Fee Simple Estate - The greatest interest in a parcel of land that it is possible to own. Sometimes designated simply as "Fee."

Federal Housing Administration (FHA) Guarantee - An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.

Financing Statement - A document filed with the Register of Deeds or Secretary of State securing the title to personal property.

Fixed-Rate Mortgage – a mortgage that has a set interest rate and is basically unaffected by interest rate changes.

Fixtures - Any item of property so attached to real property that it becomes a part of the real property.

Flood Certification - A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Program.

Forfeiture of Title - Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.

Ginnie Mae - Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration) or VA (Veterans Administration).

Graduated Payment Mortgage - A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.

Grantee - A person who acquires an interest in land by deed, grant, or other written instrument.

Grantor - A person, who, by a written instrument , transfers to another an interest in land.

Guardian - One appointed by the court to administer the affairs of an individual not capable of administering his or her own affairs.

Home Inspection - A formal survey of a home’s structure, mechanical systems and overall condition, generally performed by a licensed professional inspector.

HUD 1 - A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.

Inchoate Dower - The imperfect interest which the law gives a wife in the lands of her husband. This is an interest which upon the death of the husband may ripen into possession and use. Most states have abolished dower rights.

Inchoate Curtesy - The imperfect interest which the law gives a husband in the lands of his wife. This is an

Indemnify - To make payment for a loss.

Ingress - The right to enter a tract of land. Often used

Insurance - A contract of indemnity against specified perils.

Insurance Loan - When cash value of a life insurance policy is borrowed by the insured.

Interim Financing - Temporary or short term loans. Often used with new construction. Usually replaced with a permanent long-term mortgage.

Intestate - Designates the estate or condition of failing to leave a will at death. "To die intestate."

Judgment - A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from the Court ´s award of money to a creditor.  See "Judgment Lien."

Judgment Docket - The record book of a County Clerk where a judgment is entered in order that it may become a lien upon the property of the debtor.

Judgment Lien - The charge upon the lands of a debtor resulting from the decree of a court properly entered into the judgment docket.

Landmark - Any conspicuous object that helps establish land boundaries.

Lease - A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental.

Lender´s Policy - A form of title insurance policy which insures the validity, enforceability and priority of a lender´s lien. This form does not provide protection for the owner.

Lessee - One who takes lands upon a lease.

Lessor - One who grants lands under a lease.

Lien - A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics´ liens.

Life Estate - A grant or reservation of the right of use, occupancy and ownership for the life of an individual.

Link - A term of land measurement being 1/100th of a chain or 66/100ths of a foot.

Lis Pendens - A notice recorded in the official records of a county to indicate that a suit is pending affecting the lands where the notice is recorded.

Loss Payable Clause - Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. Usually the owner and the mortgage lender.

Lot - A part of a subdivision or block having fixed boundaries ascertainable by reference to a plat or survey.

Mechanic´s Lien - A lien allowed by statute to contractors, laborers and material suppliers on buildings or other structures upon which work has been performed or materials supplied.

Metes and Bounds - A description of land by courses and distances.

Minor - One who because of insufficient age or status is legally incapable of making contracts.

Monument of Survey - Visible marks or indications left on natural or other objects indicating the lines and boundaries of a survey. May be posts, pillars, stones, cairns, and other such objects. May also be fixed natural objects, blazed trees, roads and even a water course.

Mortgage - An instrument used to encumber land as security for a debt.

Mortgage Banker - A specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.

Mortgage Broker - A person or company that buys and sells mortgages for another on commission or who arranges for and negotiates mortgage contracts.

Mortgagee - The mortgage lender.

Mortgagee´s Policy - See "Lender´s Policy ."

Mortgagor - The mortgage borrower.

Note - The instrument evidencing the indebtedness secured by a security instrument such as a mortgage or deed of trust.

Owner´s Policy - A policy of title insurance which

Ownership - The right to possess and use property to the exclusion of others.

Plat or Plot - A map representing a piece of land subdivided into lots with streets shown there on.

P.M.I. - Private Mortgage Insurance. An insurance contract which insures that the named lender will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.

Points - A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.

Policy - A written contract of title insurance.

Policyowner - The insured on a title insurance policy.

Power of Attorney - An instrument authorizing another to act on one´s behalf as his or her agent or attorney.

Power of Sale - A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.

Prorate - To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.

Realtor® - A federally registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors ® and subscribes to its strict Code of Ethics. Should not be confused with "real estate agent" because many licensed brokers and salespersons are not members. 

Realty - A brief term for real property.

Redeem - Literally "to buy back." The act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.

Registered Land - See " Torrens Title."

Reinsurance - To insure again by transferring to another insurance company all or part of an assumed liability, thus spreading the loss risk any one company has to carry.

REIT - Real Estate Investment Trust. A product of federal tax legislation formed as a business trust, under a special state REIT statute or as a corporation for the purpose of investing in real estate or mortgages on real estate.

Reverse or Reverse Annuity Mortgage - A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower´s estate is settled, provided the borrower continues to live in the home and keeps current all taxes and insurance. See also "Home Equity Conversion Mortgage."

Right - of - Way - The right which one has to pass across the lands of another. An easement.

Riparian - Rights to use of water and waterways in adjoining lakes or rivers.

Set Back Lines - Those lines which delineate the required distances for the location of structures in relation to the perimeter of the property.

Sub-surface Right - The right of ownership to things lying beneath the physical surface of the property.

Subdivision Plat - A map of a subdivision (In some instances, various public officials must review it and give their approval before it can be accepted for recordation by the Register of Deeds.)

Survey - The process of measuring land to determine its size, location and physical description and the resulting drawing or map.

Tenancy in Common - An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.

Tenant - Any person occupying real property with the owner´s permission.

Title - The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.

Title Defect - Any legal right held by others to claim property or to make demands upon the owner.

Title Insurance - Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.

Title Search - An examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.

Tract - A particular parcel of land.

Trust - A property right held by one as a fiduciary for the benefit of another.

Variable Rate Mortgage - A loan in which the interest rate fluctuates with the cost of funds or some other index.

Vendee - A purchaser of real property under land contract.

Vendor - A seller of real property under land contract.

Warranty - A promise by the grantor of real property that he or she is the owner and will be responsible to the buyer if title is other than as represented.