INCLUSIVE RATE
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American Land Title Association, the national trade association for the title insurance industry. ALTA is made up of title firms that conduct your closing and issue you an Owner's Policy of Title Insurance.
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ALTA
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This term has developed through French and Old English from the Latin words "mors" or "mort" meaning death or dead. It is the killing off of an existing debt by regular partial payments. The word "mortgage" is also derived from the same Latin root.
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AMORTIZATION
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Annual Percentage Rate. The yearly interest percentage of a loan as expressed by the actual rate of interest paid.
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APR
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An estimate of value of property from analysis of facts about the property; an opinion of value.
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APPRAISAL
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The written statement of an attorney setting forth what he believes to be the condition of a real estate title.
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ATTORNEY'S OPINION
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When referring to title insurance, the basic rate is the rate charged to a consumer who does not qualify for a reduced rate.
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BASIC RATE
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One who acts as an agent for another in negotiating sales or purchases in return for a fee or commission.
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BROKER
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A fee or commission paid to a broker.
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BROKERAGE
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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.
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CERTIFICATE OF TITLE
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Beginning with a conveyance out of an original source of title such as a government, each succeeding deed, will or other medium which conveys and transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links.
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CHAIN OF TITLE
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A right to assert, or the assertion of, a demand for payment of money due; or the surrender or delivery of possession of property or the recognition or some right. A demand for something as one's rightful due.
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CLAIM
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In some areas called a "settlement." The process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed and/or delivered, an accounting between the parties is made, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to.
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CLOSING
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A summation, in the form of a balance sheet, made at a closing, showing the amounts of debits and credits to which each party to a real estate transaction is entitled.
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CLOSING STATEMENT
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An irregularity, possible claim, or encumbrance which, if valid, would adversely affect or impair the title.
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CLOUD ON TITLE
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The amount due a real estate broker, mortgage loan broker, or real estate professional for services performed in such capacity.
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COMMISSION
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This term is first cousin to restrictions and reservations. It refers to provisions in deeds and other real estate instruments which provisions make a particular right contingent upon the occurrence of some future event.
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CONDITIONS
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Same as "agreement," but usually more formal.
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CONTRACT
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A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in a warranty deed.
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COVENANT
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A written document by which title to real estate is conveyed from one party to another.
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DEED
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A book among the public records in which deeds are recorded.
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DEED BOOK
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Failure to perform a promised task or to pay an obligation when due.
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DEFAULT
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A blemish, imperfection or deficiency. A defective title is one that is irregular and faulty.
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DEFECT
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Loss in value occasioned by ordinary wear and tear; destructive action of the elements; or functional or economic obsolescence.
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DEPRECIATION
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Down payment or a small part of the purchase price made by a purchaser as evidence of good faith.
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EARNEST MONEY
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A right held by a person to enjoy or make limited use of another's real property.
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EASEMENT
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The right to a path or right-of-way over which a person may leave or go away from his own real estate.
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EGRESS
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(1) Eviction or dispossession. (2) A law suit to regain possession of real estate held by another.
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EJECTMENT
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The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value.
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EMINENT DOMAIN
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The extension of a structure from the real estate to which it belongs across a boundary line and onto adjoining property.
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ENCROACHMENT
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A claim, right, or lien upon the title to real estate, held by someone other than the real estate owner.
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ENCUMBRANCE
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Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.
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ENDORSEMENT
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Technically, this term strictly refers to a deed delivered to a third person to be held by him until the fulfillment or performance of some act or condition by the grantee. In title industry parlance it means the depositing with an impartial third party called the escrow agent (usually the title company) of anything pertaining to a real estate transaction including money and documents of all kinds which are to be disbursed and delivered to the rightful parties by the escrow agent when all conditions of the transaction have been met.
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ESCROW
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A written agreement usually made between buyer, seller, and escrow agent, but sometimes only between one person and the escrow agent. It sets forth the conditions to be performed incident to the object deposited in escrow, and gives the escrow agent instructions with respect to the disposition of the object so deposited.
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ESCROW AGREEMENT
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(1) A sizable piece of rural land usually with a large house and other pretentious improvements. (2) The whole of one's possessions, especially all of the property, assets, debts, and liabilities left by a deceased or bankrupt person. (3) The nature and extent of an owner's rights in real estate.
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ESTATE
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In title industry terms, to peruse and study the instruments in a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title.
