Real Estate Vocab

Question 1

A deed which indicates that the borrower is released from a mortgage debt and transfers the property title from the lender (or beneficiary) to the borrower. Most commonly issued when a mortgage has been paid in full.

Answer 1

Reconveyance Deed

Question 2

Way of holding title to real property. Title means ownership of the bundle of rights in a property.

Answer 2

Title

Question 3

Record of all prior transfers and/or encumbrances for a particular parcel of land. It is important when deciding to issue the title insurance.

Answer 3

Chain of Title

Question 4

A summary that provides details of the title deeds and documents that prove an owner’s right to dispose of land, together with any encumbrances that relate to the property.

Answer 4

Abstract of Title

Question 5

A defect in title- for example, an unreleased lien or encumbrance that might invalidate or impair a title.

Answer 5

Cloud on Title

Question 6

Court action to remove a cloud or another claim that has been placed on title to property, thus “quieting” any challenges or claims to the title.

Answer 6

Quiet Title Action

Question 7

A loss of title. The opposite is acquisition of title (gain possession of title).

Answer 7

Alienation of Title

Question 8

Insurance policy most buyers get to protect themselves from forgery in the chain of title or defective delivery of a deed. A standard policy DOES NOT cover a site inspection or a survey.

Answer 8

Standard Policy of Title Insurance

Question 9

Insurance policy with increased coverage. Helps with a dispute over property lines which are disclosed by a survey. Covers improvements on adjoining land.

Answer 9

Extended Policy of Title Insurance

Question 10

Property owned by just one individual (or corporation).

Answer 10

Estate in Severalty

Question 11

Property owned by more than one person

Answer 11

Concurrent Estate

Question 12

Concurrent ownership with unities of Time, Title, Interest and Possession (TTIP). Has right of survivorship, meaning If one joint tenant dies, the surviving joint tenants take the remaining interest.

Answer 12

Joint Tenancy

Question 13

Concurrent ownership with unity of possession only. No automatic right of survivorship, meaning a tenant in common can leave her interest to someone in her will.

Answer 13

Tenancy in Common

Question 14

Burden on the property. It is a claim, lien, charge, or liability attached to real property. Title can still be transferred.

Answer 14

Encumbrance

Question 15

The right to use or enter someone else’s land for a special purpose, within limits. Land with an easement on it is encumbered.

Answer 15

Easement