Deeds and Titles | Summary

Outline

This summary contains information from two lessons, part 1 and part 2.

Part 1 encompasses:
• Unit 1: Deeds
• Unit 2: Legal Descriptions

Part 2 encompasses:
• Unit 3: Property Conveyance and the Public Records
• Unit 4: Titles and Title Insurance

In the online course, you will have to take a quiz which asks questions from both lessons.

Objectives

By the end of this lesson, you will be able to:

• Distinguish between deeds and titles.

• Identify different types of deeds.
• Identify requirements of a valid deed.
• Discuss the purpose of a legal description and identify various systems.
• Calculate square footage, linear footage, volume, and acreage.
• Describe the purpose of the public records.
• Describe the purpose of title insurance.
• Contrast methods of voluntary and involuntary alienation.

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Unit 1: Deeds

Deeds and Title

A deed is:
• An instrument (written document) that conveys a grantor’s interest in real property to
someone else, the grantee.
• Evidence that the transfer of title took place.
• Also known as a conveyance.

Title is:
• The actual lawful ownership of real property.
• A reference to holding the bundle of rights conveyed.
• Not a document but rather a theory dealing with ownership.

Equitable title is:

• An interest in property created on the execution of a valid sales contract, whereby actual
title will be transferred by deed at a future date, such as at the closing.
• Not the same as having title, but the person who holds equitable title still enjoys certain
rights and privileges.

Full Covenant and Warranty Deed

Full covenant and warranty deeds, sometimes called general warranty deeds, are deeds
that:
• Are the strongest and broadest type of titled guarantee.
• Legally bind the grantor to certain legal promises or guarantees, also called covenants
or warranties, regarding status of the title.
• Guarantee against defects occurring during any previous ownership, not just the
grantor’s period of ownership.
• Give the grantee the most protection.

A general warranty deed normally contains these basic covenants:

• Covenant of seizen (may be also be spelled seisin, seisen, seizin) – Grantor guarantees
that he or she truly holds title to the property and has the right to convey it.
• Covenant of right to convey – Grantor promises that he owns the land and has the right
to transfer it.
• Covenant of quiet enjoyment – Grantor promises that the grantee will not be bothered
by others claiming the title.
• Covenant of further assurance – Grantor will provide other documentation to prove
ownership if necessary.
• Covenant against encumbrances – Grantor promises that the property will not have
any encumbrances except for those specifically listed on the deed.
• Covenant of warranty forever – Grantor promises to compensate the grantee for loss if
the title is found to be deficient in the future; the best way to protect the grantee.

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Grant Deed or Special Warranty Deed

The grant deed, or special warranty deed, also known as a limited warranty deed, is a
deed in which the grantor warrants title only against defects, such as liens, clouds on the
title, or other encumbrances arising from the time he or she owned the land but not before
that time.

Quitclaim Deed

Quitclaim deeds are deeds that:

• Convey whatever right, title, or interest the grantor holds in the property or parcel of land
without representation that there is any interest at all.
• Make no warranties regarding the title, if any, held by the grantor.
• Usually involve just a partial interest in the property.
• May be used to clear up any claims, encumbrances, or defects that make the title to real
property unmarketable.
• May be used to remedy clouds on a title or title problems.
• Typically may be used to convey an easement.

Bargain and Sale Deed

A bargain and sale deed is one in which the grantor:

• Implies that he or she has an interest (substantial title and possession) in the property
being conveyed.
• Makes no warranties to the grantee regarding the title.
• May be with or without covenants or warranty.

Deed of Trust

A deed of trust:

• Transfers title to real property to a third party as security for payment of a note.
• Creates a voluntary lien on real property to secure repayment of a debt (similar to a
mortgage).
• Requires the trustor, who owes the money, to transfer title to a trustee as security for the
debt owed to beneficiary, the lender.
• Requires the trustee to return the title back to the borrower via a deed once the borrower
has repaid the loan secured by the deed of trust.
• New York is considered a lien theory state and does not use Deeds of Trust.

