How Familiar Are You with Common Escrow Terms? Get Definitions for Words Starting with F to O
Most people have no reason to be familiar with common escrow terms, yet they may need to know them when they are buying or selling a home. At Neighborhood Escrow we are here today to provide you with help regarding terms between the letters of F and O.
Common Escrow Terms Starting with F
- Flood insurance. In the event a lender indicates that a portion of a property is within a flood zone, they may require a flood insurance policy.
- Full disclosure. This refers to revealing all information that could affect a person’s decision to buy the property. It is also the broker’s commitment to give information on known defects.
Common Escrow Terms Starting with H
- Hazard insurance. A policy that insures the property against causalities.
- Holding escrow. The depositing of money with a third party (an common escrow terms) for the purpose of holding it while two parties affect the terms of a contract.
Common Escrow Terms Starting with I
- Impounds. A specific type of trust account that is established for lenders to accumulate a borrower’s funds to meet payments for taxes, mortgage insurance, and future insurance premiums. Impounds are required for the protection of security. Part of a monthly mortgage payment is put into an account to pay for property taxes, hazard insurance, etc.
- Indemnity. Insurance protecting against possible future loss or damage.
Common Escrow Terms Starting with J
- Judgment and name search. A part of the title search, this document determines if there are open judgments against the current owner or previous owners when the property was owned by them.
Common Escrow Terms Starting with L
- Lender’s Policy. This policy protects the mortgage holder by ensuring that the seller of the property has the legal right to sell the property and that there are no additional debts or conveyances against the property other than what was written.
- Lis Pendens. A recorded notice that shows the official records of a county that a lawsuit is pending.
Common Escrow Terms Starting with M
- Metes and bounds. A term that describes terminal points, boundary lines, and angles on a particular piece of land.
Common Escrow Terms Starting with N
- Neutral third parties. A title company, escrow company, or escrow officer that does not offer advice about the value of a property and only encourages the use of legal or professional counsel with questions.
Common Escrow Terms Starting with O
- Offset statement. This statement is given to escrow from a landowner who is subject to a note as to the balance due on the property.
This is of course just a partial list of definitions that may be involved in an escrow transaction. If you have additional questions you can contact Neighborhood Escrow at 310-378-2456 for help.