Title

Question 1

What is an affidavit of heirship?

Answer 1

Determines who will be granted ownership of a property if there was no will.

Question 2

What is a beneficiary?

Answer 2

Any person eligible to receive distributions from a trust.

Question 3

What is community property?

Answer 3

Marital assets (real estate) are jointly owned and must be split in divorce.

Question 4

What is a lender’s policy?

Answer 4

Protects lender against problems with title to the property such as someone with legal claim against the home.

Question 5

What is a lien?

Answer 5

Security interest granted over an item of property to secure the payment of a debt.

Question 6

What is an owner’s policy?

Answer 6

Provides protection to the borrower if someone sues and says they have a claim against the home from before it was purchased.

Question 7

What is probate?

Answer 7

Court case to determine who will be granted ownership of a property if there was no will.

Question 8

What is the right to cancel?

Answer 8

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

Question 9

What is rights of survivorship?

Answer 9

Surviving owner automatically absorbs a dying owners share of property

Question 10

What is subordinate financing?

Answer 10

A second mortgage

Question 11

What is a trustee?

Answer 11

Holds legal ownership of borrowers home in trust until the loan is paid off.

Question 12

What is a Quit Claim Deed?

Answer 12

-(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

Question 13

What is vesting?

Answer 13

Details of the actual ownership of property; how the property is owned

Question 14

What are different types of vesting?

Answer 14

Single, married as sole and separate, tenancy in common, joint tenancy, tenancy by the entirety, trust and corporation/LLC

Question 15

What is a title company?

Answer 15

Responsible for finding issues that can arise when transferring the title

Question 16

What is a settlement agent?

Answer 16

Does the actual paperwork for transferring ownership

Question 17

What is the process for obtaining the title commitment for a purchase?

Answer 17

1. Seller or seller’s agent/attorney chooses the title company
2. MC will communicate with the borrower’s attorney to obtain the title commitment from the seller’s side

Question 18

What is the process for obtaining the title commitment for a refi?

Answer 18

1. Borrower chooses the title company
2. MC orders the title commitment with chosen title company

Question 19

What are the three sections of title?

Answer 19

-Schedule A
-Legal Description
-Schedule B

Question 20

What information can be found in the Schedule A section of a title?

Answer 20

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.

Question 21

What are the two types of Ownership Interest Type?

Answer 21

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.

Question 22

What is the Legal Description section of the title?

Answer 22

Pinpoints the location of given property within particular township, range, and section.
Helps to verify the property type.

Question 23

What information can be found in the Schedule B section of a title?

Answer 23

Lists exceptions that will not be included in the title insurance policy.
Ex: liens, taxes, judgements/court proceedings, general, endorsements.

Question 24

What are endorsements?

Answer 24

Coverage to fit the needs of the insured for a specific transaction.
Typically on the lender’s policy.

Question 25

Who should you reach out to with questions or direction required surrounding vesting?

Answer 25

Settlement Agent

Question 26

What is a CPL?

Answer 26

Closing Protection Letter
-Forms a contract between a title insurance underwriter and the lender for actual losses caused by certain kinds of misconduct by the closing agent
-delivered with the title commitment

Question 27

If property tax information is not listed in schedule B of the title, the title company may send the tax certificate as an additional document with other title docs. Is this acceptable?

Answer 27

Yes. upload it to the eFolder.

Question 28

What are the MCs responsibilities for title?

Answer 28

-order all title docs after reviewing the title company in Encompass. The order is placed by contacting the title company directly.
-review title docs and address steps needed to handle title issues

Question 29

What are the LCs responsibilities for title?

Answer 29

-review title docs and help MC obtain any outstanding docs
-clearing UW conditions related to title