ABSTRACT OF TITLE: Condensed history of a title to a particular parcel of real
ATTORNEY OPINION OF
TITLE: An opinion
generated by an attorney after review of abstract of title.
CHAIN OF TITLE:
conveyance of real property to one owner from another, reaching
back to the original grantor.
of title of land from one to another. The means or medium by
which title to real estate is transferred.
evidence to clear defects that appear in an abstract of title.
legal instrument in writing which passes, or affirms or confirms
something which passes, an interest, right, or property and that
is signed, attested, delivered, and in some jurisdictions
sealed. It is commonly associated with transferring title to
BARGAIN & SALE
deed "conveying real property without covenants".
This is a deed "for which the grantor implies to have or have
had an interest in the property but offers no warranties of
title to the grantee. This type of deed is typically used in
many states to transfer title." Under common law, this type of
deed technically created a use (law) in the buyer who then gets
title. Under the Statute of uses, modern real property law
disregards this subtle distinction. A bargain and sale deed
is especially used by local governments, fiduciaries such as
executors, and in foreclosure sales by sheriffs and referees.
The fact that it comes without any warranties from the
government means that the new owner may not have good title.
However, if the city did not have good title, then the new
landowner may seek a remedy against the local government. Some
states require a specific form to be used. Some states also
allow a grantor (or seller) to add warranties. In such case, it
may be called a bargain and sale with covenants deed.
QUIT CLAIM DEED:
legal document by which a person releases or "quits" any claim
that they may have had to property. Of the different types of
deeds, the quit-claim has the least assurance that the person
receiving it will actually get any rights. The person who
provides a quit-claim deed makes no warranty or representation
that they actually own what they are "quitclaiming." The
quit-claim merely provides that whatever they had or may have
had, they are conveying it. Quit Claim deeds do not release the
person quitting claim from their obligations under a mortgage,
although a quit claim deed can be a step in the right direction.
In order to remove the party who quits claim from the mortgage,
you must refinance the mortgage in the name of the party to whom
title or interest in the property has been conveyed..
A type of deed
where the grantor (seller) guarantees that he or she holds clear
title to a piece of real estate and has a right to sell it to
the grantee (buyer). The guarantee is not limited to the time
the grantor owned the property, it extends back to the
property's origins. A General Warranty Deed includes six
traditional forms of Covenants for Title. Those six traditional
forms of covenants can be broken down into two categories: present covenants and
future covenants. Present
Covenants - Covenant of Seisin & Covenant of Right to
Convey - Covenants that represent the seller's promise that
he has title and possession and can validly grant or convey
both; Covenant Against Encumbrances - Seller promises
that there are no encumbrances, other than those that have been
previously disclosed. Future Covenants - Covenant of
Warranty and Covenant of Quiet Enjoyment - Covenants that
represent seller's promise to protect the buyer against anyone
who comes along later and claims paramount title to the
property; Covenant of Further Assurances - If seller
omitted something required to pass valid title, seller promises
to do whatever is necessary to pass title to buyer.
imposed restriction in a deed for the purpose of limiting the
use of the land by future owners.
restriction, lien, judgment, mortgage, exception, encroachment
or encumbrance that may effect the property owners ability to
transfer clear title to another party.
A right to
use the land of another for a specific purpose as for a
right-of-way or utilities; an incorporeal interest in land.
building or some portion of it, a wall or fence, that extends
beyond the land of the owner and intrudes on some land of an
adjoining owner or a street or alley.
claim by another, such as a mortgage, tax or judgment lien, an
easement, encroachment or a deed restriction on the use of the
land that may diminish the value of a property.
terms and provisions stipulated as possible risks that are
covered in Title Insurance Policies. There may or may not be
additional charges for particular endorsements.
specific review of all aspects of an Abstract of Title in
relation to the survey of the property and the chain of title.
items that may be omitted or deviate from the original intent.
individual to whom a transfer or conveyance of property is made.
In a case involving the sale of land, the buyer is commonly
known as the grantee.
individual who conveys or transfers ownership of property.
In real property law, an individual who sells land is known
as the grantor.
condition of the estate of a person who dies owning property
greater than the sum of his enforceable debts and funeral
expenses without having made a valid will or other binding
declaration; alternatively where such a will or declaration has
been made, but only applies to part of the estate, the remaining
estate forms the "Intestate Estate". Intestacy law,
also referred to as the law of descent and distribution
or intestate succession statutes, refers to the body of
law that determines who is entitled to the property from the
estate under the rules of inheritance.
given by law to certain creditors to have their debt paid out of
the property of a defaulting debtor.
clear title reasonably free from the risk of litigation over
security interest on real property granted to a lender.
person or business making a loan that is secured by the real
person who has borrowed money and pledged his/her real property
A written promise
to pay or repay a specified sum of money at a stated time or on
legal process of administering the estate of a deceased person
by resolving all claims and distributing the deceased person's
property under the valid will. A surrogate court decides the
validity of a testator's will. A probate interprets the
instructions of the deceased, decides the executor as the
personal representative of the estate, and adjudicates the
interests of heirs and other parties who may have claims against
The act of
entering or recording documents affecting or conveying interests
in real estate in the recorder's office established in each
Settlement Procedures Act.: Was created to ensure that the buyer
and seller in a residential real estate transaction have
knowledge of all settlement costs. RESPA applies only to new
first mortgage loans and is financed by a federally
related mortgage loan (FHA, VA, HUD, Fannie Mae, Ginnie Mae or
Freddie Mac. Administered by HUD. Transactions covered by RESPA
must have a Good Faith Estimate of Settlement Costs, a
Uniform Settlement Statement (HUD Form 1, and prohibits
the payment of kickbacks.
limitation on the use of real property, generally originated by
the owner or subdivider in a deed.
occupancy of lands, buildings, or other property by title, under
a lease, or on payment of rent.
