Chapter -3.D Flashcards
Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest
Title
An examination of the public records to determine the ownership and encumbrances affecting real property.
Title search
The process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as what…?
Title Closing
Where can one order a title report from…?
Title Insurance Company
Which of the following is an example of a conflict of rights that may negatively affect a property…?
A previously granted option to purchase the property
When reviewing the chain of title, how many years back will a title company typically search…?
40
The ‘L’ in the acronym ‘CATTL’ refers to what…?
Loan
The ‘A’ in the acronym ‘CATTL’ refers to what…?
ACRIS
Where might the closing take place when the buyer is taking out a mortgage to buy a home or condominium…?
The lender’s attorney’s office
When closing on real property, who will attend to ensure that the title is issued properly…?
The title insurance representative
Aaron recently closed on a home. He assumed that he was accepting the condition of the property as it stood at the time of closing. As an agent in the transaction, what should you have informed Aaron of…?
Aaron was accepting the condition of the property at the time of the contract signing
Which of the following buyer’s costs are commonly overlooked in a transaction…?
Immediate upkeep costs
When a buyer obtains a mortgage to purchase a property, which of the following closing costs may be passed on through the lender to the buyer…?
Title insurance
What percentage of the sales price is the seller typically required to pay for a flip tax in the sale of the cooperative or condominium apartment…?
2 (Percent %)
Out-of-state sellers are subject to what tax, in addition to the typical state, local, and building taxes…?
Capital Gains Tax
Many of the documents required to be signed at a closing are required as a result of this Act…?
RESPA
Information or knowledge of a fact imputed by law to a person because the person could have discovered the fact by proper diligence and inquiry is known as what…?
Constructive Notice
When a buyer is taking out a mortgage to purchase a property, which of the following closing costs may be passed on through the lender to the buyer…?
Appraisal fee
In New York State, when the purchase price exceeds this amount, a ‘mansion tax’ is required to be paid…?
$1,000,000 (Dollars)
A title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer is known as what…?
Marketable Title
The allocation of closing costs and credits to the buyer and seller is known as what…?
Proration
A policy of insurance which indemnifies the holder for any loss sustained by reason defects in the title is known as what…?
Title Insurance
An examination of the public records to determine the ownership and encumbrances affecting real property is known as what…?
Title Search
The ‘C’ in the acronym ‘CATTL’ refers to what…?
Checks
Which of the following closing costs are NOT paid by the buyer…?
Capital gains tax
When a buyer obtains a mortgage to purchase a property, which of the following closing costs may be passed on through the lender to the buyer…?
Title insurance
Which of the following will NOT show up when conducting a title search on a property…?
The condition of the roof
In most transactions, the buyer is accepting the condition of the property at what point in time…?
At the signing of the contract
RESPA is an acronym for this Act…?
Real Estate Settlement Procedures Act
Which of the following closing costs are NOT paid by the buyer…?
Flip tax
Which of the following closing costs are NOT paid by the buyer…?
Capital gains tax
This tax is paid when the purchase price exceeds $1 million…?
Mansion Tax
The New York State Transfer tax is equal to what percent of the sales price…?
1 (Percent %)
What percentage of the sales price is the seller typically required to pay for a flip tax in the sale of the cooperative or condominium apartment…
2 (Percent %)
As a rule of thumb, what percentage of the purchase price does a seller typically pay in closing costs…?
10 (Percent %)
The process by which a parcel of land is measured and its area ascertained is known as what…?
Survey
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
Which of the following will NOT show up when conducting a title search on a property…?
The condition of the roof
When reviewing the closing statements from the various parties in a transaction, the bank’s closing statement will include which of the following…?
The amount of the loan
Information or knowledge of a fact imputed by law to a person because the person could have discovered the fact by proper diligence and inquiry is known as what…?
Constructive Notice
Which of the following taxes is the buyer required to pay at closing if he/she is obtaining a mortgage to buy real property…?
Mortgage Recording Tax
The amount charged as due or owing is known as what…?
Debit
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
A legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest is known as what…?
Title
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer is known as what…?
Assessment
Information or knowledge of a fact imputed by law to a person because the person could have discovered the fact by proper diligence and inquiry is known as what…?
Constructive Notice
Notice delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient is known as what…?
Actual Notice
Your answer is correct
Which of the following is an example of a conflict of rights that may negatively affect a property…?
A previously granted option to purchase the property
A cooperative owner sold his apartment for $650,000. How much was the flip tax on the transaction…?
A flip tax is typically equal to 2% of the sales price. For that reason, the flip tax will equal $650,000 x 0.02 = $13,000.
As a rule of thumb, what percentage of the purchase price does a seller typically pay in closing costs…?
Closing costs may amount to up to 10% of the purchase price.
A summary of all of the recorded instruments and proceedings which the title to property, arranged in the order in which they were recorded, is known as what…?
Abstract of Title
The process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as what…?
Title Closing
Which of the following may NOT negatively affect the title of a property…
A leaky roof
What percentage of the sales price is the seller typically required to pay for a flip tax in the sale of the cooperative or condominium apartment…?
2 (Percent %)
