Abstract of Title: A document produced by a title company or independent abstracter which purports to set forth the documents from the Public Records as defined in the Abstract which affect the property recited in the Abstract recorded in those records within a specified period of time. It only shows that which can be found exercising the ordinary care and expertise expected of a professional abstracter.
Access: The right to enter and leave, ingress and egress, a tract of land from a public way. Can include the right to enter and leave over the lands of another.
Accretion: The slow build-up of lands by natural forces such as wind or water.
Acknowledgment: The act by which a party executing a legal document goes before an authorized officer or notary public and declares the same to be his or her voluntary act and deed.
Acre: A tract of land 208.71 feet square and containing 43,560 square feet of land. This oddball figures derives from the Rectangular Survey System created by Thomas Jefferson in which a one square mile area is equivalent to 640 acres. If you’re curious and wish to further explore legal descriptions generally we offer classes on the subject.
Administrator: A person appointed by a probate court to settle the affairs of an individual dying without a will. The term is "administratrix" if such a person is a woman.
Adverse Possession: A claim made against the lands of another by virtue of open and notorious possession of said lands by the claimant.
Affidavit: A sworn statement in writing.
Agent: A person or company that has the power to act on behalf of another or to transact business for another, e.g., a title agent under contract with a Title Insurance Underwriter to issue policies of title insurance.
Air Rights: The right to ownership of everything above the physical surface of the land.
ALTA: American Land Title Association, a national association of title insurance companies, abstractors and attorneys specializing in real property law. Its headquarters are in Washington, D.C.
Appurtenance: Anything so annexed to land or used with it that it will pass with the conveyance of the land.
ARM: Adjustable Rate Mortgage. See "Variable Rate Mortgage."
Assessment: The imposition of a tax, charge or levy, usually according to established rates.
Assessor: A public official who evaluates property for the purpose of taxation. Used synonymously with Count Property Appraiser.
Assignee: One to whom a transfer of assignable interest is made. For example, the assignee of a mortgage or contract.
Assignor: One who makes an assignment. For example, the assignor of a mortgage or contract.
Assumable Mortgage: A mortgage which, by its terms, allows a new owner to take over its obligations.
Attachment:Legal seizure of property to force payment of a debt.
Attorney in Fact: One who holds a power of attorney from another allowing him or her to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.
Balloon Mortgage: A mortgage that is amortized over a specific period of years, but requires a lump sum payment in full at an earlier date.
Bankruptcy: A federal court proceeding in which debtors are relieved of liability for their debts, generally after surrender of their assets to a court appointed trustee.
C & R’ s: Covenants, Conditions and Restrictions. See "Conditions and Restrictions."
Chain: A term of land measurement that is 66 feet in length. (See Link)
Chain of Title: A term applied to the past series of transactions and documents affecting the title to a particular parcel of land. (See Link)
Clear Title: One which is not encumbered or burdened with defects.
Closing: Also known as "settlement." The process of executing legally binding documents such as deeds and mortgages and the exchange of Consideration, most commonly associated with the purchase of real estate and/or the borrowing of money either to assist in the purchase, refinance or convert Equity in the property to cash.
Closing Agent: The individual or corporation which actually conducts the closing.
Clouded Title: An encumbered title.
Commitment to Insure: A report issued by a title insurance company, or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment. Also called a Title Commitment.
Common Area: The areas within a condominium development owned in Undivided Interests by all the Unit Owners of that project.
Condemnation: Taking private property for public use through court proceedings.
Conditions and Restrictions: A common term used to designate conditions and restrictions on the use of land. Includes penalties for failure to comply. Commonly used by land subdividers on newly platted areas.
Condominium: A system of individual fee ownership of units in a multi-unit structure, combined with joint ownership of common areas of the structure and land.
Conservator: See "Guardian."
Contract for Deed: An agreement to sell and purchase under which Fee Title is held as security by the seller until such time as the required payments to the seller have been completed.
Convey: The act of deeding or transferring title to another.
Conveyance: An instrument by which title is transferred, generally a deed but sometimes an Assignment of Lease. Also, the act of transferring title.
Covenant: An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.
Cul-de-Sac: The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turn around for vehicles.
Deed: A written document by which the ownership of land is transferred from one person to another.
Deed of Trust: See " Mortgage."
Delivery: The final and absolute transfer of a deed from seller to buyer in such a manner that it cannot be recalled by the seller. A necessary requisite to the transfer of title.
Devise: The disposition of real property by will.
Due on Sale Clause: Provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.
Earnest Money: Advance payment of part of the purchase price to bind a contract for property.
Easement: An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines, or crossing the property for purposes of Ingress and Egress.
