Virginia Title Records (9) Flashcards
Consumer Real Estate Settlement Protection Act? (CRESPA)
persons conducting settlement services comply with consumer protection safeguards
- licensing
- financial responsibility
- handling of settlement funds.
CRESPA provides specific language that is to be included in all contracts for the purchase of real estate containing not more than ___________________.
4 residential dwelling units
How is the language presented in all contracts for CRESPA?
- boldface
- 10-point type
What 2 concepts are included under CRESPA within the contract?
1) Purchaser’s right to select the settlement agent
2) Settlement agent’s role and limitations
Document collection
Disbursement of funds
Fulfillment of lender instructions
Recordation
T/F. Even if settlement agents do not practice law in Virginia, they are able to provide legal advice?
False
Regarding settlement, a person licensed under Chapter 21 of Title 54.1, or such licensee’s employees or independent contractors, may perform escrow, closing, or settlement services, as defined by CRESPA, to facilitate the settlement of a transaction in which the licensee is involved so long as what?
- so long as they are not named as the settlement agent on the settlement statement
- the licensee is otherwise not prohibited from performing such services by law or regulation.
Describe 4 characteristics of the VA Settlement Agent?
1) will usually be either an attorney or a title company
2) must be registered with the Virginia State Bar
3) carry errors and omissions or malpractice insurance at a minimum of $250,000
4) maintain a surety bond of not less than $100,000
T/F. In VA, interest may be earned on funds deposited in connection with any escrow, settlement, or closing?
False. Interest may NOT be earned
Regarding title examination, the seller is required to have ____________ at the time of settlement and must be given a reasonable time to correct any title defects found before settlement.
marketable title
T/F. An important function of the settlement agent is to obtain a title examination
True
In regards to title procedure, title examinations may be classified as___________or ___________searches. In a ___________, the seller’s title must be established for at least ___________. A _______________ is a title examination that goes back ______________.
full limited full search 60 years limited search fewer than 60 years
A ______________ consists of consecutive terms of ownership; a gap in the chain could be caused by an unrecorded deed, a name change, an unadministered estate, a foreign divorce decree, or some other circumstance. Unless the missing link can be reconstructed from reliable sources, the defect could destroy the closing.
chain of title
Correction Deed
Cures errors such as an erroneous legal description, a misspelled name, or an improper execution in a prior recorded deed in the seller’s chain of title which must be corrected before the closing can proceed.
At a minimum, what should a title report reveal? (9)
1) title holder
2) legal description of property;
3) existing lenders;
4) other lienholders (such as mechanics’ lienors, judgment lienors, and tax lienors);
5) status of taxes;
6) easements, covenants, and other restrictions;
7) objections to marketability;
8) other matters affecting title; and
9) requirements for vesting marketable title in the purchaser.
T/F. Regarding title insurance, if a purchaser is obtaining a loan secured by a deed of trust on the property, and the lender requires that a lender’s title insurance policy be provided, this policy protects only the lender’s interest and will diminish in protection as the loan is paid down?
True