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Requirements for a Valid Deed

These elements are required to make a deed valid:

• Names of the parties

• Consideration
• Granting clause
• Legal description of the property
• Execution

Other Traditional Elements of a Deed

These elements are traditionally included in a deed, though not required to make the deed
valid.

• The recital identifies the details of how and when the grantor(s) took title to the property.
• The habendum clause is typically included after the granting clause in many deeds. It
begins “to have and to hold” and further describes the type of estate granted, which
must be consistent with any estate indicated in the granting clause. An example might
be if the mineral rights to the property have already been sold to someone else.

Conveying Title: Delivery and Acceptance

Once a valid deed has been delivered and accepted:

• The title transfers from the grantor to the grantee.

• The deed’s job is done; it is simply evidence that the transfer of title took place.
• Title cannot be re-conveyed by destroying the deed or returning it to the grantor. The
grantee would have to execute a new deed transferring title back to the original grantor.
• A deed cannot be reused by reassigning, or transferring to the next owner. Each
transaction requires a new deed.

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Recording Deeds

Deeds are not required to be recorded to be valid, but recording a deed ensures that its
existence is clear to third parties as part of the public record. It also ensures against lost
documents. In addition to the elements required to create a valid deed, these elements must
be present in order to record the deed:

• An acknowledgment is the signature of a notary public or other authorized party

declaring that the signing of the deed took place in their presence and was a free and
voluntary act
• A certificate of the address of grantee ensures that tax authorities are informed as to
where to send tax bills. To record a deed, New York requires both the grantor and
grantee be identified by address.
• Evidence of real estate transfer tax (in most states and some local governments), often
in the form of a stamp

Recording an invalid document does not make it valid.

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Unit 2: Legal Descriptions

The legal description of property provides the ability to identify and distinguish that property from
any and all other parcels of land. A legal description of a specific parcel of land is usually
required on three documents.

• Deed – An instrument that conveys ownership of real property from the grantor to the
grantee. The legal description provides an exact explanation of what the grantee is
receiving from the grantor.
• Mortgage – An instrument that creates a voluntary lien on real property to secure
repayment of a debt. The parties to a mortgage are the mortgagor (borrower) and
mortgagee (lender). The mortgagee needs the legal description of the property because
the property is the collateral for the loan that they have made.
• Title insurance – Indemnifies the property owner against losses resulting from
undiscovered title defects and encumbrances on the property. The legal description
defines exactly what is insured.

Note:
If there is a discrepancy with the legal description among these documents, the title
company should do the research to resolve it.

Systems of Legal Description

The main systems of property description are:

• The metes and bounds system is the oldest system used, and the most complex.
“Metes” indicates distance and “bounds” indicates direction, as measured in degrees. A
metes and bounds description generally starts from an identifiable permanent reference
point, and from there, finds the first corner of the property, the point of beginning. The
description continues by indicating a compass direction and distance to define the
boundaries of the lot, moving clockwise, until returning to point of beginning and
enclosing the lot. Commonly used by land surveyors in New York.
• The monument system may be used in place of the metes and bounds system It is
often used to describe multi-acre tracts of land. The description is drawn from permanent
objects on the land, such as wells, large trees, stone walls, and boulders. Let’s listen as
Bill Plunkett discusses the monument system, describing when it is used and why it is
not used much in New York City.
• The lot and block system is the simplest description and is used for platted, or
subdivided, property. Descriptions, indicating the lot and block numbers of a parcel in a
subdivision, are contained in a plat map (also called a plot plan or a recorded plat)
recorded in the public records of the county in which the land is located.
• The government survey system, also called the rectangular survey system, is not used
in every state. It references blocks of land by principal meridians (north-south) and base
(east-west) lines. Using this system, land is divided into six-mile by six-mile squares
called townships; each township is divided into 36 sections; each section is one square
mile or 640 square acres. Not used in New York.

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Topographic Maps

A topographic map, also called a contour

map or a topo map, shows the elevation of
a particular section of land. This is helpful for
understanding water flow, among other
things.

Contour lines show points of equal

elevation at set intervals as determined by
the scale of the map. The closer the contour
lines are, the steeper the slope. When the
lines are far apart, the slope is more gradual.

