Glossary Common Terms in Commercial Title

In Commercial Title, there are many common terms that are used across the industry.  Here is a list of 15 of the most common terms to help you.

Glossary of Key Commercial Title Terms

  1. Abstract of Title: A summary of the search of the public records affecting the title to a particular piece of land.
  2. ALTA: American Land Title Association, the national trade association for the title insurance industry.
  3. Closing or Settlement: Completing a real estate transaction during which deeds, mortgages, leases, and other required instruments are signed and delivered.
  4. Deed: A written document that conveys the title to real estate from one party to another.
  5. Easement: A right held by a person to make limited use of another’s real property.
  6. Encroachment: The extension of an improvement onto the property of another.
  7. Encumbrance: A claim, right, or lien on a real estate title held by someone other than the real estate owner.
  8. Endorsement: An amendment to the policy’s base coverage.
  9. Escrow: Depositing anything specific to a real estate transaction, including money and documents, with an impartial third party (typically a title company).
  10. Lien: Attached to a property when a person or entity borrows money and uses that property as collateral to guarantee the loan (and removed when the loan is paid off).
  11. Title: The rights of ownership recognized and protected by the law.
  12. Title Commitment: A document issued by a title insurance company that acts as a promise to provide a title policy on a specific property, outlining the terms and conditions of that policy.  This includes any requirements and exceptions or issues that may not be covered under the insurance.
  13. Title Defect: Any possible claim or right outstanding in the title that may prevent the current owner from transferring the title to a new owner.
  14. Title Insurance: Insurance that protects buyers and lenders against loss from defective titles, liens, and encumbrances.
  15. Title Search: A search of the public records for issues that affect the title to a particular piece of land.

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