Useful Closing Terms

Useful Real Estate Settlement Terms

Here are a few terms you will likely come across as you approach your closing date. Make sure to go into your closing knowing what they mean.

Adverse Possession

The technical term for squatting, or occupying a property without the owner's consent. Title of the land could vest in the squatter after a certain number of years of peaceful occupancy have passed.

APR

Annual Percentage Rate- The yearly rate of interest paid on a loan.

Closing Disclosure

A document disclosing any issues with the property that the seller should know. See our previous post on disclosure laws here in Florida.

Lien

A claim on proceeds from the sale of property as collateral for the payment of a debt.

Power of Attorney

A legal document allowing another person to act as surrogate or proxy for a specific purpose.

Vesting

The form of ownership in a property- sole ownership, joint ownership, community property, etc. Consult an attorney for advice on the best vesting for you.

Endorsement

Expansion of title insurance coverage to meet the consumer's requirements.

Loan Policy

Title insurance policy that protects the lender from losses incurring from defects, liens, or other problems with the title.

Marketable or Merchantable Title

A title that is free of defects and encumbrances, and can therefore be transferred to a new buyer.

Consummation

When the buyer becomes contractually obligated to the lender. Consummation is not the same as closing, when the buyer becomes obligated to the seller.

For Title Insurance in Miami

At Riva Title Company in Coral Gables, we have the professional experience and expertise you need to ensure a smooth closing and title insurance protection. Visit our website to find out more about our company and call 786-787-7888 today to schedule an appointment.