chapter 12 Flashcards
escrow
disinterested third party holds all money and documents relating to a transaction until all of the terms and conditions of the escrow instructions have been satisfied.
escrow agent
neutral and performs the duties necessary to transfer ownership between the parties in a fair, impartial manner
chain of title
the succession of property owners of record dating back to the original grant of title from the state to a private party. If
preliminary title report
verifies if the seller has the legal right to sell the property. It also reveals defects that may exist against the title, such as liens and other encumbrances that the buyer and/or lender require are cleared before closing can occur.
California Land Title Association
issued to a lender only, a buyer only, or jointly to lender and buyer
American Land Title Association
This policy gives coverage to the lender, not the buyer. However, a buyer can purchase an owner’s policy that provides the extended coverage.
TRID rule
Lenders must provide “Your home loan toolkit, a loan estimate, and a closing disclosure form
The Loan Estimate must be delivered within
three business days
The Real Estate Settlement and Procedures Act
created to ensure that the buyer and seller in a residential real estate transaction have knowledge of all settlement costs.
consummation
The time that a consumer becomes contractually obligated on a credit transaction
No title insurance policy protects against
Defects known to the insured but not disclosed to the title insurer.
Government zoning regulations
Grant deed
transfers title from the seller to the buyer
Foreign Investment in Real Property Tax Act
If the seller is not a U.S. citizen or green card holder, the escrow agent must withhold 15% of the net proceeds of the sale and send it to the IRS within twenty days of closing21
