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Real Estate National > Unit 4--Recordation, Title, Insurance, Settlement > Flashcards

Unit 4--Recordation, Title, Insurance, Settlement Flashcards

1
Q

Fee Simple Defeasible is also called _________.

A

Qualified Fee

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2
Q

T or F: Recording proves the validity of the document.

A

False

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3
Q

Recording documents is a way of giving _________ notice.

A

Constructive or legal notice–establishes priority of interests “first in time, first in line”

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4
Q

Is a deed still valid if NOT recorded?

A

Yes–but grantee runs the risk of someone else claiming it

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5
Q

Most states require documents to be ___________ to be recorded, this confirms the transfer is voluntary and not under duress.

A

Acknowledged

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6
Q

This is a clause in a mortgage/deed of trust in which the lender permits a subsequent mortgage to take or change priority.

A

Subordination–allows mortgages to maintain their original position

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7
Q

Ownership that is free from reasonable doubt is called ___________ title.

A

Marketable

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8
Q

Doing a title search by a title examiner, from original source to present, is called a establishing ______ ___ _________.

A

Chain of Title

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9
Q

A historical summary of all the recorded documents affecting title to a given parcel of land and is created through a title search is an ______________.

A

Abstract of Title

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10
Q

The best method for insuring marketable title is with ______________.

A

Title Insurance

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11
Q

T or F: The title commitment and report will state the current condition of the title and is a commitment to insure.

A

True–shows current encumbrances but NOT any history of past owners or encumbrances

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12
Q

New buyers will receive a standard ________ _________ which protects owners/buyers and their heirs while they have an interest.

A

Owner’s Poilicy

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13
Q

Title insurance policy coverage costs are based on the _______ price of the property

A

Sale price

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14
Q

A _____________ policy protects the mortgagee/lender

A

Mortgagee/Lender’s policy–coverage is based on the LOAN amount

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15
Q

A standard coverage policy protects the buyer/owner against all problems found (before/after) closing

A

found AFTER closing…it mainly covers Errors in matter of record not listed as exceptions

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16
Q

This policy adds protection against problems that are not a matter of public record but would probably be discovered through inspection of the property.

A

Extended Owner’s coverage–matters of survey, gap period, unrecorded liens

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17
Q

The premium for title insurance is paid _________ when the policy is issued at closing.

A

Once

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18
Q

Lis Pendens means __________

A

Lawsuit pending

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19
Q

A court hearing to determine ownership, recognize other valid claims, and “quiet” invalid claims is a _________.

A

Suit to Quiet Title

20
Q

Chain of title is all __________ __________ from patent to the current title holder.

A

recorded documents

21
Q

An abstract and title commitment are based upon the _________ ____ ________.

A

Chain of Title

22
Q

T or F: Real Estate professionals SHOULD call about zoning issues for the buyer.

A

False–They shouldn’t because they would take on liability for the information to be correct, they should recommend buyers call about zoning and have a property inspection, disclose material facts, and verify any statements appearing false

23
Q

T or F: Sellers are responsible for lead inspection and removal.

A

False–buyers can waive 10 day inspection period, this is up to the buyer

24
Q

______________ must give a lead based paint disclosure and EPA pamphlet to renters if the property was built before 1978.

A

Landlords and property managers–renters do NOT have to be given opportunity to test or remove

25
Q

A naturally occuring, odorless, radioactive gas

A

Radon

26
Q

Radon is typically ___________ by adding a ventilation system to move the gas outside.

A

Mitigated

27
Q

_________is an odorless gas that is a byproduct of combustion.

A

CO-carbon monoxide

28
Q

_____________ is created by an excess humidity and moisture.

A

Toxic mold

29
Q

Mold grows when there is oxygen, moisture, and __________ food source.

A

Organic

30
Q

The removal of mold, called _________, should be done per EPA and state regulations

A

Remediation

31
Q

T or F: Sellers are NOT responsible to disclose mold issues.

A

False–should disclose if there was an issue

32
Q

This is mandatory for government projects and may be required for private development.

A

EIS–Environmental Impact Statement

33
Q

These properties are those that have been deemed undesirable because of activities that occurred there.

A

Stigmatized properties(phycological impact)–Suicide, murder, criminal activity, HIV/Aids, State Laws dictate what is disclosed

34
Q

A 3rd party, ________ _________, or disinterested party that assists in carrying out the closing transaction according to the terms of the purchase contract

A

Escrow agent/title company closer

35
Q

The loan is always a _________to the buyer at closing.

A

Credit

36
Q

The sales price is a __________ to the seller at closing.

A

Credit

37
Q

A detailed accounting of each party’s debits and credits.

A

Closing Statement

38
Q

A debit to the buyer __________ the amount of money the buyer must bring to the closing.

A

Increases

39
Q

Brokerage fees, owner’s title insurance, payoff of existing loans and seller financing are all _________ to the seller.

A

Debits

40
Q

HOA dues, rents, utilities, assumed mortgages, and taxes are all __________ costs as of the date of closing.

A

Prorated

41
Q

Payments made after the time has passed, buyer credits, are said to be ____________.

A

in arrears

42
Q

________ _________ are not transferred because the full amount transfers to new owner to hold for the tenant.

A

security deposits

43
Q

The document summarizing all recorded interests affecting title to a given parcel of land

A

Abstract of Title

44
Q

If you dont ABATE asbestos, the best way to deal with it is _____________.

A

Encapsulation

45
Q

A defect or problem not covered by standard or extended title insurance is an __________.

A

Exception

Real Estate National (8 decks)

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