Chapter 3D Legal Issues: Title and Closing Costs Flashcards

1
Q

Title - 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.

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.

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2
Q

Marketable Title

A

A title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer.

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3
Q

Title Search

A

An examination of the public records to determine the ownership and encumbrances affecting real property.

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4
Q

Chain of Title

A

The sequence of historical transfers of title to a property. It runs from the present owner back to the original owner of the property.

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5
Q

Abstract of Title

A

A summary of all of the recorded instruments and proceedings which the title to property, arranged in the order in which they were recorded.

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6
Q

Title Insurance

A

A policy of insurance which indemnifies the holder for any loss sustained by reason defects in the title.

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7
Q

Closing Statement

A

A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place.

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8
Q

Credits

A

A bookkeeping entry on the right side of an account, recording the reduction or elimination of an asset or an expense, or the creation of or addition to a liability or item of equity or revenue.

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9
Q

Debits

A

The amount charged as due or owing. That which is due from one person to another.

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10
Q

Proration

A

Adjustments of interest, taxes, and insurance, etc., on a pro rata basis as of the closing or agreed upon date. Allocation of closing costs and credits to buyers and sellers.

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11
Q

Constructive Notice

A

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.

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12
Q

Actual Notice

A

Notice delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient.

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