Chapter 13 Flashcards
What is Title?
Evidence of the right to possess property.
What is Title Insurance?
Insurance to protect a real property owner or lender up to a specified amount against certain types of loss (ex: defective or unmarketable title).
What is Escrow?
Any transaction wherein one person, for the purpose of affecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instruments, money, or evidence of title to real or personal property, or other things of value to a third person, to be held by such third person until the happening of a specified event.
What are Proration of Taxes?
To divide or prorate the taxes equally or proportionately to time of use, usually between seller and buyer.
What is Real Estate Settlement Procedures Act (RESPA(?
A consumer protection statute, first passed in 1974. The purpose of RESPA are:
1) To help consumers become better shoppers for settlement services and
2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.
What is a Marketable Title?
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.
What is Abstract of Title?
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.
What is Clouded Title?
Title that is encumbered or burdened with defects.
What is a Lein?
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation (ex: judgments, taxes, mortgages, deeds of trust, etc..).
What is Proration?
The division of certain settlement costs between a buyer and seller.
What is a Credit?
In a closing statement, money to be received or credit given for money or an obligation given.
What is a Debit?
In a closing statement, an expense or money received against a credit.
Any transaction wherein one person delivers any written instruments, money, or evidence of title to real property, or other things of value to a third person, to be held by such third person until the happening of a specified event is known as…? A. Escrow B. Trust C. Rebate D. Closing
A. Escrow
Evidence of the right to possess property is known as…? A. Promissory note B. Acknowledgement C. Title D. Trust
C. Title
The escrow is typically responsible for which of the following…?
A. Order the title report
B. Facilitate the signing of all documents
C. Disbursement of all funds
D. All of the above
D. All of the above
