Abstract
of Title — A condensed history or summary of all
transactions affecting a particular tract of land.

Access
— The right to enter and leave a tract of land from a
public way. Can include the right to enter and leave over the lands
of another.

Accretion
— The slow build-up of lands by natural forces such as wind
or water.

Acknowledgment
— The act by which a party executing a legal document goes
before an authorized officer or notary public and declares the same
to be his or her voluntary act and deed.

Acre
— A tract of land 208.71 feet square and containing 43,560
square feet of land.

Administrator
— A person appointed by a probate court to settle the
affairs of an individual dying without a will. 

Adverse
Possession — A claim made against the lands of another by
virtue of open and notorious possession of said lands by the
claimant.

Affidavit
— A sworn statement in writing.

Agent
— A person or company that has the power to act on behalf
of another or to transact business for another.

Air
Rights — The right to ownership of everything above the
physical surface of the land.

ALTA
— American Land Title Association, a national association
of title insurance companies, abstractors and attorneys specializing
in real property law. Its headquarters are in Washington, D.C.

Appurtenance
— Anything so annexed to land or used with it that it will
pass with the conveyance of the land.

ARM
— Adjustable Rate Mortgage. See "Variable Rate
Mortgage."

Assessment
— The imposition of a tax, charge or levy, usually
according to established rates.

Assessor
— A public official who evaluates property for the purpose
of taxation.

Assignee
— One to whom a transfer of interest is made.  For
example, the assignee of a mortgage or contract.

Assignor
— One who makes an assignment. For example, the assignor of
a mortgage or contract.

Assumable
Mortgage — A mortgage, which, by its terms, allows a new
owner to take over its obligations.

Attachment
—Legal seizure of property to force payment of a debt.

Attorney
in Fact — One who holds a power of attorney from another
allowing him or her to execute legal documents such as deeds,
mortgages, etc., on behalf of the grantor of the power.

- B -

Balloon
Mortgage — A mortgage that is amortized over a specific
period of years, but requires a lump sum payment in full at an
earlier date.

Bankruptcy
— A federal court proceeding in which debtors are relieved
of liability for their debts after surrender of their assets to a
court appointed trustee.

Bureau
of Land Management — The branch of government in charge of
surveying and managing public lands.

- C -

C
& R’s — Covenants, Conditions and Restrictions.

See
“Conditions and Restrictions.”

Chain
— A term of land measurement that is 66 feet in length.

Chain
of Title — A term applied to the past series of
transactions and documents affecting the title to a particular parcel
of land.

Clear
Title — One that is not encumbered or burdened with
defects.

Closing
— Also known as "escrow" or "settlement."
The process of executing legally binding documents, such as deeds and
mortgages most commonly associated with the purchase of real estate
and the borrowing of money to assist in the purchase.

Clouded
Title — An encumbered title.

Commitment
to Insure — A report issued by a title insurance company,
or its agent, committing the title insurance company to issue the
form of policy designated in the commitment upon compliance with and
satisfaction of requirements set forth in the commitment.

Common
Interest Community (CIC) — Ownership characterized by
mutual ownership of common areas, either jointly or through
membership in an association, e.g., condominiums, planned unit
developments, and town homes.

Company
Loan — Loan by employer to facilitate relocation of
employee. Usually short term.

Condemnation
— Taking private property for public use through court
proceedings.

Condition
or Conditions — A proviso in a deed or will that, upon the
happening or failure to happen of a certain event, limits, enlarges,
changes or terminates the title of the purchaser or devisee.

Conditions
and Restrictions — A common term used to designate
conditions and restrictions on the use of land. Includes penalties
for failure to comply. Commonly used by land sub dividers on newly
platted areas.

Condominium
— A system of individual fee ownership of units in a
multi-unit structure, combined with joint ownership of common areas
of the structure and land. 

Conservator
— See “Guardian”. 

Contract
for Deed — An agreement to sell and purchase under which
the seller holds title as security until such time as the required
payments to the seller have been completed.

Convey
— The act of deeding or transferring title to another.

Conveyance
— An instrument by which title is transferred; a deed.
Also, the act of transferring title.

Cooperative
— A residential multi-unit building owned by a corporation
in which a member of the corporation pursuant to a lease or occupancy
agreement occupies each unit.