Calculations

Basic math calculations are important in real estate. Remember

these key points:

• 1 yard = 3 feet
• 1 square yard = 9 square feet
• 1 cubic yard = 27 cubic feet
• 1 acre = 43,560 square feet
• 1 rod = 16 1/2 feet
• Area = width x length
• Use the “T-Math” system to calculate area.
• To find the area of a trapezoid-shaped lot, add the lengths of
the two parallel sides, divide by 2, then multiply by the depth
of the lot.
• To find the area of a pie-shaped lot, divide the length of the
triangle’s base by 2, then multiply by the depth of the lot.
• To find the area of odd-shaped lots, break the outline into
multiple regular shapes, find the area of each, and add
together.
• 1 mile = 5,280 linear feet
• Linear feet = the length in feet
• Cubic feet = length x width x depth
• Cubic yards = cubic feet divided by 27
• Front feet, or frontage, is the portion of the lot that faces the
street. It’s always the first number when the dimensions of
the lot are provided.

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Unit 3: Property Conveyance and the Public Records

Voluntary Alienation

Voluntary alienation is the most common way to transfer ownership of land. Voluntary
alienation is an action, which the property owner undertakes of his or her free will and may
be accomplished through:

• Sale of property, in which the owner agrees to hand over title in exchange for
consideration; usually completed with a deed.
• Gift of a deed, in which the owner may transfer title without receiving something of value
from the recipient.
• Dedication of private property for public use, (e.g., a developer who dedicates land for
streets within a new subdivision or someone who dedicates land for a park to a
municipality).
• Grant (also referred to as land grants or public grants), as when the government
transfers title to land to an individual.

Involuntary Alienation

Involuntary transfer, or alienation, is the transfer of title in an interest in real property against
the will of the owner, or without action by the owner, occurring through operation of law,
natural processes, or adverse possession.

• Accesssion
• Foreclosure
• Eminent domain
• Adverse possession

Devise or Descent

Another way that property transfers is upon the death of the owner. There are two ways this
happens:

• Devise – When a person dies with a will (testate), the property is transferred to heirs
(the devisees) as indicated in the will. The executor designated in the will is responsible
for carrying out the transfer of the property.
• Descent – When a person dies without a will (intestate), his property automatically
descends to his heirs or next of kin as provided for by state law. An administrator
appointed by the court will handle the affairs of the estate. This process is also called
intestate succession.

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Recording

Recording a document:

• Provides notice so that the public is able to determine who holds an interest in any
piece of property.
• Allows property owners to defend their estate, right, or interest against third parties
claiming a subsequent interest.
• Protects property buyers and lenders against secret conveyances and encumbrances.
• Is required for any legal document that affects title to real estate (deeds, easements,
restrictive covenants, court orders, long-term leases, plot plans, liens, etc.).
• Is required for certain documents to be legal (e.g., mortgages and mechanic’s liens).
• Requires the acknowledgement of an authorized official (usually a notary public) that
certifies that the signatures on the document are voluntary and genuine.
• Does not make an invalid document valid.

Notice

When two people have conflicting claims, their rights and liabilities sometimes depend on
what one person knew or should have known. There are different types of notice:

Actual notice
• Also called actual knowledge.
• It includes what someone personally saw, heard, read, or observed.
• Actual notice may be provided to an individual, but it’s not practical to expect the
general public to have actual notice.
• Failing to record a document does not impact the validity of the document between the
parties to the document and other people who have actual notice of its existence.

Constructive notice:
• Also called legal notice.
• The law holds that everyone has constructive notice of recorded documents.
• Even if someone didn’t know about a particular recorded document, he or she could
have found it by searching the public record.
• The law expects a buyer or lender to search the public record for his or her own
protection. The burden of discovery rests with the general public.

Inquiry notice:
• A person has inquiry notice when there’s an indication of a claim or other situation that
would alert a reasonable person to further inquire about the title.
• Someone who does not find a claim against property through the failure to look further
may still be held to have inquiry notice of a claim.
• When someone’s in possession of land, a buyer is held to have inquiry notice of the
possessor’s claim even if the buyer never visited the land.

