Unit 4--Recordation, Title, Insurance, Settlement Flashcards
Fee Simple Defeasible is also called _________.
Qualified Fee
T or F: Recording proves the validity of the document.
False
Recording documents is a way of giving _________ notice.
Constructive or legal notice–establishes priority of interests “first in time, first in line”
Is a deed still valid if NOT recorded?
Yes–but grantee runs the risk of someone else claiming it
Most states require documents to be ___________ to be recorded, this confirms the transfer is voluntary and not under duress.
Acknowledged
This is a clause in a mortgage/deed of trust in which the lender permits a subsequent mortgage to take or change priority.
Subordination–allows mortgages to maintain their original position
Ownership that is free from reasonable doubt is called ___________ title.
Marketable
Doing a title search by a title examiner, from original source to present, is called a establishing ______ ___ _________.
Chain of Title
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 ______________.
Abstract of Title
The best method for insuring marketable title is with ______________.
Title Insurance
T or F: The title commitment and report will state the current condition of the title and is a commitment to insure.
True–shows current encumbrances but NOT any history of past owners or encumbrances
New buyers will receive a standard ________ _________ which protects owners/buyers and their heirs while they have an interest.
Owner’s Poilicy
Title insurance policy coverage costs are based on the _______ price of the property
Sale price
A _____________ policy protects the mortgagee/lender
Mortgagee/Lender’s policy–coverage is based on the LOAN amount
A standard coverage policy protects the buyer/owner against all problems found (before/after) closing
found AFTER closing…it mainly covers Errors in matter of record not listed as exceptions
This policy adds protection against problems that are not a matter of public record but would probably be discovered through inspection of the property.
Extended Owner’s coverage–matters of survey, gap period, unrecorded liens
The premium for title insurance is paid _________ when the policy is issued at closing.
Once
Lis Pendens means __________
Lawsuit pending
A court hearing to determine ownership, recognize other valid claims, and “quiet” invalid claims is a _________.
Suit to Quiet Title
Chain of title is all __________ __________ from patent to the current title holder.
recorded documents
An abstract and title commitment are based upon the _________ ____ ________.
Chain of Title
T or F: Real Estate professionals SHOULD call about zoning issues for the buyer.
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
T or F: Sellers are responsible for lead inspection and removal.
False–buyers can waive 10 day inspection period, this is up to the buyer
______________ must give a lead based paint disclosure and EPA pamphlet to renters if the property was built before 1978.
Landlords and property managers–renters do NOT have to be given opportunity to test or remove
A naturally occuring, odorless, radioactive gas
Radon
Radon is typically ___________ by adding a ventilation system to move the gas outside.
Mitigated
_________is an odorless gas that is a byproduct of combustion.
CO-carbon monoxide
_____________ is created by an excess humidity and moisture.
Toxic mold
Mold grows when there is oxygen, moisture, and __________ food source.
Organic
The removal of mold, called _________, should be done per EPA and state regulations
Remediation
T or F: Sellers are NOT responsible to disclose mold issues.
False–should disclose if there was an issue
This is mandatory for government projects and may be required for private development.
EIS–Environmental Impact Statement
These properties are those that have been deemed undesirable because of activities that occurred there.
Stigmatized properties(phycological impact)–Suicide, murder, criminal activity, HIV/Aids, State Laws dictate what is disclosed
A 3rd party, ________ _________, or disinterested party that assists in carrying out the closing transaction according to the terms of the purchase contract
Escrow agent/title company closer
The loan is always a _________to the buyer at closing.
Credit
The sales price is a __________ to the seller at closing.
Credit
A detailed accounting of each party’s debits and credits.
Closing Statement
A debit to the buyer __________ the amount of money the buyer must bring to the closing.
Increases
Brokerage fees, owner’s title insurance, payoff of existing loans and seller financing are all _________ to the seller.
Debits
HOA dues, rents, utilities, assumed mortgages, and taxes are all __________ costs as of the date of closing.
Prorated
Payments made after the time has passed, buyer credits, are said to be ____________.
in arrears
________ _________ are not transferred because the full amount transfers to new owner to hold for the tenant.
security deposits
The document summarizing all recorded interests affecting title to a given parcel of land
Abstract of Title
If you dont ABATE asbestos, the best way to deal with it is _____________.
Encapsulation
A defect or problem not covered by standard or extended title insurance is an __________.
Exception
