Title Insurance - Terms
ABSTRACT OF TITLE:
A compilation of recorded documents relating to a parcel of land. Also known as a “Preliminary Title Report”.
BINDER:
A report issued by a title insurance company setting forth the condition of title and setting forth conditions, which, if satisfied, will cause a policy of title insurance to be issued. Also known as a “Title Commitment”.
CHAIN OF TITLE:
The chronological order of transfer (conveyance) of a parcel of land from the original owner to the present owner.
ENCUMBRANCE:
A claim, lien or charge against real property.
GRANT DEED:
A deed used to convey title. By law, a Grant Deed gives certain warranties of title.
JOINT TENANCY:
An undivided interest in property, taken by two or more joint tenants. The interests must be equal, accruing under the same conveyance, and beginning at the same time. Upon the death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.
LIEN:
An encumbrance against property for money, either voluntary (i.e. mortgage), involuntary (i.e. judgment), or by operation of the law (i.e. property tax lien).
MECHANICS LIEN:
A lien created by state law for the purpose of securing priority of payment for the value of work performed and material furnished in construction or repair of improvements to land, and which attached to the land as well as the improvements.
QUIET TITLE PROCEEDINGS:
A court action to establish or clear up uncertainty as to ownership to real property. Often required if a lien or cloud appears on title that cannot be resolved.
QUIT CLAIM DEED: A deed by which the grantor gives up any claim he may have in the property.
Source: Investors Title Company
