The title process is integral to a real estate transaction. As such, it can be helpful to have an understanding of certain title terms, whether you are new to the home buying experience or a seasoned pro. Read on to learn some of the most common title terms to help you along your way.
Title: Refers to the ownership rights associated with a piece of real estate.
Title search: The process of reviewing the ownership history of a property to identify title defects.
Title defect: Existing judgments, liens, encumbrances, or other legal factors that could cause a title to be “unmarketable.” Without resolution, title defects could prevent a homebuyer from the full legal scope of ownership rights surrounding a property.
Title agent: A professional who carries out a title search and/or closing procedures.
Escrow: A financial arrangement managed by a neutral third party that temporarily holds and transfers real estate funds throughout the settlement process.
Lender’s title insurance: An insurance policy that protects the lender’s interest in the event a mortgage/home loan becomes unenforceable.
Owner’s title insurance: An insurance policy that protects a homeowner’s financial interest in their property should certain title defects be discovered after closing.
Closing: The settlement process of transferring ownership rights of a property from one party to another.
Closing costs: Fees paid by homebuyers and sellers during the settlement process to finalize the real estate transaction.
Deed: A legal document that represents the transfer of title (ownership) of a property from a seller(s) to a buyer(s).
Conveyance: The transfer of a property’s title from one party to another.
Encumbrance: A limitation or other factor (such as a lien or easement) restricting or otherwise impacting how a property owner can utilize said property.
For more information or to learn more about the title terms listed above, please contact the team at Linear Title & Escrow.