Glossary of Real Estate Terms
The language of real estate is like that of other industries. Some words and phrases may seem foreign, others are ones that you hear every day. Following is a glossary that hopefully will allow you to better understand the real estate transactions with which you are involved.
- Certificate of Title
- Chain of Title
- Claim
- Clear Title
- Closing
- Clouded Title
- Coinsurance
- Commitment
- Condemnation
- Conventional Loan
- Conveyance
- Covenant
- Curtesy
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- Certificate of Title
A certificate issued by a title examiner stating the condition of a title.
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- Chain of Title
The successive ownerships or transfers in the history of title to a tract of land.
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- Claim
An adverse right or interest asserted by one party against another or against an insurer or indemnitor. Claims may arise from unpaid debts or taxes, as well as from hidden title defects such as fraud, forgery, missing heirs, etc.
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- Clear Title
Real property ownership free of liens, defects, encumbrances or claims.
Closing - Also called “settlement.” A meeting of all parties involved in a property transaction during which the transaction is consummated. -
- Closing
Also called “settlement.” A meeting of all parties involved in a property transaction during which the transaction is consummated.
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- Clouded Title
An irregularity, possible claim or encumbrance that, if valid, would adversely affect or impair the title.
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- Coinsurance
Two or more policies of title insurance issued by different insurers, each covering a portion of the same risk, which together provide total coverage of the risk.
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- Commitment
Also called “binder.” A document issued by a title insurance company that contains the conditions under which a policy of title insurance will be issued.
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- Condemnation
(1) The taking of private property for a public purpose, with compensation to the owner under the right of eminent domain. Governmental units, railroads and utility companies have the right to condemn and take private property. (2) The destruction by government of private property that imperils the life, health or safety of the public.
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- Conventional Loan
A loan secured by a mortgage or deed of trust for which the loan-to-value ratio is within an acceptable range for a particular lending institution.
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- Conveyance
The transfer of title to property from one person to another.
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- Covenant
A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in a warranty deed.
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- Curtesy
A right that a husband has in his wife’s property at her death. It does not exist in all states.