Terms & Definitions

Glossary of Terms & Definitions

Deed: A deed is a legal instrument that passes legal title from Grantor(s) to Grantee(s), or more simply, from current owner(s) to the next owner(s). Upon filing the Deed in the land records office, the record title to real estate is said to be “vested” in the new owner(s). Deeds are prepared by licensed real estate attorneys.

Deed of Trust/Mortgage: A Deed of Trust or Mortgage is a loan that is secured by real property. This is filed with the Land Records department of the circuit court in the county in which the property is located.

Concurrent Ownership: Concurrent ownership exists when two or more persons have possessory rights in a single parcel of land at the same time.

Easement: The easement is the grant of non-possessory property interest in land.

Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

General Warranty Deed: A general warranty deed contains all of the present and future covenants, except the covenant for future assurances.

Grantee: The Grantee(s) is/are any person(s) to whom property was conveyed unto (i.e. the recipient of property or new owner).

Grantor: The Grantor(s) is/are any person(s) conveying or encumbering property (i.e. the current owner(s)).

Joint Tenancy: Join tenants share the right of survivorship. This means that when one joint tenant dies, his or her interest passes automatically to the surviving joint tenants. To create a joint tenancy, there must be four unities. Joint tenants must take their interests at the same time, by the same title, meaning, in the same instrument or deed, with identical and equal shares, and with identical rights to possess the whole.

Leased Fee Estate (i.e. leasehold):  The ownership interest that the landlord or lessor maintains in a property under a lease with the rights of use and occupancy being conveyed or granted to a tenant or lessee. The ownership interest in a leased property. A leasehold mean you own the property but not the land on which it stands.

Note: The written agreement containing the details of the mortgage loan (i.e. terms and conditions of the loan).

Quitclaim Deed: A quitclaim deed contains no covenants and conveys to the grantee whatever the grantor had, without making any representations or promises as to the grantor’s title.

Special Warranty Deed: A special warranty deed contains present and future covenants, but the grantor is liable only for defects or encumbrances incurred during his ownership.

Tenancy: Tenancy is the legal term used to describe the form by which an owner of real property holds real estate title to the real property.

Tenancy by the Entirety: Tenancy by the entirety is a marital estate that can only be created between married partners, who share the right of survivorship.

Tenancy in Common: Tenancy in common is a tenancy whereas each co-tenant owns an individual part of the property, with the right to possess the whole. Each co-tenant’s interest is descendible, devisable, and transferable inter vivos (i.e. while living). There is are no survivorship rights among tenants in common.