for anyone to own land is the heart
of the American dream. A chain of title is required for any change in property ownership or the protection of the rights of one owning real property. This is why you need ProLand Title Company.
ProLand Title Company provides title insurance and related services to the entire state of Arkansas. We have the ability to accommodate our clients in any county in the state. We offer after hours and weekend closings whether it is in our office, the lender's office, or the comfort of the client's home. These services are what make
ProLand Title Company a leader for
the 21st century.
ProLand Title Company is committed to providing service for your convenience with all of the latest state of the art closing choices. We are a full service abstract and title company offering owner title insurance, mortgage title insurance, local title search, and county title search, along with title guarantee and title insurance.
We accept all e-mail, faxes, or digital
closing documents. For your convenience any of our services can be requested via our online order form or by fax or phone.
ProLand Title Company maintains its main office in downtown Little Rock in central Arkansas. There are also locations in North Little Rock, Jacksonville, Cabot, and Stuttgart, Arkansas. This allows us equal access to all areas of the state to maintain our personal service. Our attention
to detail and the extra effort
we give provides our clients the extra edge in making sure that
every real estate transaction is secure.
Abstract of Title
- A condensed history or summary of all transactions affecting a particular tract of land.
Access - The right to enter and leave a tract of land from a public way. Can include the right to enter and leave over the lands of another.
Accretion - The slow build-up of lands by natural forces such as wind or water.
The act by which a party executing a legal document goes before an authorized officer or notary public and declares the same to be his or her voluntary act and deed.
Acre - A tract of land 208.71 feet square and containing 43,560 square feet of land.
Administrator - A person appointed by a probate court to settle the affairs of an individual dying without a will. The term is "administratrix" if such a person is a woman.
Adverse Possession -
A claim made against the lands of another by virtue of open and notorious possession of said lands by the claimant.
Affidavit - A sworn statement in writing.
Agent - A person or company that has the power to act on behalf of another or to transact business for another, e.g., a title agent under contract with Old Republic Title to issue policies of title insurance.
Air Rights - The right to ownership of everything above the physical surface of the land.
ALTA - American Land Title Association, a national association of title insurance companies, abstractors and attorneys specializing in real property law. Its headquarters are in Washington, D.C.
Appurtenance - Anything so annexed to land or used with it that it will pass with the conveyance of the land.
ARM - Adjustable Rate Mortgage. See "Variable Rate Mortgage."
Assessment - The imposition of a tax, charge or levy, usually according to established rates.
Assessor - A public official who evaluates property for the purpose of taxation.
Assignee - One to whom a transfer of interest is made. For example, the assignee of a mortgage or contract.
Assignor - One who makes an assignment. For example, the assignor of a mortgage or contract.
Assumable Mortgage -
A mortgage which, by its terms, allows a new owner to take over its obligations.
Attachment - Legal seizure of property to force payment of a debt.
Attorney in Fact -
One who holds a power of attorney from another allowing him or her to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.
C&Rs - Covenants, Conditions and Restrictions.
See "Conditions and Restrictions."
Chain - A term of land measurement that is 66 feet in length.
Chain of Title -
A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.
Clear Title - One which is not encumbered or burdened with defects.
Closing - Also known as "escrow" or "settlement." The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase.
Clouded Title - An encumbered title.
Commitment to Insure -
A report issued by a title insurance company, or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.
Common Interest Community (CIC) - Ownership characterized by mutual ownership of common areas, either jointly or through membership in an association, e.g., condominiums, planned unit developments, and townhomes.
Company Loan - Loan by employer to facilitate relocation of employee. Usually short term.
Condemnation - Taking private property for public use through court proceedings.
Condition or Conditions - A proviso in a deed or will that, upon the happening or failure to happen of a certain event, limits, enlarges, changes or terminates the title of the purchaser or devisee.
Conditions and Restrictions - A common term used to designate conditions and restrictions on the use of land. Includes penalties for failure to comply. Commonly used by land subdividers on newly platted areas.
Condominium - A system of individual fee ownership of units in a multi-unit structure, combined with joint ownership of common areas of the structure and land.
Conservator - See "Guardian."
Contract for Deed -
An agreement to sell and purchase under which title is held as security by the seller until such time as the required payments to the seller have been completed.
