Real Estate Principals Chapter 7

The most all inclusive title insurance policy; it requires a property survey and is usually required by most lenders.

ALTA

The minimum standard title insurance policy in California that does NOT require a property survey.

CLTA

A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in current owner.

Chain of Title

The requirement by a lender that a property be insured up to its full value, or only a proportion of any loss will be reimbursed.

Coinsurance

The date documents are recorded and title insurance is written.

Date of Closing

The process of depositing instruments, funds and instructions, with a third neutral party who finalizes the transaction.

Escrow

The written instructions of the escrow, prepared by the escrow officer and approved by both the buyer and the seller.

Escrow Instructions

The person at the escrow company who handles the paperwork of the escrow.

Escrow Officer

Written instructions by a lender stating and demanding the amount necessary to pay offa loan.

Payoff Demand Statement

A report from a structural pest control company stating the termite or other type of pest damage found and the cost of repairing it.

Pest Control Report

A report showing the condition of title before a sale or loan transaction.

Preliminary Title Report

Adjustments of interest, taxes and insurance, etc., on a prorated basis as of the closing or agreed upon date.

Proration

A federal statute requiring disclosure of certain costs in the sale of residential property.

RESPA

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss; e.g., defective or unmarketable title.

Title Insurance

A filing of all recorded information to real property.

Title Plant