Chapter 7 Flashcards
Tax Deed
The deed given to a purchaser at a public sale of land held for
nonpayment of taxes. It conveys to the purchaser only such title as the
defaulting taxpayer had.
Tax Sale
Sale of property after a period of nonpayment of taxes.
Actual Notice
Express or implied knowledge of a fact.
Constructive Notice
A fact, imputed to a person by law, which should have
been discovered because of the person’s actual notice of circumstances and
the inquiry that a prudent person would have been expected to make.
Insurance
A contract between the insurer and the insured.
Title Insurance
Insurance to protect a real property owner or lender up to
a specified amount against certain types of loss (ex: defective or
unmarketable title).
Escrow
The deposit of instruments and/or funds with instructions with a
third neutral party to carry out the provisions of an agreement or contract.
Bankruptcy
A legal proceeding by an individual or company who are no
longer able to pay their respective debts.
Probate
The official proving of a will. The legal process wherein the estate
of a decedent is administered.
Contract
An agreement to do or not to do a certain thing. It must have
four essential elements: parties capable of contracting, consent of the
parties, a lawful object, and consideration. A contract for sale of real
property must also be in writing and signed by the party or parties to be
charged with performance.
Express Contract
A contract that has been put into words, either spoken
or written.
Implied Contract
An agreement that has not been put into words, but is
implied by the actions of the parties.
Bilateral Contract
A contract in which each party promises to do
something.
Unilateral Contract
When one party promises to do something if the other
party performs a certain act, but the other party does not promise to
perform it; the contract is formed only if the other party does perform the
requested act.
Voidable
That which is capable of being adjudged void, but is not void
unless action is taken to make it so.
Consideration
Anything given or promised by a party to induce another to
enter into a contract, ex: personal services or even love and affection. It
may be a benefit conferred upon one party or a detriment suffered by the
other.
The sale of property after a period of nonpayment of taxes is known as a…?
Tax Sale
Express or implied knowledge of a fact is known as…?
Actual Notice
The deposit of instruments and/or funds with instructions with a third neutral party to carry out the provisions of an agreement or contract is known as…?
Escrow
A ………. includes a binding contract between a buyer and a seller, and a conditional delivery of something of value to the escrow holder?
Valid Escrow
A perfect escrow is another term for a…?
Completed Escrow
Escrow agents have these, which include loyalty, reasonable care, and good faith…?
Fiduciary Duties
Which of the following can serve as escrow in a transaction…?
Insurance Companies, Real Estate Attorneys, Title Companies
Escrow is required in all single family transactions…?
False