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EXAMINATION
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Usually referred to, in title industry terms, as title examiner. One who examines and determines the condition and status of real estate titles.
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EXAMINER
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The highest degree of ownership which a person can have in real estate. An interest in real estate which gives the owner unqualified ownership and full power of disposition.
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FEE SIMPLE
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A mortgage having priority as a lien over any other mortgage or lien on the same property
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FIRST MORTGAGE
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A legal proceeding for the collection of real estate mortgages and other types of liens on real estate, which results in cutting off the right to redeem the mortgaged property and usually involves a judicial sale of the property to pay the mortgage debt.
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FORECLOSURE
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A warranty provision in a deed or mortgage or other real estate instrument containing all of the common law items of warranty. Also known as a full warranty.
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GENERAL WARRANTY
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An estimate of closing costs the lender is required (under the federal Real Estate Settlement Procedures Act) to give to the buyer within at least three days of applying for a mortgage loan. This is the lender's estimate - it must be completely accurate regarding the lender's own charges and is supposed to be reasonably close to the charges third-party providers such as title insurers/agents, attorneys, surveyors, etc., may change. You should check with those third-party providers, however, regarding how much they will charge if you have any questions or concerns prior to settlement.
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GOOD FAITH ESTIMATE
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Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. The buyer often adds liability insurance and extended coverage for personal property.
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HAZARD INSURANCE
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A person who inherits or who is entitled to inherit real estate by provisions of law or under the provisions of a will.
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HEIR
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The right or permission to enter; also the means or place of entry such as a right-of-way across adjoining land.
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INGRESS
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Dying without leaving a legal will.
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INTESTATE
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Two or more persons who hold title to real estate jointly, with equal rights to share in its enjoyment during their respective lives with the provision that upon the death of a joint tenant, his share in the property passes to the surviving tenants, and so on, until the full title is vested in the last survivor. A joint tenant cannot legally sell or encumber his interest without the consent or joinder of all of the other joint tenants.
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JOINT TENANTS
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A conclusion or determination by a court of law usually awarding the payment of money or relief of some kind to one of the parties to a lawsuit.
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JUDGMENT
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An agreement granting the use or occupancy of land during a specified period in exchange for rent.
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LEASE
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The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage, or by operation of law, such as a mechanics lien.
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LIEN
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A pending lawsuit. A lis pendens notice is legal notice to the world that a lawsuit is pending.
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LIS PENDENS
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A policy of title insurance issued to the mortgage lender insuring against loss by defects in, liens against, or unmarketability of title.
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LOAN POLICY
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A title which a court of equity considers to be so free of material defects and liens that it will force the title's acceptance by questioning purchaser. Also known as a merchantable title.
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MARKETABLE TITLE
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An average between the highest price which a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing, but not compelled to sell, would accept.
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MARKET VALUE
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A lien on real estate, created by operation of law, which secures the payment of debts due to persons who perform labor or services or furnish materials incident to the construction of buildings and improvements on the real estate.
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MECHANIC'S LIEN
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land description in which boundaries are described by courses, directions, distances, and monuments.
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METES AND BOUNDS
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A temporary conditional pledge of property to a creditor as security for the payment of a debt which may be cancelled by payment.
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MORTGAGE
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In title industry terms, referred to as title opinion. The conclusion and judgement of a skilled person as to the status of a title, based upon a title examination.
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OPINION
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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.
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OWNER'S POLICY
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A legal instrument authorizing one to act as another's agent or attorney.
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POWER OF ATTORNEY
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(1) The amount payable for an insurance policy. (2) A sum of money or bonus paid in addition to the regular price.
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PREMIUM
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A legal procedure in which the validity and probity of a document, such as a will, is proven.
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PROBATE
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A written promise to pay or repay a specified sum of money at a stated time, or on demand, to a named person. In addition to the payment of principal, a promissory note usually provides for the payment of interest.
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PROMISSORY NOTE
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The transcriptions in a recorder's office of instruments which have been recorded, including the indexes pertaining to them.
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PUBLIC RECORDS
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A lawsuit brought by an owner of real estate for the purpose of cancelling, wiping out, and putting a quietus upon supposedly immaterial, inconsequential, and unenforceable claims and interests which cloud his title.
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QUIET TITLE SUIT
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A deed which does not imply that the grantor holds title, but which surrenders and gives to the grantee any possible interest or rights which the grantor may have in the property.
