Chapter 21: Public Records, Titles And Closings. Key Terms Part 1

Question 1

Abstract of title

Answer 1

A condensed history of all documents affecting a parcel of real estate.

Question 2

Actual notice

Answer 2

Constructive notice, or what a buyer could find out.
The information one actually knows.
Direct knowledge.

Question 3

Affidavit

Answer 3

A sworn statement

Question 4

Arrears

Answer 4

After the end of period for which the payment is due…..payment after the service has been rendered.

Question 5

Attorneys opinion of title

Answer 5

A lawyer’s statement after studying and abstract.

Question 6

Caveat emptor

Answer 6

Let the buyer beware.

Question 7

Chain of title

Answer 7

A title traced from each owner of the following one and so on.

Question 8

Closing statement

Answer 8

An account of debits and credits is for each party.

Question 9

Constructive notice

Answer 9

Notice given to the world by recorded documents. Occupation of property is also considered as giving constructive service.

Question 10

Credit

Answer 10

The money due and payable to one party at closing.

Question 11

Debit

Answer 11

The money to be paid by one party at closing.

Question 12

Escrow closing

Answer 12

A closing handled by a neutral third-party. This is rarely done in New Jersey.

Question 13

Evidence of title

Answer 13

Abstract, lawyer’s opinion, Torrance certificate, or title insurance.

Question 14

Marketable title

Answer 14

A good or a clear title reasonably free from defects.

Question 15

Proration

Answer 15

Expenses either prepaid or paid in arrears that are divided or distributed between buyer and seller at the closing. A corrective distribution of future expenses.

Question 16

Public records

Answer 16

A counties collection of documents relating to real estate.

Question 17

Real estate settlement procedures act (RESPA)

Answer 17

The federal law regulating real estate closings. This law ensures that buyer and seller receive / have knowledge of all settlement costs (an accounting).

Administered by the consumer financial protection Bureau (CFPB)

2016 the parties have 10 days to review.

Question 18

Realty transfer fee

Answer 18

The tax to the state of New Jersey at closing

Question 19

Suit to quiet title

Answer 19

The court action to remove cloud on title. Cloud on title means an outstanding claim or encumbrance that if valid effects or impairs the owners title.

Question 20

Title insurance policy

Answer 20

A title companies guarantee of clear title.

Question 21

Uniform settlement statement

Answer 21

The standard HUD – 1, required to be furnished by RESPA for buyer and seller. Used to detail the financial particular’s of a transaction.