A joint tenancy
or joint tenancy with right of survivorship (JTROS or JTWROS) is
a type of concurrent estate in which co-owners have a right
of survivorship, meaning that if one owner dies, that
owner's interest in the property will pass to the surviving
owner or owners by operation of law, and avoiding probate. The
deceased owner's interest in the property simply evaporates and
cannot be inherited by his or her heirs. Under this type of
ownership, the last owner living owns all the property, and on
his or her death the property will form part of their estate.
Unlike a tenancy in common, where co-owners may have unequal
interests in a property, joint co-owners have an equal share in
the property. It is important to note, however, that creditors'
claims against the deceased owner's estate may, under certain
circumstances, be satisfied by the portion of ownership
previously owned by the deceased, but now owned by the survivor
or survivors. In other words, the deceased's liabilities can
sometimes remain attached to the property. This form of
ownership is common between husband and wife, and parent and
child, and in any other situation where parties want ownership
to pass immediately and automatically to the survivor. For bank
and brokerage accounts held in this fashion, the acronym JTWROS
is commonly appended to the account name as evidence of the
owners' intent. To create a joint
tenancy, clear language indicating that intent must be used - eg.
"to AB and CD as joint tenants with right of survivorship, and
not as tenants in common". This long form of wording may be
especially appropriate in those jurisdictions which use the
phrase "joint tenancy" as synonymous with a tenancy in common.
Shorter forms such as "to AB and CD as joint tenants" or "to AB
and CD jointly" can be used in most jurisdictions. Words to that
effect may be used by the parties in the deed of conveyance or
other instrument of transfer of title, or by a testator in a
will, or in a trust deed. To create a joint tenancy, the
co-owners must share "four unities": (1) Time - the
co-owners must acquire the property at the same time. (2) Title
- the co-owners must have the same title to the property. If a
condition applies to one owner and not another, there is no
unity of title. (3) Interest - each co-owner owns an equal share
of the property; for example, if three co-owners are on the
deed, then each co-owner owns a one-third interest in the
property regardless of the amount each co-owner contributed to
the purchase price. (4) Possession - the co-owners must have an
equal right to possess the whole property. If any of these
elements is missing, the joint tenancy is ineffective, and the
joint tenancy will be treated as a tenancy in common in equal
TENANCY BY THE
a type of concurrent estate formerly available only to married
couples, where ownership of property is treated as though the
couple were a single legal person. Like a JTWROS, the
tenancy by the entirety also encompasses a right of
survivorship, so if one spouse dies, the entire interest in the
property passes to the surviving spouse, without going through
probate. In some jurisdictions, to create a tenancy by the
entirety the parties must specify in the deed that the property
is being conveyed to the couple "as tenants by the entirety,"
while in others, a conveyance to a married couple is presumed to
create a tenancy by the entirety unless the deed specifies
otherwise. Also, besides sharing the four unities
necessary to create a joint tenancy with right of survivorship -
time, title, interest, and possession - there must also be the
fifth unity of marriage. However, unlike a JTWROS, neither party
in a tenancy by the entirety has a unilateral right to sever the
tenancy. The termination of the tenancy or any dealing with any
part of the property requires the consent of both spouses. A
divorce breaks the unity of marriage, leaving the default
tenancy, which may be a tenancy in common in equal shares.
TENANCY IN COMMON:
Tenancy in common
is the default form of concurrent estate, in which each owner,
referred to as a tenant in common, is regarded by the law as
owning separate and distinct shares of the same property. By
default, all co-owners own equal shares, but their interests may
differ in size. This form of ownership is most common where the
co-owners are not married or have contributed different amounts
to the purchase of the property. The assets of a joint
commercial partnership might be held as a tenancy in common.
Tenants in common have no right of survivorship, meaning that if
one tenant in common dies, that tenant's interest in the
property will be part of his or her estate and pass by
inheritance to that owner's devisees or heirs, either by will,
or by intestate succession. Also, as each tenant in common has
an interest in the property, they may, in the absence of any
restriction agreed to between all the tenants in common, sell or
otherwise deal with the interest in the property (e.g. mortgage
it) during their lifetime, like any other property interest.
the owner of land is in lawful possession thereof; evidence of
insuring the owner or mortgagee against loss by reason of
defects in the title to a parcel of real estate, other than the
encumbrances, defects and matters specifically excluded by the
known as Owner's Insurance, assures
future marketability of real property. Specifically protects
the owner from prior defects in the title of real property.
the lender from prior defects in title and assures the priority
of the lien. Required from virtually all lenders who intend to
offer their loans in the secondary market.
earliest recorded documents of record in the County Clerk's
Office in which the property is located.
commencing at a deed recorded on or before 1920 in the County
Clerk's Office in which the property is located [Erie County Bar
Association contract standard].
search that does not go all the way back to the first deed of
record or start on or before 1920. Covers all liens and encumbrances of record as relates
to the title in question for the period of time that the search
continuation of title of property and tax search from date the
search was last updated (original search needed).
Special Lien Searches. Report of Judgments, Tax Liens and
Uniform Commercial Codes (UCC), etc., along with a Mortgagor
search from the date the owner(s) took title of the property.
TITLE & ABSTRACT COMPANY, INC.
37 FRANKLIN STREET,
SUITE 400 ● BUFFALO, NY 14202 ●
PHONE (716) 853-6529 ● FAX (716) 853-9870
TERMS & DEFINITIONS
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