Defense of Title – the obligation of an insurer to institute legal proceedings on behalf of the policy holder against a person who claims to have an interest in a property, and to prove that they have no interest

Easement – the right to do something on another person’s property

Endorsement – a risk of additional insurance coverage for a particular contingency that is accepted by the insurer for an additional price

Escrow – the use of a neutral third party to hold money and other valuables in the process of a transaction

Extended Title Insurance – insurance coverage for certain possibilities that extends beyond the standard conservative coverage policy

Fee Simple – the owner’s interest in land that allows ownership to be granted to another

Gap Endorsement – an assurance by the insurer prior to the settlement to provide title insurance to the buyer at settlement regardless of any defects in title that may be present at that time. The insurer will require a bond from the seller and statutory declaration that no defects will be incurred in the intervening period.

Indemnity – to compensate to the full value of all costs incurred

Lenders Title Insurance Policy – an insurance policy for a lender which prevents another person claiming they have a mortgage interest in the property and financially protects against the property being unable to be sold due to another person claiming they have an interest in it.

Lien – a formal registration of a right to property as security for an outstanding debt

Mortgage – a loan offering a property as collateral and security in the event of default

Mortgagee – the lender of finance in a mortgage

Mortgagor – the borrower and property owner in a mortgage
Owner’s Title Insurance Policy – an insurance policy that protects the owner from another person claiming a right to their property

Premium – the price of insurance payable as a lump sum at the onset of the policy

Quit Claim Deed – a deed stating that all interests in a property are surrendered

Refinance – to borrow money on a mortgage basis and use it to pay off an existing mortgage with the hope of saving money by more attractive repayment terms

Service Fees – fees for title searches, underwriting costs, costs for application for information etcetera

Title – the qualification that describes the status of the property and all those with interests in the property

Title Search – a search of all transactions and documents that are related to a parcel of land to identify the interests held in the land

Torrens Title – a system of land title registration that guarantees the recipient of land a title that it cannot be taken away

Underwriting – the business of analyzing risk and quantifying it to reflect a particular price to be paid to the risk taker by the person who requires to avoid the risk

Warranty – a promise or guarantee that is interpreted less strictly than a deed