Covenant
— An agreement written into deeds and other instruments
promising performance or non-performance of certain acts, or
stipulating certain uses or non-uses of the property.

Cul-de-Sac
— The terminus of a street or alley. Usually laid out by
modern engineers to provide a circular turn around for vehicles.

- D -

Deed
— A written document by which the ownership of land is
transferred from one person to another.

Deed
of Trust — See " Mortgage."

Delivery
— The final and absolute transfer of a deed from seller to
buyer in such a manner that the seller cannot recall it. A necessary
requisite to the transfer of title.

Devise
— The disposition of real property by will.

Due
on Sale Clause — Provision in a mortgage or deed of trust,
which requires loan to be paid in full if property is sold or
transferred.

- E -

Earnest
Money — Advance payment of part of the purchase price to
bind a contract for property.

Easement
— An interest in land owned by another that entitles its
holder to a specific limited use, such as laying a sewer, putting up
electric power lines, or crossing the property.

Egress
— The right to leave a tract of land. Often used
interchangeably with "access."

Eminent
Domain — The power of the state to take private property
for public use upon payment of just compensation.

Encroachment
— A trespass or intrusion onto another’s property,
usually by a structure, wall or fence.

Encumber
— To burden a parcel of land with a lien or charge, e.g., a
mortgage.

Encumbrance
— A lien, liability or charge upon a parcel of land.

Escheat
— A reversion of property to the state in those cases where
an individual dies without heirs or devisees, and, in some states,
without a will.

Escrow
— A procedure whereby a disinterested third party handles
legal documents and funds on behalf of a seller and buyer, and
delivers them upon performance by the parties.

Estate
— A person’s possessions. The extent of a person’s
interest in real property.

Examination
of Title — The investigation and interpretation of the
record title to real property based on the title search or abstract.

Exception
— In legal descriptions, that portion of land to be deleted
or excluded. The term often is used in a different sense to mean an
objection to title or encumbrance on title.

Executor
— A person appointed by the probate court to carry out the
terms of a will. The term is "executrix" if that person is
a woman.

Extended
Mortgage — One in which the due date of a mortgage is
extended for a longer period, often at a higher interest rate than
the original mortgage.

- F -

Fannie
Mae — Federal National Mortgage Association (also FNMA) is
a private corporation, federally chartered to provide financial
products and services that increase the availability and
affordability of housing by purchasing mortgage loans.

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.

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 that
will cause title to be passed to another should certain circumstances
occur.

Freddie
Mac — Federal Home Loan Mortgage Corporation (also FHLMC)
is a stockholder owned corporation chartered by Congress that
purchases mortgage loans.

- G -

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 (Farmers 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.

- H -

Harbor
Line — An arbitrary line set by authorities on navigable
rivers, beyond which wharves and other structures may not be built.
Also designated as line of navigation.

Heir
— One who might inherit or succeed to an interest in land
of an individual who dies without leaving a will (intestate).

Hiatus
— A gap or space unintentionally left, when attempting to
describe adjoining parcels of land.

Home
Equity Conversion Mortgage — A reverse or reverse annuity
mortgage in which HUD through FHA guarantees that the borrower will
receive monthly payments from the insurer (FHA) in the event the
lender is unable to make payments to the borrower.

Home
Repair Loan — Used for repairs and additions to existing
structures without affecting existing mortgage.  Typically 10
years or less in length.

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.

- I -

Improvements
— Those additions to raw lands tending to

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
Courtesy — The imperfect interest, which the law gives a
husband in the lands of his wife. This is an interest, which upon the
death of the husband may ripen into possession and use. Most states
have abolished dower rights.

Indemnify
— To make payment for a loss.

Ingress
— The right to enter a tract of land. Often used
interchangeably with "access."

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."

- J -

Joint
Tenancy — An estate where two or more persons hold real
estate jointly for life, the survivors to take the interest of the
one who dies.

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.

- K -

There
are no items in this category.

- L -

Land
Contract — See “Contract for Deed.”

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.

Loan
Policy — See “Lender’s Policy.”

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.

- M -

Majority
— The age at which a person is entitled to handle his or
her own affairs.

Marketable
Title — A good title about which there is no fair or
reasonable doubt.

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 watercourse.

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

Mortgage-Backed
Security — A security evidencing either the ownership of an
interest in a mortgage loan or pools of mortgage loans, or a separate
obligation secured by a mortgage loan or pool of mortgage loans.