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QUIT CLAIM DEED
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A copyrighted trade name which can be legally used only by those persons belonging to the National Association of Realtors.
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REALTOR
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The aspects of a title which appear in the public records as distinguished from unrecorded title aspects and interests.
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RECORD TITLE
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When referring to title insurance, the refinance rate is the reduced rate for a Loan Policy issued on the new loan in a refinance transaction, in which the original loan was previously insured within some period of years.
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REFINANCE RATE
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When referring to title insurance, the reissue rate is the reduced rate for an Owner’s Policy of title insurance issued on a property which was previously insured within some period of years. In some states, the term is also used for a refinance rate.
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REISSUE RATE
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(1) The right to pass over property owned by another, usually based upon an easement. (2) A path or thoroughfare over which passage is made. (3) A strip of land over which facilities such as highways, railroads, or power lines are built.
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RIGHT OF WAY
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The many rights of a person in, to, and over the banks, bed, shallows, shore, and water of a stream or body of water upon which his land borders.
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RIPARIAN RIGHTS
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When referring to title insurance, the risk rate is a rate that does not include the cost of researching the title or the cost of conducting the closing.
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RISK RATE
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In title industry terms, a careful exploration and perusal of the public records in an effort to find all recorded instruments relating to a particular chain of title.
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SEARCH
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A mortgage ranking in priority immediately below a first mortgage.
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SECOND MORTGAGE
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When referring to title insurance, the simultaneous issue rate is the reduced rate for a Loan Policy or Owner’s Policy of title insurance issued on the same property or loan at the same time as another policy. The term usually refers to a Loan Policy issued at the same time as an Owner’s Policy when a property is purchased.
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SIMULTANEOUS ISSUE RATE
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A deed which warrants the title only with respect to acts of the seller and the interests of anyone claiming by, through, or under him.
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SPECIAL WARRANTY DEED
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An area of land laid out and divided into lots, blocks, and building sites, and in which public facilities are laid out, such as streets, alleys, parks, and easements for public utilities.
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SUBDIVISION
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(1) To determine the location, boundaries, area, or the elevations of land and structures upon the earth's surface by means of courses in relation to the North Star, and the measuring of angles and distances by using the techniques of geometry and trigonometry. (2) The map or plat drawn by a surveyor which represents the property surveyed and shows the results of a survey.
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SURVEY
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The lien which is imposed upon real estate by operation of law which secures the payment of real estate taxes.
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TAX LIEN
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An estate or interest in real estate predicated upon the legal fiction that a husband and wife are one person. A conveyance or devise to them (unless contrary intent is expressed) vests title in them as one person. Upon the death of either husband or wife, full title passes to the survivor.
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TENANCY BY ENTIRETIES
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1) Usually one who holds possession of real estate under a lease. (2) In a broader sense, one who holds or possesses lands and tenements by any kind of title.
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TENANT
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Two or more persons in whom title to a single piece of real estate is vested in such a manner that they have a common or equal right to possession and enjoyment of the property, but each holds a separate individual interest or estate in the property. Each owner may sell or encumber his respective interest or dispose of it by will, and if he dies without leaving a will, his heirs inherit his undivided interest.
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TENANTS IN COMMON
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A term usually applied to persons who are not principal parties to a contract or other instrument, but who have some right, interest or duty which such contract or instrument affects. For example, where a sale contract between buyer and seller of real estate provides that the money and documents involved in the transaction will be deposited with a title company pending the closing of the deal, the title company becomes a third party to the transaction.
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THIRD PARTY
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(1) A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy, and dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.
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TITLE
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Covenants ordinarily inserted in conveyances and in transfers of title to real estate for the purpose of giving protection to the purchaser against possible insufficiency of the title received. A group of such covenants known as "common law covenants" includes: (a) covenants against encumbrances; (b) covenant for further assurance (in other words, to do whatever is necessary to rectify title deficiencies); (c) covenant of good right and authority to convey; (d) covenant of quiet enjoyment; (e) covenant of seisin; (f) covenant of warranty.
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TITLE COVENANTS
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(1) Any possible or patent claim or right outstanding in a chain of title which is adverse to the claim of ownership. (2) Any material irregularity in the execution or effect of an instrument in the chain of title.
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TITLE DEFECT
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Indemnity against loss resulting from defects in or liens upon a title.
