Chapter 21 - Public Records, Titles, and Closings

Question 0

Actual notice

Answer 0

Express information or fact; that which is known; actual fact.

Question 1

Abstract of title

Answer 1

The condensed history of a title to a particular parcel of real estate.

Question 2

Affadavit

Answer 2

A written statement sworn to before an officer to administer an oath or affirmation.

Question 3

Arrears

Answer 3

The opposite of in advance. mortgages are paid in arrears.

Question 4

Attorney’s opinion of title

Answer 4

Not used as extensively as in the past.Once the abstract is ordered and brought current, it is forwarded to the buyer’s attorney, who must examine the entire abstract. Following his or her review and prepare a written report for the purchaser on the condition of ownership called the attorney’s opinion of title.

Question 5

Caveat emptor

Answer 5

A latin phrase meaning”let the buyer beware”.

Question 6

Chain of title

Answer 6

Shows the record of ownership of the property over a period of time. an abstract is a condensed history of all the instruments affecting a particular parcel.

Question 7

Closing statement

Answer 7

A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in a transaction.

Question 8

Constructive notice

Answer 8

notice given to the world by recorded documents. Occupation of property is also considered giving constructive notice.

Question 9

Credit

Answer 9

A figure in favor of either the buyer or seller on the closing statement.

Question 10

Debit

Answer 10

A charge or expense for an amount the party owes and must pay at the closing.

Question 11

Escrow closing

Answer 11

The closing of a transaction through a third party called an escrow agent. also can refer to earnest money deposits or to mortgage trust account for insurance and tax payments. seldom used in New Jersey.

Question 12

Evidence of title

Answer 12

Proof of ownership of property commonly referred to as a certificate of title includes a title insurance policy, an abstract of title with lawyers opinion, or a Torrens registration certificate.

Question 13

Marketable title

Answer 13

Good and clear title reasonable free from risk of litigation over possible defects.

Question 14

Proration

Answer 14

Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.

Question 15

Public records

Answer 15

County’s collection of documents relating to real estate.

Question 16

Real estate Settlement Procedures Act (RESPA)

Answer 16

Federal law regulating closings.

Question 17

Realty transfer fee

Answer 17

Tax required to be paid on a deed by state and/or local law. Always charged to the seller in a real estate closing.

Question 18

Suit to quiet title

Answer 18

A quitclaim deed is commonly used to bridge gaps in the chain of title. Sometimes it may be necessary to establish ownership by a court action called a suit to quiet title.

Question 19

Title insurance policy

Answer 19

Evidence of ownership. Insures defects that and such items as forged documents, documents of incompetent grantors, incorrect marital statements and improperly delivered deeds. Various forms are issued such as an owner’s title insurance policy (a fee policy), the mortgage title insurance policy, and leasehold title insurance policy to insure specific interests. Policies required by lenders do not protect owners and New Jersey law requires lenders to inform borrowers of this fact.

Question 20

Uniform settlement Statement

Answer 20

HUD-1 is designed to detail all financial information and particulars of a transaction.