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The Public Recorder’s Office

All states have passed recording acts that govern the recording of many different types of
documents.

• Documents involving the creation, transfer, or encumbrance of an estate can be filed

with the county recorder’s office.
• A recording fee and an acknowledgement are required to record any document.
• Documents are scanned in the order they were filed for record, which can affect deed
priority or lien priority.
• Scans or photocopies of the original documents are generally maintained on CD-ROM,
on microfilm, on paper, and/or online.
• Each document is stamped with the date and time, as well as locator information (e.g.,
book and page number or reel and frame number for microfilm).
• All recorded documents are made available to the public.
• Recorded documents maintained by the county recorder’s office are the official, legal
documents.
• Original documents are usually returned to the owner.

The Public Record Indexes

The recorder keeps indexes of all recorded documents to provide the specific location of the
document in the public record. Some examples of indexes that might be maintained include:

• A direct index, also called grantor index, lists all documents alphabetically by grantor’s
last name.
• A reverse index, also called grantee index, lists all documents by grantee’s last name.
• A mortgagor index lists recorded mortgages, and whether or not they have been
satisfied, by the property owner’s last name.
• A mortgagee index, lists recorded mortgages, and whether or not they have been
satisfied, by the lender’s name.
• A sectional index, also called a tract index, lists documents under the tax parcel
number of the property, thus grouping together all recorded documents affecting that
piece of property.

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Unit 4: Titles and Title Insurance

Chain of Title

The chain of title is a clear and unbroken chronological record of the ownership of a
specific piece of property.

• Each owner is linked to the previous owner and the subsequent owner through deeds,
forming a chain of title as disclosed in the public records. It typically covers 40-60 years.
• A gap in the chain of title creates uncertainty, which is called a cloud on the title, also
called color of title.
• A deed outside the chain of title is a wild deed.
• Buyers and lenders are not held to have constructive notice of a wild deed.
• A suit to quiet title may be required to close any missing links and remove the cloud on
the title. Accomplished in New York through an Article 15 proceeding.

Title Search and Title Abstract

When conveying real property, the seller is generally expected to deliver clear title, also
known as marketable title. A title search, also known as a title examination, is necessary to
determine ownership and the quality of the title prior to conveyance. A title search, usually
performed by an abstractor or a title company, starts with the chain of title and results in the
creation of an abstract of title, which:

• Is a complete historical summary of title to a piece of property.

• Lists all documents in the public record that have affected title to the property.
• Shows all grants and conveyances from the chain of title.
• Should show every lien, easement, restriction, lawsuit, mortgage, and other
encumbrances that have ever affected the property, even if the encumbrance has been
removed or satisfied.
• Lists the public records that were searched, as well as the public records that were not
searched.
• Does not reveal encroachments on the property, which would need to be documented
through a survey of the property, not through public records.
• Does not ensure the validity of the title.

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Title Insurance

Title insurance:

• Protects both the buyer (owner’s policies) and the lender (mortgagee or lender’s title
policies).
• Does not cure defects, but insures against losses due to title defects other than those
specifically excluded.
• Requires a one-time premium to be paid at settlement.
• Requires the title company to go to court if necessary and defend its policyholder against
any claim against the ownership of the land.
• Generally pays out claims based on the actual decrease in value caused to the
property.
• Rarely pays out the full face amount of the policy, or the full value of the property, is
rarely paid out unless a serious defect causes the owner to lose title to the property.
• Usually gives the company issuing the policy the right to pursue third parties to regain
any claim money paid, a process known as subrogation.
• Is usually paid for by the party who has the greatest liability, based on the guarantees
made in the deed.

Four Classes of Title Insurance

Besides being either standard or extended, title insurance can be broken down into four
classes:

• Owner’s policies – Issued in the name of the property owner with coverage that runs
from the time of purchase for as long as the policyholder owns the property.
• Mortgagee’s policies – Issued in the name of the lender to protect its interests in the
property with coverage for the loan amount outstanding at the time a claim is paid.
• Leasehold policies – Less common type of title insurance obtained by lessees when a
substantial amount of money is invested in a property, such as for a building owned on
leased land.
• Easement policies – Uncommon type of title insurance that protects an easement
owner’s interests across another’s property.

