Session 16 Flashcards
Affidavit of value
A sworn statement under oath that indicates the purchase price paid by the buyer in a transaction; must be filed with the deed and signed by both buyer and seller.
Bring down endorsement
An extension of a title search to verify that no liens have been filed against the property between the time of the original search and the recording of the deed or mortgage. Also called: continuance
Closing disclosure
Settlement statement prepared by the lender or closing agent itemizing all expenses and costs paid by the buyer and seller needed to close the real estate transaction as required for RESPA - related transactions.
Constructive notice
Notice given by publication in a newspaper, recording, or other method.
Deed
A written instrument transferring the grantors ownership of, or interest in, real property.
Escrow
A system in which things of value are held on behalf of the parties to a transaction by a disinterested third-party until the specified conditions have all been met.
Escrow company
A neutral clearinghouse through which title to real property is closed and or escrow funds are held in trust. Also called: escrow agent.
Escrow officer
The person in charge for coordinating the activities and documentation necessary for completing a real estate transaction; usually the one who assists in preparing the settlement statement and conducting the closing. Also called: closing officer, settlement officer, or closing agent.
FIRPTA (Foreign investment in real property tax act of 1980) -
Federal law that imposes income tax on foreign person selling or otherwise disposing of their interest in real property. To ensure payment of this tax, the internal revenue service requires buyers to withhold a specific percentage of the sales price, with some exceptions.
IRS form 1099S
A tax form indicating the seller’s proceeds from the sale or transfer a real estate that a settlement officer submits to the Internal Revenue Service.
Kickbacks
Fees or other compensation given for services not performed, but as a means of undisclosed commission for business referrals. Kickbacks are prohibited by RESPA.
Levy
The legal seizure of an individual’s property to satisfy an IRS tax debt.
Real estate settlement procedures act (RESPA)
The federal statute requiring disclosure of certain costs and prohibiting certain acts in the sale of 1 to 4 unit residential property it is financed by a federally regulated lender. Respirators in force by the consumer financial protection bureau.
Settlement services
Any service provided in connection with a perspective or actual settlement of a real estate transaction, including, but not limited to, those provided by lenders, title companies, real estate brokers, property inspectors, attorneys, appraisers, etc.
Title
The right to or ownership of land.
Title company
A company that examines and insures title claims for real estate purposes through a thorough examination of property records.
Title insurance
Insurance that indemnifies the policyholder against Losses resulting from undiscovered title defects and encumbrances.
Title report
A report issued by a title company disclosing the condition of the title to a specific piece of property.
Arrears
Owing payment on things for which one has the use but has not yet paid for, such as property taxes that are paid in, or the state of being in arrears with a debt obligation. Also called: accrued expenses.
Calendar year
365 days
Closing disclosure
A settlement statement prepared by the lender or closing agent itemizing all expenses and costs paid by the buyer and seller need to close the real estate transaction as required for RESPA related transactions.
Credit
A sum of money to be received
Debit
Any sum of money owed; a charge on a closing statement
Pro ration
The allocation of expenses, real estate taxes, or rent between buyer and seller in proportion to their actual use of an item.
Statutory year
360 days, 30 days per month.
Marketable title
Title to real property that is reasonably free of defects and encumbrances, may require an unbroken chain to record a title going back for a statutory number of years.
