TITLE CLOSING COST DEFINITIONS

COUNTY AND/OR CITY DOCUMENT TRANSFER TAX

A tax on the sale of real property based on the sale price of property being transferred.

OVERNIGHT PAYOFF

Next day transport of funds to pay an existing obligation done to avoid additional interest and possible late charges.

LENDER ENDORSEMENTS

Riders attached to lender’s policies expanding the coverage afforded by the policy. For example, listing type of improvement or guaranteeing against enforcement of an easement.

LENDER’S TITLE POLICY

A title insurance policy insuring a lender against loss caused by invalid title in the borrower or loss of priority of the deed of trust.

OWNER’S TITLE POLICY

A title insurance policy or indemnity for the owner of real property.

RECON TRACKING FEE

A charge by title companies to track or monitor that a full reconveyance is issued and recorded. If not, a title company can issue and record a Release of Obligation.

RECONVEYANCE FEE

A fee for issuing a reconveyance or instrument that conveys legal title from a trustee to the owner of real estate. Most commonly done when a lien has been paid off.

RECORD RECONVEYANCE/RELEASE

Fee charged by the County Recorder's office to record an instrument that releases or reconveys an interest in real property. Usually it indicates an obligation has been met.

SUB-ESCROW FEE

A fee for handling a limited escrow which includes receipt of funds and disbursement of those funds to payoff existing liens on the subject property.

WIRE FEES

Fees charged by banks to transfer funds electronically done to expedite payoffs to avoid additional interest and possible late charges. The fees are charged by banks and passed on to the benefitting client.