Important Escrow / Settlement Terms

by Fidelity National Title Insurance Company

Broker: This is the person who represents the buyer/seller during a real property transaction. When buying or selling real estate through a broker, you are protected by dealing with a party who is operating under state license.

Escrow: This means to deposit money and documents with an escrow agent, usually in the form of a corporation, to be used as specifically described in the written instructions of the parties.

Escrow Officer: This person writes the written instructions of the parties for the escrow agent. These instructions govern the use of money and documents given by the parties involved.

Preliminary Report: This report shows preliminary ownership and encumbrance information. It is given to the escrow officer after the escrow is opened.

Taxes: The prorating of county, city, and irrigation district taxes and the calculation of bonds and special assessments requires skillful handling.

Insurance: At the time of closing, all premiums must be adjusted and all policies transferred. All changes must be made and the insurance companies must be notified.

Prorate: The division of proportionate shares of rent, insurance, taxes, etc. between the parties involved. This is usually calculated by an escrow officer.

Revenue Stamps: These are put on deeds to show that taxes have been paid at a certain transfer rate based on the sale price. The escrow officer uses these when appropriate.

Deed: This is a document that is used to transfer the ownership of land from one person to another. The form of the deed may vary.

Title: The right by which the owner of the land has possession of the property. Publicly recording a deed is a common way to establish a title.

Title Insurance: A policy which protects your rights as owner of a property, and will reimburse for any problems with the title to the property. Your real estate professional can provide free information about title insurance.

Copyright ©Fidelity National Title Insurance Company. All rights reserved. Fidelity National Title Insurance Company is one of the nation's premier real estate service companies, providing title insurance and other real estate-related products and services. The company's history spans over 150 years, from its creation in 1848 by D. V. Gillespie, a notary and records searcher, to today's nationwide expansion with parent Fidelity National Financial (FNF) ranked 261 on the Fortune 500. For more about Fidelity Title, visit FNTIC.com. Fidelity Title is part of Fidelity National Title Group, Inc.—the largest title company in the nation. For more about Fidelity National Title Group, visit FNTG.com.