Chapter 21 - Public Records, Titles, and Closings Flashcards Preview

New Jersey Real Estate Prelicensing Course > Chapter 21 - Public Records, Titles, and Closings > Flashcards

Flashcards in Chapter 21 - Public Records, Titles, and Closings Deck (21):
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Abstract of title

The condensed history of a title to a particular parcel of real estate.

1

Actual notice

Express information or fact; that which is known; actual fact.

2

Affadavit

A written statement sworn to before an officer to administer an oath or affirmation.

3

Arrears

The opposite of in advance. mortgages are paid in arrears.

4

Attorney's opinion of title

Not used as extensively as in the past.Once the abstract is ordered and brought current, it is forwarded to the buyer's attorney, who must examine the entire abstract. Following his or her review and prepare a written report for the purchaser on the condition of ownership called the attorney's opinion of title.

5

Caveat emptor

A latin phrase meaning"let the buyer beware".

6

Chain of title

Shows the record of ownership of the property over a period of time. an abstract is a condensed history of all the instruments affecting a particular parcel.

7

Closing statement

A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in a transaction.

8

Constructive notice

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

9

Credit

A figure in favor of either the buyer or seller on the closing statement.

10

Debit

A charge or expense for an amount the party owes and must pay at the closing.

11

Escrow closing

The closing of a transaction through a third party called an escrow agent. also can refer to earnest money deposits or to mortgage trust account for insurance and tax payments. seldom used in New Jersey.

12

Evidence of title

Proof of ownership of property commonly referred to as a certificate of title includes a title insurance policy, an abstract of title with lawyers opinion, or a Torrens registration certificate.

13

Marketable title

Good and clear title reasonable free from risk of litigation over possible defects.

14

Proration

Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.

15

Public records

County's collection of documents relating to real estate.

16

Real estate Settlement Procedures Act (RESPA)

Federal law regulating closings.

17

Realty transfer fee

Tax required to be paid on a deed by state and/or local law. Always charged to the seller in a real estate closing.

18

Suit to quiet title

A quitclaim deed is commonly used to bridge gaps in the chain of title. Sometimes it may be necessary to establish ownership by a court action called a suit to quiet title.

19

Title insurance policy

Evidence of ownership. Insures defects that and such items as forged documents, documents of incompetent grantors, incorrect marital statements and improperly delivered deeds. Various forms are issued such as an owner's title insurance policy (a fee policy), the mortgage title insurance policy, and leasehold title insurance policy to insure specific interests. Policies required by lenders do not protect owners and New Jersey law requires lenders to inform borrowers of this fact.

20

Uniform settlement Statement

HUD-1 is designed to detail all financial information and particulars of a transaction.