A construction lien is a claim made by contractors, subcontractors, or suppliers who have performed work or provided materials but have not been paid. It ensures they are compensated by securing a legal right against the property where the work was performed or materials supplied.
Defect in title refers to any issue, recorded instrument, or claim associated with a property that obstructs the grantor's ability to convey a clear and absolute title to a prospective buyer or new owner. Common examples include outstanding liens, unresolved legal claims, or errors in the property deed.
An encumbrance is a claim, lien, charge, or liability attached to and binding real property, which may affect its transferability or decrease its value.
Equity represents the interest or value that an owner has in real estate over and above the liens or debts against it. It is calculated by subtracting the total liens from the market value of the property.
A free and clear title, also known as a clear title, refers to a property that is free of any encumbrances, such as mortgage debt or liens, that could affect the ownership rights of the buyer.
An involuntary lien is a legal claim against property imposed without the owner's consent, often due to unpaid obligations like taxes or special assessments.
A lien waiver is a document from a contractor, subcontractor, materials supplier, or other party to the construction project, stating they have received payment and waive any future lien rights to the property for the amount received.
A mechanic’s lien is a legal claim against a property as security for unpaid labor and materials supplied for the property's improvement.
A preliminary title report is a report issued by a title company before a real estate transaction, stating a willingness to insure the title upon closing. It identifies any encumbrances, liens, or legal impediments on the property.
Recording is the process of formally documenting instruments affecting the title to real property in a public registry, thus giving legal notice of the recorded facts to the world.
A formal process that frees real estate from a mortgage or other lien, indicating that the debt has been fully paid off. This is crucial in ensuring that the property is clear of legal claims and can be sold or transferred without encumbrances.
Restrictions are limitations placed upon the use of property, typically contained in the deed, other written instruments in the chain of title, or in local ordinances pertaining to land use.
Tax foreclosure is the process of enforcing a lien against property for nonpayment of delinquent property taxes. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes.
A Title Abstract, or Abstract of Title, is a comprehensive summary of the history of a piece of real estate. It includes a chronological record of all historical transactions, liens, easements, encumbrances, and other activities affecting ownership rights.
A document that indicates the current state of the title, detailing easements, covenants, liens, and any defects, but not describing the chain of title. It assures the buyer of clear title to a property.
