Real Estate Settlement Glossary

Real Estate Closing Terms to Know

Make sure you go to your closing knowing what is going on. Here are some terms you will come across.

Abstract

A short history of a parcel's title. It includes the initial grant and all subsequent transfers affecting ownership of the property.

ALTA

American Land Title Association- the national trade association for title insurance and closing services companies. They ;will conduct your closing and provide insurance coverage.

Basic Rate

When applying for title insurance, the basic rate is charged to customers who do not qualify for a rate reduction.

Chain of Title

The summary of all succeeding deeds, wills, and other media through which ownership of the title transfers.

Cloud on Title

A possible claim or encumbrance which, if valid, would inhibit transfer of the title.

Encumbrance

A claim, right, or lien on a property by someone other than the real estate owner.

Amortization

The ;schedule of payments for the life of your loan. From the Latin "mors" meaning death, because you are killing off the debt.

Attorney's Opinion

A lawyer's written statement on the condition of a real estate title.

Certificate of Title

An attorney's written opinion stating that the title is vested as stated.

Claim

A right to the property or proceeds ;from the sale thereof. Or a demand for such.

Closing Disclosure

A five-page document detailing all of the costs the customer incurs for their mortgage transaction.

Consummation

When the buyer becomes contractually obligated to the lender. This is not the same as closing, or when the buyer becomes obligated to the seller.

Earnest Money

Down payment or advance payment made by a purchaser to demonstrate good faith.

For Title Insurance in Ohio

Get the best closing services from ;Patriot Title Agency in Ohio. Find out more about what we can do for you from our webpage and call ;330-479-3000 to schedule an appointment.