Chapter 8 - Escrows and Title Insurance Flashcards
Insurance to protect a real property owner or a lender up to a specified amount against certain types of loss
title insurance
the process of depositing instruments, funds, and instructions, with a third neutral party who finalizes the transactions
escrow
a history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in current owner
chain of title
adjustments of Interest, taxes, and insurance, on a prorated basis as of the closing or agreed upon date
proration
the person at the Escrow Company who handles the paperwork of the escrow
escrow officer
the written instructions of the escrow, prepared by the escrow officer and approved by both the buyer and the seller
escrow instructions
the most all-inclusive title insurance policy, it requires a property survey and is usually required by most lenders
ALTA
the minimum standard title insurance policy in California that does not require a property survey
CLTA
the requirement by a lender that a property be insured up to its full value or only a proportion of any loss will be reimbursed
coinsurance
a report from a structural pest control company stating that termite or other type of pest damage found and the cost of repairing it
Pest Control report
the date documents are recorded and title insurance is written
date of closing
a federal statute requiring disclosure of certain costs in the sale of residential property
RESPA
a report showing the condition of title before a sale or loan transaction
preliminary title report
written instructions by A lender stating and demanding the amount necessary to pay off the loan
payoff demand statement
a filing of all recorded information to real property
title plant
