Title Flashcards
What is an affidavit of heirship?
Determines who will be granted ownership of a property if there was no will.
What is a beneficiary?
Any person eligible to receive distributions from a trust.
What is community property?
Marital assets (real estate) are jointly owned and must be split in divorce.
What is a lender’s policy?
Protects lender against problems with title to the property such as someone with legal claim against the home.
What is a lien?
Security interest granted over an item of property to secure the payment of a debt.
What is an owner’s policy?
Provides protection to the borrower if someone sues and says they have a claim against the home from before it was purchased.
What is probate?
Court case to determine who will be granted ownership of a property if there was no will.
What is the right to cancel?
Homeowners absolute right to cancel a home equity loan/line of credit until 12AM of the third day after closing
*applies to refi of owner occupied primary residence
What is rights of survivorship?
Surviving owner automatically absorbs a dying owners share of property
What is subordinate financing?
A second mortgage
What is a trustee?
Holds legal ownership of borrowers home in trust until the loan is paid off.
What is a Quit Claim Deed?
-(QCD) Warranty Deed, Grant Deed
-When current vesting on title is being changed based on state rules
-required to add/remove someone from title commitment
What is vesting?
Details of the actual ownership of property; how the property is owned
What are different types of vesting?
Single, married as sole and separate, tenancy in common, joint tenancy, tenancy by the entirety, trust and corporation/LLC
What is a title company?
Responsible for finding issues that can arise when transferring the title
What is a settlement agent?
Does the actual paperwork for transferring ownership
What is the process for obtaining the title commitment for a purchase?
- Seller or seller’s agent/attorney chooses the title company
- MC will communicate with the borrower’s attorney to obtain the title commitment from the seller’s side
What is the process for obtaining the title commitment for a refi?
- Borrower chooses the title company
- MC orders the title commitment with chosen title company
What are the three sections of title?
-Schedule A
-Legal Description
-Schedule B
What information can be found in the Schedule A section of a title?
Basic information given by the buyer or real estate agent such as sales price, loan amount, lender, borrowers name, marital status, effective date, proposed insured, ownership interest type, owner of record/vesting.
What are the two types of Ownership Interest Type?
Fee Simple: common/no action to take
Leaseholds: Temporary ownership rights for a defined period of time. Mainly commercial properties.
A copy of the lease is required.
What is the Legal Description section of the title?
Pinpoints the location of given property within particular township, range, and section.
Helps to verify the property type.
What information can be found in the Schedule B section of a title?
Lists exceptions that will not be included in the title insurance policy.
Ex: liens, taxes, judgements/court proceedings, general, endorsements.
What are endorsements?
Coverage to fit the needs of the insured for a specific transaction.
Typically on the lender’s policy.
