DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

Glossary

Title, in plain words.

94 terms you'll hear at the closing table, each with a one-line definition and a link to where it matters.

Title term of the day

Abstract of title

A condensed history of the recorded documents affecting a parcel. Some states still require a certified abstract before a policy issues.

See it in the glossary
94 terms
Abstract of title
A condensed history of the recorded documents affecting a parcel. Some states still require a certified abstract before a policy issues. Read more →
Access endorsement
ALTA 17: insures the land abuts and has actual vehicular and pedestrian access to a named public street. Read more →
Acknowledgment
A signer's formal declaration before a notary that they signed the document. Most states require one before a deed or mortgage can be recorded. Read more →
Affirmative coverage
Insurance the policy gives over a matter that would otherwise be excepted or excluded, usually by endorsement. Read more →
ALTA
The American Land Title Association, the national trade group that publishes the standard title policy and endorsement forms used in most states. Read more →
ALTA/NSPS survey
A land title survey prepared to the joint ALTA and NSPS minimum standards, the usual survey for commercial deals. Read more →
Amount of Insurance
The policy limit stated in Schedule A. Claim payments reduce it; covered defense costs do not. Read more →
Arbitration
In the 2021 ALTA policies, arbitration is an optional condition. Where included, either party can elect binding arbitration if the Amount of Insurance is $2,000,000 or less; above that, both must agree. Read more →
Assessments
Charges levied by a condominium or homeowners' association, which can become liens on the unit or lot. Read more →
Attorney-closing state
A state where a licensed attorney must conduct or supervise the closing, such as Georgia, South Carolina and Delaware. Read more →
Bonding off a lien
Posting a bond or cash with the court or clerk so a lien moves off the real estate and onto the security. Read more →
Chain of title
The sequence of recorded transfers showing how title passed from one owner to the next. Read more →
Closing protection letter
A letter from the title insurer protecting the lender (and often the buyer) against the closing agent's fraud or failure to follow written closing instructions. Read more →
Coinsurance
A clause that pays partial losses pro rata when a property is underinsured. It was in the 1992 ALTA owner's policy and dropped in 2006. Read more →
Commitment
The title company's promise to issue a policy on stated terms once the listed requirements are met. Read more →
Condominium endorsement
ALTA 4 and 4.1: coverage for condo-regime risks such as assessment-lien priority or unpaid assessments at closing. Read more →
Construction loan endorsement
ALTA 32 series: insures a construction lender's priority over mechanics' liens, limited to charges designated for payment in advances disbursed on or before the Date of Coverage. Read more →
Contiguity
Whether separately described parcels actually touch along their boundaries, with no gaps, strips or gores. Read more →
Contract of indemnity
What a title policy is: a promise to pay actual loss from covered matters, not a guarantee that title is perfect. Read more →
Covered risk
A matter the policy insures against, listed in the policy jacket, such as forgery or lack of access. Read more →
Created, suffered, assumed or agreed to
Exclusion 3(a): matters the insured itself caused or accepted are not covered. Read more →
Creditors' rights
Bankruptcy and similar laws that can undo a transfer as fraudulent or preferential. Partly covered, partly excluded in ALTA policies. Read more →
Curative
The work of clearing a title problem before closing: releases, corrective deeds, affidavits or court orders. Read more →
Date of Coverage
In the ALTA 32 construction series, the date through which advances are insured. ALTA 33 moves it forward with each draw. Read more →
Date of Policy
The effective date in Schedule A. Coverage looks at title as of this date. Read more →
Deed of trust
A security instrument that conveys title to a trustee to secure a loan. It is used in place of a mortgage in many states. Read more →
Disbursement endorsement
ALTA 33: brings an ALTA 32-series Date of Coverage forward to a later draw date. Read more →
Discriminatory covenant
An illegal, unenforceable covenant based on a protected class. 2021 ALTA policies treat it as redacted from excepted documents. Read more →
Dower
A surviving spouse's historic life estate in the other spouse's land. Ohio still recognizes it. Read more →
Dragnet clause
A clause making a mortgage secure other debts between the same parties. Georgia calls these open-end clauses. Read more →
Duty to defend
The insurer's obligation to defend the insured, at its cost, in litigation asserting a covered claim. Read more →
Encroachment
An improvement that crosses a boundary line, setback or easement. Read more →
Endorsement
A form attached to a title policy that adds, removes or clarifies coverage for a specific risk. Read more →
Energy project endorsement
The ALTA 36 series for wind, solar and similar projects held by lease, easement or fee, valuing loss to the whole project. Read more →
Enforcement Notice
A document recorded in the Public Records identifying a violation or enforcement of a law, an exercise of governmental or eminent-domain power, or a right to enforce a PACA-PSA trust. It triggers several 2021 Covered Risks. Read more →
Escrow
Holding money and documents in trust until the closing instructions are satisfied. Read more →
Exception
A matter listed in Schedule B that the policy does not insure against. Read more →
Exclusions from coverage
The printed matters every ALTA policy excludes, such as land-use laws, eminent domain, and matters created or known by the insured. Read more →
Fair market value of the Title
How the 2021 owner's policy measures loss: value of title as insured minus value subject to the defect, capped by the Amount of Insurance. Read more →
FIRPTA
The federal law requiring a buyer to withhold tax when buying U.S. real property from a foreign seller, unless an exemption applies. Read more →
Future advance
Money lent after the mortgage is recorded under the same instrument, such as construction draws or a credit line. Read more →
Gap
The time between the effective date of the title search and the recording of the insured documents. Read more →
Good funds
State rules on what kinds of deposited funds a settlement agent may disburse against. Read more →
