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A history of all transactions shown in the public records affecting a particular tract of land.
A provision in a promissory note that specifies conditions under which the lender may advance the time when the entire debt which is secured by the mortgage becomes due.
A formal declaration before an authorized officer (usually a notary public) by a person who has signed an instrument that such signing is the individual s act.
Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. See also graduated payment mortgage.
The cost of the property adjusted for any capital improvements or depreciation. To calculate the adjusted basis, take the basis (the cost of the property) and add the cost of any capital improvements made to the property during the taxpayer’s ownership, and subtract any depreciation taken on the property during the same period.
A person appointed by a court to take possession of the property of a person who died without leaving a will, to pay debts and to distribute the property to those entitled to it according to law.
The possession, by one party, of land belonging to another in a manner deemed adverse to the interest of the record owner.
One who swears to or affirms the statement in an affidavit.
A written statement made under oath before a notary public or other judicial officer.
Provisions in title insurance policies by which the insurer agrees to indemnify against loss due to specific risks generally not covered by policies.
A legally binding contract made between two or more persons.
A premium for title insurance that includes the cost of title search and title examination, as well as the risk premium. In some localities, title insurance is priced with an all.m description
The trade association of the title insurance industry, which has adopted certain insurance policy forms to standardize coverage on a national basis.
Reduction of the principal of a debt in regular, periodic installments.
A report from an independent third party detailing the estimated value of real estate.
An attorney approved by a title insurance company as one whose opinions of title will be accepted by the company and relied upon for the preparation of title insurance policies.
A right or privilege that is attached to another property and is conveyed with it. See also easement and encroachment.
The valuation placed upon land for purposes of taxation.
The valuation of real estate for the purpose of taxes or special improvement charges. Special improvement charges are usually for the costs of streets, sidewalks, sewers, etc.
The act of transferring certain interests in real estate from one party to another, like a mortgage or leasehold interest.
An obligation undertaken by a new purchaser of land to be liable for payment of an existing note secured by a mortgage.
A person who holds a power of attorney from another to execute specified documents on behalf of the seller of the power.
A statement by an attorney as to the validity of a title, arrived at after investigation of the history of the title as recorded in the public records.

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The Exchange Accommodation Titleholder (EAT) acquires and holds title to the replacement property and “parks” this replacement property for up to 180 days, which allows the taxpayer to find and transfer the relinquished property to a third party buyer. The taxpayer can “use”(lease) the property that is parked with the EAT.
When titles previously have been examined up to a certain date by reliable examiners, title companies sometimes give subsequent examiners of such titles a letter that sets forth the condition of the title at the time of the previous examination and authorizes them to begin their subsequent examination with the terminal date of the previous examination.
When titles previously have been examined up to a certain date by reliable examiners, title companies sometimes give subsequent examiners of such titles a letter that sets forth the condition of the title at the time of the previous examination and authorizes them to begin their subsequent examination with the terminal date of the previous examination.
This method of completing the transaction utilizes the seller of the replacement property (Party B) as the accommodator. On the day of closing, A will transfer the relinquished property to B, the replacement property owner, in exchange for the replacement property. Party A has what they want; however, Party B has the relinquished property, which B does not want. Party B must now sell the A property to C for cash. In this way, B receives the cash directly from C and A has no actual or constructive receipt of the funds.
A promissory note with amortization payments scheduled for a long term, usually 30 years, but maturing in a shorter term, often five to seven years. It requires a substantial final balloon payment for the remaining principal.
A federal court proceeding under the U.S. bankruptcy laws where an insolvent debtor either has its estate liquidated and its debts discharged or is allowed to reorganize its affairs under the protection of the bankruptcy court.
Title to an area or tract out of which parts are subsequently conveyed or from which a subdivision or development is made.
The starting point for determining gain or loss in any transaction. In general, basis is the cost of the taxpayer’s property.
The basis of the taxpayer’s relinquished property with appropriate adjustments.
A person designated to receive benefits from a trust estate.
(1) A surety insurance agreement under which one party agrees to pay, within stated limits, financial loss caused to another by specified acts or defaults of a third party. (2) An interest-bearing security evidencing a long-term debt, issued by a government or corporation, and sometimes secured by a lien on property.
All property given or received in an exchange which is not like kind. In an exchange of real property, any consideration received other than real property is non-like kind and is considered boot. (See also cash boot and mortgage boot.)
A build-to-suit (or construction) exchange allows improvements or repairs to be made on a replacement property before it is transferred to the taxpayer.
Local or state laws that control accepted building and construction ractices.
Lines fixed at a specified distance from the front or sides of a lot or at a certain distance from a road or street. No building on the lot may project outside the area defined by the building lines.
The person who wants to acquire the exchanger’s property.