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TITLE INSURANCE
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(1) In many areas, synonymous with Abstract Plant. (2) A geographically filed assemblage of title information which is to help in expediting title examinations, such as copies of previous attorneys' opinions, abstracts, tax searches, and copies or take-offs of the public records.
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TITLE PLANT
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A search and perusal of the public records for recorded instruments which affect the title to a particular piece of land.
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TITLE SEARCH
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An insurance company which issues insurance policies either to the public or to another insurer.
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UNDERWRITER
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The voluntary and intentional relinquishment of a known right, claim, or privilege.
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WAIVER
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A deed containing one or more title covenants
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WARRANTY DEED
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These are also known as contractor liens, where a service or material has been provided to you and the provider is now owed payment.
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Mechanic liens
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This type places a lien for owed taxes to the IRS or state and can be the most daunting of all.
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Tax Lien
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Also called judicial liens, this type of lien is when a court has granted a creditor actual rights to property owned by the debtor. Once the monetary judgment has been granted, the creditor can attach a lien on real property, seize bank accounts or even garnish wages.
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Judgement Lien
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The rate charged to a consumer who does not qualify for a reduced rate such as, but not limited to, the reissue rate or simultaneous issue rate. (see below).
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Basic Rate
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The reduced rate for an Owner's Policy issued on a property which was previously insured within some period of years. In some states, the term is also used for a refinance rate
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Reissue Rate
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The reduced rate for a Loan or Owner's Policy issued on the same property or loan at the same time as another policy. The term usually refers to a Loan Policy issued at the same time as an Owner's Policy when a property is purchased.
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Simultaneous Issue Rate
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The reduced rate for a Loan Policy issued on the new loan in a refinance transaction, in which the original loan was previously insured within some period of years.
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Refinance Rate
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A rate that does not include the cost of researching the title or the cost of conducting the closing.
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Risk Rate
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A rate that includes at least some part of the cost of researching the title or the cost of conducting the closing.
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All-Inclusive Rate
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Is a legal instrument by which the owner of a piece of real property, called the grantor, transfers his interest to a recipient, called the grantee.[1] The owner/grantor terminates (“quits”) his right and claim to the property, thereby allowing claim to transfer to the recipient/grantee.
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Quit Claim Deed
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Generally speaking, title insurance is a _________ that is often required by lenders in order to insure the lender that the owner of the property has good legal title, and to compensate the lender in the event of a loss arising from a title defect that was existing but undiscovered at the time the policy was issued.
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contract of indemnity
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The ___________ is to make the insured whole, or to restore them to the same condition they enjoyed prior to the time of the loss.
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principle of indemnity
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A ______ (also known as a binder) is generally issued before the final policy. It is an agreement to insure upon payment of premium. It has three schedules – A, B-1 and B- 2.
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commitment
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__________ names the parties to the transaction, describes the land being insured (legal description), states the amount of coverage and reflects the date for which the information is effective.
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Schedule A
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________ lists matters that must be attended to, known as “Requirements”, before the title can be transferred or mortgaged
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Schedule B-1
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__________ lists matters known or of public record, called “Exceptions”, that affect the title. The exceptions are generally not cleared before the title is transferred and remain of record against the land. Exceptions may be “standard” or “specific”. Standard exceptions include matters such as taxes and discrepancies in boundaries. Specific exceptions include matters known or discovered in the title exam that specifically apply to the property being insured.
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Schedule B-2
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_______ are added to the policy to expand or modify coverages.
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Endorsements
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Four parts of a title insurance policy:
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Declarations
Insurance Agreement Conditions Exclusions |
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Schedule A shows the policy number, effective date, amount of insurance, name(s) of the insured, the nature of the insured’s interest and a legal description of the land.
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Declarations
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Sets forth the risks covered (including defense costs and expenses), subject to exclusions, exceptions and conditions.
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Insurance Agreement
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Offer the definitions and terms of the policy, and gives information as to filing a claim.
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Conditions
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Sets forth matters not covered by the policy, such as governmental police powers and defects or other matters known by the insured but not disclosed to the title insurance company.
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Exclusions
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(also called an Insured Closing Letter) to assure the lender that the attorney closing the transaction is in an approved relationship with the title company and that the title company will be liable for some matters related to the closing if it is not properly conducted by the attorney/agent.
