Chapter 7 Part 2: Important Points Flashcards
IP Recordation
Of a deed in the county clerk’s office of the county where the property is situated provides protection for the owner’s title against subsequent claimants. In NYC deeds are filed in the registrar’s office.
IP The purpose of a title examination is to…
Determine the quality of a title. The examination must be made by an attorney or a title company. Only an attorney can legally give an opinion as to the quality of the title.
IP Title Insurance Policy
Protects the insured against financial loss caused by a title defect.
IP Before closing…
Various types of tests and inspections of the property take place. A real estate agent may take a prospective purchaser to a walk-through of the property immediately before closing.
IP Real Estate Settlement Procedures Act (RESPA)
Regulates activities of lending institutions that take mortgages for housing.
IP The closing statement…
Sets forth the distribution of monies involved in the transaction. Seller closing costs may include New York title transfer taxes, broker commission, attorney fees, costs of document preparation, and the satisfaction of existing liens if any. Purchaser costs may include a title search and title policy, survey fees, the mortgage recording tax, mansion tax, lender fees, recording fees, and possibly broker commission.
IP In a condo purchase…
The buyer is conveyed title through a deed. In a cooperative purchase, the buyer receives a proprietary lease and shares of stock.
IP Prorations
The division of expenses and income between the purchaser and seller at closing.
IP At a title closing…
All interested parties meet to review closing documents and transfer title to real estate. The deed is the document that conveys the title from seller to purchaser (grantor to grantee).
