Title terms in plain English.

The words that get used in title conversations, in the language you would actually use with a client. If something here is missing, tell me and I will add it.

The commitment

Title commitment

The title company's report on the property before closing. It says who owns it, what has to be fixed first, and what the policy will not cover.

Schedule A

The facts. Current owner, legal description, sales price, policy amounts, and the effective date.

Schedule B

The exceptions. What the policy will not cover. Easements, restrictions, minerals, building lines. These stay with the property.

Schedule C

The requirements. What has to be resolved before a policy can issue. This is the to-do list with a clock on it.

Schedule D

Disclosure of who owns the title company and how the premium is divided. Informational.

Effective date of the commitment

The cutoff for the search. Anything recorded after it is not reflected, which is why an old commitment is not the same document as a fresh one.

Coverage

Owner's policy

Protects the buyer for the purchase price, for as long as they or their heirs own the property.

Loan policy

Protects the lender up to the loan balance. Ends when the loan is paid off. It does not protect the buyer.

Area and boundary exception

The standard exclusion for boundary and survey problems. Amending it is what agents call survey coverage.

Survey coverage

Amending that exception so fence disputes, encroachments, and overlapping improvements are covered. Costs a percentage of the basic premium.

Endorsement

An add-on to a policy that covers something the standard form does not. Each one is a specific promulgated form.

Closing protection letter

A contract from the underwriter protecting a lender against the settlement agent's failure to follow closing instructions, and against fraud or theft of settlement funds.

Clearing title

Curative

The work of clearing whatever the search turned up so a policy can issue. Liens, heirship, missing signatures, bad legal descriptions.

Cloud on title

Anything in the record that calls ownership into question.

Abstract of judgment

A recorded judgment that attaches to non-exempt property. It does not attach to a Texas homestead, but it still has to be dealt with before closing.

Release of lien

The recorded document proving a lien was paid. Loans get paid off constantly and never released, which is a common surprise.

Affidavit of heirship

A sworn statement identifying a deceased owner's heirs, recorded in the property records. Quick and inexpensive, with real limits.

Muniment of title

A Texas shortcut. With a valid will and no unpaid debts beyond real estate liens, a court order can let the will act as the link in the chain of title.

Quiet title

A lawsuit to resolve competing claims when nothing else will clear them.

Documents and signing

T-47

The affidavit a seller signs about changes to the property since an existing survey was made. It is what lets that older survey be used.

Power of attorney

Authority for someone to sign on another person's behalf. The underwriter approves it in advance, and it usually has to be recorded.

Spousal joinder

A spouse signing a conveyance even though they are not on the deed. Required on Texas homestead property.

Mobile notary

A notary who travels to your client. Included with every file I handle, anywhere in Texas.

Remote online notarization

Notarizing by video with an approved provider. Whether it works on a file depends on the lender and the underwriter.

Money and timing

Proration

Splitting an expense between buyer and seller based on the closing date. Property taxes are the one clients ask about most.

Earnest money

The buyer's good faith deposit, held by the escrow agent and credited at closing.

Option fee

What the buyer pays for the unrestricted right to terminate during the option period.

Escrow

Funds and documents held by a neutral party until the conditions for closing are met.

Settlement statement

The itemized accounting of who paid what at closing.

Closing Disclosure

The lender's final loan cost document. It applies to financed transactions only, and the lender delivers it ahead of closing under federal timing rules.

Funding

When the lender releases money and the transaction is actually complete. Signing is not funding.