Gore
A small, often triangular strip or gap between parcel descriptions. Read more →
Identified risk
A specifically defined consequence of an excepted matter that ALTA 34 insures against. Read more →
Insured
The party named in Schedule A plus the successors and certain grantees the policy defines, such as wholly owned affiliates. Read more →
Knowledge
In the ALTA policies: actual knowledge or actual notice, not constructive notice from the public records. Read more →
Leasehold
A tenant's interest in land under a lease. It can be insured with leasehold endorsements. Read more →
Lis pendens
A recorded notice that a lawsuit affecting title to the land is pending. Read more →
Loan policy
A title policy protecting a lender's mortgage: its validity, enforceability and priority. Read more →
Marked commitment
A commitment marked up at closing to show the agreed policy terms, binding the insurer to issue the policy. Read more →
Mechanics' lien
A lien for unpaid labor, services or materials that improved real estate. Read more →
Mezzanine financing
A loan secured by the ownership interests in the entity that owns the property rather than by the land itself. Read more →
Minerals endorsement
ALTA 35 series: covers damage to buildings or improvements from exercise of surface rights to extract minerals. Read more →
Minimum Standard Detail Requirements
The ALTA/NSPS standards for land title surveys. The 2026 version took effect February 23, 2026. Read more →
Non-conforming use
A use that was lawful when it began but doesn't fit current zoning, usually allowed to continue ("grandfathered"). Read more →
Non-imputation
Coverage that keeps the insurer from denying a claim based on what former owners or officers of the insured entity knew. Read more →
Notice of claim
The insured's prompt written notice to the insurer of a possible claim. Late notice reduces liability only to the extent of prejudice. Read more →
Notice of commencement
A recorded notice that construction has started, naming the owner, contractor and lender. Many states key their lien rules to it. Read more →
Owner's affidavit
A sworn statement from the owner about liens, parties in possession and recent work, used to delete standard exceptions. Read more →
Owner's policy
A title policy protecting the buyer's or owner's title, usually in the amount of the purchase price. Read more →
PACA-PSA Trust
A federal trust for unpaid sellers of produce or livestock that can reach a buyer's assets. Addressed in 2021 ALTA policies. Read more →
Parties in possession
Tenants or occupants whose rights may not appear in the records. A standard exception, usually cleared by affidavit and rent roll. Read more →
Payoff letter
A lender's statement of the exact amount needed to pay off and release its lien. Read more →
Plat
A recorded map dividing land into lots, streets and easements. Read more →
Policy authentication
ALTA 39: a policy issued electronically or without a signature is not invalid for that reason. Built into the 2021 policies. Read more →
Private rights
Options, rights of first refusal, prior-approval rights and private charges in a CC&R document. Covered by ALTA 9.6 and 9.9. Read more →
Pro forma policy
A sample of the final policy, with endorsements and exceptions, agreed before closing. Read more →
Promulgated rates
Title premiums set by the state rather than by each insurer, as in Texas and New Mexico. Read more →
Proof of loss
A signed statement describing a claimed loss and how it's calculated, which the insurer may require. Read more →
PUD endorsement
ALTA 5 and 5.1: coverage for planned-unit-development risks such as HOA assessment-lien priority. Read more →
Race-notice
A recording rule where a later buyer wins only by taking without notice and recording first. Read more →
Reissue credit
A premium discount when the property was insured recently. Read more →
Relation back
A rule letting a recorded lien take priority from an earlier date, such as when work began. Read more →
Remote online notarization
Notarization over audio-video technology. Whether and how it can be used depends on state law. Read more →
Restrictions, encroachments, minerals
The ALTA 9 series: coverage for covenant violations, encroachments and mineral-extraction damage. Read more →
Same as survey
Coverage that the land in Schedule A is the same land shown on an identified survey. Read more →
Schedule A
The part of the commitment or policy that names the insured, the amount, the estate and the land. Read more →
Schedule B
The part of the commitment that lists requirements (Part I) and exceptions (Part II). Read more →
Security deed
Georgia's usual security instrument, which conveys title to the lender until the debt is paid. Read more →
Settlement statement
The line-by-line accounting of funds at closing. Read more →
Simultaneous issue
Issuing owner's and loan policies at the same time, usually at a reduced combined premium. Read more →
Special exceptions
Deal-specific Schedule B exceptions for particular recorded documents or matters. Read more →
Standard exceptions
Boilerplate Schedule B exceptions for off-record risks: possession, survey, unrecorded easements, unrecorded liens. Read more →
Subdivision
Dividing land into lots for sale or development, usually regulated by state platting laws and local ordinances. Read more →
Subrogation
The insurer's right, after paying a claim, to pursue others responsible for the loss. Read more →
Survey exception
The general exception for matters an accurate survey would disclose. It is removed or narrowed with an acceptable survey. Read more →
Surveyor's certification
The surveyor's statement certifying the survey to named parties under the ALTA/NSPS standards. Read more →
Table A
Optional items a client can order on an ALTA/NSPS survey, such as flood zone, zoning information and parking. Read more →
Transfer tax
A state or local tax on recording a deed, often measured by the price. Read more →
Unmarketable title
Title with a matter that would let a buyer, tenant or lender walk away under a contract requiring marketable title. A Covered Risk. Read more →
Utility access
ALTA 17.2: insures against lack of a right of access to the checked utilities over rights-of-way or easements benefiting the land, because of gaps, gores or termination. Read more →
Variable rate endorsement
ALTA 6 and 6.2: insure the mortgage secures interest at a variable rate (6.2 adds negative amortization). Read more →
Zoning endorsement
Coverage on the land's zoning classification and permitted uses (the ALTA 3 series). Read more →