Abstract of Title – A condensed history or summary of all transactions affecting a particular tract of land.

Beneficiary – A person who is entitled to receive funds or property under the terms and provisions of a will or trust or insurance policy.

Cancellation of Mortgage – Mortgage cancellation typically means that a lender has cancelled, or forgiven, the debt owed by the borrower. This should not be confused with a discharged debt, which is conducted by a bankruptcy court, not the creditor that holds the claim to payment. Lenders rarely cancel an entire mortgage. It is more common for a lender to cancel part of the remaining mortgage debt as part of a debt consolidation or restructuring process.

Certificate of Satisfaction – A document signed by the Noteholder and recorded in the land records evidencing release of a DEED OF TRUST, MORTGAGE or other lien on the property.

Clear Title – Title of an asset that is not encumbered or burdened with defects.

Closing – Also known as “escrow” or “settlement.” The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase.

Deed – A written document by which the ownership of land is transferred from one person to another.

Deed of Release – A legal document that removes a previous claim or lien on an asset. A deed of release is usually issued once a mortgage or other type of debt, previously secured against the asset, has been paid in full. After the deed of release is written, the asset is owned free and clear by the owner, and any previous claims against the asset that the lender may have had are dissolved.

Deed of Trust / Trust Deed – A written document by which the title to land is conveyed as security for the repayment of a loan or other obligation. It is a form of mortgage. The landowner or debtor is called the “trustor.” The party to whom the legal title is conveyed (and who may be called on to conduct a sale thereof if the loan is not paid) is the “trustee.” The lender is the “beneficiary.” When the loan is paid off, the trustee is asked by the beneficiary to issue a “recon” or reconveyance. This reconveyance corresponds to the release that the holder of a mortgage executes when the mortgage is paid off.

Deed to Secure Debt – A type of mortgage used in a few states; the title to the property is transferred to the lender until the debt is paid in full.

Discharge of Mortgage – The removal of a registered mortgagor on a Certificate of Title. An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

HUD-1 Settlement Statement – U.S. Department of Housing and Urban Development (HUD) settlement (closing) statement form required in cases where federally related mortgages are being made on residential properties.

Instrument – Any written document by which something is done regarding rights or interests in real estate.

Judgment – A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from a financial obligation awarded to a creditor as part of a legal judgement.

Lender – A financial institution, like a bank, or private party that loans  money to buy a home.

Lien – A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics’ liens.

Marketable Title – A  title about which there is no reasonable doubt.

Mortgage – An instrument used to encumber land as security for a debt. (1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.

Note – The instrument evidencing the indebtedness secured by a security instrument such as a mortgage or deed of trust.

Property – Parcel – Any area of land contained within a single description.

Reconveyance Deed / Deed of Reconveyance – An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

Reconveyance Experts – The absolute best release tracking provider in the real estate settlement and title industry.

Refinancing or Refi – Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.

Rescission – The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.

Satisfaction of Mortgage – (1) The payment of a debt (mortgage) or fulfillment of an obligation. (2) An instrument executed by the holder of a lien, debt or obligation which acknowledges payment or fulfillment.

Security Interest – A legal claim on collateral that has been pledged, usually to obtain a loan. The borrower provides the lender with a security interest in certain assets that can be repossessed if the borrower stops making loan payments.

Substitution of Trustee – a legal form filed with the county recorded for a new trustee to supersede the existing trustee on a Title or Deed.

Title – The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.

Title Defect, Special, Rush – Any legal right held by others to claim property or to make demands upon the owner.

Title Insurance Binder – A temporary form of real estate insurance coverage related to the transfer of ownership. A title binder is typically used to protect both the seller and buyer of a real estate property during the transitional phase of a sale when the seller’s and buyer’s home insurance policies do not necessarily overlap over the same time frame. Although they are not legally required in all cases, title binders are a common protective insurance in real estate transactions.

Title Insurance Policy – A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller. Policies are also available to protect the lender’s interests. Title insurance covers mistakes made during a TITLE SEARCH as well as matters which could not be found or discovered in the public records such as missing heirs, mistakes, fraud and forgery. Compare, CERTIFICATE OF TITLE