1. Title Insurance: A policy that protects real estate owners and lenders against potential property loss or
damage from liens, encumbrances, or defects in the property title.

2. Clear Title: A title that is free from any liens, legal questions, or ownership disputes, making it safe to
transfer to a buyer.

3. Lien: A legal claim against a property as security for a debt or obligation. Examples include mortgages,
tax liens, or mechanic's liens.

4. Escrow: A neutral third party that holds funds, legal documents, or other assets until certain conditions
are met for a real estate transaction.

5. Closing: The final step in the real estate transaction where the property is officially transferred from the
seller to the buyer, and funds are disbursed.

6. Closing Disclosure (CD): A form that outlines the final details of the mortgage loan, including loan
terms, monthly payments, fees, and closing costs, given to the buyer before the closing.

7. HUD-1 Settlement Statement: A document used prior to 2015 that itemized all charges imposed on
borrowers and sellers in a real estate transaction. It has largely been replaced by the Closing Disclosure
form.

8. Abstract of Title: A summary of the legal history of ownership of a piece of property, including transfers,
liens, and other encumbrances.

9. Deed: A legal document that transfers property ownership from one person to another.

10. Easement: A legal right to use someone else's land for a specific purpose, such as utilities or access.

11. Encumbrance: Any claim, lien, or liability attached to a property that could affect its transferability or
value, such as a mortgage or easement.

12. Underwriting: The process a title company goes through to assess risk and determine whether to
issue a title insurance policy.

13. Chain of Title: The sequence of historical transfers of title to a property, showing the passage of
ownership.

14. Settlement: Another term for closing, referring to the process of transferring ownership and
distributing funds between buyers, sellers, and other parties.

15. Cloud on Title: Any irregularity or claim that may cause uncertainty regarding the validity of the title.

16. Quitclaim Deed: A legal instrument that transfers the seller’s interest in a property to a buyer without
guaranteeing the title’s validity.

17. Warranty Deed: A deed that guarantees the seller has a clear title to the property and has the right to
sell it, free of encumbrances.

18. Title Search: A detailed examination of public records to verify the legal ownership of a property and
check for liens or other issues.

19. Survey: A measurement and mapping of a property’s boundaries, physical features, and
improvements, often required for a closing.

20. Escrow Account: An account held by the lender to pay property taxes and homeowners insurance on
behalf of the borrower.

21. Mortgagee: The lender in a mortgage agreement.

22. Mortgagor: The borrower in a mortgage agreement.

23. Good Faith Estimate (GFE): A disclosure provided to the borrower before closing that estimates the
fees and costs associated with the loan and the purchase of a home.

24. Title Commitment: A document issued by a title company promising to issue a title insurance policy
after closing, once any title issues are resolved.

25. Refinancing: The process of replacing an existing mortgage with a new one, often to get better loan
terms, lower interest rates, or cash out equity.