Abstract (of title) - A condensed history of a title to real estate consisting of a summary of the various links in the chain of title, together with a statement of all liens, judgments, taxes or encumbrances affecting the property.

Adverse possession - Possession inconsistent with the right of the true owner.

Curtsey - In some states, an estate for life which a husband takes at the death of his wife in one-third of those properties which she owned at the time she died.

Deed - A written instrument duly executed and delivered for the purpose of conveying title to real estate.

Defect of record - Any encumbrance on a title which is made a part of the public record. Some recorded defects are judgments, mortgages, other liens, easements, etc.

Dower - In most states, an estate for life which a wife takes at the death of her husband in one-third of those properties which he owned at the time he died.

Dwelling Unit - Any real property improved with a house, apartment, condominium, or similar improvement that provides basic living accommodations including cooking facilities, bathroom and sleeping space.

Easement - A privilege or right of use or enjoyment which one person may have in the lands of another; for example, a right-of-way for utility lines, a joint driveway, etc.

Encroachment - Trespass; the building of a structure or any improvements partly or entirely intruding upon the property of another.

Encumbrance - Any right to or interest in land which may be held by third parties to the lessening of the value of the title to real estate, such as a judgment, unpaid taxes, other liens, easements, etc.

Equity - The interest or value which an owner has in real estate over and above the debts against it.

Fair market rent - This is determined based on all facts and circumstances that exist when the rental agreement is entered into, and all rights and obligations of the parties to the rental agreement are taken into account.

General Warranty Deed - A deed containing a covenant whereby the grantor agrees to protect the grantee against any claimant.

Grantee - The buyer of real estate.

Grantor - The seller of real estate.

Hidden defect - Any encumbrance on a title that is not apparent in the public records; for example, unknown heirs, secret marriages, forged instruments, mental incompetency, infancy of a grantor, etc.

Infancy - That state of being wherein a person has not yet reached the age of legal majority - in most states an infant is a person who has not yet reached the age of 18, although in some states the age of majority is still 21.

Lien - A hold or claim which one person has upon the property of another as a security for some debt or charge.

Mortgagee - The lender under a mortgage.

Mortgagor - The borrower under a mortgage.

Partial interest - Any interest less than a whole; for example, a wife's dower interest, an heir overlooked in the distribution of an estate (partial interests in properties may get down to very small fractions).

Perfecting title - The elimination of all claims made against a title to real estate.

Personal Use - See §280A(d)(2) and (3). The taxpayer is deemed to have used a dwelling unit for personal purposes if used by:

1. The taxpayer or any other person with an interest in said unit, or by any other member of the family of the taxpayer or such other person
2. By any individual who uses the unit under an arrangement which enables the taxpayer to use some other dwelling unit (whether or not a rental is charged for the use of such other unit) or
3. by any individual if rented for less than a fair market value rental.

A taxpayer may rent the dwelling unit to a member of their family if the family member uses it as a principal residence (and not a vacation home) and the family member pays fair market rent. Some taxpayer usage may be allowed for repairs and annual maintenance too.

Restriction - A limitation placed upon the use of real estate. Some common restrictions are set-back lines prohibiting the erection of any part of a building less than a specified number of feet from the street line; an ordinance restricting land to residential use, etc.

Special Warranty Deed - A deed containing a covenant whereby the grantor agrees to protect the grantee against any claims created by the grantor.

Title - The sum of all the facts on which ownership is founded or by which ownership is proved. Possession, the right of possession and the right of property form a complete title.

Title defect - Any circumstances that adversely affects the right of the whole ownership of property by the owner of record.

Title failure - Any circumstances that defeats the right of whole ownership of property by the owner of record.

Title search - The examination of all the records comprising a history of the title to real estate.

Title search fee - The charge made by an attorney or abstractor for performing a title search.