Glossary
Abstract of Title: The accumulation of recorded
documents relating to a piece or parcel of land from which an attorney
will give an opinion of the status of the title. This is required in
the state of Oklahoma as a prerequisite to title insurance.
Ad Valorem: "According to value". A method of taxation
that uses the value of the taxed item to determine the amount of the
tax. In Oklahoma, an Ad Valorem tax is the same as property tax.
A.L.T.A.(American Land Title Association): An organization
composed of title insurance companies that decides the standards in
the title insurance industry.
Appraisal: An opinion of value based on a factual
analysis of property.
Assignment: A transfer of real or personal property
and all rights to said property to another.
Assumption of Mortgage: Agreement by a buyer to
assume an existing mortgage or deed of trust.
Broker: One who may carry on the business of dealing
in real estate via license by the state.
Builder: A constructor of commercial buildings
and individual homes.
Chattel: Personal property.
Closing: The final method in which documents are
signed and recorded, and the sale is completed.
Commercial Property: Property that is zoned for
business use.
Commitment: The written report of the title company
showing status of title and pledging to issue a title insurance policy
when the requirements shown therein are met.
County: A political division within a state, usually
encompassing one or more cities or towns. A city may be in more than
one county. Oklahoma has 77 such counties.
County Clerk: In Oklahoma, this is the office where
all real estate documents are filed. Any documents filed in the Clerk's
office must have a check for the appropriate filing fees attached. See
schedule for appropriate fees.
Courtesy Filing: The filing of documents as a courtesy
to the customer, when no closing has been done by the company.
Deed: An instrument that conveys title from one
party to another.
Documentary Stamp: Stamped on a Warranty Deed or
Quit Claim Deed, a tax stamp shows the amount of revenue. Revenue is
based on the sale amount, so it is necessary to either put the sale
amount on the face of the document, or supply an affidavit showing the
sale amount.
Easement: A recorded right of use affecting real
property. An easement could be for utility purposes or for ingress or
egress, for example. All easements of record would be shown originally
on the title insurance commitment.
Encumbrance: A liability, claim or lien attached
to, and therefore binding, upon real property.
Escrow: Delivery of all necessary sale instruments,
including funds.
Executor: The person chosen in the will to carry
out, or execute, the will's terms, now often called the Personal Representative.
Federal Tax Lien: Nonpayment of any federal tax,
including income tax, can result in a Federal Tax Lien being attached
to taxpayer's property.
Final Decree: A decree documenting the final decision
of all pending matters in a case before a court.
Foreclosure: The selling of a property in order
to satisfy a lien against it, ending all rights, interests, or title
of owners.
Gap: The common title industry name for the period
from the effective date on the commitment to the day of closing and
recording of documents. A "Gap Check" is the title company's search
of the public records for this time period.
Heir: One who receives the estate, or partial estate,
of a deceased person by law.
Indemnity Agreement: Agreement stating that Party
A will reimburse Party B for any possible damage or loss suffered by
Party B.
Instrument: Legal documents, such as deeds, mortgages,
assignments, wills, etc., are also known as instruments.
Joint Tenancy: The undivided equal owner interests
with right of survivorship in a property held by two or more parties.
Judgment: The final decision in a court of law.
Legal Description: The description of a parcel
of land, identifiable by metes and bounds, or designated as a Lot and/or
Block number.
Lien: An encumbrance for money against property.
Lis Pendens: In Oklahoma, this term is for a notice
filed against real property that gives public notice that litigation
has been filed that affects or involves the real property shown therein.
Living Trust: A form of trust created by individuals
that generally exists for the life of the trust according to the terms
of the trust agreement that created it.
Lot: Referring to any parcel of land.
Marketable Title: Title that may be sold to a buyer,
knowledgeable of the facts and their legal meaning as to liens and encumbrances.
Metes and Bounds: Description of land by exact
distance and direction.
Mortgage: Legal document showing a lien upon real
property in exchange for money.
Mortgagee: The party lending the money.
Mortgagee Policy: Title insurance policy insuring
the mortgagee against loss caused by title defects.
Mortgage Broker: One who may carry on the business
of dealing in real estate loans via license by the state.
Mortgagor: The party borrowing the money.
Notary Public: A person legally empowered to witness
or certify the validity of signatures on documents.
Ownership: Rights of ownership include use and
enjoyment of property, excluding others.
Owner's Policy: Title insurance that covers the
property holder.
Partial Release: A partial release of property
covered by a mortgage.
Payoff: Full payment of an existing loan.
Plat Book: A book that contains plat maps and numbers
for a designated area.
Plat Map: A map of a subdivision, showing the division
of a parcel of land into lots.
Point of Beginning: Used in metes and bounds descriptions
to show where the property begins.
Power of Attorney: Enables one person to act for
another.
Probate: The legal term for the process of administering
a deceased person's estate or property through the state courts. General
probate procedure is found in Title 58 of the Oklahoma statutes.
Public Land: Land that belongs to the federal government.
Quiet Title: Court action establishing ownership
to real property, removing any cloud on the title.
Quit Claim Deed: A deed passing any interest, claim
or title the grantor may have in the property to the grantee, without
warranty of defects in title.
Recorder's Office: In Oklahoma, this is the County
Clerk's office. For further definition, see County Clerk.
Recording: This is the act of filing all documents
that affect property for public record for the use of future reference
and public notices.
Release: A document releasing property from lien
or judgement.
Re-recording: If an error occured on the original
recorded document and is in need of correction, the corrected document
must be re-recorded with the County Clerk's office to show the correction.
Rescind: To cancel a transaction or agreement is
to "rescind" it. In title terms, it most often refers to the right of
rescission given individuals to cancel home loans when refinancing.
Restriction: As to title, this would mean any limitation
on the right of use of a property. A restriction could be created by
deed, covenants, or court order.
Right of Way: A strip of land used for roadway
or easement purposes.
Revenue Stamps: In Oklahoma, this is known as Documentary
Stamps. For further definition, see Documentary Stamps.
Second Mortgage: A mortgage that ranks behind the
first mortgage in lien priority due to its later filing of record.
Sheriff's Deed: In Oklahoma, this means the final
step in the official foreclosure of property. This type of deed would
be filed after the public sale and court confirmation thereof.
Survey: The measurement of the boundaries of a
parcel of land.
Tax Exemption: Not having to pay property tax or
other taxes, granted to religious, educational and governmental organizations.
Tax Lien: Lien against property for nonpayment
of taxes.
Tax Roll: A list of descriptions of parcels of
property, their owners and tax information, kept by the County Treasurer.
Termination of Joint Tenancy: A document that ends
a joint tenancy, filed when one of the tenants dies. Must be accompanied
by the original death certificate.
Title: Evidence of ownership of land.
Title Insurance: Generally, the form of insurance
that guarantees title to a real property against claims that may arise
related to matters occuring prior to the effective date of the policy.
Title Plant: An Oklahoma title industry term that
means the set of title records that are identical to those of the county
recorder (clerk). Such a "plant" is required by law to be updated for
the abstract company to obtain an Oklahoma abstractor's certificate
of authority.
Title Report: A report showing the condition of
title before a loan transaction. In Oklahoma, a title report is not
an insurance policy according to state insurance commission guidelines.
A title report is also known in other states as a Title Search.
Title Search: See Title Report.
Tract: A parcel of land.
Unencumbered: Free from liens. Uniform Commercial
Code: The set of laws that provide for the legal rules and regulations
governing "commercial" or "business" dealings and transactions involving
personal property.
Warranty Deed: A deed used to convey title of property
from one party to another, whereby the seller guarantees title to be
free from encumbrances.