13 Escrow And Title Insurance Flashcards
Abstract of title
- a recorded history of a property
- A summary or digest of all recorded transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title to show continuity of ownership and indicate any possible impairments to title
Closing disclosure
New form mandated by the TILA-RESPA rule that helps consumers to understand all the costs of the transaction. It must be provided to consumers three business days before closing.
Demand statement
Statement requested by escrow as to amount due lender at close of escrow to pay off loan and any charges.
Escrow
The deposit of instruments and/ or funds (with instructions) with a neutral third party to carry out provisions of an agreement or a contract
Escrow agent
- Escrow holder
- the neutral third-party company holding funds or something of value in trust for another or others
Marketable title
-Title that a reasonably prudent purchaser, acting with full knowledge of the facts and their legal significance, would be willing and ought to accept.
Proration
- Adjustment of interest, taxes, insurance, and other costs of property ownership on a pro rata basis as of the closing or agreed upon date
- Usually apportions those costs based on seller’s and buyer’s respective periods of ownership
Recurring costs
Impound costs for taxes and insurance
Title insurance
Insurance to protect a real property owner or a lender up to a specified amount against certain types of loss affecting title or marketability.
Good funds
Includes cash, cashier’s checks, and personal checks that have cleared
Debits and credits
- Debit= amounts owed
- Credits= amounts entitled to receive
Preliminary report
-contains a list of defects, liens, encumbrances, and restrictions that would be excluded from coverage if the requested policy were to be issued as of the date of the report