Egress: The right to leave a tract of land. The rights of Ingress and Egress are generally used interchangeably with Access.
Eminent Domain: The power of the state to take private property for public use upon payment of just compensation.
Encroachment: A trespass or intrusion onto another’s property, usually by an improvement such as a structure, wall or fence.
Encumber: To burden a parcel of land with a lien or charge, e.g., a mortgage.
Encumbrance: A lien, liability or charge upon a parcel of land. Generally and mortgage, judgment or other lien.
Equity: The value of something which exceeds its encumbrances.
Escheat: A reversion of property to the state in those cases where an individual dies without heirs or devisees, and, in some states, without a will.
Escrow: A procedure whereby a disinterested third party handles legal documents and funds on behalf of two parties and delivers them upon performance by the parties.
Estate: A person’s possessions. The extent of a person’s interest in real property.
Examination of Title: The review and interpretation of the record title to real property based on the title search or abstract.
Exception: In legal descriptions, that portion of land to be deleted or excluded. The term often is used in a different sense to mean an objection to title or encumbrance on title.
Executor: A person appointed by the probate court to carry out the terms of a will. The term is "executrix" if that person is a woman.
Fannie Mae: The Federal National Mortgage Association (also FNMA) is a private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.
Fee Simple Estate: The greatest interest in a parcel of land that it is possible to own. Sometimes designated simply as Fee Title.
Federal Housing Administration (FHA) Guarantee: An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.
Financing Statement: A document filed with the Clerk of the Circuit Court and/or the Secretary of State securing the title to personal property.
Fixtures: Any item of property so attached to real property that it becomes a part of the real property. Very generally glued, screwed or nailed in a permanent fashion.
Flood Certification: A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF) issued by a Land Surveyor. This discloses whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Program.
Flood Insurance: A line of insurance which covers loss due to rising water.
Forfeiture of Title: Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.
Freddie Mac: Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.
Ginnie Mae: Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration) or VA (Veterans Administration).
Good Funds: In the State of Florida the custodians of escrowed funds, such as Closing Agents, may only make disbursements based on “Good Funds”. Generally these are defined as Bank Checks, Cashier’s Checks, Certified Credit Union Drafts, Wired Funds and other less common methods. The idea being if a funds transfer instrument fails for any reason it puts everyone who has money in that escrow account at risk and that’s why the standards are high and are enforced by the state.
Gore: A parcel of land triangular in shape unintentionally left, when attempting to describe adjoining parcels of land. See Hiatus.
Graduated Payment Mortgage: A very rare loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.
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 an interest in land.
Guardian: One appointed by the court to administer the affairs of an individual not capable of administering his or her own affairs.
Hazard Insurance: A line of insurance issued to homeowners covering “ordinary” risks such as fire or theft.
Heir: One who might inherit or succeed to an interest in land of an individual who dies without leaving a will (intestate).
Hiatus: A gap or space unintentionally left, when attempting to describe adjoining parcels of land. See Gore. Two common scenarios in which a Hiatus may be created are when surveyors use two different reference points to commence their description of supposedly adjoining parcels or the replacement of an existing, technologically less accurate description with a modern, more accurate description. These same scenarios can just as easily create an Overlap.
Home Equity Line of Credit Mortgage: HELOC – Generally a mortgage used to convert the Equity in real property to cash.
Home Repair Loan: Used for repairs and additions to existing structures without affecting existing mortgage. Typically a HELOC.
HUD 1: A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.
Improvements: Structures constructed on or changes made to real property, usually increasing its worth.
Indemnify: To make another whole after a loss by payment or action.
Ingress: The right to enter a tract of land. See Egress and Access.
Insurance: A contract of indemnity against specified perils.
Interim Financing: Temporary or short term loans. Often used with new construction. Usually replaced with a permanent long-term mortgage. Also called a Bridge Loan.
Intestate: Designates the estate or condition of failing to leave a will at death.
Joint Tenancy With Rights of Survivorship: JTWROS - An estate where two or more persons hold real estate jointly for life, the survivor(s) to take the interest of any of them when they die. There are four required factors: Time, Title, Possession and _________________
Judgment: A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from the Court’s award of money to a creditor. See "Judgment Lien."
Judgment Lien: The charge upon the lands of a debtor resulting from the decree of a court properly entered into the judgment docket.
Know All Men: This is a phrase of public address of great antiquity with which many legal documents including deeds begin to this day.
Land Contract: See "Contract for Deed."
Landmark: Any conspicuous object that helps establish land boundaries.
Lease: A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental.