Convey - The act of deeding or transferring title to another.
Conveyance - An instrument by which title is transferred; a deed. Also, the act of transferring title.
Cooperative - A residential multi-unit building owned by a corporation in which each unit is occupied by a member of the corporation pursuant to a lease or occupancy agreement.
Covenant - An agreement written into deeds and other instruments promising performance or non-performance of certain acts, or stipulating certain uses or non-uses of the property.
Cul-de-Sac - The terminus of a street or alley. Usually laid out by modern engineers to provide a circular turn around for vehicles.
Fannie Mae - Federal National Mortgage Association (also FNMA) is a private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.
Fee Simple Estate -
The greatest interest in a parcel of land that it is possible to own. Sometimes designated simply as "Fee."
Federal Housing Administration (FHA) Guarantee - An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.
Financing Statement -
A document filed with the Register of Deeds or Secretary of State securing the title to personal property.
Fixtures - Any item of property so attached to real property that it becomes a part of the real property.
Flood Certification -
A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Program.
Forfeiture of Title -
Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.
Freddie Mac - Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.
Ginnie Mae - Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration)
or VA (Veterans Administration).
Graduated Payment Mortgage - A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.
Grantee - A person who acquires an interest in land by deed, grant, or other written instrument.
Grantor - A person, who, by a written instrument , transfers to another an interest in land.
Guardian - One appointed by the court to administer the affairs of an individual not capable of administering his or her own affairs.
Harbor Line - An arbitrary line set by authorities on navigable rivers, beyond which wharves and other structures may not be built. Also designated as line of navigation.
Heir - One who might inherit or succeed to an interest in land of an individual who dies without leaving a will (intestate).
Hiatus - A gap or space unintentionally left, when attempting to describe adjoining parcels of land.
Home Equity Conversion Mortgage - A reverse or reverse annuity mortgage in which HUD through FHA guarantees that the borrower will receive monthly payments from the insurer (FHA) in the event the lender is unable to make payments to the borrower.
Home Repair Loan -
Used for repairs and additions to existing structures without affecting existing mortgage. Typically 10 years or less in length.
HUD 1 - A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of
funds in connection with the purchase
and/or mortgaging of residential property.
Inchoate Dower -The imperfect interest which the law gives a wife in the lands of her husband. This is an interest which upon the death of the husband may ripen into possession and use. Most states have abolished dower rights.
Inchoate Curtesy -
The imperfect interest which the law gives a husband in the lands of his wife.
Indemnify - To make payment for a loss.
Ingress - The right to enter a tract of land.
Insurance - A contract of indemnity against specified perils.
Insurance Loan -
When cash value of a life insurance policy is borrowed by the insured.
Interim Financing -
Temporary or short term loans. Often used with new construction. Usually replaced with a permanent long-term mortgage.
Intestate - Designates the estate or condition of failing to leave a will at death. "To die intestate."
Majority - The age at which a person is entitled to handle his or her own affairs.
Marketable Title -
A good title about which there is no fair or reasonable doubt.
Mechanic's Lien -
A lien allowed by statute to contractors, laborers and material suppliers on buildings or other structures upon which work has been performed or materials supplied.
Metes and Bounds -
A description of land by courses and distances.
Minor - One who because of insufficient age or status is legally incapable of making contracts.
Monument of Survey -
Visible marks or indications left on natural or other objects indicating the lines and boundaries of a survey. May be posts, pillars, stones, cairns, and other such objects. May also be fixed natural objects, blazed trees, roads and even a water course.
Mortgage - An instrument used to encumber land as security for a debt.
Mortgage-Backed Security - A security evidencing either the ownership of an interest in a mortgage loan or pools of mortgage loans, or a separate obligation secured by a mortgage loan or pool of mortgage loans.
Mortgage Banker -
A specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.
Mortgage Broker -
A person or company that buys and sells mortgages for another on commission or who arranges for and negotiates mortgage contracts.
Mortgage Revenue Bonds - Issued by communities as a means of providing lower cost mortgage funds to certain qualified borrowers.
Negative Amortization - An actual increase in the principal amount of real estate loan because of the addition of matured but unpaid interest to the loan balance. Usually the result of monthly payments which a re temporarily set at a lower than needed level.
