Chapter 17 - Real Estate Closings Flashcards Preview

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Flashcards in Chapter 17 - Real Estate Closings Deck (28):
1

Abstract of Title

A brief, chronological summary of recorded documents affecting title to a particular parcel of real property

2

Bargain and sale deed

imply the grantor owns the property and has a right to convey it, but there are no warranties that go with it

3

Chain of title

Chain of deeds and other documents transferring title to land from one owner to the next, as disclosed in public records

4

Cloud on the title

A claim, encumbrance, or defect that make title to real property unmarketable

5

contructive/actual notice

Constructive Notice - Provides protection to a landowner againts all unrecorded titles. Actual Notice - Actual knowledge; that which is known

6

credits/debits

Credits - Money received for an obligation given. Debits - An expense or money applied against a credit

7

deed

The legal document conveying title to a property

8

Descent

An operation of law when a real property is transferred to an heir aafter the deaath of the owner who leaves no will (intestate)

9

Device

The transfer of real property through a will

10

Escrow Closing

closing by a disinterested third party, often an escrow agent

11

General Warranty Deed

deeds in which a grantor warrants title against defects that may have arisen before or during the grantor's ownership

12

Grantor/Grantee

Grantor - the person who transfers title to real property in a real estate transaction. Grantee - the person who receives a conveyance of real property in a real estate transaction

13

Habendum Clause

Clause within a deed that describes the type of estate granted; it must always agree with the granting clause

14

HUD -1 settlement statement

An accurate accounting of all expenses buyers and sellers pay in real estate transaction; required by RESPA

15

Intestate/Testate

Intestate - the act of dying without a legal will. Testate - The act of dying with a legal will

16

Involuntary/voluntary alienation

involuntary alienation - when title to property is transferred during the owner's lifetime without his concent. Voluntary - When title to property is transferred voluntarily through a sale, gift, dedication or grant

17

Limited warranty deed

Deeds in which the grantor warrants the title only against defects arising during the time that he owned the property and not against defects arising before that time

18

Marketable Title

Title that is free and clear of objectionable encumbrances or defects so that a reasonably prudent person with full knowledge of the facts would not hesitate to purchase the property

19

Proration

The division of expenses between buyer and seller in proportion to the actual usage of the item represented by a particular expense.

20

Quitclaim Deed

Convey any interest in real property the grantor has at the time the deed is executed

21

Real Estate Settlement Procedures ACT (RESPA)

Requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosure of the nature and costs of the real estate settlement process

22

Reconciliation

1. The appraisal process of analyzing the values derived from the different appraisal approaches to arrive at a final value estimate or opinions. 2. Verifying the debits and credits have been added and subtracted correctly on a real estate settlement statement

23

Sheriff's Deed

Used in sheriff's sale at foreclosure

24

Survey

The process of precisely measuring the boundaries and determining the area of a parcel of land

25

Title

Lawful ownership of real property. Also in informal usage the deed or other document that is evidence of ownership

26

Title Insurance

insurance that indemnifies against losses resulting from undiscovered title defects and encumbrances

27

Title Search

a check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding

28

Words of Conveyance

deed language that clearly states the grantor's intention to transfer the real property