Making the transition from renter to homeowner is a major milestone, and it’s important to have a good understanding of title services before taking the plunge. To demystify the key terminologies used in title services, we’ve put together this helpful guide to help future homebuyers.

• Abstract of Title - An abstract of title is a document created by a title company that summarizes the information about the title to a specific piece of property. The abstract will include any recorded documents such as deeds, mortgages, liens, and other instruments that affect such title. The abstract will also list any judgments or bankruptcies against the owner of the property.
• Lien - A lien is an encumbrance placed on the property of a borrower who has failed to pay a debt. In the event of a foreclosure, the lien holder will be first in line to receive the proceeds from the sale of the property.
• Easement - An easement is a non-possessory interest in real property owned by someone else. An easement can provide the holder with a right of way, access to a specific part of the property, or the right to use the property for a specific purpose, such as running a utility line.
• Title Insurance - Title insurance is a form of insurance that protects the owner of the property and the lender from any losses that may occur as a result of defects in the title to the property. The policy will cover any legal fees and costs associated with defending the title in the event of a dispute.

These are some of the key terminologies involved in the title process, and understanding them is essential for future homebuyers. It is important to do your research and speak to a qualified professional before making any decisions about title services. With the right knowledge, you’ll be one step closer to making the transition to being a proud homeowner.