Abstract
A summary.

Abstract of Judgement
A summary of money judgment obtained in court. (When this summary or abstract is recorded in the county recorder's office, in some states the judgment becomes a lien on the debtor's property, both presently owned or after-acquired.) Index

Abstract of Title
A summary prepared by a licensed abstractor of all documents recorded in the public records of the political subdivision where the land is located. An abstract in some states or areas is reviewed by an attorney or other experienced title examiner to determine the status of title. Virtually every abstractor today provides actual copies of the records rather than an abstract of each document Index

Abatement
A reduction or decrease. Usually applies to a decrease of assessed valuation of ad valorem taxes after the assessment, and levy. Index

Acceleration Clause
Clause in a deed of trust or mortgage, which "accelerates," or hastens, the time when the indebtedness becomes due. For example, some deeds of trust contain a provision (an acceleration clause) stating that the note shall become due immediately upon the sale of the land or upon failure to pay interest or an installment of principal and interest. Index

Accomodation Recording
Recording of instruments with the county recorder by a title company merely as a convenience to a customer and without assumption of responsibility for correctness or validity. Index

Acknowledgement
A formal declaration before a duly authorized officer (such as a notary public) by a person who has executed an instrument that such execution is his own act and deed. An acknowledgment is necessary to entitle an instrument (with certain specific exceptions) to be recorded, to impart constructive notice of its contents and to entitle the instrument to be used as evidence without further proof. The certificate of acknowledgment is attached to the instrument or incorporated therein. Index

Adjustable Mortgage Loans (AML'S)
Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM'S), Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate Index). Index

Administrator
A person appointed by the probate court to carry out the administration of a decedent's estate when the decedent has left no will. If a woman is appointed, she is called an administratrix. Index

Adverse Possession
A process of acquiring title to real property by possession for a certain (statutory) period of time, in addition to fulfilling other conditions. Index

Affidavit
A written statement or declaration, sworn to before an officer who has authority to administer an oath. Index

Agent
One who has authorization, either expressed or implied, to act for or represent another party, usually in business matters, such as issuing title insurance policies on behalf of a title insurer for a portion of the premium. Index

Agreement of Sale
A written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) on an installment or deferred payment plan. It is also known as an agreement to convey, a long form Security Agreement or a real estate installment contract. Index

All-Inclusive Rate
Rate which includes charges for title insurance, searching or abstract fees and examination fees. Index

ALTA
(American Land Title Association) Organization composed of title insurance firms which sets standards for the industry, including title insurance policy forms used on a national basis. Index

Amendment
A change either to alter, add to, or correct part of an agreement without changing the principal idea or essence. Index

Amortized Loan
A loan that is paid off, both interest and principal, by regular payments that are equal or nearly equal. Index

Annual Percentage Rate (A.P.R.)
The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest would be much more than 6% simple interest, even though both would say 6%. The A.P.R. is disclosed as a requirement of federal truth in lending statutes. Index

Appraisal
An estimate of value of property resulting from analysis of facts about the property; an opinion of value. Index

Approved Attorney
An attorney whose opinion is acceptable to a title company as the basis for issuance of a title insurance policy by the insurer. The insurer, rather than the attorney, executes the policy. Index

Assumption
The act of conveying real property; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property. Index

Back Title Letter or Certificate
See Starter. Index

Bankruptcy
A special proceeding under federal, or in some instances state, laws by which the property of a debtor is protected by the court and may be divided among the debtor's creditors and the debtor. Index

Basis or Tax Basis

Beneficiary
As used in a Trust Deed, the Beneficiary is the Lender. Index

Blanket Mortgate or Trust Deed
A mortgage or trust deed that covers more than one lot or parcel of real property, and often an entire subdivision. As individual lots are sold, a partial reconveyance from the blanket mortgage is ordinarily obtained. Index

Bona Fide Purchaser
One who buys property in good faith, for fair value, and without notice of any adverse claim or right of third parties. Index

Boot

Branch
A subordinate or division office of Golden Escrow Company, as opposed to an affiliate, agent, subsidiary or underwritten firm associated with the Company. Index

