Glossary of Title Terms

A condensed history of every recorded document that has affected a property: deeds, liens, easements, and court actions. Title companies research this history before insuring a sale.

The American Land Title Association, the national trade group that sets the standard forms and best practices used by title companies across the country.

A written change to the sales contract that both buyer and seller sign, such as a new closing date or a repair agreement reached after the inspection.

The sequence of owners a property has passed through over time. A complete, unbroken chain is one of the things a title search confirms.

Ownership free of liens, disputes, and other claims. Getting the title clear is the core of what a title company does before closing.

The final step of the transaction: documents are signed, funds are collected and paid out, and ownership officially transfers from seller to buyer.

The fees paid at closing on top of the price of the home, including lender charges, title fees, taxes, and prepaid items like insurance and property tax escrows.

The five-page form your lender must provide at least three business days before closing on a financed purchase. It lists your final loan terms and every dollar you pay or receive.

Any unresolved claim or defect that puts ownership in question, such as an old unreleased lien or a missing heir’s signature. Clouds must be cured before title can be insured cleanly.

Texas is a community property state, which means most property acquired during a marriage belongs to both spouses. This is why a spouse may need to sign documents even if they are not on the loan or the deed.

The legal document that actually transfers ownership from seller to buyer. It is signed at closing and recorded in the county’s public records.

The Texas version of a mortgage document. It pledges the property as security for the loan and allows a trustee to sell the property if the borrower defaults.

A good-faith deposit the buyer puts down shortly after the contract is signed, held safely in escrow and credited to the buyer at closing. Ask us about paying it electronically instead of driving a check across town.

A right that lets someone else use part of a property for a specific purpose, most commonly a utility company’s right to run and service lines across it. Easements show up on the survey and in Schedule B of the title commitment.

When a structure crosses a property line, such as a neighbor’s fence sitting two feet onto the lot. Surveys exist largely to catch these.

The umbrella term for anything attached to a title that limits it, including liens, easements, and restrictions.

A neutral holding arrangement. The title company holds money and documents on behalf of both sides and only releases them when the terms of the contract are met.

The person at the title company who manages your file, coordinates with the lender and agents, prepares the closing, and disburses the funds. Your main point of contact from contract to close.

The file number a Texas title company assigns to your transaction when the contract is receipted. Referencing your GF number gets you answers fastest.

On a deed, the grantor is the person transferring ownership (the seller) and the grantee is the person receiving it (the buyer).

A package from the homeowners association showing the property’s account status, dues, restrictions, and any violations. Texas contracts give buyers the right to review it when the home is in an HOA.

Texas law gives a person’s primary residence strong protection from most creditors and provides property tax exemptions. Homestead status also affects who must sign at closing.

The formal description of a property used on deeds and title documents, usually a lot and block in a recorded subdivision or a metes and bounds description. It controls over the street address.

A legal claim against a property as security for a debt, such as a mortgage, unpaid taxes, or a contractor’s bill. Liens must be paid or released before a sale can close with clear title.

The form a lender provides within three business days of your application, estimating your rate, payment, and closing costs so you can compare offers.

The title insurance policy that protects the lender’s interest in the property up to the loan amount. Required on nearly every financed purchase, and separate from the owner’s policy.

A lien filed by a contractor or supplier who was not paid for work or materials on the property. These can attach even after work was finished, which is one reason the title search matters.

A legal description that traces the boundary of a property using distances and directions, common for acreage and older tracts that are not in a platted subdivision.

In Texas, the rights to oil, gas, and other minerals can be owned separately from the surface. Prior owners may have reserved them, which the title commitment will note.

A negotiated number of days at the start of a Texas contract during which the buyer can terminate for any reason. The buyer pays the seller an option fee for that unrestricted right, and inspections usually happen during this window.

The title insurance policy that protects the buyer’s ownership for as long as they or their heirs own the property. One premium at closing, no renewals.

The exact amount required to fully satisfy the seller’s existing loan or other liens, calculated to the day of closing. The title company orders payoffs and sends the funds so liens are released.

The recorded map of a subdivision showing lots, blocks, streets, and easements. Your lot and block legal description points to a plat.

A document that lets someone sign closing papers on another person’s behalf. Title companies and lenders must approve a POA before closing, so raise it early.

The split of ongoing costs between buyer and seller as of the closing date, most commonly property taxes and HOA dues, so each side pays only for the days they own the home.

Filing the signed deed and deed of trust in the county’s official public records after closing. Recording puts the world on notice of the new ownership.

A form of easement that allows passage across land, used for roads, utilities, pipelines, and public projects. CNAT also handles right of way title work for infrastructure projects.

The section of the title commitment that lists the exceptions: items the policy will not cover, such as recorded easements and subdivision restrictions. Worth reading, and we are happy to walk through it with you.

The itemized accounting of every charge and credit in the transaction for buyer and seller. On cash deals it is often an ALTA settlement statement; on financed deals it accompanies the Closing Disclosure.

A licensed surveyor’s drawing of the property showing boundaries, improvements, easements, and any encroachments. Texas contracts specify whether the seller’s existing survey can be used or a new one is needed.

The sworn statement a Texas seller signs when providing their existing survey, confirming nothing has changed on the property since that survey was made. As of recent TREC contract updates, sellers use the T-47.1 declaration version.

The legal right of ownership in a property. Not a single piece of paper, but the combination of rights the public records show you hold.

The title company’s formal promise to issue a policy once stated requirements are met. It shows who owns the property, what must be fixed before closing (Schedule C), and what the policy will not cover (Schedule B). In Texas you should receive it within 20 days of the contract being receipted.

A one-time-premium policy that protects against losses from problems in the property’s past, such as forged deeds, unknown heirs, or missed liens. Rates in Texas are set by the state, so every company charges the same premium; service is the difference.

The examination of public records that builds the chain of title and uncovers liens, easements, and other matters affecting the property before closing.

The insurance company that stands behind the title policy. CNAT is an agent for national underwriters, which is who ultimately pays a covered claim.

How the new owners take title on the deed, for example as community property or as joint tenants. How you vest affects ownership rights later, and your escrow officer will confirm it before documents are drawn.

A deed in which the seller guarantees the title. A general warranty deed covers the property’s entire history; a special warranty deed covers only the period the seller owned it. Most Texas home sales use a general warranty deed.

A crime in which scammers send fake wiring instructions, often from a hacked or lookalike email account, to steal closing funds. Always call your title company at a number you find independently to verify instructions before sending money. Read our wire fraud warning before you wire anything.