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| SETTLEMENT COSTS: An all-inclusive term for costs paid by both seller and buyer in the transfer of property. In addition to closing costs paid by buyer, settlement costs include real estate agent's fee, FHA costs, pro ration of taxes, assessments, title insurance, state and county transfer taxes. SURVEY: On-site measurement of lot lines, dimensions and position of house on lot, including determination of possible encroachments of existing easements. A survey is often required by the lender to assure him that a house is actually sited on the land according to its legal description. TITLE: Evidence in the form of a deed or other certificate of a person's legal right to ownership of the property. TITLE INSURANCE: A contract to make good a property owner's loss resulting from defects in the title. Title insurance usually calls for the insurer to defend the property owners title at no cost if the title is challenged in court. TITLE SEARCH: Detailed review of title records, generally at the local court house, to assure that the property is bought from the legal owner and to determine if any liens, special assessments, other claims or outstanding restrictive covenants are on record. WARRANTY DEED: Deed guaranteed by the seller that the title conveyed is represented by the deed. A general warranty deed includes a covenant whereby the seller protects the buyer against faults in the title. In a special warranty deed the seller agrees only to protect the buyer against claims made by the seller. Those are just a few of the new words you may encounter during the home selling and buying process. If you come across a word at any time that you do not know the meaning of, please ask. I want you to be knowledgeable about everything we discuss. This guides you to the road to being an informed consumer. |
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