Breach of Contract
Failure to perform a contract, in whole or part, without legal excuse. Index

Building Contract
An agreement between an owner or lessee and a building contractor, setting forth terms relative to the construction of a proposed structure. Index

Buydown
A payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan. The buydown is usually for the first one to five years of the loan. (See also: Certificate Backed Mortgage). Index

Capitalization Rate
The percentage (acceptable to an average buyer) used to determine the value of income property through capitalization. Index

Cash Out

Certificate of Title
In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract. Index

Close of Escrow
The date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner, and title insurance becomes effective. Index

Closing
The final procedure in the real estate sales process, where the sale and pertinent loan are completed by the execution of documents for recording. In some areas, this procedure is known as the closing of escrow. Index

Closing costs
The numerous expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to price of the property and are items prepaid at the closing day. Index

Cloud on Title
An irregularity, possible claim, or encumbrance which, if valid, would adversely affect or impair the title. Index

Coinsurance
Ordinary coinsurance is defined as a transaction under which each of two or more insurers assumes a designated portion of the liability for the total risk and is liable for only such portion of any loss beginning at the first dollar of loss. (See Reinsurance.) Index

Collateral
By or at the side, additional or auxiliary. Mistakenly used to mean collateral security. Index

Collateral Security
Most commonly used to mean some security in addition to the personal obligation of the borrower. Index

Commitment
A binding contract with a title company to issue a specific title policy, showing only those exceptions contained in the commitment and any intervening matters after the date of the commitment and prior to the effective date of the policy. The commitment contains all information included in the preliminary title report, plus a list of the title company's requirements to insure the transaction. It also includes the standard exceptions from coverage that will appear in the policy. Index

Community Driveway
A driveway which is jointly owned, used and maintained by two or more persons. Usually, a portion of each owner's property is burdened by the driveway. Index

Community Property
Property acquired by husband, wife or both during marriage which gives each spouse an interest in the property whether each appears in title or not. Index

Comparable Sales
Sales that have similar characteristics as the subject property, used for analysis in the appraisal. Commonly called "comps." Index

Condemnation
The taking of private property by the government for public use - as for a street or a storm drain - upon making just compensation to the owner. This right or power of government to take property for a necessary public use is called "eminent domain." Index

Conservator
A person appointed by the court to care for the person and/or property of an incompetent adult or an adult unable to care for their person or property because of health. Index

Constructive Notice
Notice imparted by the public records of the county when documents entitled to recording are recorded. Index

Conveyance
An instrument in writng, such as a deed or trust deed, used to transfer (convey) title to property from one person to another. Index

Corporation
An entity authorized by law and established by a group of people, the stockholders, which is endowed with certain rights, privileges and duties similar to an individual. Index

Covenant
(1) A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as the covenant of warranty in a warranty deed. (2) Agreements or promises contained in deeds and other instruments for performance or nonperformance of certain acts, or use or nonuse of property in a certain manner. Index

Covenants, Conditions and Restrictions
Commonly called "CC & R's" the term usually refers to a written recorded declaration which sets forth certain covenants, conditions, restrictions, rules or regulations established by a subdivider or other landowner to create uniformity of buildings and use within tracts of land or groups of lots. The restrictions also can be established by deed. CC & R's are sometimes referred to as private zoning. Index

Debt
Money owing from one person to another. Index

Debtor
One who owes a debt. Index

Decree of Distribution
A probate court decree which determines how the estate of a decedent shall be distributed. Index

Deed
Written document by which an estate or interest in real property is transferred from one person to another. The person who transfers the interest is called the "grantor." The one who acquires the interest is called the "grantee." Examples of deeds are grant deeds, administrators' deeds, executors' deeds, quitclaim deeds, etc. The deed to use depends on the language of the deed, the legal capacity of the grantor and other circumstances. Index

