The Notary who elects to become a Signing Agent will soon be immersed in a sea of perhaps unfamiliar terminology. Most of these terms relate to the mortgage, equity and refinance loans that generate most of the Notary Signing Agent's assignments. Just as a Notary must know what a jurat, protest and subscribing witness is, so a Notary Signing Agent must know about rescission periods, deeds of trust and settlement statements. This glossary contains many of these important terms which may be helpful to most Notaries, even Notaries who are not yet Signing Agents.

Abstract, or Abstract of Title: A historical summary of all the recorded instruments and proceedings that affect the title of a property.

Closing: A meeting at which all documents are signed and all expenses are paid to transfer ownership or property. Also called a "settlement".

Deed: The legal document conveying title to a property.

Deed of Trust: The legal document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan.

Equity: A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on any home loans or liens against the property.

Escrow: An Item of value, money, or documents deposited with a third party to be delivered upon fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or ther deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

Next Page >