Title, Escrow, and Closing Flashcards
Understand the processes involved in title searches, escrow arrangements, and closing procedures for property transactions.
Which real estate term is this?
A collected and condensed history of a property, documenting its ownership chain and legal actions.
Abstract of Title
Which real estate term is this?
An accounting that traces a property’s history of ownership interests and claims.
Chain of Title
Which real estate term is this?
When the sales contract is executed and the property formally changes hands between buyer and seller.
Closing/Settlement
Which real estate term is this?
The party conducting the real estate transaction closing, often a title company officer or attorney.
Closing Agent
Which real estate term is this?
Specific costs related to transferring a title, including escrow fees, loan balance, prorated utility, taxes, and insurance costs.
Closing Costs
Which real estate term is this?
A document listing actual fees and charges imposed on the borrower and the seller in a real estate transaction.
Closing Disclosure
Which real estate term is this?
Procedures conducted by the closing agent involving notices, payments, settlement statements, and signatures.
Closing Procedures
Which real estate term is this?
A balance sheet-style presentation detailing the credits and debits of the buyer and seller due at closing.
Closing Statement
(aka, Settlement Statement)
Which real estate term is this?
A potential claim or encumbrance on a title that could challenge ownership rights or prevent conveyance.
Cloud (On a Title)
Which real estate term is this?
A claims-information report providing a property’s claims history, generated by Lexis-Nexis.
C.L.U.E. Report
Which real estate term is this?
The process by which real estate title is officially transferred and accepted.
Delivery and Acceptance
Note: Land itself rarely depreciates although it can be damaged or compromised by contamination. Structures and improvements do depreciate.
Which real estate term is this?
Funds or documents held by a third party until a transaction’s conditions are fulfilled.
Escrow/Escrow Agreements
Which real estate term is this?
An individual or entity holding funds while contract terms are worked out.
Escrow Agent/Escrow Holder
Which real estate term is this?
Clear title free from encumbrances, including non-financial ones like easements.
Good and Indefeasible Title
Which real estate term is this?
Mortgage loan disclosures created under TILA-RESPA and implemented in October 2015. The two documents created the Loan Estimate and the Closing Disclosure, replacing the three documents previously required (aka, TILA-RESPA Integrated Documents or TRID).
Integrated Mortgage Disclosures
Which real estate term is this?
A trust account that generates interest to the benefit of the client, in some jurisdictions, charitable organizations, or sometimes even the brokerage.
Interest-bearing Trust Account
Which real estate term is this?
A property title that is considered free from defect and, therefore, insuring against others claims against it.
Marketable Title
Which real estate term is this?
Expenses that need to be prorated, like annual taxes already paid by a seller.
Prepaid Items
Which real estate term is this?
Distribution of closing costs based on the time each party owns a property during a sales transaction.
Prorating/Proration
Which real estate term is this?
A lawsuit to establish ownership of real property by silencing other claims.
Quiet Title
Which real estate term is this?
Federal act ensuring disclosure of closing costs in residential property transactions with a new mortgage.
Real Estate Settlement Procedures Act
(RESPA)
Which real estate term is this?
The final step in a real estate transaction where the title is transferred, documents are signed, and funds are disbursed.
Settlement
(aka, Closing)
Which real estate term is this?
A document that details all fees, charges, and credits involved in a real estate transaction, usually provided to both buyer and seller at closing.
Settlement Statement
(aka, Closing Statement)
Which real estate term is this?
Legal document identifying who owns the property and their interests.
Title/Certificate of Title
Which real estate term is this?
Commitment issued by a title company, reporting findings from a title search.
Title Commitment/Commitment to Issue
Which real estate term is this?
Proof of ownership of a piece of property.
Title Evidence/Evidence of Title
Which real estate term is this?
Exclusions from coverage identified during a title search.
Title Exceptions
Which real estate term is this?
Process examining the history of a property in preparation for ownership transfer.
Title Search
Which real estate term is this?
Administrative charge for transferring title of real property.
Transfer Fee
Which real estate term is this?
A specialized inspection concerned with the health and condition of trees on the property.
Arborist Inspection
Which real estate term is this?
The point at which the borrower and lender become obligated to each other, often at closing.
Consummation
Which real estate term is this?
Provides a detailed report on electrical systems, including code compliance and need for upgrades.
Electrical Inspection
Which real estate term is this?
Ensures that the fireplace is functioning appropriately, properly funneling smoke out of the house, and addresses the status of the fireplace liner to determine if it needs to be replaced.
Fireplace Inspection
Which real estate term is this?
Covers the home’s structure, roof, plumbing, electrical, HVAC, exterior and interior, ventilation, and fireplaces.
General Home Inspection
Which real estate term is this?
An HVAC specialist assesses the state of the climate control systems in a house.
Heating and Air Conditioning Systems Inspection
Which real estate term is this?
Opportunities in real estate transactions for professionals to assess specific areas of expertise.
Inspections
Which real estate term is this?
A professional assessment for signs of wood-boring pests like termites or carpenter ants.
Pests, or Termite Inspection
Which real estate term is this?
Tests for proper operation of all mechanical devices, surface conditions, filtering functions, etc.
Pool and/or Spa Inspection
Which real estate term is this?
An inspection to assess the condition of the roof, potentially saving costs if issues are found after closing.
Roof Inspection
Which real estate term is this?
A professional will often digitally “scope” sewer lines with a video camera and inspect septic tanks and their inlets and outlets to determine proper (or improper) functioning.
Sewer or Septic System Inspection
Which real estate term is this?
Certain inspections not always or ever covered by a general inspection.
Special Inspections
Which real estate term is this?
Include termites, carpenter ants, cockroaches, beetles, or any signs of damage by them.
Wood-boring pests