Deed of Trust or Trust Deed
A written document by which the title to land is conveyed as security for the repayment of a loan or other obligation. It is a form of mortgage. The landowner or debtor is called the "trustor." The party to whom the legal title is conveyed (and who may be called on to conduct a sale thereof if the loan is not paid) is the "trustee." The lender is the "beneficiary." When the loan is paid off, the trustee is asked by the beneficiary to issue a "recon" or reconveyance. This reconveyance corresponds to the release that the holder of a mortgage executes when the mortgage is paid off. Index

Deed Restrictions
Limitations in the deed to a property that dictate certain uses that may or not be made of the property. Index

Defect
A blemish, imperfection or deficiency. A defective title is one that is irregular and faulty. Index

Defective Title
(1) Title to a negotiable instrument obtained by fraud. (2) Title to real property which lacks some of the elements necessary to transfer good title. Index

Deferred Exchanges . Simultaneous Exchanges . Nonsimultaneous Exchanges . Exchanges . Starker Exchanges

Demand Note
A note having no date for repayment, but due on demand of the lender. Index

Deposit
(1) Money given by the buyer with an offer to purchase. Shows good faith. Also called earnest money. (2) A natural accumulation of resources (oil, gold, etc.) which may be commercially recovered and marketed. Index

Description
The exact location of a piece of real property stated in terms of lot, block, tract, part lot, metes and bounds, recorded instruments, or U.S. Government survey (sectionalized). This is also referred to as legal description of property. Index

Direct Lender
Direct lenders can approve and lend their own money. They able to make loan commitments as well as give loan approvals. Direct lenders are capable of dealing directly with the customer. Index

Direct Deeding

Disqualified Person

Earnest Money Deposit
Down payment made by a purchaser of real estate as evidence of good faith; a deposit or partial payment. Index

Easement
A right or interest in the use of the land of another which entitles the holder to some use, privilege or benefit, such as to place pole lines, pipe lines or roads thereon. Index

Effective Demand
A qualifying term meaning the ability to pay as well as desire to buy. Index

Eminent Domain
The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value. See Condemnation. Index

Encroachment
The presence of an improvement such as a building, a wall, a fence or other fixture which overlaps onto the property of an adjoining owner. Index

Encumbrance
A right or claim upon real property (land) held by one other than the property owner. Encumbrances are divided into two classes, as follows: a) Liens (mortgages, deeds of trust, mechanics' liens, local taxes, assessments, judgments, attachments, etc.). b) Encumbrances other than liens which are limitations on the ownership of the land (such as conditions, restrictions, reservations, easements, etc.). Index

Endorsement
Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured. Index

Equity
(1) A legal doctrine based on fairness, rather than strict interpretation of the letter of the law. (2) The market value of real property, less the amount of existing liens. If for example, you put 20 percent down on a house, you have 20 percent in your property. Over time, you earn more equity as you pay down the balance of your loan. (3) Any ownership investment (stocks, real estate, etc.) as opposed to investing as a lender (bonds, mortgages, etc.). Index

Escheat
The reversion of property to the state when an owner dies leaving no legal heirs, devisees or claimants. Index

Escrow
An independent third party, such as Golden Escrow Inc., who acts as the agent for buyer and seller, or for borrower and lender, carrying out instructions of both and disbursing documents and funds. Escrow closes and the transfer of property or document is completed upon fulfillment of certain conditions specified in the written instructions, whereupon the necessary deeds and other instruments are recorded. Index

Estate
(1) The interest or nature of the interest which one has in property, such as a life estate, the estate of a decreased, real estate, etc. (2) A large house with substantial grounds surrounding it, giving the connotation of belonging to a wealthy person. Index

Exchanges . Simultaneous Exchanges . Nonsimultaneous Exchanges . Deferred Exchanges . Starker Exchanges

Exchange Agreement

Exchange Balance . Interest on Exchange Balance

Exchange Cooperation Clause

Exchange Period

Execution
An order directing a sheriff, constable, marshal or court-appointed commissioner to enforce a money judgment against the property of a debtor. This officer, if necessary, may sell the property to satisfy the judgment. Index