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Cash or anything else of value received.
A certificate issued by a title examiner stating the condition of a title.
In real estate measurements (surveying), a chain is 66 feet long or 100 links, each link being 7.92 inches.
The history of successive ownership and transfer in the title to a tract of land.
An adverse right or interest asserted by one party against another or against an insurer or indemnitor.
Real property ownership free of liens, defects, encumbrances, or claims.
The completion of a real estate transfer, where the title passes from seller to buyer, or a mortgage lien is given to secure debt.
Miscellaneous expenses involved in closing a real estate transaction over and above the price of the land.
A land title having an irregularity, possible claim, or encumbrance that, if valid, would adversely affect or impair it.
Two or more title insurance policies issued by different insurers, each covering a portion of the same risk, which together provide total coverage of the risk.
Marketable real or personal property which a borrower pledges as security for a loan.
A document issued by a title insurance company that contains the conditions under which a policy of title insurance will be issued.
In condominiums and cooperatives the common elements are everything except units. In a planned community, it is land owned by the community association.
Real estate that a person, by virtue of their ownership of a unit, is obligated to pay for real estate taxes, insurance premiums, maintenance, or improvement of other real estate described in a declaration.
The law in some western states that recognizes all property acquired by a husband and wife, or either, during marriage (except property specifically acquired by a husband or wife as separate property), as owned in common by both of them.
The taking of private property for a public purpose with compensation to the owner under the right of eminent domain. Governmental units, railroads and some utility companies have the right to condemn and take private property.
A statutory form of real estate development of separately-owned units and jointly-owned common elements in a multi-unit project. See also cooperative, common interest community, or planned unit development.
Anything of legal value that encourages someone to enter into a contract.
A direct payment plan for disbursement of construction loans and equity funds through the title insurance company as an independent escrow agent to subcontractors and suppliers upon approval of the owner, general contractor, and lender.
A loan made to finance construction of improvements on land.
A presumption in law that prevents a party from denying knowledge of facts where the party has a duty to inquire.
Agreement by one person to buy and another person to sell a specified parcel of land at a specified price.
The transfer of title to property from one person to another.
An apartment building owned by a corporation that gives possession to individual apartments by proprietary leases appurtenant to shares of the stock of the corporation. Transfer of title to the shares transfers the lease. See also condominium, common interest community, and planned unit development.
Ownership of an interest in a particular parcel of land by more than one person.
A formal agreement or contract between two parties in which one party gives the other certain promises and assurances in a warranty deed. It is often used to indicate a single promise within an agreement that contains several promises.

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The document that establishes a condominium, cooperative, or planned community and describes the most important property rights of the unit owners.
The setting aside of certain land by the owner and declaring it to be for public use, e.g., streets, sidewalks, and parks in a development.
An instrument for conveying real estate.
A form of security instrument for mortgage loans.
A covenant contained in a deed imposing limits on the use or occupancy of the real estate, or the type, size, purpose or location of improvements to be constructed on it.
A failure to meet legal or contractual obligations.
An imperfection or deficiency.
The substitution of, or carrying over of, the basis of the taxpayer’s relinquished property to the replacement property, making any necessary adjustment for additional consideration paid.
When the proceeds from a foreclosure sale are less than the amount due on the debt.
The taxpayer disposes of the relinquished property on one day, and then has up to 180 days from that date (or the due date of taxpayer’s income tax return, including extensions, whichever event occurs first) to acquire the replacement property. The transaction must be an exchange of property for property, and not a sale of property for money that is used to acquire replacement property. An exchange occurs when the taxpayer (through the use of a Qualified Intermediary) conveys relinquished property to the same party from whom the taxpayer acquires the “replacement property.”
Loss in value due to ordinary wear and tear, destructive action of the elements, or economic obsolescence.
Deductions taken in excess of straight-line depreciation under Section 1250 I.R.C. where there is an exchange into a property of lower value, or where the exchange consists partly of cash and property not of a like kind. The depreciation provisions of Section 1250 require a recapture tax rate rather than the capital gain tax rate.
A gift of real estate made by a will. See also grantor and heir.
The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate.
The property benefited by an easement.
Disbursement of a portion of the mortgage loan.

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A deposit of funds made by a buyer of real estate as evidence of good faith.
A non-possessory right to use all or part of the land owned by another for a specific purpose. See also appurtenance and encroachment.
The power of a government to take privately-owned property for public purposes under condemnation proceedings, subject to payment of its fair market value.
Any building, improvement, or structure (such as a wall, fence, or driveway) located on one property that intrudes upon the property of another. See also appurtenance and encroachment.
Any interest, right, lien, or liability attached to a parcel of land (such as unpaid taxes or an unsatisfied mortgage) that constitutes or represents a burden upon the property.
A form issued by the insurer at the request of the insured which changes terms or items in an issued title insurance policy or commitment.
The market value of real property, less the amount of existing liens.
The purchaser’s investment in the purchase of land, not including any loan proceeds.
A mortgage transaction where the lender, in addition to receiving interest on the loan, acquires an interest in the borrower’s land and shares in the profits derived from the land. See also shared appreciation mortgage.
The reversion of property to the state when an owner dies or disappears leaving no legal heirs, devisees, or claimants.
Closing a real estate transaction when all required documents and funds are placed with a third party for processing and disbursement.
The degree, quantity, nature, and extent of interest that a person has in land.
A legal restraint that stops or prevents a person from contradicting or reneging on their previous position, assertions, or commitments.
Latin meaning “and wife.”
The study of the instruments and muniments to a chain of title in order to reach a conclusion as to the status of the title.
A provision added to Schedule B of a title insurance binder or policy to limit the liability of the insurer for a specific title defect or an outstanding lien or encumbrance.
Same as taxpayer.
Those general matters affecting title to real property excluded from coverage in the Exclusions from Coverage of a title insurance policy.
To sign a legal instrument. A deed is said to be executed when it is signed, sealed, witnessed, and delivered.
A personal representative named in a will to administer the estate. “Executrix” is the feminine form.

