The American Land Title Association (ALTA) is a national trade association representing the title insurance industry, including title agents, abstractors, and real estate attorneys. Established to promote uniformity and high standards in title insurance policies and practices, ALTA creates best practices, advocates for public policy positions, and provides educational resources.
A Certificate of Title is an authoritative opinion rendered by an attorney regarding the status of a property's title based on public records. It ensures the property's title is clear of public record claims.
A Conditional Sales Contract is a legal agreement for the sale of property in which the seller retains the title until the buyer fulfills certain predefined conditions, typically the full payment.
Conveyance refers to the transfer of the title of real estate from one party to another through a legally binding instrument. It typically involves documentation that deeds property from a seller to a buyer during a recognized transaction.
A correction deed is a legal document used to amend or correct an error or omission in a previously recorded deed, ensuring the property's title is accurately represented and legally sound.
A Deed of Reconveyance is a legal document issued by a mortgage holder indicating that the borrower has met the obligations of the mortgage and that the property title is transferred back to the borrower. It effectively nullifies the lender's claim to the property.
Equity skimming is a type of real estate fraud where an investor takes out a loan exceeding the property's value, often via fraudulent means, and then collects rent on the property without making mortgage payments, increasing negative equity.
An Examination of Title involves a review of the title to a piece of real estate. It is typically less thorough than a full Title Search and often focuses on more recent historical records to ensure the property is free from significant encumbrances or defects.
A General Warranty Deed is a legally binding document in which the grantor fully warrants that they hold clear title to a property and guarantee to defend the title against any claims made by anyone. This deed provides the highest level of protection to the grantee (buyer).
An insurable title refers to a property title that a title insurance company is willing to insure, ensuring that the title is clear of any disputes, defects, or encumbrances which could affect the ownership or value. This term is significant in real estate transactions to mitigate risk and provide protection to the buyer or lender.
A Land Contract is a real estate installment sale arrangement whereby the buyer can use, occupy, and enjoy the land, but the seller retains the deed and title until all or a specified part of the purchase price has been paid.
Lender’s Title Insurance, also known as Mortgagee’s Title Insurance, provides protection to mortgage lenders against any issues that may arise with a property's title, such as disputes or defects.
A merchantable title, also known as a marketable title, is a legal concept indicating that a property title is free from significant encumbrances or defects, providing clear ownership and the right to transfer the property.
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.
Reconveyance is the process through which the lender transfers the title of the property back to the borrower once the mortgage loan is paid off in full. This legal instrument removes the lender's claim and gives the property owner clear title.
A title guarantee is a type of protection that ensures the title of a property is clear of any claims or encumbrances. It provides assurance to buyers and lenders that they are purchasing a legitimate piece of real estate, free from past issues.
Title theory states are where the law splits the title of mortgaged property into legal title, held by the lender, and equitable title, held by the borrower. The borrower gains full title to the property upon retiring the mortgage debt. Lenders are granted a more immediate cure for a default than in lien theory states.
