Abstract 

An abstract of title is a bound compilation of historic information concerning a tract of land based on its legal description. An abstract shows the entire chain of ownership from the time the title to the property was first recognized by the government to the present. This set of documents will also include any items filed in the court clerk’s office that pertain to the land. Therefore, the abstract can be used to establish “marketable title” to a piece of property. When the abstract has been brought to date, an abstractor will place a “certificate page” at the end of the abstract. This page certifies that the abstract includes all pertinent documents filed in land records, ad valorem tax payment status, personal property tax payment status, and any other court items that fall within the time period covered by the certificate -from the date the abstract was last certified to present.

Appraisal fee

Paid to an appraiser for appraising the value of the property, in conjunction with the mortgage application process.

Closing

The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.

Closing Costs

The costs to complete a real estate transaction in addition to the price of the home, to include points, taxes, title insurance, appraisal fees, and legal fees.

Commitment Fee 

Paid to the lender as part of the mortgage approval process.

Credit Report

Paid to a credit bureau on behalf of your lender to obtain a copy of your credit report to help determine your credit worthiness.

Deed 

An instrument that is executed, acknowledged and recorded in the proper county. A properly executed deed serves to create title in the grantee with respect to the particular property covered by the deed. Per Oklahoma statues the deed must be executed both parties of husband and wife even if one of the spouses is not in title.

Escrow 

The process in which the funds of a transaction (such as the sale of a a house) are held by a third party, often the title company or an attorney in the case of real estate, pending the fulfillment of the transaction.

Flood Zone Determination Fee 

Paid to determine whether or not your property lies within a flood zone.

Homeowners Insurance 

Insurance companies typically charge the first year’s premium up-front. If an escrow account is established with the lender, subsequent premiums are then factored into your monthly mortgage payments.

Loan Origination Fee

Paid to the lender to cover the expenses incurred in processing and providing the loan.

Prepaid Interest 

Paid to the lender to cover any interest on the loan from the closing date to the beginning of the next calendar month.

Property Taxes 

Paid to the county, but only if taxes are due and unpaid at the time of closing. Otherwise, the taxes are prorated, and the amount the seller owes is deducted from the seller’s proceeds and credited to the purchaser to cover the tax bill when it comes due. If an escrow account is established with the lender, subsequent property tax costs will be factored into your monthly mortgage payments.

Title 

Evidence that the owner is in lawful possession of that property.

Title Search

A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.