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Terminology Review
Abstract of Title A brief, chronological
summary of the recorded documents affecting
title to a particular parcel of real property.
Accession The acquisition of title to land by its
addition to real estate already owned, through
human actions or natural processes.
Accretion A gradual addition to dry land by the
forces of nature, as when the tide deposits
water-borne sediment on shoreline property.
Acknowledgement A person signing a
document and formally declaring to an
authorized official (usually a notary public)
that she signed voluntarily. The official
certifies that the signature is voluntary and
genuine.
Acre A measure of land area that is equal to
43,560 square feet. One square mile contains
640 acres.
Actual Notice Actual knowledge of a fact, rather
than knowledge imputed or inferred by law.
Administrator A person appointed by the
probate court to manage and distribute the
estate of a deceased person when no
executor is named in the will or there is no
will.
Adverse Possession Acquiring title to someone
else’s real property by possession of it. The
possession must be open and notorious,
hostile and adverse, exclusive, and
continuous, for the number of years indicated
by state law.
Affidavit of Title A statement, sworn in front of
a notary public or other authorized official, by
the seller or grantor of property that identifies
the grantor, identifies the grantor’s marital
status, and certifies that the grantor has no
new judgments, liens, divorces, unrecorded
deeds, or other potential title defects since the
title examination was completed. It also
certifies that the grantor is indeed in
possession of the property. See
Continuation.
Against Encumbrances A guarantee in a deed
that the property will not have any
encumbrances except for those listed on the
deed.
Allodial System The system of land ownership
under which anyone can own land.
Alluvion The solid material deposited along a
shore by accretion. Also called Alluvium.
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American Land Title Association (ALTA) A
national association of title companies,
abstractors, and attorneys. Members agree to
promote uniformity, quality, and professional
standards in title insurance policies. Policies
issued by ALTA members follow specific
guidelines.
Avulsion A natural process in which land is
removed from one person’s property and
deposited onto another’s. Avulsion happens
very suddenly as in a flash flood.
Bargain and Sale Deed A type of deed that
implies that the grantor owns the property and
has right to convey it, but there are no
warranties.
Base Line Main east-west lines designated and
named throughout the country for use with the
government survey system.
Beneficiary The person who receives the
benefit from a will, trust, or insurance policy.
Certificate of Title A document prepared by an
attorney stating the attorney’s opinion of the
status of the title to a piece of property, after
performing a title search and reviewing the
public records. Also called an Opinion of
Title.
Chain of Title The chain of deeds and other
documents transferring title to a piece of
property from one owner to the next, as
disclosed in the public record.
Cloud on the Title A claim, encumbrance, or
defect that makes the title to real property
unmarketable.
Concurrent Estates Ownership by two or more
persons at the same time. All of the estates
are concurrent estates except for estates in
severalty. A co-owner can sell his interest
without the other owner’s consent, unless the
property is held as tenants by entirety.
Condominium A property developed for co-
ownership, where each co-owner has a
separate interest in an individual unit, and an
undivided interest in the common areas of the
property.
Cooperative A building owned by a corporation,
where the residents are shareholders in the
corporation; each shareholder receives a
proprietary lease on an individual unit and the
right to use the common areas.
Co-Ownership Any form of ownership in which
two or more people share title to a piece of
 property, holding undivided interests. Also
called Co-Tenancy or Concurrent
Ownership.
Consideration Anything of value – such as
money, goods, services, or promises – which
is given to induce another person to enter into
a contract.
Constructive Notice Knowledge of a fact
imputed to a person by law. A person is held
to have constructive notice of something when
he or she should have known it, even if he or
she did not know it. Everyone is held to have
constructive notice of the contents of recorded
documents, since everyone is expected to
protect their interests by searching the public
record.
Continuation A title search performed just prior
to settlement in order to bring a preliminary
title report up to date and ensure that no
intervening rights to the property have come
up. Also called a Continuance or a Bring-
Down.
Conveyance The act that involves the transfer
