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

Real estate license study > Chapter 21: Public Records, Titles And Closings. Key Terms Part 1 > Flashcards

Flashcards in Chapter 21: Public Records, Titles And Closings. Key Terms Part 1 Deck (21):
1

Abstract of title

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

2

Actual notice

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

3

Affidavit

A sworn statement

4

Arrears

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

5

Attorneys opinion of title

A lawyer's statement after studying and abstract.

6

Caveat emptor

Let the buyer beware.

7

Chain of title

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

8

Closing statement

An account of debits and credits is for each party.

9

Constructive notice

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

10

Credit

The money due and payable to one party at closing.

11

Debit

The money to be paid by one party at closing.

12

Escrow closing

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

13

Evidence of title

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

14

Marketable title

A good or a clear title reasonably free from defects.

15

Proration

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.

16

Public records

A counties collection of documents relating to real estate.

17

Real estate settlement procedures act (RESPA)

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.

18

Realty transfer fee

The tax to the state of New Jersey at closing

19

Suit to quiet title

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.

20

Title insurance policy

A title companies guarantee of clear title.

21

Uniform settlement statement

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