Resources
Title and closing glossary
Plain-English definitions of the words you’ll see in your closing documents.
30 of 30 terms
- Chain of title
- The recorded history of a property’s ownership, from one owner to the next. Learn more →
- Closing Disclosure
- The form your lender gives you at least three business days before closing, showing your final loan terms and closing costs. Learn more →
- Curative work
- Steps taken before closing to clear title problems, such as paying off a mortgage, releasing a lien, or correcting an error in an earlier deed. Learn more →
- Deed
- The document that transfers ownership from the seller to the buyer. It is recorded with the county Register of Deeds.
- Deed of trust
- The document that secures most home loans in Tennessee. It names a trustee who can sell the property if the loan isn’t repaid. Learn more →
- Earnest money
- A good-faith deposit the buyer makes after signing the purchase contract. It is usually applied to the down payment or closing costs at closing.
- Easement
- A right someone else has to use part of a property for a specific purpose, such as a utility line or a shared driveway.
- Encroachment
- A structure, such as a fence or driveway, that crosses onto a neighboring property.
- Endorsement
- An add-on to a title insurance policy that changes its coverage, usually to expand it.
- Judgment
- A court’s decision that one party owes another money. A recorded judgment can become a lien on property the debtor owns. Learn more →
- Legal description
- The wording that identifies exactly which land is being sold, as used in the deed and the title commitment. It is more precise than a street address. Learn more →
- Lender’s title insurance
- A policy that protects the lender, up to the loan amount, against covered title problems. Most lenders require one. Learn more →
- Lien
- A legal claim against a property for an unpaid debt, such as a mortgage, unpaid taxes, or a contractor’s bill. Learn more →
- Mortgage tax
- Tennessee’s tax on recording a deed of trust: 11.5 cents per $100 of the loan principal, with the first $2,000 exempt. Learn more →
- Owner’s title insurance
- A policy that protects the buyer’s own stake in the home against covered title problems that began before the purchase. It is optional, paid once at closing, and lasts as long as you or your heirs own the property. Learn more →
- Payoff
- The amount needed to pay a loan or lien in full on a given date. Payoffs for the seller’s mortgage and other liens are paid out of the closing funds.
- Recording
- Filing a document in the county’s public records, which puts everyone on notice of it.
- Register of Deeds
- The county office in Tennessee that records deeds, deeds of trust, and other property documents. Learn more →
- Schedule A
- The part of a title commitment that names the proposed insured, the policy amount, who currently holds title, and the legal description of the land. Learn more →
- Schedule B, Part I (Requirements)
- The part of a title commitment listing what must happen before the policy can be issued, such as paying off a mortgage or recording the deed. Learn more →
- Schedule B, Part II (Exceptions)
- The part of a title commitment listing items the policy will not cover, such as recorded easements. Learn more →
- Settlement agent
- The person or company that runs the closing and collects and pays out funds as the contract and lender direct. In Tennessee, this is often a title company. Learn more →
- Settlement statement
- The itemized list of every charge and credit for the buyer and seller at closing, and the amount each one brings or receives. Learn more →
- Survey
- A drawing of a property’s boundaries, buildings, and easements, prepared by a licensed surveyor.
- Title
- Legal ownership of a property. Learn more →
- Title commitment
- The title insurer’s offer to insure a property. It lists requirements that must be met before closing and exceptions the policy won’t cover. Learn more →
- Title search
- A review of public records — deeds, mortgages, liens, judgments, taxes, and probate filings — to confirm who owns a property and what claims are attached to it. Learn more →
- Transfer tax
- Tennessee’s tax on recording a deed: 37 cents per $100 of the sale price or the property’s value, whichever is greater. Learn more →
- Vesting
- How the owners hold title, as shown on the deed and in Schedule A of the commitment. Learn more →
- Wire fraud
- A scam where a criminal sends fake wiring instructions, often from a hacked or look-alike email account, to steal closing funds. Learn more →
This is general information, not legal advice. Talk to your attorney.
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