Yet More Real Estate Terms to Know
As you approach settlement, you may come across some of these closing terms. Here are their definitions.
- Owner’s Policy
- For a one-time fee, an owner’s policy protects homeowners from errors, omissions, or other problems that did not arise during the title search. The policy lasts for as long as the owner or heirs maintain interest in the property.
- Quiet Title Suit
- A lawsuit an owner brings to establish that there are no other legitimate claims on the property, thus “quieting” all possible challenges or claims to the title.
- A legal proceeding to determine the validity of a will or other document.
- Promissory Note
- A written promise to repay a debt with interest.
- Certificate of Title
- An attorney’s written opinion stating that the title is vested as stated.
- When the buyer becomes contractually obligated to the lender. This is not the same as closing, or when the buyer becomes obligated to the seller.
- Simultaneous Issue Rate
- When closing on a home and a mortgage, the lender will take out a title insurance policy, called a loan policy. The simultaneous issue rate is a reduced rate offered when two policies are issued on the same property at the same time.
- Tax Lien
- A lien, or claim, on property imposed by local, state, or federal government to secure payment of taxes. If back taxes are not paid in a timely manner, the government can force sale of the home.
- Title Commitment
- A title insurance policy offer describing the conditions, exemptions, and exclusions of the coverage.
For Title Insurance in Highlands Ranch
Before you get to your closing, you will want to have the best closing services and title insurance coverage in Colorado. Contact Colorado Professionals Title at (303) 268-4278 or visit us online to find out more.