Title Terminology

ESCROW: An agreement requiring a document or money deposit into a third party's possession to be held by that party until specific conditions are met.

TITLE INSURANCE: Contract idemnifying the insured party against loss created by defects in the real property's title.

UNDERWRITING: Process of issuing an insurance policy in which a party accepts liability of payment guarantee in the event damage or loss occurs.

PITI: A common abbreviation for Principal, Interest, Taxes and Insurance. 

PMI: Prepaid Mortgage Insurance.  Paid by buyer when down-payment is less than 20% LTV ratio. 

* Please click on the following link for additional terminology: http://fntic.com/WordsPhrases.aspx?letter=A