The real estate industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. With this in mind, the experts at Commonwealth Land Title Insurance Company have compiled the following glossary of terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
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Chain –

In real estate measurements (surveying), a chain is 66 feet long or 100 links, each link being 7.92 inches. The measurement may change when used in fields other than surveying.



Chain of Title –

The successive ownerships or transfers in the history of title to a tract of land.



Claim –

An adverse right or interest asserted by one party against another or against an insurer or indemnitor. Claims may arise from unpaid debts or taxes, as well as from hidden title defects such as fraud, forgery, missing heirs, etc.



Clear Title –

Real property ownership free of liens, defects, encumbrances or claims.



Closing –

Also called “settlement.” A meeting of all parties involved in a property transaction during which the transaction is consummated.



Clouded Title –

An irregularity, possible claim or encumbrance that, if valid, would adversely affect or impair the title.



Coinsurance –

Two or more policies of title insurance issued by different insurers, each covering a portion of the same risk, which together provide total coverage of risk.



Commitment –

A document issued by a title insurance company that contains the conditions under which a policy of title insurance will be issued.



Condemnation –

(1) the taking of private property for public purpose, with compensation to the owner under the right of eminent domain. Governmental units, railroads and utility companies have the right to condemn and take private property. (2) the destruction by government of private property that imperils the life, health or safety of the public.



Conventional Loan –

A loan secured by a mortgage or deed of trust for which the loan-to-value ratio is within an acceptable range for a particular institution.



Conveyance –

The transfer of title to property from one person to another.



Covenant –

A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in warranty deed.