Public Records, Titles and Closings Flashcards
Unit 22, Page 379
Another word for “laws”
Acts
Who is responsible for checking the public records for title search?
The buyer or lender.
“Let the buyer beware.” It is the buyer or lender’s responsibility to check the public records/title search.
Caveat emptor
Chain of title
Record of ownership of the property over a period of time.
The establishment of ownership by court action due to a “gap in the chain”.
Suit to quiet title.
Two ways to remedy a “gap in the chain” in a chain of title.
-Quitclaim deed
-Suit to quiet title
What are the four generally used forms of title evidence?
- Abstract of title and attorney’s opinion.
- Title insurance policy (most common)
- Torrens certificate
- Certificate of title
Is a deed proof of title?
No, it proves the grantor transferred the property but does not prove the grantor had good title in the first place.
Abstract of title
Brief history (about 60 years) of the instruments appearing in the county record. It is then assessed by an attorney (attorney’s opinion of title).
RESPA
Real Estate Settlement Procedures Act
What was the Real Estate Settlement Procedures Act (RESPA) created to do?
The buyer and seller in a residential real estate transaction have knowledge of all settlement costs. It only applies when the purchase is financed by a federally related mortgage loan.
FEMA
Federal Emergency Management Agency
When does the closing disclosure have to be delivered to the parties by?
At least three business days prior to the closing.
What are debits and credits?
Debts are amounts the party needs to pay. Credits are amounts in the party’s favor.
Who pays the realty transfer tax?
The seller. HOWEVER, if the property is over $1,000,000, the buyer ALSO pays 1%.
