Chapter 6A - Real Estate Closings Flashcards
Abstract of Title
Prepared by title company detailing chain of title - summarizes chronological history of title to property
Actual Notice
When individuals have actual knowledge of a fact - constructive notice leads to title search leads to actual notice.
Chain of Title
Chronological record of ownership of a piece of property
Closing Disclosure
Itemizes all expenses and costs paid by buyer and seller to close transaction.
Closing Statement
Itemizes all expenses and costs paid by buyer and seller to close transaction.
Cloud on the Title
Gap in the chain of title, creates uncertainty.
Constructive Notice
Person should know something even if they don’t - with public records, person should have constructive notice because they have access to constructive notice
Credits
Money expected
Debits
Money owed
Marketable Title
Title is free and clear from undisclosed encumbrances or defects that could affect the buyer.
Proration
Division of specific closing costs between buyer and seller based on actual usage. EX: splitting annual property taxes based on when sale occurred.
Real Estate Settlement Procedure Act
Connected to TILA. Bank must respond to buyer within 3 days with loan estimates and provide itemized closing statement.
Reconciliation
Totaling of credits and debits to arrive on final actual closing costs.
Settlement Statement
Prepared by attorney or closing agent itemizing expenses paid by buyer and seller to close transaction.
Survey
Process of determining physical size and boundaries of a property.
