The final procedure in the real estate sales process, where the sale and pertinent
loan are completed by the execution of documents for recording. In some areas,
this procedure is known as the closing of escrow.
Closing Service Letter
Also known as Closing Protection Letter. A letter of authorization from a Title
Company, for an individual or agency conducting a settlement on behalf of
the Title Company and Lender which includes the execution of all documents
and disbursements of funds.
Cloud on Title
An irregularity, possible claim, or encumbrance which, if valid, would adversely
affect or impair the title.
A binding contract with a title company
to issue a specific title policy, showing only those exceptions
contained in the commitment and any intervening matters after the
date of the commitment and prior to the effective date of the policy.
The commitment contains all information included in the preliminary
title report, plus a list of the title company's requirements to
insure the transaction. It also includes the standard exceptions
from coverage that will appear in the policy.
Sales that have similar characteristics as the subject property, used for analysis
in the appraisal. Commonly called "comps".
The taking of private property by the government for public use - as for a
street or a storm drain - upon making just compensation to the owner. This
right or power of government to take property for a necessary public use
is called eminent domain.
Notice imparted by the public records of the county when documents entitled
to recording are recorded.
An instrument in writing, such as a deed or trust deed, used to transfer (convey)
title to property from one person to another.
An entity authorized by law and established by a group of people, the stockholders,
which is endowed with certain rights, privileges and duties similar to an
(1) A formal agreement or contract between two parties in which one party gives
the other certain promises and assurances, such as the covenant of warranty
in a warranty deed. (2) Agreements or promises contained in deeds and other
instruments for performance or nonperformance of certain acts, or use or
nonuse of property in a certain manner.
Covenants, Conditions and Restrictions
Commonly called CC & R's the term usually refers to a written recorded
declaration which sets forth certain covenants, conditions, restrictions, rules
or regulations established by a sub divider or other landowner to create uniformity
of buildings and use within tracts of land or groups of lots. The restrictions
also can be established by deed. CC & R's are sometimes referred to as