Notary - One authorized to take acknowledgments.
Note - The instrument evidencing the indebtedness secured by a security instrument such as a mortgage or deed of trust.
Patent - A document or grant by which the federal or state government originally transferred title to public lands to an individual. The first in the series of transfers by which title comes down to present owners.
Personal Representative - A person appointed by the probate court to administer a decedent's estate.
See also "Executor" or "Administrator."
Plat or Plot - A map representing a piece of land subdivided into lots with streets shown thereon.
P.M.I. - Private Mortgage Insurance. An insurance contract which insures that the named lender will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.
Points - A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.
Policy - A written contract of title insurance.
Policyowner - The insured on a title insurance policy.
Power of Attorney -
An instrument authorizing another to act on one's behalf as his or her agent or attorney.
Power of Sale - A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.
Prorate - To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.
Range - A part of the government survey, being a strip of land six miles in width, and numbered east or west of the principal meridian.
Real Property - Land, together with fixtures, improvements and appurtenances.
REALTOR®- A federally registered collective membership mark which identifies a real
estate professional who is a member of the National Association of REALTORS®and
subscribes to its strict Code of Ethics.
Realty - A brief term for real property.
Redeem - Literally "to buy back." The act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.
Registered Land -
See " Torrens Title."
Reinsurance - To insure again by transferring to another insurance company all or part of an assumed liability, thus spreading the loss risk any one company has to carry.
REIT - Real Estate Investment Trust. A product of federal tax legislation formed as a business trust, under a special state REIT statute or as a corporation for the purpose of investing in real estate or mortgages on real estate.
REMIC - Real Estate Mortgage Investment Conduit. A product of 1986 federal tax legislation in which a business entity such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects
to be treated as a REMIC. Qualification
avoids treatment as a corporation for tax purposes.
Reverse or Reverse Annuity Mortgage - A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower's estate
is settled, provided the borrower
continues to live in the home and keeps current all taxes and insurance.
See also "Home Equity Conversion Mortgage."
The right which one has to pass across the lands of another. An easement.
Riparian - Rights to use of water and waterways in adjoining lakes or rivers.
Tenancy by the Entirety - Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other's death.
Tenancy in Common -
An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.
Tenant - Any person occupying real property with the owner's permission.
Testament - Another term for a will. Commonly referred to as "last will and testament."
Testate - The estate or condition of leaving a will at death. "To die testate."
Testator - A man who makes or has made a testament or will.
Testatrix - A woman who makes or has made a testament or will.
Title - The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights.
Title Defect - Any legal right held by others to claim property or to make demands upon the owner.
Title Insurance -
Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.
Title Plant - The total facilities - records, equipment, fixtures, and personnel - required to function as a title insurance operation. Technically, the organization of official records affecting real property into a system which allows quick and efficient recovery of
Title Search - An examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.
Torrens Title - A system whereby, after court proceedings, a certificate is issued setting forth the extent of the applicant's estate in land subject to the exceptions shown. Most popular in the early 1900's, the system was adopted in 19 states. It is presently used
only in parts of six states.
Township - A division of territory six miles square, containing 36 ions or 36 square miles.
Tract - A particular parcel of land.
Trust - A property right held by one as a fiduciary for the benefit of another.
Trustee - A person holding property in trust as a fiduciary for the benefit of another.
VA Guarantee - An insurance contract in which the Veterans Administration (VA) insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.
Variable Rate Mortgage - A loan in which the interest rate fluctuates with the cost of funds or some other index.
Vendee - A purchaser of real property under land contract.
Vendor - A seller of real property under land contract.
Vest - To pass to a person an immediate right or interest. Title may be said to vest in John Smith.
Vestee - A nonlegal term used by title insurers to indicate the owner of real property in a policy or report.
The title company provides insurance against defects in the title or liens insured against. In other words, if the title company says there aren't any other liens on the property and you buy it, and subsequently you are bombarded by someone who says they have a lien on your property, the title company has to take care of it, often
by paying it off,
out of their pocket - not yours.
WHAT IS A TITLE SEARCH, AND WHY DO I NEED ONE?