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Closing Protection Letters
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An agreement occurs when an offer (oral or written) made by one party is accepted by the other party. An example of an offer is an application for insurance. The application form itself is an invitation by the insurance company for the applicant to make an offer by completing the application. Silence is generally considered a rejection and no contract will exist. Contracts related to real estate are generally written contracts.
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Agreement (offer and acceptance)
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Both parties must give value or assume a responsibility. Insurance policies often stipulate that consideration is “premium paid”. The mere promise to pay is generally held to be proper consideration with most insurance contracts.
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Consideration
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The parties must have legal capacity to make a contract. If a party is incompetent or a minor, the contract may be voided. Parties may not be coerced into signing contracts; if they are, then the contract may be voided. A voidable contract is valid until the aggrieved party disavows it.
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Competent parties
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The contract cannot be for an illegal activity, and an insurable interest must exist for the contract to be valid. An “insurable interest” insures the interest of the insured, rather than the property or person itself. It includes anyone who may suffer a financial loss or economic hardship if an event insured against in the policy occurs. Because the insurable interest attaches to the insured’s interest in the property, the policy’s language must contain consent for the insured to assign the coverage to another. For example, a mortgage lender may be able to assign coverage to a successor in interest to the mortgage. A joint insurable interest exists where more than one party has an insurable interest, such as a lender and property owner.
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Legal object or purpose
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Meaning that it is written in favor of the insurance company, particularly regarding the payment of claims.
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contract of adhesion
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Meaning that equal value is not paid by each party. In other words, the premium is not equal to the recovery amount paid out in the event of a claim.
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aleatory
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Meaning that it is a promise to pay for a claim in the future should some event insured against occur.
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executory
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“Uberrimae Fidei”) meaning that it is based on a promise to pay for something that occurs in the future, and both the insurance company and the proposed insured must consider the personal aspects of each other’s character, credit and conduct.
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Utmost Good Faith
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Means the cost of replacement less depreciation
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Actual Cash Value
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The _________ of the property is the maximum amount for which the property may be insured, and again is usually the cost of replacement less depreciation.
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insurable value
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In a ___________, both sides must perform certain acts to make the contact legally enforceable.
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conditional contract
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In a ___________, only one party makes an enforceable promise.
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unilateral contract
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For title insurance, a ________ is the title insurance company’s guarantee of the assumption of risk.
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warranty
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A ________ is a material statement made orally or in the application to the insurance company that the company relies on in issuing the policy. __________ usually relate to past or present matters; not future matters.
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representation
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__________ speaks to the right of the insurance company to “take the place” of the insured in a lawsuit against a third party after the insurance company has paid the insured for the loss associated with their claim. The insured assigns rights in the lawsuit to the insurance company, which enables the company to recover at least some of the funds it paid to the insured by suing a third party if their negligence contributed to the loss associated with the claim.
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Subrogation
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The ___________ means that all terms of the agreement are stated within the “four corners” of the contract. In other words, the contract is construed as a whole, according to the ordinary meaning of the words in the document itself.
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Parole Evidence Rule
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An ________ is one that is just and right, even if it does not exist by strict interpretation of the law. For example, a person may obtain an _________ in a house by having a contract to purchase and making payments toward the ultimate purchase of the home, even if there is no recorded deed conveying the property to them.
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equitable interest
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A _________ is filed at the beginning of an action to name the parties to the suit and gives notice that there is a pending lawsuit affecting real estate. For example, when a bank forecloses on a defaulted loan, it must file a _______ naming all of the interested parties to the suit. If the property is sold during the lawsuit, it will be subject to the legal action.
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Lis Pendens
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A written statement or declaration, generally promising that an issue is not material or will be resolved by the affiant as needed
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Affidavits
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Transfer to another of a right or interest in the land, such as when a mortgage is assigned from one lender to another
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Assignments
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Instrument releasing property from the lien, such as a partial release of a lot from a mortgage on a larger tract of land
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Releases
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agreement by which a lien is made junior to another lien, such as when an existing Second mortgage holder agrees to subordinate to a new lender whose loan will be in first priority position
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Subordinations
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Both of these structures are designed to allow persons to own and manage a piece of property or a building together, but they are different in that the ________ is created by statutory regulations and the _______ is created by documents that define the various uses of the property. For example, in a residential subdivision, ___ documents may be filed of record to allow for the common ownership of a clubhouse, pool or other amenities. A condominium property must have a Master Deed and other specific requirements as required by statute.
