CHP 35 - Closings Flashcards
Title Closing
End of the real estate transaction
What does the buyer do at closing
Complete financing arrangements/Close the loan
What does the seller do at closing
Transfer title
What do both parties do at closing
Pay taxes, fees and other charges
Who attends closing
Closing Agent
What’s included in an extended title coverage insurance policy
- unrecorded liens
- off-record easements
- mining claims
- water rights
- Rights or claims of persons in physical possession of the property
Escrow process
1) Deliver the purchase contract to escrow agent
2) Open escrow
3) Complete tasks list
4) Close escrow
What does a title search reveal
Legal description of property
owners of record
outstanding liens
Who needs title insurance
Both buyer and lender
How many pages is the closing disclosure
5
At the top of the 1st page of the closing disclosure….
Closing info (important dates, address and sales price) Transaction info (names and addresses for borrower and sellers lender's) Loan info
Page 2 of Closing Disclosure
Closing costs in 4 columns
Page 4 of Closing Disclosure
Loan Disclosures:
Assumption Demand Feature Late Payment Negative amortization Partial Payments Security Interest
page 5 of Closing Disclosure
- Loan Calculations
- Other Disclosures
- Contact Info
- Confirm Receipt
What does the Calculating cash to close sections how at the top of page 3
How the final costs compare to the loan estimate
What section of the closing disclosure summarizes the seller’s transaction
Right column of page 3
Recording the deed is done through this type of notice
Constructive Notice
RESPA =
Closing Disclosure
Is it a legal requirement that a deed be recorded in county clerk’s office
NO
Most important doc at closing
Deed
To enter a property in Torrens what must be cleared
Court action must first clear title
Lenders give this booklet to every person when they apply for a loan
Your home loan toolkit