A title search is a detailed examination of all public records that affect a property. These records include deeds, mortgages, tax records, court records, property and name indices, and many other documents. The purpose of the search is to verify the seller's true interest in the title and right to sell the property, and to discover
any claims, defects
and other burdens on the property.
The search protects everyone involved in the property transaction since problems with real estate are transferred with the ownership.
WHAT KINDS OF PROBLEMS CAN A TITLE SEARCH REVEAL?
A title search can reveal any party that might have an interest in the property, as well as a number of title defects, liens or other restrictions. For example, things like outstanding taxes, unsatisfied mortgages, and judgments against any recent owner as well as restrictions on the use of the land may require an extensive search.
ARE THERE ANY PROBLEMS THAT A TITLE SEARCH CANNOT REVEAL?
Yes. There are several "hidden hazards" that are impossible for a search to uncover. For instance, a previous owner may have recorded his marital status incorrectly, resulting in a possible claim by a legal spouse. Other "hidden hazards" include fraud and forgery, defective deeds, mental incompetence, confusion
due to similar or
identical names and clerical errors
in the records. These defects can arise several years after the purchase of your home and can jeopardize your right to ownership.
WHAT IS TITLE INSURANCE?
The answer to this important question is of vital importance to every person who is a party to a real estate transaction. Buying any kind of real estate could very well represent the largest single investment a person ever makes. And real estate, like every other thing of value, is worth protecting.
What is Title Insurance? A policy of Title Insurance is a contract of indemnity between the insured and the insuring company relating to the title to the land described in the policy, protecting the insured against loss of damage
by reason of defects, liens or
encumbrances of the insured title existing
at the date of the Policy and not expressly excepted from its coverage. The Policy is issued after a complete search and examination of the public records and shows the condition of the record title, including any money obligations outstanding against the property, easements and other matters which may affect the rights of ownership, possession and use of the property.
What Protection Does Title Insurance Give? It insures that the "record" title, is good subject only to the exceptions expressly set out in the Policy. lt also insures against certain matters which do not appear of record,
such as forgery, identity of
parties, incompetence of former owners, interest
of missing heirs, and status of individuals not having the "right" to sell property.
What Risks Are Not Covered? The standard owners policy and standard mortgage policy are based on public records of the recording district in which the land is located. It does not insure against matters which would only be disclosed
by actual inspection or survey
of the property. It does not insure against
certain matters not shown by the public records such as unrecorded easements, liens or money obligations; unrecorded utility rights of way, public or private roads, community driveways and other types of encumbrances, or against the rights or claims of persons in possession of the property which are not shown by the public records.
Can Protection Be Obtained Against Matters Not of Record? Upon application, the issuing company may specially cover matters which are disclosed by a physical inspection and/or a survey of the property, subject to any exceptions
the inspection will determine
to be proper. An additional risk premium
is charged for this type of coverage. Insurance of this kind is called 'extended coverage'.
Are There Different Kinds of Policies? Yes. Owner's Policies are issued to real estate owners. Purchaser's Policies are issued to purchasers of real estate under contract. Mortgage Policies are issued to mortgage lenders. In addition
there are several other special
forms of policies. There is a type of
policy to meet the requirements of almost any form of real estate transaction.
When Is the Policy Issued? An Owner's Policy protects only the owner while a Mortgage policy protects only the holder of the mortgage on the property. Separate policies are required to protect both interests. Special rates are available
when both Owner's and Mortgage
policies are applied at the same time.
The Owner's Policy of title insurance usually is issued after the deed to the buyer is 'delivered' and recorded. A Purchaser's Policy is usually issued after the contract has been executed by both parties or after the signed contract has been recorded. The mortgage policy of title insurance is usually issued after the mortgage or deed of trust has been properly executed and recorded.
If I Was Insured When I Bought the Land, Why Should I Have It Re-Issued to My Purchaser When I Sell? The coverage of your policy is against all matters that appeared of record up to the date of issuance of your policy. Since that
time many documents may have been
recorded, some of which may affect the
title to your land. Taxes and assessments may have accrued and be unpaid. There may have been actions in court affecting your title. The purchaser is entitled to have full information and protection as to the condition of the title right up to the date of his purchase. In addition, there may be matters of record which would prevent either the seller or buyer from selling, buying, or mortgaging land until such matters have been cleared. These items include such things as federal tax liens, judgments, incompetencies,
divorce actions and other conditions which the title search may disclose.
