LP 6: Title to Closing

Question 1

TITLE

Answer 1

Evidence of the right to ownership of property; Includes bundle of rights possessed by the owner.

Question 2

EQUITABLE TITLE

Answer 2

Legal Definition: A person’s right to obtain full ownership of a property of interest as opposed to having full ownership. Sometimes refers to an individual who has consistent control over the property such as a renter.

Question 3

LEGAL TITLE

Answer 3

A person having actual ownership of a property

Question 4

MARKETABLE TITLE

Answer 4

A term used to refer to a title which is free from major defects and encumbrances that could deter a sale (i.e. Clear Title)

Question 5

CHAIN OF TITLE

Answer 5

The series of deeds by which title to a piece of property was transferred from one owner to the next, over the course of the property’s history

Question 6

PUBLIC RECORD

Answer 6

A document or record of any form filled in a public office (such as a deed filed with a County Clerk) and are accessible by any member of the public

Question 7

RECORDING

Answer 7

Filing a document with the appropriate county officials so that it will be placed into the public record

Question 8

CONSTRUCTIVE NOTICE

Answer 8

When the law charges a person with knowledge of a fact because they should have known it, whether they knew it or not.
EX/ The due diligence requirement of a buyer to review publicly recorded documents. Not doing this voids a claim that the seller didn’t provide proper legal notice to the buyer.

Question 9

ACTUAL NOTICE

Answer 9

When direct knowledge of a fact has been given to an individual

Question 10

TITLE SEARCH

Answer 10

An examination of public records to determine all rights and interests in a piece of real property

Question 11

ABSTRACT OF TITLE

Answer 11

A condensed history of the recorded interests in a piece of real property

Question 12

OPINION OF TITLE

Answer 12

An opinion concerning the ownership of and other interests in a piece of real property, often prepared by an attorney based on an abstract of title. I.e. Certificate of Title

Question 13

TITLE COMMITMENT

Answer 13

A written promise by a title company to provide title insurance at a property closing

Question 14

TITLE INSURANCE

Answer 14

An insurance policy that indemnifies a buyer or a lender against losses resulting from title defects that haven’t been excepted from coverage

Question 15

TITLE REPORT

Answer 15

A report issued after a title search by a title insurance company listing all defects and encumbrances of record

Question 16

DEED

Answer 16

A document which transfers ownership in a property from the “Grantor” (seller) to a “Grantee” (buyer)

Question 17

VOLUNTARY ALIENATION

Answer 17

The unforced transfer of property ownership. EX/ sale, gift, or by will

Question 18

INVOLUNTARY ALIENATION

Answer 18

The transfer of ownership absent the consent of the owner typically by operation of law as in a foreclosure, eminent domain, or via adverse possession

Question 19

CLOSING

Answer 19

The culmination of a real estate transaction whereby all legal and contractual obligations are verified as complete and property ownership is transferred to a new legal owner

Question 20

CLOSING AGENT

Answer 20

Typically but not exclusively the representative of a title company conducting a closing

Question 21

FACE TO FACE CLOSING

Answer 21

A closing in which all parties meet at a designated time and location to complete a real estate transaction

Question 22

ESCROW CLOSING

Answer 22

A transfer of ownership without a meeting of the parties. The parties deposit funds and documents with the closing agent and the closing agent disburses funds and releases documents to the parties when all conditions have been met

Question 23

RESPA: Real Estate Settlement Procedures Act

Answer 23

Federal law which regulates and standardizes documentation, fees and procedures of a closing

Question 24

CLOSING DISCLOSURE

Answer 24

This TILA-RESPA Integrated Disclosure (TRID) must be used for most closed-end consumer mortgages secured by real property to detail final loan terms and closing costs. It must be given to Seller and Buyer a minimum of 3 days prior to closing.

Question 25

LOAN ESTIMATE

Answer 25

This TILA-RESPA Integrated Disclosure (TRID) covering likely loan and closing costs must be given to by the lender to borrowers within 3 days of loan application.

Question 26

GENERAL WARRANTY

Answer 26

Most warranties. Fullest assurance of good title.

Question 27

SPECIAL WARRANTY

Answer 27

Assures against defects and encumbrances during grantors tenure of ownership

Question 28

BARGAIN & SALE

Answer 28

Grantor has title, but will not defend

Question 29

QUITCLAIM

Answer 29

No assurances. Grantor may own or may not own. Won’t defend.