Transfer of Title Glossary

Abstract of Title

A summarized history of all recorded documents affecting title to a specific parcel of land.

Acknowledgment

A formal declaration before a notary that a signature on a document is genuine and voluntary.

Actual Notice

Direct, personal knowledge of a fact, such as an unrecorded claim on a property.

Adverse Possession

A legal method of acquiring title through open, hostile, and continuous possession for a statutory period.

Bargain and Sale Deed

A deed implying the grantor holds title but providing no express warranties against defects.

Chain of Title

The chronological sequence of historical property transfers, from the earliest known owner to the present.

Cloud on Title

Any claim, encumbrance, or defect that impairs a title's marketability.

Color of Title

A claim to property based on a document that appears valid but is actually defective, relevant to adverse possession.

Constructive Notice

Legal notice of a fact, such as a recorded deed, that the public is presumed to know even without actual knowledge.

Deed Restriction

A private limitation on the use of property written into the deed, enforceable by other property owners or a developer.

Delivery and Acceptance

The act of a grantor delivering a deed and the grantee accepting it, which is when title actually transfers.

Devise

A gift of real property made through a will.

Escheat

The reversion of property to the state when an owner dies without a will and has no legal heirs.

Escrow

A neutral third-party arrangement holding funds or documents until all conditions of a transaction are met.

General Warranty Deed

A deed offering the buyer the greatest protection, warranting title against defects from any point in history.

Grant Deed

A deed that implies the grantor has not previously transferred the property and it is free of undisclosed encumbrances.

Granting Clause

The words in a deed that express the grantor's intent to convey the property.

Habendum Clause

The 'to have and to hold' clause in a deed that defines the type of estate being conveyed.

Intestate Succession

The legal process of distributing a deceased person's property when they die without a valid will.

Lender's Title Insurance Policy

A policy protecting a mortgage lender's interest in the property against title defects, required for most loans.

Marketable Title

Title free of significant defects or encumbrances that a reasonably prudent buyer would accept.

Owner's Title Insurance Policy

A policy protecting a property buyer against financial loss from title defects existing before the policy date.

Quiet Title Action

A lawsuit filed to resolve disputes over property ownership and remove clouds on a title.

Quitclaim Deed

A deed that conveys only whatever interest the grantor may have, with no warranties of title.

Settlement (Closing) Statement

A document itemizing all financial credits and debits for buyer and seller in a real estate closing.

Special Warranty Deed

A deed that warrants title only against defects arising during the grantor's period of ownership.

Tacking

Combining successive periods of adverse possession by different occupants to meet the statutory time requirement.

Title Insurance

A policy protecting against financial loss from title defects that existed before the policy's effective date.

Title Search

An examination of public records to verify a seller's legal ownership and identify any liens or claims.

Study the concepts behind these terms: Transfer of Title study guide