A to E: Learn the Escrow Dictionary from Letter A to Letter E
If you do not work in the escrow industry, there is no reason you would know the details about various escrow definitions. At Neighborhood Escrow we can help our clients understand what they need to know and today we are providing details on what some of the most common words mean – starting with A and ending with E.
Escrow Dictionary for the Letter A
- Abstract. This is a set of documents that shows ownership over a period of time for a specific property.
- Ad valorem. The literal translation is “according to value,” but it used to refer to real property taxes assessed based on the value of a property.
- Adverse possession. If a person acquires legal title to the property by possession for a specific statuary period, this is referred to as adverse possession. It may require other conditions to be fulfilled.
- Agreement of sale. This written contract is completed between buyer and seller for the sale of a property.
Escrow Dictionary for the Letter B
- Binder. This is a temporary insurance commitment that focuses on a piece of real estate that is about to close.
- Bone fide purchaser. A person who is buying a property in good faith and for a fair price.
- Breach of contract. Not performing as required in the contract without a legal excuse.
- Broker compensation fee. The payment a broker receives for finding a loan for a borrower.
Escrow Dictionary for the Letter C
- Chain of title. The history of ownership for a property.
- Close of escrow. The date that documents are recorded and the title officially moves from seller to buyer.
- Closing. The final step in the sale, purchase, or refinance process.
- Commitment to insure. A document that outlines the conditions of the title insurance.
Escrow Dictionary for the Letter D
- Deed. The legal document that conveys the title of a property and is used to transfer ownership of a property from the seller to the buyer.
Escrow Dictionary for the Letter E
- Escrow instructions. Instructions signed by the buyer and seller. They enable the agent to carry out the required procedures to complete the transaction.
- Escrow Officer. An escrow agent who has learned, through experience and education, about all escrow issues and how to handle any issues that come up.
Do you have additional questions about the escrow process? Are there words you do not know? If so, you can get help from Neighborhood Escrow at 310-378-2456 today.