Chapter 17 - Real Estate Closings Flashcards
Abstract of Title
A brief, chronological summary of recorded documents affecting title to a particular parcel of real property
Bargain and sale deed
imply the grantor owns the property and has a right to convey it, but there are no warranties that go with it
Chain of title
Chain of deeds and other documents transferring title to land from one owner to the next, as disclosed in public records
Cloud on the title
A claim, encumbrance, or defect that make title to real property unmarketable
contructive/actual notice
Constructive Notice - Provides protection to a landowner againts all unrecorded titles. Actual Notice - Actual knowledge; that which is known
credits/debits
Credits - Money received for an obligation given. Debits - An expense or money applied against a credit
deed
The legal document conveying title to a property
Descent
An operation of law when a real property is transferred to an heir aafter the deaath of the owner who leaves no will (intestate)
Device
The transfer of real property through a will
Escrow Closing
closing by a disinterested third party, often an escrow agent
General Warranty Deed
deeds in which a grantor warrants title against defects that may have arisen before or during the grantor’s ownership
Grantor/Grantee
Grantor - the person who transfers title to real property in a real estate transaction. Grantee - the person who receives a conveyance of real property in a real estate transaction
Habendum Clause
Clause within a deed that describes the type of estate granted; it must always agree with the granting clause
HUD -1 settlement statement
An accurate accounting of all expenses buyers and sellers pay in real estate transaction; required by RESPA
Intestate/Testate
Intestate - the act of dying without a legal will. Testate - The act of dying with a legal will
Involuntary/voluntary alienation
involuntary alienation - when title to property is transferred during the owner’s lifetime without his concent. Voluntary - When title to property is transferred voluntarily through a sale, gift, dedication or grant
Limited warranty deed
Deeds in which the grantor warrants the title only against defects arising during the time that he owned the property and not against defects arising before that time
Marketable Title
Title that is free and clear of objectionable encumbrances or defects so that a reasonably prudent person with full knowledge of the facts would not hesitate to purchase the property
Proration
The division of expenses between buyer and seller in proportion to the actual usage of the item represented by a particular expense.
Quitclaim Deed
Convey any interest in real property the grantor has at the time the deed is executed
Real Estate Settlement Procedures ACT (RESPA)
Requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosure of the nature and costs of the real estate settlement process
Reconciliation
- The appraisal process of analyzing the values derived from the different appraisal approaches to arrive at a final value estimate or opinions. 2. Verifying the debits and credits have been added and subtracted correctly on a real estate settlement statement
Sheriff’s Deed
Used in sheriff’s sale at foreclosure
Survey
The process of precisely measuring the boundaries and determining the area of a parcel of land
Title
Lawful ownership of real property. Also in informal usage the deed or other document that is evidence of ownership
Title Insurance
insurance that indemnifies against losses resulting from undiscovered title defects and encumbrances
Title Search
a check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding
Words of Conveyance
deed language that clearly states the grantor’s intention to transfer the real property
