6 Deeds & Closings

Question 1

What is Deed?

Answer 1

Deed is an instrument or document that conveys a grantor’s interest Also called conveyance.

Question 2

Elements of deed? 10

Answer 2

Competent grantor   18  sound mind
Identifiable grantee
Act of Conveyance  granting clause 
Consideration  Anything of value
Legal Description
Habendum Clause   "to have and to hold"
Limitations    deed restrictions
Exceptions and reservations  easement
Signatures   of all grantors  aknowledged by notary
Delivery and exceptance

Question 3

Habendum Clause

Answer 3

To Have and to Hold

Question 4

Recorded?

Answer 4

Should be Not necessary

Question 5

Full Covenant and Warranty

Answer 5

Most expensive Best
contains
Covenant seizin Assures that grantor holds title
Covenant of warranty forever will defend grantees interest against all lawful claims

Question 6

What is most common deed in NY?

Answer 6

Bargain and sale implies that grantor has ownership but no guanantees Can add covenants

Question 7

Quitclaim deed?

Answer 7

no warranties only conveys any interest owner has families

Used to clear up clouds of title or color of title

Question 8

Judicial Deeds?

Answer 8

By Court order no covenants or warranties

Executor Deed Administrator’s Deed Guardin Deed Sheriff’s Deed Referee Deed

Question 9

Legal Description

Answer 9

ability to identify specific parcel from any other parcel

Metes (measurement) and Bounds (compass reading) Most reliable POB Point of beginning

Block and Lot for platted property or section block and lot

Township 36 sections

Section 640 acres 1 Square Mile

Acre, 43,560 sq ft

Question 10

Methods of Transfer

Answer 10

Voluntary Alienation Gift Sale Dedication Grant

Involuntary Alienation Eminent Domain Appropriation Condemnation can challenge article 78

Foreclosure Debts secured by property

Adverse procession mature into title 10 years

Acession rights to everything produced by land

Devise or Descent Testate devise to named heirs

Descent intestate succession natural heirs

Question 11

What is escheat

Answer 11

Intestate no creditors goes to state

Question 12

Title for Conveyance at closing needs?

Answer 12

Free and Clear of encumerances and defects use title search

Public Records Way to provide notice

Question 13

Chain of Title?

Answer 13

Clear and unbroken chronologcal record of ownership 50-60 years

Gap in ownership creates cloud

Question 14

What is Suit to Quiet Title? What Article?

Answer 14

Lawsuite filed to resolve deed issues Article 15

Question 15

What is Abstract of Title?

Answer 15

summaraized chronological history of title listing all recorded documents

Abstract= Title Searcher

Question 16

Title Insurance?

Answer 16

Protects lendor and sometimes buyer

Question 17

RESPA 1974?

Answer 17

Real Esate Settlement Procedures Act to protect borrowers HUD administrated

Question 18

Closing?

Answer 18

final transaction step where transfer of ownership occurs

2 closings take place 1 close on mortgage and close on title

Question 19

Closing Documents?

Answer 19

Deed Survey Mortgage documents prommisory note mortgage Homeowners insurnce Property inspection

Question 20

Settlement Statement

Answer 20

Also called Closing statement itemizies all closing costs of buyer and seller for closing

Question 21

Flip and Transfer costs?

Answer 21

Always the seller

Question 22

Transfer Tax?

Answer 22

Seller pays $4 per hundred rounded up to nearest $2 or $4

Question 23

Proration?

Answer 23

AKA Adjustment for buyer and seller items oil etc

Question 24

Calculating Proations?

Answer 24

360 day 12 month 30 day

Question 25

Sellers closing costs?

Answer 25

Attorney fee Broker Fee liens, recording fee, and NYS .4% and NYC 1.5% transfer tax

Question 26

Buyers Closing costs?

Answer 26

Appraisals credit reports. surveys, attorney fees bank fees, buyers broker, recording fees, mortgage recording fee, title insurance, HO insurance