of interest in property from one person to
another.
Corporation An association organized
according to strict regulations, in which
individuals purchase ownership shares;
regarded by the law as an artificial person,
separate from the individual shareholders.
Correction Deed A deed used to correct minor
mistakes in an earlier deed, such as
misspelled names or errors in the legal
description of the property.
Covenant A contract, promise, or a guarantee
(express or implied) in a document such as a
deed or lease.
Covenant of Quiet Enjoyment A guarantee
that a buyer or tenant has the right to
exclusive, undisturbed possession of a
leasehold estate, and will not be disturbed by
the previous owner, the lessor, or anyone else
claiming an interest in the property.
Cubic Feet Length x width x depth = cubic feet.
Cubic feet divided by 27 cubic feet give you
cubic yards. (120’ x 10’ x 0.3333’ = 399.996
cubic feet ÷ 27 = 14.8133 cubic yards).
Dedication A gift from a landowner to the
government, as when a subdivision developer
passes ownership of streets to a city, town, or
village by dedication.
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Deed An instrument that conveys grantor’s
interest, if any, in real property. Also called a
Conveyance.
Deed in Lieu of Foreclosure When the deed to
a property is given by a borrower to the lender
to avoid foreclosure.
Deed of Trust An instrument held by a third
party as security for the payment of a note.
Like a mortgage, it creates a voluntary lien on
real property to secure repayment of a debt.
Unlike a mortgage, a deed of trust includes a
power of sale, allowing the trustee to
foreclose non-judicially.
Delivery and Acceptance Delivery refers to the
grantor’s intention to transfer the property’s
title and acceptance refers to the grantee’s
receiving the land. There is no legal effect of
the deed until delivery and acceptance has
occurred.
Descent The inheritance of land distributed by
intestate succession, which is a process of
passing the inheritance on to the next of kin of
the deceased and is supervised by the
probate court.
Description A thorough and complete
documentation of the property being
conveyed, which identifies and distinguishes
that property from any and all other parcels of
land.
Devise Real property transferred in a will.
Devisee A recipient of real property under a will.
Eminent Domain The government’s
constitutional power to take (appropriate or
condemn) private property for public use, as
long as the owner is paid just compensation.
(Government taking of private land is called
condemnation. Condemnation is the action;
eminent domain is the right.)
Equitable Title An interest created in property
upon the execution of a valid sales contract,
whereby actual title will be transferred by
deed at a future date (closing). Also, the
vendee’s (buyer’s) interest in property under a
land contract. Also called Equitable Interest.
Erosion The gradual loss of soil due to the
action of wind, water, or other forces.
Escheat When property reverts to the state after
a person dies without leaving a valid will and
without heirs.
Executor/Executrix
A person appointed in a will to carry out the
provisions of the will. If a man is appointed, he
 is called an executor; if a woman is
appointed, she may be referred to as an
Executrix.
Extended Coverage A category of title
insurance with coverages and restrictions
similar to a standard coverage policy with
additional protections. The extended coverage
policy, for example, covers additional defects
in title that may be discovered only through
actual inspection of a survey. Extended
coverage is frequently required by lenders.
Feudal System The system of land ownership
under which a king or queen owns all of the
land and all other people are merely tenants.
Foreclosure When a landowner defaults on
debts secured by real property, the property
can be transferred through the process of
foreclosure.
Freehold Estate A possessory interest in real
property of uncertain duration; an ownership
estate in real property; either fee simple or life
estate. Holder of freehold estate has the title.
Front Feet The portion of the lot that faces the
street. In a measurement, front feet is always
the first number (65’ x 150’ lot = 65’ frontage).
Full Covenant and Warranty Deed This type of
deed contains the strongest and broadest
form of guarantee of title and provides the
greatest protection of any deed to the grantee.
Further Assurance A guarantee in a deed that
the grantor will provide other documentation
to prove ownership if necessary.
General Partnership A partner who has the
authority to manage and contract for a general
or limited partnership, and who is personally
liable for the partnership’s debts.
Gift Deed A deed that conveys interest in a
property when the only consideration given is
love and affection.
Government Survey System Legal description
for land referencing principal meridians and
base lines designated throughout the country.
Not used in New York.
