Definition
The legal right to own, use, and dispose of a property. A title search examines public records to confirm the seller has clear ownership and the right to transfer the property, and to identify any liens, easements, or encumbrances. A clear title (also called a clean or marketable title) is required to close a real estate transaction. Title insurance protects against any defects in the title that were not discovered during the search.
Related Mortgage Terms
- Deed of Trust
A legal document used in many states instead of a mortgage that involves three p...
- Title Insurance
Insurance that protects against financial loss from defects in the title to a pr...
- Lien
A legal claim or hold on a property as security for a debt or obligation. A mort...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.