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.

Mortgage
Revenue Bonds — Issued by communities as a means of
providing lower cost mortgage funds to certain qualified borrowers.

Mortgagee
— The mortgage lender.

Mortgagee’s
Policy — See “Lender’s Policy.”

Mortgagor
— The mortgage borrower.

- N -

Negative
Amortization — An actual increase in the principal amount
of real estate loan because of the addition of matured but unpaid
interest to the loan balance. Usually the result of monthly payments
which a re temporarily set at a lower than needed level. 

Notary
— One authorized to take acknowledgments.

See
"Acknowledgment."

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

- O -

Owner’s
Policy — A policy of title insurance which protects the
property owners against certain losses due to defects in title.

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

- P -

Patent
— A document or grant by which the federal or state
government originally transferred title to public lands to an
individual. The first in the series of transfers by which title comes
down to present owners.

Personal
Representative — A person appointed by the probate court to
administer a decedent’s estate.

See
also "Executor" or "Administrator."

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 recover 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.

Policy
owner — 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.

- Q -

Quiet
Title — An action in a proper Court to remove record
defects or possible claims of other parties named in the action.

- R -

Range
— A part of the government survey, being a strip of land
six miles in width, and numbered east or west of the principal
meridian.

Real
Property — Land, together with fixtures, improvements and
appurtenances.

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.

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.

REMIC
— Real Estate Mortgage Investment Conduit. A product of
1986 federal tax legislation in which a business entity such as a
corporation, partnership, or trust in which substantially all of the
assets consist of qualified mortgages and permitted investments,
elects to be treated as a REMIC. Qualification avoids treatment as a
corporation for tax purposes.

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.

- S -

Second
Mortgage — A second loan on real estate that already has a
mortgage. It is subordinate to the first mortgage. Usually of shorter
term and often at a higher interest rate.

Section
or Section of Land — A parcel of land comprising one square
mile or 640 acres.

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.

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

- T -

Tenancy
by the Entirety — Ownership by married persons where each
owns the entire estate, with the survivor taking the whole upon the
other’s death.

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.

Testament
— Another term for a will. Commonly referred to as "last
will and testament."

Testate
— The estate or condition of leaving a will at death. "To
die testate."

Testator
— A man who makes or has made a testament or will.

Testatrix
— A woman who makes or has made a testament or will.

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
Plant — The total facilities — records, equipment,
fixtures, and personnel — required to function as a title
insurance operation. Technically, the organization of official
records affecting real property into a system, which allows quick and
efficient recovery of title information.

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

Torrens
Title — A system whereby, after court proceedings, a
certificate is issued setting forth the extent of the applicant’s
estate in land subject to the exceptions shown. Most popular in the
early 1900’s, the system was adopted in 19 states. It is
presently used only in parts of six states.

Township
— A division of territory six miles square, containing 36
sections or 36 square miles.

Tract
— A particular parcel of land.

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

Trustee
— A person holding property in trust as a fiduciary for the
benefit of another.

- U -

There
are no items in this category.

- V -

VA
Guarantee — An insurance contract in which the Veterans
Administration (VA) insures that the named lender will recover a
specific percentage of the loan amount from the insurer in the event
the loan goes bad.

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.

Vest
— To pass to a person an immediate right or interest. 
Title may be said to vest in John Smith.

Vestee
— A non-legal term used by title insurers to indicate the
owner of real property in a policy or report.

- W -

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.

Will
— A written document providing for the distribution of
property owned by a person after his or her death.

- X -

There
are no items in this category.

- Y -

There
are no items in this category.

- Z -

Zoning
— The right of a municipality to regulate and determine the
compatible character and use of property.

-
Note -

The
terms contained on this page are defined in their most commonly used
form. We advise you to seek the counsel of an attorney if you seek a
more precise interpretation of these terms.

Varsity Title is proud to be an active supporter of:

Rotary International

The Carr Center

The Zanesville Quarterback Club

The Associations of Realtors for Zanesville, Cambridge, Licking, and Perry Counties

The Zanesville-Muskingum County Chamber of Commerce

The Zanesville Habitat for Humanity

The United Way of Muskingum, Perry & Morgan Counties 

and many, many more.

And though Title Agencies cannot practice law, we can seamlessly provide the following products through our attorney.

Here is a description of what title insurances we offer.