Chain of Title An analysis of the transfers of title to a piece of property over the years.
Clear Title A title that is free of liens or legal questions as to ownership of the property.
Closing This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents are recorded with the county clerk. In others, including Texas the "closing" is a meeting where all of the documents are signed and money changes hands.
Closing Costs Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.
Closing Disclosure A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This mandatory three-day window allows you time to compare your final terms and costs to those estimated in the loan estimate that you previously received from the lender. The three days also gives you time to ask your lender any questions before you go to the closing table.
Contingency A condition that must be met before a contract is legally binding. For example, some home buyers may need to sell an existing home before closing on the home they are buying, so an addendum is attached to the contract making it contingent upon the sale of the existing home.
Down Payment The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.