Grantee Person who receives a grant of real
property from the grantor.
Grantor The person who transfers interest in
real property to the grantee.
Guardian’s Deed A deed authorized by a
guardian. The guardian is the person
assigned by the court to handle the affairs of
an incapacitated person.
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Habendum Clause Clause included after a
granting clause in many deeds; it begins “to
have and to hold,” describing the type of
estate granted.
Hidden Risk A title risk that is not apparent
during an examination of the public records,
such as forgery. Hidden risks are covered
under standard title insurance policies but not
covered by a certificate of title.
Inquiry Notice When circumstances should
have alerted someone to a possible problem
prompting further investigation, a person may
be held to have had notice of the problem
even if he or she does not have actual
knowledge of it.
Intestate A person who dies without making a
will, causing his or her estate to pass on by
the laws of descent and distribution.
Involuntary Alienation The transfer of an
interest in property against the will of the
owner, or without action by the owner,
occurring through operation of law, natural
processes, or adverse possession.
Joint Tenancy A form of co-ownership in which
the co-owners have equal undivided interests
and the right of survivorship.
Joint Venture Two or more individuals or
companies joining together for one project or
a series of related projects, but not as an
ongoing business.
Land Patent An instrument conveying public
land to an individual.
Land Trust A trust in which real estate is the
only asset. The beneficiary has the right to
possess the property as well as to the income
or proceeds from its sale. The trustee
manages the real estate as directed by the
beneficiary.
Limited Liability Corporation A type of
business organization that has the limited
liability protection of a corporation and the tax
advantages of a partnership.
Limited Partnership A partner in a limited
partnership who is primarily an investor and
does not participate in the management of the
business, and who is not personally liable for
the partnership’s debts.
Linear Feet This is simply the total length in feet
around a perimeter (for example, a 20’ x 30’
garden will take 100 linear feet of fencing).
Lis Pendens A recorded notice stating that a
lawsuit is pending that may affect title to the
defendant’s real estate.
Lot and Block System A type of legal
description used for platted property. The
description states only the property’s lot
number and block number in a particular
subdivision.
Marketable Title A title that is free and clear
from undisclosed encumbrances or other
defects that would expose a purchaser to
litigation or impede a purchaser’s ability to
enjoy the property or to later sell the property.
Marketable title is required to be delivered by
the seller to the purchaser at settlement.
Metes and Bounds System A type of legal
description that starts at an easily identifiable
point of origin, or point of beginning (POB)
and describes a property’s boundaries in
terms of compass directions and distances,
ultimately returning to the point of beginning.
Monuments or Markers Fixed physical objects
used as reference points in the metes and
bounds system of property description.
Mortgagee’s Policy A type of title insurance
that the lender may have drawn in its own
name to protect its interests in the property.
This policy is for the loan amount that’s
outstanding at the time a claim would be paid.
Owner’s Policy A type of title insurance issued
in the name of the property owner. Coverage
runs from the time of purchase for as long as
the policyholder owns the property.
Ownership in Severalty Ownership by a single
individual, as opposed to co-ownership.
Pins Rods driven into the ground used to help
mark property boundaries.
Planned Unit Development (PUD) A special
type of subdivision that may combine
nonresidential uses with residential uses, or
otherwise depart from ordinary zoning and
subdivision regulations; some PUDs have lot
owners co-own recreational facilities or open
spaces as tenants in common.
Plat Map A detail survey map of a subdivision
recorded in the county where the land is
located. Generally used by developers. Also
called Plot plan, Recorded Plat.
Proprietary Lease Exclusive, longer term lease
given to a person who lives in a cooperative
and owns stock in the cooperative.
Public Grant A form of voluntary alienation
where the government transfers title to land to
an individual such as government land grants
given to public companies to build railroads or
to colleges and universities but also grants
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given to individuals in Alaska to create
homesteads. Also known as Land Grants.
Quiet Enjoyment A warranty included in a deed
that the buyer will not be bothered by others
claiming the title.
Quitclaim Deed A deed that conveys any
