Glossary
Title & Escrow Terms, Explained Simply.
The title and escrow vocabulary you will hear at closing, explained in plain language. Each term gets a short, simple definition written for a first-time buyer, with no legalese.
Title & escrow terms
12 plain-language definitions- Title
- Legal ownership of a property. When you buy a home, you are buying the title, meaning the ownership rights that come with the property.
- Title search
- The examination of public records to verify a property's ownership chain and identify liens or other claims. It is the research behind the title report and title insurance. (full definition)
- Title insurance
- An insurance policy that protects against losses from title defects, such as an old lien that was never released or a signature problem on a past deed. Owner's and lender's policies cover different interests. (full definition)
- Lender's vs. owner's title policy
- A lender's title policy protects the mortgage lender up to the loan amount and is almost always required when you finance a purchase. An owner's title policy protects you, the buyer, up to the purchase price, covering your equity as long as you own the home. (full definition)
- Title commitment
- The title company's written promise of what its policy will cover, issued before closing. It lists exceptions that must be cleared before the sale can close.
- Escrow
- The neutral arrangement that holds funds and documents while both sides complete their obligations. It is not the same as the escrow account a lender keeps for taxes and insurance. (full definition)
- Escrow officer
- The neutral professional who manages escrow: collecting the deposit, ordering title work, tracking deadlines, and coordinating signing and funding. They work for the transaction, not for either side.
- Earnest money
- The deposit you put down with your offer to show you are serious. It is credited toward your purchase and returned if the deal falls apart for an allowed reason. (full definition)
- Closing (settlement)
- The final step where ownership changes hands: documents are signed, funds are transferred, and you get the keys. Closing costs are paid at this point.
- Grant deed / warranty deed
- Common types of ownership-transfer documents. A grant deed confirms the seller owns the property; a warranty deed goes further and promises the title is clear of defects. The exact type used depends on state law and your contract. (full definition)
- Recording
- Filing a deed or other document with the county so it becomes part of the public record. Recording establishes legal notice of ownership and claims. (full definition)
- Lien
- A legal claim against a property as security for a debt, such as unpaid taxes or contractor bills. Liens must generally be paid or released before a sale can close. (full definition)
More terms
Every other title and escrow term lives on the main glossary.
This page keeps only the terms unique to title and escrow. The full A-to-Z real estate glossary, alphabetized and in plain language, lives on the main glossary page.
General information, not legal advice.
This page is general information, not legal advice. Every transaction is different, so for advice on your specific situation, talk to a real estate attorney or a licensed professional.