KEY TERMS

Private Mortgage Insurance. An insurance contract which insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.

A document or grant by which the federal or state government originally transferred title to public land to an individual. The first in the series of transfers by which title comes down to present owners.

A person appointed by the probate court to administer a decedent’s estate. Also see “Executor” or “Administrator.”

A map representing a piece of land subdivided into lots with streets shown thereon.

A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.

See Title Insurance Policy.

The insured on a title insurance policy.

An instrument authorizing another to act on one’s behalf in legal matters.

A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.

See “Walk Through.”

A tax imposed on all premiums from the business of title insurance. Only applies in some states.

A clause in a mortgage or loan contract that says if the mortgage is prepaid within a certain time period, a penalty will be assessed. The penalty can be based on percentage of the remaining mortgage balance or some other calculation as described in the clause.

The GRAMM-LEACH-BLILEY ACT requires financial institutions (which includes title insurance companies) to give notice to all of their “customers” about their privacy practices. The Privacy Policy is a “clear and conspicuous” written notice describing their privacy policies and practices.

To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.