Buying or selling a home is a process that requires understanding many terms. One confusing area is title-related terminology.
To simplify this, we’ve created a title glossary. Our guide includes essential terms for both first-time buyers and experienced sellers. Understanding these words will help you make better decisions during the process.
Chain of Title: The complete history of ownership of a property, including all transfers, liens, and other encumbrances.
Closing: The final step in the home buying process where ownership of the property is transferred from the seller to the buyer.
Closing Costs: The various fees and expenses associated with closing a real estate transaction, including title insurance, attorney fees, and transfer taxes.
Cloud on Title: Any unresolved issue or discrepancy that casts doubt on the validity of a property’s title.
Deed: A legal document that transfers ownership of a property from one party to another.
Easement: The legal right to use someone else’s property for a specific purpose, such as access to a driveway or utility lines.
Encumbrance: Any claim or lien against a property that affects its title, such as mortgages, easements, or unpaid taxes.
Escrow: A neutral third party that holds funds and documents on behalf of the buyer and seller until all conditions of the sale are met.
Grantor: The seller or current owner of the property who is transferring ownership.
Grantee: The buyer or new owner of the property who is receiving ownership.
Lien: A legal claim against a property to secure payment of a debt, such as a mortgage or unpaid taxes.
Title: The legal documentation proving ownership of a property.
Title Agent: An individual who represents the title company and facilitates the closing process by coordinating with the buyer, seller, lender, and other parties involved.
Title Company: A company that specializes in researching and ensuring the validity of a property’s title.
Title Insurance: Insurance that protects the buyer and the lender against any defects in the title that were not discovered during the title search.
Title Search: A thorough examination of public records to ensure that the seller is the legal owner of the property and that there are no outstanding claims or liens against it.
Now that you’re armed with knowledge about title-related terms, you’ll be better equipped to navigate the complexities of the home buying and selling process. If you have any further questions, don’t hesitate to contact our team of experts. At Surterre Properties®, we’re here to guide you every step of the way toward a successful and stress-free experience.