interest in a piece of real property the grantor
has at the time the deed is executed. This
type of deed is often used to clear up a cloud
on the title. It contains no warranties of any
kind.
Race/Notice Rule When the same property has
been sold to two different buyers, if the
second buyer records the deed before the first
buyer, then the second buyer has good title to
the property as long as he or she did not have
notice of the first buyer’s interest.
Referee’s Deed A deed issued by the court to a
property buyer from a foreclosure sale. Also
called Sheriff’s Deed.
Reference to a Plat A parcel of land that is
documented by its lot and block in the land
description placed on file in public records.
Reliction The gradual receding of water from a
shoreline, exposing more of the water bed.
The exposed land mass becomes part of your
property.
Reverse Index An index kept by the county
recorder, with each recorded document listed
in alphabetical order according to the last
name of the grantee.
Right of Survivorship A characteristic of
statutory survivorship tenancy, joint tenancy,
and tenancy by the entireties; surviving co-
tenants automatically acquire a deceased co-
tenant’s interest in the property.
Sectional Index An index that lists recorded
documents under the tax parcel number of the
property they apply to, grouping together all
recorded documents affecting a particular
piece of property.
Seizen A guarantee included in a deed that the
grantor really owns the property. May be
spelled seizin, seisen, or seisin.
Simultaneous Issue When an owner’s title
insurance policy is issued at the same time as
the mortgagee title insurance policy.
Sole Proprietorship A business owned and
managed by one person (or for tax purposes,
a husband and wife) who is personally liable
for all business debts. It could be organized
under a fictitious or assumed name.
Special Warranty Deed A deed by which the
grantor covenants or guarantees the title from
the time the grantor received it until it is
conveyed to the grantee.
Standard Coverage With standard title
insurance coverage, the title insurance policy
states all possible clouds or problems with the
title, like liens or unpaid taxes. Title insurance
protects the homeowner from claimants not
stated in the insurance policy, including
defects in the public records such as forged
documents, improper deeds, and other
mistakes.
Subrogation A company issuing title insurance
usually reserves the right to pursue third
parties to regain any claim money paid.
Suit to Quiet Title A lawsuit to determine who
has title to a piece of property, or to remove a
cloud from the title. Sometimes called a quiet
title action. Accomplished in New York
through an Article 15 proceeding.
Syndicate An association of people or entities
formed to operate an investment business. A
syndicate is not a recognized legal entity; can
be organized as a corporation, partnership, or
trust. Also called syndication.
Tenancy by Entireties A form of property co-
ownership by husband and wife, in which
each spouse has an undivided one-half
interest without the other’s consent.
Tenancy in Common A form of co-ownership in
which two or more persons each have an
undivided interest by the entire property (unity
of possession), but no right of survivorship.
Testate Refers to someone who died and left a
will.
Timeshare An ownership interest giving the
owner a right to possession of the property
only for specific, limited periods.
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Title Actual lawful ownership of real property.
This is not a document, but rather a concept
dealing with ownership.
Title Insurance An insurance policy
guaranteeing that title to property is good title
and insuring the policyholder against loss or
damages from defects in the title.
Title Report A report issued by a title company,
disclosing the condition of the title to a specific
piece of property.
Title Search An inspection of the public record
to determine all rights and encumbrances
affecting title to a piece of property.
Trust A legal arrangement in which title to
property (or funds) is vested in one or more
trustees who manage the property (or invest
the funds) on behalf of the trust’s
beneficiaries, in accordance with instructions
set forth in the document establishing the
trust.
Trustee A person appointed to manage a trust
on behalf of the beneficiaries.
Trustor The borrower who owes money in a
deed of trust.
Undivided Interest A co-tenant’s interest, giving
him the right to possession of the whole
property, rather than a particular section of it.
Voluntary Alienation An owner voluntarily
transferring an interest to someone else.
Warranty Deed A deed carrying warranties
(guarantees) of clear title and the grantor’s
right to convey.
Warranty Forever A guarantee in a deed that
the grantor promises to compensate buyer if
title is not good.
Wild Deed A recorded deed that will not be
discovered using the grantor-grantee indexes
because of a break in the chain of title.