Title Terms to Know: Part Two

In this post, we continue our breakdown of title terminology, specifically relating to the Closing Disclosure (CD) form.

Title Terms Continued

Unless otherwise noted, these terms apply to/appear on the buyer’s side of the real estate transaction:

  • Title Insurance: Protects parties against financial loss should clouds, liens or other claims on title arise. (See our Title Insurance page for more detailed information.)
  • Owner’s Policy: Title insurance covering the homeowner’s interests should a defect on title become apparent.
  • Lender’s Policy: Title insurance covering the mortgage lender’s interests in the event of title problems (required by lenders at the expense of the homeowner).
  • Settlement/Closing Fee: Amount charged by the title agency/closing attorney to process the close of property sale. (May also appear as “Title Services.”)
  • Title Search/Title Exam Fee: Amount charged to research history of title and identify any defects, liens or claims of ownership surrounding the property.
  • Recording Fees/Recording Charges: Fees charged to record the transfer of title from one party to the other with the appropriate municipality (split to satisfy that of both the deed and the mortgage).
  • City/County/State Tax Stamps: Revenue collected on the sale of a property, generally for the purpose of supporting community improvement initiatives.
  • CPL (Closing Protection Letter) Fee: Covers the cost of insurance issued by the title insurer regarding actions carried out by the title agent/underwriter/closer.
  • Grantor’s Tax: Amount remitted to the Clerk of Court for recordation of deed (typically paid by the seller).

At Linear Title & Escrow we remain steadfast in our commitment to excellence, providing exceptional service, streamlining communication, and facilitating a smooth and efficient real estate transaction. For more information on the title terms presented in our two-part series or questions regarding the settlement process, please contact us today at (757) 340.0340.

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