How Are Premiums for Title Insurance Determined? Title Insurance Premiums are determined by the amount and type of coverage provided. Unlike other insurance premiums, however, the title insurance premium is paid only once as the policy
effective for so long as title
or "ownership' remains in the
name of the insured, or his heirs or devises. Rates are filed with the insurance commissioner who regulates the activities of title insurers.
Where Can I Get Further Information About Title Insurance? Contact ProLand Title, or E-mail ProLand Title at firstname.lastname@example.org
HOW MUCH DOES TITLE INSURANCE COST?
Probably a lot less than you think. Generally the cost of title insurance (including the search, examination and related services) is about one percent or less of the value of the property. This premium is not paid annually, but it is a one time fee usually paid at the closing.
HOW LONG DOES MY COVERAGE LAST?
The insurance coverage never needs to be renewed. It is valid for as long as you or your heirs have an interest in the property.
WHY USE PROFESSIONAL LAND TITLE COMPANY?
Professional Land Title Company (ProLand) has extensive experience and contacts in the real estate/mortgage industry, and can provide you with the full service title work you need. Enough cannot be said about customer service. Without it there is nothing. Just as Sam Walton said,
"There is only one boss. The CUSTOMER. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."
Listening to our clients' needs is a major part of ProLand Title's customer service. As a result, ProLand Title provides a broad variety of tools to assist today's professionals in obtaining listings and getting to the closing table. These include....
training for new and experienced REALTORs, on a variety of topics from what happens in a closing to "what is title insurance and why is it needed?"
qualified 1031 exchange facilitator.
a knowledgeable staff in all areas from residential to commercial.
builder programs providing no hassle construction draws.
escrow closings, buyers and sellers signing at their convenience. We are also accustomed to transactions with out of state buyers and sellers where documents are sent overnight mail.
counsel with a background of experience second to none.
Locally owned, knowledgeable, customer service oriented, first in professional service, and a financially sound product. This is ProLand Title.
WHAT IS ESCROW?
As a buyer or seller, you want to be certain all conditions of sale have been met before property and money change hands. The technical definition of an escrow is a transaction where one party engaged in the sale, transfer or lease of real or personal property with another person delivers a written instrument, money or other items
of value to a neutral
called an escrow agent or escrow holder. This third person holds the money or items for disbursement upon the happening of a specified event or the performance of a specified condition.
Simply stated, the escrow holder impartially carries out the written instructions given by the principals. This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon the successful completion of
The escrow holder must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds.
If the transaction is dependent on arranging new financing, it is the buyer's or his agent's responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. A real estate agent can help identify appropriate lending
When all instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees - such as title insurance premiums, real estate commissions, termite inspection charges - are paid. Title to the property is then transferred under the terms of the escrow instructions
and appropriate title
Payment of funds at the close of escrow should be in the form acceptable to the escrow, since out-of-town and personal checks can cause days of delay in processing the transaction.
The following items represent a typical list of what an escrow holder does and does not do:
The escrow holder DOES:
serve as the neutral "stakeholder" and the communications link to all parties in the transaction;
prepare escrow instructions;
request a preliminary title search to determine the present condition of title to the property;
request a beneficiary's statement if debt or obligation is to be taken over by the buyer;
comply with lender's requirements, specified in the escrow agreement;
receive purchase funds from the buyer, prepares or secures the deed or other documents related to escrow;
prorate taxes, interest, insurance and rents according to instructions;
secure releases of all contingencies or other conditions as imposed on any particular escrow;
record deeds and any other documents as instructed;
request issuance of the title insurance policy;
close escrow when all of the instructions of buyer and seller have been carried out;
disburse funds as authorized by instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs;
prepare final statements for the parties accounting for the disposition of all funds deposited in escrow (these are useful in the preparation of tax returns).
The escrow holder DOES NOT:
offer legal advice;
negotiate the transaction;
offer investment advice.
ProLand Title, Inc. will be happy to provide additional information.