Chapter 7 Part 2: Conveyance of Real Property and Title Closing

Question 1

Title

Answer 1

Evidence of the right to possess the party.

Question 2

Deed

Answer 2

The instrument used to convey title to real property.

Question 3

Survey

Answer 3

The process by which a parcel of land is measure. The final (this) document is a blueprint showing measurements, boundaries and area of a property.

Question 4

Recordation

Answer 4

Provides protection for the owner’s title against all recorded titles.

Question 5

Constructive Notice

Answer 5

All of the world is bound by knowledge of the existence of the conveyance of title if evidence of the conveyance is recorded.

Question 6

Actual Notice

Answer 6

Requires that the person in fact knows about the document.

Question 7

Torrens System

Answer 7

The titleholder applies to the court to register the property.

Question 8

Marketable title

Answer 8

Reasonably free and clear of encumbrances. Before the title can be transferred, there must be evidence of (this).

Question 9

Title Search

Answer 9

Provided through a commercially hired or personal search of records that might affect real estate titles.

Question 10

Chain of Title

Answer 10

The search of the records establishes (this) that must be unbroken for the title to be good and, therefore marketable. It involves tracing the successive conveyances of title.

Question 11

Abstract of Title

Answer 11

A condensed history of the title

Question 12

Title Insurance Policy

Answer 12

A contract of insurance that insures the policy owner against financial loss if title to real estate is not good.

Question 13

Real Estate Settlement Procedures Act (RESPA)

Answer 13

Only applies to residential federally financed or refinanced properties, not to commercial properties cash deals or owner-financed loans. It regulates lending activities of lending institutions in making mortgage loans for housing.

Question 14

Closing Statement

Answer 14

A historical document prepared in advance of the closing. The statement sets forth the distribution of monies involved in the transaction.

Question 15

Debits

Answer 15

Items that are owed.

Question 16

Credits

Answer 16

Moneys received.

Question 17

Reconciliation

Answer 17

A check of the money available and money owed prior to closing.

Question 18

Title Closing

Answer 18

The parties and other interested persons meet to review the closing documents, execute the closing documents, pay and receive money, and receive title to real estate.