Legal Opinion: As regards the Title to Florida Real Estate this would be the written opinion of an attorney licensed to practice law in Florida as to the current condition of a particular land title based on a review of the Public Records either located by the attorney, rarely, or an independent source, more likely. The Opinion is subject to the numerous conditions stated therein. The flaws exposed using this method are many and are the basis upon which title insurance was devised.
Lender’s Policy: A form of title insurance policy which insures the validity, enforceability and priority of a lender’s lien. This form does not provide protection for the owner.
Lessee: One who takes lands upon a lease.
Lessor: One who grants lands under a lease.
Lien: A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics’ liens.
Life Estate: A grant or reservation of the right of use, occupancy and ownership for the life of an individual.
Link: A term of land measurement being 1/100th of a chain or 66/100ths of a foot.
Lis Pendens: A notice recorded in the official records of a county to indicate that a suit is pending affecting the lands where the notice is recorded.
Loan Package: The documents and instructions provided by the lender setting forth the requirements for closing the mortgage loan. Although they’re all BASICALLY the same they are all slightly different with hefty fines and penalties for the Closing Agent for non-compliance. The Devil is in the details in everything in the closing business but this is where she’s hiding most often.
Loan Policy: See " Lender’s Policy."
Loss Payable Clause: Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. Usually the owner and the mortgage lender.
Lot: A part of a subdivision or block having fixed boundaries ascertainable by reference to a plat or survey.
Majority: The age at which a person is entitled to handle his or her own affairs.
Marketable Title: A good title about which there is no fair or reasonable doubt.
Mechanic’s Lien: A lien allowed by statute to contractors, laborers and material suppliers on buildings or other structures upon which work has been performed or materials supplied.
Metes and Bounds: A description of land by courses and distances.
Minor: One who because of insufficient age or status is legally incapable of making contracts.
Monument of Survey: Visible marks or indications left on natural or other objects indicating the lines and boundaries of a survey. May be posts, pillars, stones, cairns, and other such objects. May also be fixed natural objects, blazed trees, roads and even a water course.
Mortgage: An instrument used to encumber land as security for a debt.
Mortgage-Backed Security: A security evidencing either the ownership of an interest in a mortgage loan or pools of mortgage loans, or a separate obligation secured by a mortgage loan or pool of mortgage loans.
Mortgage Banker: A specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.
Mortgage Broker: A person or company that buys and sells mortgages for another on commission or who arranges for and negotiates mortgage contracts.
Mortgage Revenue Bonds: Issued by communities as a means of providing lower cost mortgage funds to certain qualified borrowers.
Mortgagee: The mortgage lender.
Mortgagee’s Policy: See "Lender’s Policy."
Mortgagor: The mortgage borrower.
Negative Amortization: An actual increase in the principal amount of real estate loan because of the addition of matured but unpaid interest to the loan balance. Usually the result of monthly payments which a re temporarily set at a lower than needed level.
Notary: One authorized to take acknowledgments.
Note: The instrument evidencing the indebtedness secured by a security instrument such as a mortgage or deed of trust.
Owner’s Policy: A policy of title insurance which
Ownership: The right to possess and use property to the exclusion of others.
Patent: A document or grant by which the federal or state government originally transferred title to public lands to an individual. The first in the series of transfers by which title comes down to present owners.
Personal Representative: A person appointed by the probate court to administer a decedent’s estate.
See also "Executor" or "Administrator."
Plat or Plot: A map representing a piece of land subdivided into lots with streets shown there on.
P.M.I.: Private Mortgage Insurance. An insurance contract which insures that the named lender will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.
Points: A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.
Policy: A written contract of title insurance.
Policyowner: The insured on a title insurance policy.
Power of Attorney: An instrument authorizing another to act on one’s behalf as his or her agent or attorney.
Power of Sale: A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.
Prorate: To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.
Public Records: These are generally considered to be the Official Records Books, Plat Books, Deed Books, Map Books and other specific “Books” created by the Clerk of the Circuit Court for a particular Florida County. These days these books are rarely books at all but actually electronic and microfilm images. “Public Records” also encompasses a wide range records maintained by other County Officials such as the Tax Collector and Property Appraiser and even other records maintained by the Clerk such as Probate Records and Civil Actions. The Federal Count System even gets into the act with Bankruptcy Records which may or may not be filed with the Clerk.
Purchase and Sale Contract: A written agreement formally executed between two or more parties in which agrees to sell and the other agrees to purchase certain real property under the terms and conditions stated therein.
Quiet Title: An action in a proper Court to remove record defects or possible claims of other parties named in the action.
Range: A part of the government survey, being a strip of land six miles in width, and numbered east or west of the principal meridian.
Real Property: Land, together with fixtures, improvements and appurtenances.
