Home Closing Terms You Want to Understand
Show up to closing with a clear idea of what is going on. Here are some terms you will want to know to get you on your way.
- 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.
- The limited right to use property for a specific purpose, time, or location.
- Fee Simple
- The highest state of ownership, where the owner owes nothing and no further claims on the property exist. The owner truly owns the property outright.
- Dying without leaving a will.
- A claim on proceeds from the sale of property as collateral for the payment of a debt.
- Power of Attorney
- A legal document allowing another person to act as surrogate or proxy for a specific purpose.
- The form of ownership in a property- sole ownership, joint ownership, community property, etc. Consult an attorney for advice on the best vesting for you.
For Title Insurance in Northern Colorado
Get the legal expertise you need for a smooth closing process at The Group Title. Find out more about us online and call (970) 613-4364 to schedule an appointment.Share this post...