LP 6: Title to Closing Flashcards
(29 cards)
TITLE
Evidence of the right to ownership of property; Includes bundle of rights possessed by the owner.
EQUITABLE TITLE
Legal Definition: A person’s right to obtain full ownership of a property of interest as opposed to having full ownership. Sometimes refers to an individual who has consistent control over the property such as a renter.
LEGAL TITLE
A person having actual ownership of a property
MARKETABLE TITLE
A term used to refer to a title which is free from major defects and encumbrances that could deter a sale (i.e. Clear Title)
CHAIN OF TITLE
The series of deeds by which title to a piece of property was transferred from one owner to the next, over the course of the property’s history
PUBLIC RECORD
A document or record of any form filled in a public office (such as a deed filed with a County Clerk) and are accessible by any member of the public
RECORDING
Filing a document with the appropriate county officials so that it will be placed into the public record
CONSTRUCTIVE NOTICE
When the law charges a person with knowledge of a fact because they should have known it, whether they knew it or not.
EX/ The due diligence requirement of a buyer to review publicly recorded documents. Not doing this voids a claim that the seller didn’t provide proper legal notice to the buyer.
ACTUAL NOTICE
When direct knowledge of a fact has been given to an individual
TITLE SEARCH
An examination of public records to determine all rights and interests in a piece of real property
ABSTRACT OF TITLE
A condensed history of the recorded interests in a piece of real property
OPINION OF TITLE
An opinion concerning the ownership of and other interests in a piece of real property, often prepared by an attorney based on an abstract of title. I.e. Certificate of Title
TITLE COMMITMENT
A written promise by a title company to provide title insurance at a property closing
TITLE INSURANCE
An insurance policy that indemnifies a buyer or a lender against losses resulting from title defects that haven’t been excepted from coverage
TITLE REPORT
A report issued after a title search by a title insurance company listing all defects and encumbrances of record
DEED
A document which transfers ownership in a property from the “Grantor” (seller) to a “Grantee” (buyer)
VOLUNTARY ALIENATION
The unforced transfer of property ownership. EX/ sale, gift, or by will
INVOLUNTARY ALIENATION
The transfer of ownership absent the consent of the owner typically by operation of law as in a foreclosure, eminent domain, or via adverse possession
CLOSING
The culmination of a real estate transaction whereby all legal and contractual obligations are verified as complete and property ownership is transferred to a new legal owner
CLOSING AGENT
Typically but not exclusively the representative of a title company conducting a closing
FACE TO FACE CLOSING
A closing in which all parties meet at a designated time and location to complete a real estate transaction
ESCROW CLOSING
A transfer of ownership without a meeting of the parties. The parties deposit funds and documents with the closing agent and the closing agent disburses funds and releases documents to the parties when all conditions have been met
RESPA: Real Estate Settlement Procedures Act
Federal law which regulates and standardizes documentation, fees and procedures of a closing
CLOSING DISCLOSURE
This TILA-RESPA Integrated Disclosure (TRID) must be used for most closed-end consumer mortgages secured by real property to detail final loan terms and closing costs. It must be given to Seller and Buyer a minimum of 3 days prior to closing.
