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Flashcards in 13 Escrow And Title Insurance Deck (12)
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1

Abstract of title

-a recorded history of a property

-A summary or digest of all recorded transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title to show continuity of ownership and indicate any possible impairments to title

2

Closing disclosure

New form mandated by the TILA-RESPA rule that helps consumers to understand all the costs of the transaction. It must be provided to consumers three business days before closing.

3

Demand statement

Statement requested by escrow as to amount due lender at close of escrow to pay off loan and any charges.

4

Escrow

The deposit of instruments and/ or funds (with instructions) with a neutral third party to carry out provisions of an agreement or a contract

5

Escrow agent

-Escrow holder
-the neutral third-party company holding funds or something of value in trust for another or others

6

Marketable title

-Title that a reasonably prudent purchaser, acting with full knowledge of the facts and their legal significance, would be willing and ought to accept.

7

Proration

-Adjustment of interest, taxes, insurance, and other costs of property ownership on a pro rata basis as of the closing or agreed upon date
-Usually apportions those costs based on seller’s and buyer’s respective periods of ownership

8

Recurring costs

Impound costs for taxes and insurance

9

Title insurance

Insurance to protect a real property owner or a lender up to a specified amount against certain types of loss affecting title or marketability.

10

Good funds

Includes cash, cashier’s checks, and personal checks that have cleared

11

Debits and credits

-Debit= amounts owed

-Credits= amounts entitled to receive

12

Preliminary report

-contains a list of defects, liens, encumbrances, and restrictions that would be excluded from coverage if the requested policy were to be issued as of the date of the report