Real Estate Settlement Terms You Should Know

Closing Terms Glossary

Here are some real estate settlement terms it comes in handy to know as you approach your closing.

Amortization

The schedule of payments for the life of your loan. From the Latin “mors” meaning death, because you are killing off the debt.

Attorney’s Opinion

A lawyer’s written statement on the condition of a real estate title.

Certificate of Title

An attorney’s written opinion stating that the title is vested as stated.

Claim

A right to the property or proceeds from the sale thereof. Or a demand for such.

Closing Disclosure

A five-page document detailing all of the costs the customer incurs for their mortgage transaction.

Consummation

When the buyer becomes contractually obligated to the lender. This is not the same as closing, or when the buyer becomes obligated to the seller.

Earnest Money

Down payment or advance payment made by a purchaser to demonstrate good faith.

Easement

The limited right to use property for a specific purpose, time, or location.

Encumbrance

A claim, right, or lien on a property by someone other than the real estate owner.

Endorsement

Expansion of title insurance coverage to meet the consumer’s requirements.

Loan Policy

Title insurance policy that protects the lender from losses incurring from defects, liens, or other problems with the title.

Marketable or Merchantable Title

A title that is free of defects and encumbrances, and can therefore be transferred to a new buyer.

Owner’s Policy

For a one-time fee, an owner’s policy protects homeowners from errors, omissions, or other problems that did not arise during the title search. The policy lasts for as long as the owner or heirs maintain interest in the property.

Quiet Title Suit

A lawsuit an owner brings to establish that there are no other legitimate claims on the property, thus “quieting” all possible challenges or claims to the title.

Real Estate In Phoenixville, PA

When you want the smoothest closing, you need the best title company. Call Member Settlement Services at 610-482-4086 to schedule an appointment today. Visit us online to learn more.