Closing Procedures Flashcards
A title closing is also known as what?
Settlement
Which closing document shows a “footprint” of the house?
Land survey
What is one item that is included in the preliminary title report?
Outstanding assessments
What is one purpose of conducting a final inspection or walkthrough before closing?
To ensure no damage has been done
What information is normally found in an inspection report?
- Areas of concern / problems the inspector believes should be repaired.
- Info about poor workmanship / deterioration
What type of inspection looks at radon and asbestos contamination?
Environmental
What type of inspection checks the foundation elements, bearing walls, beams and columns, floor slabs, framing crawlspace areas and drainage?
Structural
What does a coinsurance clause require?
This clause requires that the homeowner have insurance that is equal to 80% of the home’s replacement value. This does not include the price of the land.
What items must be on a deed?
- Correct legal description
- Names of the seller + buyer
- The words of conveyance
In some cases, what is tax-deductible?
- Interest
- Property Taxes
What is the main legal requirement in recording a deed?
It does not have to be recorded in the county clerk’s office
Most lenders today require a borrower (buyer) to include ‘what’ as part of their monthly mortgage payment?
1/12th of the annual taxes + insurance as part of the monthly mortgage payment.
What do you do when the title report comes in?
Check it to see if there are any problems that need to be addressed
Escrow
A disinterested 3rd party that holds all money/documents regarding a home purchase until all of the terms + conditions (escrow instructions) have been satisfied.
HO-2 policy
Basic homeowner policy.
