Terms that are common when dealing with title insurance.
ALTA Title Insurance Policy – American Land Title Association combination of various policies and endorsements that lenders usually require when making a loan; expands normal coverage to include unrecorded mechanic’s liens, unrecorded physical easements, facts not revealed by a physical survey, water and mineral rights, and the right of parties in possession such as buyers who have recorded claims and tenants. 
Avulsion – a change or shift in a water boundary resulting in loss of land by an owner and the acquiring of such land by another.
Back Title Letter – Also called “Back Title Certificate” in some areas, and “Starter” in others. When title have been previously examined up to a certain date by reliable examiners, title companies sometimes give subsequent examiners of such titles a letter which 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.
Binder – Written confirmation of insurance coverage provided by an insurer prior to issuance of the actual policy.
Certificate of Title – The written opinion by an attorney that ownership of a particular property is as stated in the certificate.
Chain of Title – The history of ownership of a parcel of real estate; each deed or other instrument transferring the title is called a link and all of these links make up the chain of title.
Clear Title – Title that is free of liens or legal questions as to ownership of the property
Closer – An attorney or other person responsible for orchestrating a closing, often including drafting legal documents, receipting and explaining documents, handling funds, and meting terms of the purchase agreement, lender requirements, and Title Company.
Cloud/Defect on Title – An irregularity or encumbrance, which, would adversely affect or impair the title.
Commitment of Title – Similar to preliminary title report; guarantees a title company will issue title insurance.
Common Areas – All the areas in a condominium or planned unit development that are not specifically reserved for the individual owners; includes walkways, parking lots, and yards.
Condemnation – The taking of private property for public use.
Conditions – Specifications detailed in a deed; they may cover such things as setbacks, types of dwellings, etc.
Confirmation of Sale – Court approval of the sale of property by an executor, administrator, guardian, or conservator
Contiguous – being in actual contact; adjoining or touching.
Contract for Deed – (land contract) An agreement to sell and purchase under which the legal title is withheld from the purchaser until such time as the required payments to the seller have been completed.
Conveyance – The transfer of title to property from one person to another.
Lien – A legal claim upon property for the payment of a debt; a money encumbrance; such as, a mortgage lien, a judgment lien, or a mechanic’s lien.
Lien Waiver – A document provided by a contractor, subcontractor, or materialman, showing that they have been paid for their work and are waiving rights to file a lien.
The information contained on this website is not intended to provide legal advice but is simply informational, and the reader is advised to consult with legal counsel. Every effort has been made to provide the accuracy and reliability of the information provided on this website. However, the information is provided “as is” without warranty of any kind.