Executor
A person appointed in a will and affirmed by the probate court to cause a distribution of the decedent's estate in accordance with the will. (The one who makes the will is called a "testator.") If a woman is appointed, she is referred to as the "executrix." Index

Fee Simple
An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership. Index

File and Use
In most states, title insurers file rate schedules, title insurance policies and endorsement forms with the State Insurance Department or other state agency and then may use such items or rates starting within a specified period of time after filing. Rates so filed usually are mandatory. Index

Fixed Rate Mortgage
A mortgage having a rate of interest which remains the same for the life of the mortgage. Index

Foreclosure
The sale of property used as security for a debt after default in payment. Index

Forfeiture of Title
A common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other proper document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or some later owner) and will revert to the seller. Index

Forms of Security

Full Disclosure
In real estate, revealing all the known facts which may affect the decision of a buyer or tenant. A broker must disclose known defects in the property for sale or lease. Index

"Good Faith" or "Mortgage Savings" CLAUSE
A clause in CC & R's which provides that " a violation thereof shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value." Index

Good Faith Purchaser or Mortgagee
A person who buys or lends in good faith, that is, without notice of any existing problem, where value is paid or lent. Index

Grant
A transfer of real estate, between individuals, by deed. A transfer of real estate from a sovereign is accomplished by patent or royal decree. Index

Grantee
See Deed. Index

Grantor
See Deed. Index

Grant Deed
One of the many types of deeds used to transfer real property. Contains warranties against prior conveyances or encumbrances. When title insurance is purchased, warranties in a deed are of little practical significance. Index

Guarantees

Guardian
A person appointed by a court to manage the person and/or property of one who is legally incompetent to handle his/her own affairs. Index

Hazard Insurance
Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property. Index

Homestead
A statutory protection from execution or the establishment of title by occupation of real property in accordance with the laws of various states or the Federal Government. Index

Identification Period

Impounds
A trust type of account established by lenders for the accumulation of borrower's funds to meet periodic payments of taxes, mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security. Index

Indemnity
Insurance against possible loss or damage. A title insurance policy is a contract of indemnity. Index

Intermediary or Qualified Intermediary

Judgment Lien
A lien against the property of a judgment debtor. An involuntary lien. Index

Land Contract
An installment contract for the sale of land whereby the seller (vendor) holds legal title and the buyer (vendee) has equitable title until the sales price is paid in full. Index

Lease
An agreement by which an owner of real property (lessor) gives the right of possession to another (lessee), for a specified period of time (term) and for a specified consideration (rent). Index

Legal Description
A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other. Index

Lender
Any person or entity advancing funds which are to be repaid. A general term encompassing all mortgagees, and beneficiaries under deeds of trust. Index

Letter of Credit

Lien
An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens. Index

Material and Substantial Contingency

Mechanics Lien
A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements. Index

Mortgage
(1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan. Index

Mortgage Broker
Mortgage brokers arrange residential mortgages. They don't lend money and can't approve loans or make loan commitments. Their role is to bring borrowers and lenders together. Brokers keep tabs on the mortgage market through ties to local, regional and national lenders and can refer a future borrower to a mortgage banker, saving institutions or commercial banks. Index

Mortgagee
The party lending the money and receiving the mortgage. Mortgagor: The party who borrows the money and gives the mortgage. Index

MIP
The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in ... Index

Nonsimultaneous Exchanges . Deferred Exchanges . Exchanges . Simultaneous Exchanges . Starker Exchanges

Note
A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on demand. Usually provides for interest and, concerning real property, is secured by a mortgage or trust deed. Index

Obligee
One to whom an obligation (promise) is owned. Index

Obligor
One who legally binds (obligates) oneself, such as the maker of a promissory note. Index

Original Cost
The purchase price of property, paid by the present owner. The present owner may or may not be the first owner. Index

Owner's Policy
A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against or unmarketability of the owner's title. Index

Parcel
Any area of land contained within a single description. Index

Part Sale/Part Exchange

Partnership
An association of two or more persons who have contracted to join in business and share the profits. Index