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Condominiums and Planned Unit Development (PUD)
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A legal right to use the property of another for a specified purpose, such as for a driveway or access.
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Easement
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A legal right to enter another’s property to take minerals from the land. The term may also be used for the right of the owner to receive compensation for the minerals that are taken from the land.
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Mineral Right
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When an owner, such as a developer, desires to place restrictions upon the use of the land, _______ are given to describe the uses that are permitted or prohibited, as well as conditions, which state that upon the violation of the _________, the estate or title may be changed. For example, a subdivision developer may file _________ that contain provisions that the property can only be used for residential purposes or the title will revert back to the developer.
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Restrictive Covenants
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______ are drawn to give the measurements of the property, as well as matters affecting title, such as drainage and power lines. Matters shown on a recorded survey should be shown as exceptions to the title on the title commitment and policy.
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Surveys
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A legal right to enter another’s property to take timber from the land. The term may also be used for the right of the owner to receive compensation for the timber that are taken from the land.
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Timber rights
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Legal rights of an owner to the use of naturally flowing water, such as a stream or river.
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Water rights
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__________ means that the owner’s title to the real estate is free from material defects. An owner with ___________ can freely convey the property as there are no legal impediments to a conveyance.
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Marketable title
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A right to use the land of another
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Easement
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Owner of the land (Lessor) gives a right of possession to another (Lessee) for a specified amount of time for a specified amount of consideration. The Lessee is then said to have a leasehold estate.
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Leasehold estate
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An estate in land for the life of a designated person. Upon that person’s death, the title to the land reverts to the grantor, or is transferred to some other designated person.
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Life estate
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Generally created by using the words “as joint tenants with rights of survivorship and not as tenants in common” in the deed. There are variations on the wording for joint tenancy that are beyond the scope of this manual. Upon the death of one of the joint tenants, the survivor(s) will receive the interest of the deceased person. This type of tenancy may be severed by divorce.
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Joint tenants with right of survivorship
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Favored method of ownership as it can be freely conveyed. This type of joint ownership is created if A and B’s deed reads “to A and B”. Upon the death of A or B, their interest in the property will pass pursuant to their will or the state’s intestacy laws.
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Tenancy in common
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Favored method of ownership as it can be freely conveyed. This type of joint ownership is created if A and B’s deed reads “to A and B”. Upon the death of A or B, their interest in the property will pass pursuant to their will or the state’s intestacy laws.
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Tenancy in common
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Property passes to the state if no owner can be found
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Escheat
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Property is said to be alienable if it can be transferred. This term refers to property that is involuntarily transferred from the owner to another
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Involuntary alienation
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Property that is sold, generally via a sheriff’s sale, to pay creditors who have unpaid liens against the property and the owner.
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Judicial sale
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A ___ is a civil, rather than criminal, wrongdoing for which the law will afford money damages. Examples of torts that may be insured against include intentional injury, slander, or unintentional injury, such as injuries resulting from blasting or airplane crashes.
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Tort
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________ is a type of tort that represents the failure to do what an ordinary, reasonable and prudent person would do under similar circumstances. Negligence is one of the most commonly insured perils. The elements of negligence are:
1. A legal duty or degree of care is owed; 2. There is a failure to meet that duty; 3. Injury or damage to the claimant results; 4. There is a direct causal relationship between the claimant’s injury and the breach of duty. This causal relationship is known as proximate cause, and is often referred to as the “but for” test. |
Negligence
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title to property (usually real property, but it can apply to personal property) held by two or more persons, in which each has an "undivided interest" in the property and all have an equal right to use the property, even if the percentage of interests are not equal or the living spaces are different sizes. Unlike "joint tenancy" there is no "right of survivorship" if one of the tenants in common dies, and each interest may be separately sold, mortgaged or willed to another. Thus, unlike a joint tenancy interest which passes automatically to the survivor, upon the death of a tenant in common there must be a probate (court supervised administration) of the estate of the deceased to transfer the interest (ownership) in the tenancy in common
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tenancy in common
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a crucial relationship in the ownership of real property, which provides that each party owns an undivided interest in the entire parcel, with both having the right to use all of it and the right of survivorship, which means that upon the death of one joint tenant, the other has title to it all
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joint tenancy
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A _________ allows spouses to own property together as a single legal entity. Under a tenancy by the entirety, creditors of an individual spouse may not attach and sell the interest of a debtor spouse: only creditors of the couple may attach and sell the interest in the property owned by tenancy by the entirety.
