Closing Procedures Flashcards

1
Q

A title closing is also known as what?

A

Settlement

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2
Q

Which closing document shows a “footprint” of the house?

A

Land survey

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3
Q

What is one item that is included in the preliminary title report?

A

Outstanding assessments

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4
Q

What is one purpose of conducting a final inspection or walkthrough before closing?

A

To ensure no damage has been done

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5
Q

What information is normally found in an inspection report?

A
  • Areas of concern / problems the inspector believes should be repaired.
  • Info about poor workmanship / deterioration
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6
Q

What type of inspection looks at radon and asbestos contamination?

A

Environmental

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7
Q

What type of inspection checks the foundation elements, bearing walls, beams and columns, floor slabs, framing crawlspace areas and drainage?

A

Structural

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8
Q

What does a coinsurance clause require?

A

This clause requires that the homeowner have insurance that is equal to 80% of the home’s replacement value. This does not include the price of the land.

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9
Q

What items must be on a deed?

A
  • Correct legal description
  • Names of the seller + buyer
  • The words of conveyance
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10
Q

In some cases, what is tax-deductible?

A
  • Interest
  • Property Taxes
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11
Q

What is the main legal requirement in recording a deed?

A

It does not have to be recorded in the county clerk’s office

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12
Q

Most lenders today require a borrower (buyer) to include ‘what’ as part of their monthly mortgage payment?

A

1/12th of the annual taxes + insurance as part of the monthly mortgage payment.

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13
Q

What do you do when the title report comes in?

A

Check it to see if there are any problems that need to be addressed

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14
Q

Escrow

A

A disinterested 3rd party that holds all money/documents regarding a home purchase until all of the terms + conditions (escrow instructions) have been satisfied.

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15
Q

HO-2 policy

A

Basic homeowner policy.

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