The Texas land seller's glossary: 70 terms, decoded

Nobody wakes up excited to learn what a “metes and bounds” description is. Yet the day you decide to sell land, a title company, a lender or a buyer will use five terms in one sentence and look at you like you should know. This glossary is the cheat sheet. It is general information, not legal or tax advice, and where details matter it says so.

Terms are grouped by where they come up. Bookmark it. Send it to the cousin who keeps saying “it’s just a handshake deal.”

What do the ownership and title terms mean?

Abstract of title. A history of the documents that affect a piece of land. Older and thorough. Many deals now rely on a title commitment instead.

Title commitment. A title company’s written promise to insure the land once certain requirements are met. It lists the owner, the liens, the easements and the problems to clear. Read it before you celebrate.

Title insurance. A policy that protects the buyer, or a lender, against covered title problems. It is paid once at closing.

Chain of title. The unbroken line of owners from the original grant to you. A gap in the chain is why a title company says “we have questions.”

Cloud on title. Any claim or document that makes ownership uncertain. Not weather related, despite the poetry.

Clear title. Ownership with no unresolved claims. The goal of every closing.

Deed. The document that transfers ownership. Recorded in the county where the land sits.

General warranty deed. A deed in which the seller promises the title is good against claims from any time, including before the seller owned it.

Special warranty deed. A deed in which the seller promises only against claims arising while the seller owned the land.

Quitclaim deed. A deed that passes whatever interest the signer has, if any, with no promises. Handy for family cleanups, risky as a sale tool.

Heirship. The question of who inherits when someone dies without a will. See heirs property.

Affidavit of heirship. A sworn statement about a family tree used to help show who inherited. It has limits. See our guide to the affidavit of heirship.

Probate. The court process for proving a will or handling an estate. See selling land in probate.

Executor, administrator, personal representative. The person with legal authority to act for an estate.

Tenancy in common. Co-ownership in which each owner holds a share and can leave it to their own heirs. The reason one parcel can have 14 owners.

Partition. A legal way to divide co-owned land or force its sale when co-owners cannot agree.

Homestead. A legal status that gives a home and a limited amount of land special protections in Texas. Rules depend on facts, so ask an attorney.

What do the survey and land description terms mean?

Survey. A drawing by a licensed surveyor that shows boundaries, easements and improvements.

Metes and bounds. A way of describing land by walking its edges with directions and distances. Often starts at a tree that no longer exists.

Plat. A recorded map of a subdivision showing lots, streets and easements.

Lot and block. A description that points to a lot on a recorded plat.

Acreage. Size measured in acres. Always check whether a number came from a survey or from a neighbor.

Encroachment. A fence, building or driveway that crosses a boundary line.

Boundary dispute. A disagreement about where one property ends and another begins.

Easement. A right for someone else to use part of your land for a specific purpose, like a road or pipeline. See selling land with an easement.

Easement by necessity. A general concept where the law may allow access across other land when a parcel has no other way out. Ask an attorney about your facts. See landlocked land.

Right of way. Land set aside for a road, utility or similar use.

Landlocked. Land with no legal access to a public road.

Floodplain. Land with a mapped risk of flooding. See selling floodplain land.

Extraterritorial jurisdiction (ETJ). The area outside a city’s limits where the city still has some authority, mainly over subdivisions.

What do the money and lien terms mean?

Lien. A claim on land that secures a debt.

Mortgage or deed of trust. A lien document. In Texas the deed of trust is the common form, and it can allow a trustee to sell the land if the debt is not paid.

Release of lien. A recorded document that says a lien is paid and gone.

Payoff letter. A lender’s statement of what it takes to clear a loan on a given day.

Mechanic’s lien. A lien by a contractor or supplier who was not paid for work on the land.

Judgment lien. A lien that results from a court judgment recorded in the county.

Tax lien. A lien for unpaid property taxes. See selling land with back taxes.

Delinquent taxes. Property taxes not paid by the due date, which start accruing penalty and interest.

Redemption period. A limited time after a tax sale when a former owner may be able to reclaim the property.

Underwater. Owing more than the property is worth. See selling land with a mortgage or lien.

Due-on-sale clause. A loan term that lets the lender demand payment in full if you transfer the property.

Closing costs. Fees paid at closing, such as title, escrow and recording. They appear on the settlement statement.

Earnest money. A deposit that shows the buyer is serious. It is held by the title company.

Option contract. A paid right to buy land within a set time at a set price. Read the fine print on how long it lasts.

What do the owner financing terms mean?

Owner financing. A sale where the seller lets the buyer pay over time. See the owner financing guide.

Promissory note. The buyer’s written promise to repay, with terms. See writing a land promissory note.

Amortization. Paying a loan down through regular payments that cover interest and principal.

Balloon payment. A large payment due at the end of a shorter term.

Down payment. The upfront amount the buyer pays at closing.

Contract for deed (executory contract). A sale where the seller keeps title until the buyer finishes paying. Texas regulates these closely when the land is used as a home. See contract for deed vs deed of trust.

Default. Failing to meet the terms of a loan or contract. See what to do if a buyer defaults.

Trustee sale. A sale conducted by a trustee under a deed of trust after default and proper notice.

Installment sale. A sale where at least one payment comes after the year of sale, which can spread the tax on gain. See taxes on owner-financed land.

Basis. Roughly, what you have invested in the land for tax purposes.

Stepped-up basis. For inherited property, a basis reset to value at the date of death in many cases. See capital gains and stepped-up basis.

What do the tax and use terms mean?

Appraisal district. The county office that sets the value used for property tax.

Ag valuation (open-space). A lower tax value for land used for qualifying agricultural purposes.

Rollback tax. Back taxes that can be due when land leaves ag valuation. See ag exemption and rollback taxes.

Homestead exemption. A tax reduction for a qualifying home.

Deed restriction. A rule written into a deed or plat that limits how land may be used.

HOA or POA. A homeowners or property owners association that can charge dues and enforce restrictions. See selling land with HOA dues.

Mineral rights. The right to the oil, gas and other minerals under land, which can be separate from the surface. See selling or keeping mineral rights.

Oil and gas lease. A contract that lets a company explore for and produce minerals. See selling land with an oil and gas lease.

Royalty. A share of production income paid to the mineral owner.

Adverse possession. A legal doctrine about long, open use of someone else’s land. Ask a Texas attorney. See squatters and adverse possession.

What do the buyer-side terms mean?

Direct buyer. A buyer who purchases land with their own funds, with no agent in the middle.

Cash offer. An offer that does not depend on the buyer getting a loan. See how cash offers are calculated.

Comps (comparable sales). Recent sales of similar land used to estimate value.

FSBO. For sale by owner. See selling without a realtor.

Wholesaler. Someone who contracts to buy land and then assigns the contract to another buyer. Texas has a disclosure rule for this. Ask your buyer plainly whether they will be the one who closes. See land scam red flags.

Closing. The meeting, or electronic process, where documents are signed and funds are paid out.

What should you do when a term still does not make sense?

Ask. Ask the title company, ask a Texas attorney for legal terms, ask a CPA for tax terms. And ask the buyer to explain every number in their offer in plain English. A buyer who gets annoyed at that question has told you something.

If you are thinking about selling and want to see how a direct sale works, read how it works or send us the parcel details.

By the Sell My Texas Estate team · Updated October 2026. General information, not legal, tax or financial advice. Talk with a licensed Texas attorney or CPA about your situation.