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Federal National Mortgage Association. A U.S. government sponsored corporation dealing in the purchase of first mortgages for the secondary market.
A mortgage loan that originates in a federally-insured governmental program like the FHA.
An estate in land of inheritance without condition belonging to the owner.
A federal agency that insures first mortgages, enabling lenders to lend a very high percentage of the sale price.
A mortgage having a rate of interest that remains the same for the life of the mortgage.
Personal property that is attached to real property and is treated as real property while it is attached, e.g., medicine cabinets, window blinds, and chandeliers.
See variable interest rate.
A legal proceeding following a default by a borrower in which real estate secured by a mortgage or deed of trust is sold to satisfy the underlying debt.
The fraudulent signing of another’s name to an instrument such as a deed, mortgage, or check.
Federal Home Loan Mortgage Corporation. A federal agency that purchases both conventional and federally-insured first mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.
The Exchange Accommodation Titleholder (EAT) acquires and holds title to the taxpayer’s relinquished property, allowing the taxpayer to acquire the replacement property from the third party seller. The taxpayer has 180 days to find a third party buyer and to transfer the “parked” relinquished property to this ultimate buyer. The taxpayer can “use” (lease) the property that is parked with the EAT.

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The amount obtained for a property minus the property’s adjusted basis and transaction costs. No matter what the adjusted basis of a property is, there is no gain until the property is transferred. (See also realized gain, recognized gain.)
A deed containing a covenant by the seller to protect the buyer against being dispossessed due to adverse claims against the land.
Government National Mortgage Association. A federal association working with the FHA that offers special assistance in obtaining mortgages and purchasing mortgages in the secondary market.
(1) Honest intent, or (2) without notice of any circumstance that would make a party suspect wrongdoing or fraud in a transaction.
The Real Estate Settlement Procedures Act (RESPA) requires creditors to provide a good faith estimate of closing costs and a settlement statement listing the amounts paid by the consumer. If the creditor does not know the precise credit terms, the creditor must base the disclosures on the best information reasonably available and indicate that the disclosures are estimates. See also RESPA.
A mortgage securing a loan where the initial monthly payments on the loan are insufficient to satisfy interest payments at the stated interest rate and payments increase in accordance to a schedule. See also adjustable rate mortgage.
A transfer or conveyance, implying that the transferor asserts that it has some title to something conveyed.
The buyer, or one to whom property is transferred.
The seller, or one who transfers property to another.
A title insurance policy that insures only against defects of title appearing in the public records.

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The person who, at the death of the owner of land, is entitled to the land if the owner has died without a will. See also devise and intestate.
Any and all kinds of estates, interest, and rights in real estate that can be inherited.
Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home.
A person’s dwelling and that part of the land close to the dwelling. Many states by statute give special privileges to such lands, such as exemptions from remedies of creditors.
The federal department responsible for the major housing programs in the United States.

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To protect, hold harmless against loss.
The party obligated in an indemnity agreement to protect or repay another for a loss.
Requires the indemnitor to respond and protect the creditor as soon as a claim is made against the creditor, even if the creditor has yet to suffer an actual loss.
Requires the indemnitor to reimburse its creditor if the creditor has actually suffered a loss.
An agreement by the maker of the document to protect or repay another of the agreement up to the limit stated for any loss due to the contingency stated on the agreement.
An alphabetical listing in the public records of the parties to recorded real estate instruments with the book and page number of the record.
A written document.
A land title that a title insurance company is willing to insure.
An agreement by the title insurer to indemnify the insured for any loss in settlement funds caused by (1) the failure of the company’s policy issuing agents or approved attorneys to conform to closing instructions of the insured, or (2) fraud or dishonesty of the issuing agent or approved attorney.
A fee for the use of someone else’s money.
A time share estate where the unit purchaser is deeded an estate for years, giving a right to occupy the unit for a particular week during a stated number of years with a remainder interest in fee as a tenant in common with all other purchasers of the unit.
Without having made a valid will or one who dies without having made a will. See also heir and testate.

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An estate in cotenancy that must not only be specified in the grant, but also requires three “unities.” All joint tenants must receive title in the same conveyance, beginning at the same time, and with undivided possession.
Persons who own an estate in joint tenancy.
The decision of a court regarding the rights of parties in an action. text goes here
See index.
A mortgage lower in lien priority than another, for example, a second mortgage or home equity line.