Party Wall
A wall generally erected on a property boundary or between two lots for the common benefit and use of the property owners on either side. Index

Patent
A conveyance of title to land by the Federal or State Government. Index

Personal Property (movable)
Any property that is not designated by law as real property (i.e., money, goods, evidences of debt, rights of action, furniture, automobiles). Index

"P.I.Q."
A title term referring to Property In Question. Index

PITI
A payment that combines Principal, Interest, Taxes, and Insurance. Index

PLAT
A plan, map or chart of a tract or town site dividing a parcel of land into lots. Index

Points
A one time-only fee you pay in connection with your loan when obtaining a purchase loan or a refinance loan. One point equals one percent of the total amount you plan to borrow. Index

Power of Attorney
A document by which one person (called the "principal") authorizes another person (called the "attorney-in-fact") to act for him/her in a specific manner in designated transactions. Index

"PRE," "PRELIM" OR Preliminary Report
A written report issued by a title company, preliminary to issuing title insurance, which shows the recorded condition of title of the property in question. See Commitment. Index

Priority
The order of preference, rank or position of the various liens and encumbrances affecting the title to a particular parcel of land. Usually, the date and time of recording determine the relative priority between documents. Index

Priority Inspection
A title term referring to the type of inspection made in connection with insuring a new construction loan. In making the inspection of the property, the title company must be assured that the work of improvement had not yet begun when the lender's deed of trust was recorded. Index

Public Domain
Land owned by the government and belonging to the community at large. Index

Public Records
The transcriptions in a recorder's office of instruments which have been recorded, including the indexes pertaining to them. Index

Quitclaim Deed
A deed operating as a release; intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor. Index

Qualified Escrow or Qualified Trust

Qualified Intermediary

Qualified Intermediary exchange promise

Qualify for a loan
A consumer pays a visit to a lender mortgage company, savings and loan, bank or credit union. The lender will examine your credit record, tax return, salary stubs, and other financial data to the meeting, along with with your calculated net worth and monetary cash-flow assessments. Then the lender can translate the results into manageable amount and determine the types of mortgages that are right for you. Index

Quiet Title
To free the title to a piece of land from the claims of other persons by means of a court action called a "quiet title" action. The court decree obtained is a "quiet title" decree. Index

Real Property (immovable):
Land, from the center of the earth and extending above the surface indefinitely, including all inherent natural attributes and any man-made improvements of a permanent nature place thereon. For example: minerals, trees, buildings, appurtenant rights. Index

Reconveyance
An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release. Index

Recording
Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded. Index

Reinsurance
A contract which one insurer makes with another to protect the first insurer, wholly or partially, against loss or liability by reason of a risk under a separate and distinct contract as insurer of a third party. Reinsurance differs from coinsurance in that, in the case of reinsurance, only one insurer has a direct contractual relationship with the insured, and that insurer (commonly referred to as the "lead insurer") purchases reinsurance in order to lessen or spread the risk. The "lead insurer" will assume a risk up to a limit (the amount of which is referred to as the "retention") and any loss which exceeds this limit would be borne by the reinsurers. In the case of coinsurance, each coinsurer has a direct contractual relationship with the insured, and the risk is shared in agreed-upon proportions from the first dollar of loss. Index

Relinquished Property

Replacement Property . Acquire Replacement Property

Restrictions
Often called restrictive covenants. Provisions in a deed or other instrument whereby an owner of land prohibits or restricts certain use, occupation or improvement of the land. Index

Right of Way
(1) The right to pass over property owned by another, usually based upon an easement. (2) A path or thoroughfare over which passage is made. (3) A strip of land over which facilities such as highways, railroads or power lines are built. Index

Sale and Leaseback
A situation in which the grantor in a deed to a parcel of property sells it and retains possession by simultaneously leasing it from the grantee. Index

Search
In title industry parlance, a careful exploration and examination of the public records in an effort to find all recorded instruments relating to a particular chain of title. Index

Separate Property
Real property owned by one spouse exclusive of any interest of the other spouse. Index