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Tenancy by the Entirety
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____________ protects a first mortgage lender if the borrower defaults on the loan. This type of insurance is usually accomplished with a master/group policy, and individual loans are added via certificates. The insured lender is not obligated to submit all loans to the insurer nor is the insurer obligated to accept all loans submitted. If the master policy is cancelled the certificates already issued remain in effect until their normal expiration date.
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Mortgage guaranty insurance
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An approach to the establishment and transfer of land ownership the government certifies the ownership interest.
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Torrens System
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A survey made for the purpose of supplying a title company and lender with survey and location data necessary for issuing American Land Title Association or Extended Coverage Title Insurance.
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A.L.T.A. Survey or Extended Title Insurance Coverage Survey:
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A survey for the express purpose of locating the corners and boundary lines of a given parcel of land. This involves record and field research, measurements, and computations to establish boundary lines in conformance with the Professional Land Surveyor Act. Easement lines may also be located and/or established with this type of survey.
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Boundary Survey
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A survey locating topographic features - natural and man made - such as buildings, improvements, fences, elevations, trees, streams, contours of the land, etc. This type of survey may be required by a governmental agency, or may be used by engineers and/or architects for design of improvements or developments on a site.
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Topographic Survey
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A combination of boundary and topographic surveys for preparation of a site plan to be used for designing improvements or developments.
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Site Planning Survey
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The subdivision of a tract of land into smaller parcels, showing monumentation and survey data on a map, in conformance with local ordinances and the Subdivision Map Act.
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Subdivision Survey
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Precise location of horizontal and vertical positions of points for use in boundary determination, mapping from aerial photographs, construction staking, and other related purposes
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Control Survey
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Analysis of various legal description and survey maps, field locating of record, existing monuments, and physical features, and mapping showing this information for the purpose of presenting a visual exhibit to be used in a courtroom.
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Court Exhibit Survey
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Construction staking of improvements shown on improvement plans for control of construction on developments for roads, buildings, pipelines, etc.
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Construction Survey
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Know the Reasons for Defective Titles.
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Errors contained in a deed Outstanding Liens Forgeries Error in the Public Records Wills and Estates Bankruptcies
Foreclosures and Tax Sales |
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The ICSL is the Product of the title insurance Underwriter and insures the Lender. The ICSL also includes conditions and exclusions that protect the insurer/ Underwriter against the failure of a title company, title attorney or approved attorney to comply with certain provisions.
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Insured Closing Service Letter. (ICSL).
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Provisions of the Commitment Letter.
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Preamble
Conditions and Stipulation Schedule A Schedule B-1 Schedule B-II |
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Owner’s Title Insurance Policy.
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Preamble
Declaration of Coverage Exclusion from Coverage Conditions and Stipulations Exceptions Section |
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Lender’s Title Insurance Policy.
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1. Preamble
2. Declaration of Coverage/Insurance Clauses (Test item) 3. Exclusions From Coverage 4. Conditions and Stipulations 5. Schedule A 6. Schedule B-1 (Exceptions) 7. Schedule B-II (Subordinate Matters) |
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A rider attached to an insurance Policy to change coverage.
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Endorsements
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ALTA 4.
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Condominium Endorsement
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ALTA 5.
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Planned Unit Development Endorsement (PUD)
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ALTA 6 and 6.1.
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Variable Rate Mortgage Endorsements
(VRM). |
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ALTA 8.1.
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Environmental protection Lien Endorsement
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ALTA 9.
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Restrictions, Encroachments, and Mineral
Endorsements. |
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Any article of tangible property other than land, buildings, and other things annexed to land.
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Chattel
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A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc.
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Closing Statement
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A binding agreement; a compact.
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Covenant
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Transfer of title to property from one person to another.
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Conveyance
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A written legal document used to convey ownership of real property.
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Deed
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A _________ is a document which pledges real property to secure a loan
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Deed of Trust
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A place or means of exiting.
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Egress
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A lawsuit brought to remove a party who is occupying real property
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Ejectment
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________ is the situation that exists when a structure is built in whole or in part on a neighbor's property
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Encroachment
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A lien or claim on property.
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Encumbrance
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Right or permission to enter. A means or place of entering
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Ingress
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An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.
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Subrogation
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An instrument that transfers real property from one person to another and in which the grantor promises that title is good and clear of any claims
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Warranty Deed
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