Realtor®:A federally registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors ® and subscribes to its strict Code of Ethics.
Realty: A brief term for real property.
Redeem: Literally "to buy back." The act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.
Registered Land: See " Torrens Title."
Reinsurance: To insure again by transferring to another insurance company all or part of an assumed liability, thus spreading the loss risk any one company has to carry.
REIT: Real Estate Investment Trust. A product of federal tax legislation formed as a business trust, under a special state REIT statute or as a corporation for the purpose of investing in real estate or mortgages on real estate.
REMIC: Real Estate Mortgage Investment Conduit. A product of 1986 federal tax legislation in which a business entity such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects to be treated as a REMIC. Qualification avoids treatment as a corporation for tax purposes.
Reverse or Reverse Annuity Mortgage: A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower’s estate is settled, provided the borrower continues to live in the home and keeps current all taxes and insurance.
See also "Home Equity Conversion Mortgage."
Right-of-Way: The right which one has to pass across the lands of another. An easement.
Riparian: Rights to use of water and waterways in adjoining lakes or rivers.
Second Mortgage: A second loan on real estate that a l ready has a mortgage. It is subordinate to the first mortgage. Usually of shorter term and often at a higher interest rate.
Section or Section of Land: A parcel of land comprising one square mile or 640 acres.
Set Back Lines: Those lines which delineate the required distances for the location of structures in relation to the perimeter of the property.
Sub-surface Right: The right of ownership to things lying beneath the physical surface of the property.
Survey: The process of measuring land to determine its size, location and physical description. Most often used to described the resulting product, I.E. Survey Map, rather than the act of Surveying.
Tenancy by the Entirety: Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other’s death.
Tenancy in Common: An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.
Tenant: Any person occupying real property with the owner’s permission.
Testament: Another term for a will. Commonly referred to as "last will and testament."
Testate: The estate or condition of leaving a will at death. "To die testate."
Testator: A man who makes or has made a testament or will.
Testatrix: A woman who makes or has made a testament or will.
Title: The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.
Title Defect: Any legal right held by others to claim property or to make demands upon the owner.
Title Insurance: Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.
Title Plant: The total facilities: records, equipment, fixtures, and personnel: required to function as a title insurance operation. Technically, the organization of official records affecting real property into a system which allows quick and efficient recovery of title information.
Title Search: An examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.
Torrens Title: A system whereby, after court proceedings, a certificate is issued setting forth the extent of the applicant’s estate in land subject to the exceptions shown. Most popular in the early 1900’s, the system was adopted in 19 states. It is presently used only in parts of six states.
Township: A division of territory six miles square, containing 36 sections or 36 square miles.
Tract: A particular parcel of land.
Trust: A property right held by one as a fiduciary for the benefit of another.
Trustee: A person holding property in trust as a fiduciary for the benefit of another.
Underwriter: The licensed insurance company which underwrites or guarantees each individual policy of title insurance. As opposed to the Agent who is the issuer of the policy on behalf of the Underwriter. Also the title of the person who makes decisions regarding risk in various industries such as title insurance and lending.
Undivided Interest: The percentage ownership interest of each tenant in common. For instance the owner of a 1/3 interest is said to own an undivided 1/3 interest.
VA Guarantee: An insurance contract in which the Veterans Administration (VA) insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.
Variable Rate Mortgage: A loan in which the interest rate fluctuates with the cost of funds or some other index.
Vendee: A purchaser of real property under land contract.
Vendor: A seller of real property under land contract.
Vest: To pass to a person an immediate right or interest. Title may be said to vest in John Smith.
Vestee: A nonlegal term used by title insurers to indicate the owner of real property in a policy or report.
Warranty: A promise by the grantor of real property that he or she is the owner and will be responsible to the buyer if title is other than as represented.
Will: A written document providing for the distribution of property owned by a person after his or her death.
Windstorm Insurance: A line of insurance to cover an exception in standard Hazard Insurance policies for Windstorms. This is generally accepted to mean Hurricanes.
Wood Destroying Organisms Report: In Florida a report prepared by a licensed professional after a personal inspection of the premises stating the observations made as to the readily observable presence of various wood destroying organisms.
Signature by “X”: The procedure by which persons unable to read and/or write may affix a legally binding signature to a document by affixing an “X”. The method is fairly exact and rarely used.
Yield Spread Premium: A fee paid to a mortgage broker by a mortgage lender for the procurement of a loan based on the difference between the effective interest rate the consumer pays and the lender’s “floor” interest rate.
Zoning: The right of a municipality to regulate and determine the compatible character and use of property. Zoning is a police power exercised by the state and is not a matter covered in a title insurance policy in Florida.