Chapter 3 Flashcards
Acceleration
is a provision that allows the lender under stated conditions to accelerate the loan for early prepayment.
Administrator/Executor Deed
is given as a result of transfer of decedent’s property.
American Land Title Association (ALTA)
title policy designed for private and institutional lenders.
Assignment
is the act of transferring a contractual right to another in the example of a promissory note assigned to another individual.
Beneficiary Statement
is from the lender or beneficiary containing current loan information, usually for the purposes of a buyer assuming or taking the loan “subject to,” or an owner obtaining secondary financing.
Bilateral Instructions
are a single escrow instruction signed by both buyer and sellers usually used in SoCal but becoming more commonly used in NorCal.
Cancellation
is a specific agreement by parties to cancel or terminate a contract or escrow.
Closing Statements
also referred to as a “final settlement statement,” is issued at close of escrow, and is not signed by the principals.
CA Land Title Association (CTLA)
title policy that covers owners, lenders, and leaseholds in various ways.
Community Property
is ownership by married persons of property acquired after or during marriage.
Deed
is a written instrument which gives over the title to real property from one owner to another.
Deed of Trust
A Deed of Trust is a device which secures the property as collateral fro the note; when recorded, it becomes a lien.
Demand
A Demand is a letter from a creditor/beneficiary stating the amount needed to payoff an existing loan.
Documentary Transfer Tax
The Documentary Transfer Tax is applied and collected at recording applied to the money consideration in a transaction.
Due on Sale
Due on Sale permits the lender to require the owner pay the entire mortgage debt in the event title is transferred; it is the same as an alienation clause.
Escrow Instructions
Escrow Instructions are preprinted forms that provide the escrow holder with instructions and conditions for closing an escrow. Usually, the escrow instructions will list the documents received or needed to close, an estimated settlement statement reflecting the funds received and needed to close with a listing of costs, credits and prorations. A copy of the tile or escrow company’s general provisions is usually incorporated as a part of the escrow instructions.
Escrow Memo/Order
Escrow Memo/Order is a record of the transaction details taken at the initial interview of the parties to an escrow.
Estimated Settlement Statement
Estimated Settlement Statement is usually incorporated into the escrow instructions listing the sales price, new loan amount, costs, credits, prorations, funds received into the escrow, and the balance due to close. The estimated settlement statement is signed by the principals before close of escrow.
Gift Deed
Gift Deed is where the consideration is “love and affection.”
Grant Deed
Grant Deed is a document that transfers title (evidence of property ownership) with the key word being “grant.”
Hypothecation
Hypothecation is to pledge property as security without surrendering possession of the property.
Interpleader
Interpleader is a legal proceeding whereby escrow deposits with the court funds and papers to be properly distributed.
Interspousal Deed
Interspousal Deed is executed between married couples to transfer or otherwise correct title.
Joint Tenancy
Joint Tenancy is ownership by two or more persons with the right of survivorship.
