Unit 4 Recordation, Title Insurance, and Settlement Flashcards
Policies and procedures that regulate recording are established by:
State Law
The priority of a recorded instrument is determined by the date of:
Recording
when an attorney or a title insurance company traces the ownership of a parcel of land to the beginning of its recorded history, the process is known as the:
Title search
A recorded notice stating that a pending lawsuit may affect title to a particular property is a
Lis pendens
All the documents that comprise the history of the title are the:
Chain of title
After an attorney examines an abstract, he will render a:
Title opinion
Protection against incomplete or defective records of title found after closing can best be obtained by securing:
Title insurance
Title that is free from reasonable doubts as to its validity is:
Marketable title
A problem not covered by standard or extended title insurance is an:
Exception
a prorated item paid in arrears will be a:
Credit to the buyer
RESPA requires the lender to disclose:
(All settlement costs) in a good faith estimate no later than three days after load application.
A prorated item paid in advance settlement will be a :
Debit to the buyer
A new loan will show on the settlement statement as a buyer:
Credit
Shared items such as property taxes and water bills will be what between the buyer and the seller:
Prorated
a mortgagee’s title insurance policy protects the:
Lender
the process by which the buyer is expected to inspect, or have someone inspect, both the property (e.g. home inspection) and public records (e.g. title search) is called:
Due deligence process
A deed that is not recorded lacks _________ notice.
Constructive
A summary of all recorded documents affecting title to a given parcel of land, created through title search is:
Abstract of title
If errors or missing documents are found the title is said to be:
Clouded
True or False
Unlike most insurance, title insurance premium is paid only once- when the policy is issued at closing.
True
A quiet title suit is:
- is used to clear clouded title
- establish ownership under adverse possession
RESPA stands for:
Real Estate Settlement Procedures Act
Lender and title companies are regulated, and real estate licenses are:
Impacted
The escrow agent is a disinterested party who assists in carrying out the transaction according to the terms of the :
Purchase contract
True or False
The prorated amount will always be an equal amount with a debit to one party and a credit to the other.
True
