Glossary of Terms:
American Land Title Association (ALTA) – A national association of title insurance companies, abstractors, and attorneys specializing in real property law. The association speaks for the title insurance and abstracting industry and establishes standard procedures and title policy forms.
Clear Title – A title that is not encumbered or burdened with unacceptable defects.
Closing Statement – A listing of the debits and credits of the buyer and seller to a real estate transaction for the financial settlement of the transaction.
Lien – A claim on property of another person as security for the payment of a debt.
Title – Evidence of the right to or ownership in property.
Title Commitment – The initial product delivered by a title company which reports the status of title as of a specific date. It is called a commitment because the company is committing to issue a title insurance policy that conforms to its provisions.
Title Insurance – An agreement binding the insurer to indemnify the insured for losses sustained by reason of defects in title to the real estate.
Title Search – A review of all recorded documents affecting a specific piece of property to determine the present condition of title.