Simultaneous Exchanges . Nonsimultaneous Exchanges . Deferred Exchanges . Exchanges . Starker Exchanges

Squatter
One who settles upon unoccupied land without legal claim or authority. (See Adverse Possession.) Index

Starter
A copy of the last policy or report issued by a title insurer which described the title to land upon which a new search is to be made. In some states, this is called a back title letter or back title certificate. Index

Street Improvement Bonds
Interest-bearing bonds issued, usually by a city or county, to secure the payment of assessments levied against land to pay for street improvements. The property owner may pay off the particular assessment against the property, or may allow the assessment to "go to bond" and pay installments of principal and interest over a period of years, usually at the city or county treasurer's office. The holder of a bond received payments from these offices. Index

Subdivision
An area of land laid out and divided into lots, blocks, and building sites, and in which public facilities are laid out, such as streets, alleys, parks, and easements for public utilities. Index

Subordination Agreement
An agreement by which one encumbrance (for example, a mortgage) is made subject to another encumbrance (for example, a mortgage) is made subject to another encumbrance (perhaps a lease). To "subordinate" is to "make subject to," or to make of lower priority. Index

Surface Rights
Rights to enter upon and use the surface of a parcel of land, usually in connection with an oil and gas lease or other mineral lease. They may be "implied" by the language of the lease (no explicit reservation or exception of the surface rights) or "explicitly" set forth. Index

Survey
The measurement by a surveyor of real property which delineates the boundaries of a parcel of land. An ALTA survey additionally delineates the exact location of all improvements, encroachments, easements and other matters affecting the title to the property in question. A survey may be required by a title insurance company whenever the company is requested to issue an ALTA Extended Coverage Policy. Index

Tax Basis

Tax Deed
A deed executed by the tax collector to the state, county or city when no redemption is made from a tax sale. Index

Taxpayer

Tax Sale
Property on which current county taxes have not been paid is "sold to the state." No actual sale takes place - the title is transferred to the state and the owner may redeem it by paying taxes, penalties and costs. If it has not been redeemed within five years, the property (referred to as "tax sold property") is actually deeded to the state. (Similar "sales" to cities take place for unpaid city taxes.) Index

Testate
Leaving a legally valid will at death. See Intestate. Index

Title
(1) A combination of all the elements that constitute a legal right to own, possess, use, control, enjoy and dispose of real estate or a right or interest therein. (2) The rights of ownership recognized and protected by the law. Index

Title Insurance
Insured statement of the condition of title or ownership of real property. For a one-time-only premium, the named insured and their heirs are protected against title defects, liens and encumbrances existing as of the date of the policy and not specifically excluded from it. In the event of a claim, the title company provides legal defense from the policyholder and pays any covered losses incurred as a result of such claim. Index

Title Report
See Preliminary Report. Index

Title Search
A review of all recorded documents affecting a specific parcel of land to determine the present condition of title. An experienced title officer or attorney reviews and analyzes all material relating to the search, then determines the sufficiency and status of title for insurance of a title insurance policy. Index

Trustee
See Deed of Trust. Trustor: See Deed of Trust. Index

Underwritten Company
A title firm which conducts title searches but is not qualified to insure, and therefore issues policies of a qualified title insurer (underwriter) in return for a portion of the premium. Index

Variable Interest Rate
An interest rate that fluctuates with the current cost of money; subject to adjustment if the prevailing rate moves up or down. Index

Vendee
See Agreement of Sale. Index

Vendor
See Agreement of Sale. Index

Vendor's Lien
An implied lien given by law to a vendor for the remaining unpaid and unsecured part of a purchase price. Index

Venue
Neighborhood; often used to refer to the county or place in which an acknowledgment is made before a notary; also refers to the county in which a lawsuit may be filed or tried. Index

Vesting
The names, status and manner in which title of ownership is held with a fixed or determinable interest in a particular parcel of real property; also that portion of a title report or policy setting forth the above. Index

Waive
To voluntarily and intentionally relinquish a known right, claim or privilege. Index