Title, Escrow, and Closing

Question 1

Which real estate term is this?

A collected and condensed history of a property, documenting its ownership chain and legal actions.

Answer 1

Abstract of Title

Question 2

Which real estate term is this?

An accounting that traces a property’s history of ownership interests and claims.

Answer 2

Chain of Title

Question 3

Which real estate term is this?

When the sales contract is executed and the property formally changes hands between buyer and seller.

Answer 3

Closing/Settlement

Question 4

Which real estate term is this?

The party conducting the real estate transaction closing, often a title company officer or attorney.

Answer 4

Closing Agent

Question 5

Which real estate term is this?

Specific costs related to transferring a title, including escrow fees, loan balance, prorated utility, taxes, and insurance costs.

Answer 5

Closing Costs

Question 6

Which real estate term is this?

A document listing actual fees and charges imposed on the borrower and the seller in a real estate transaction.

Answer 6

Closing Disclosure

Question 7

Which real estate term is this?

Procedures conducted by the closing agent involving notices, payments, settlement statements, and signatures.

Answer 7

Closing Procedures

Question 8

Which real estate term is this?

A balance sheet-style presentation detailing the credits and debits of the buyer and seller due at closing.

Answer 8

Closing Statement

(aka, Settlement Statement)

Question 9

Which real estate term is this?

A potential claim or encumbrance on a title that could challenge ownership rights or prevent conveyance.

Answer 9

Cloud (On a Title)

Question 10

Which real estate term is this?

A claims-information report providing a property’s claims history, generated by Lexis-Nexis.

Answer 10

C.L.U.E. Report

Question 11

Which real estate term is this?

The process by which real estate title is officially transferred and accepted.

Answer 11

Delivery and Acceptance

Note: Land itself rarely depreciates although it can be damaged or compromised by contamination. Structures and improvements do depreciate.

Question 12

Which real estate term is this?

Funds or documents held by a third party until a transaction’s conditions are fulfilled.

Answer 12

Escrow/Escrow Agreements

Question 13

Which real estate term is this?

An individual or entity holding funds while contract terms are worked out.

Answer 13

Escrow Agent/Escrow Holder

Question 14

Which real estate term is this?

Clear title free from encumbrances, including non-financial ones like easements.

Answer 14

Good and Indefeasible Title

Question 15

Which real estate term is this?

Mortgage loan disclosures created under TILA-RESPA and implemented in October 2015. The two documents created the Loan Estimate and the Closing Disclosure, replacing the three documents previously required (aka, TILA-RESPA Integrated Documents or TRID).

Answer 15

Integrated Mortgage Disclosures

Question 16

Which real estate term is this?

A trust account that generates interest to the benefit of the client, in some jurisdictions, charitable organizations, or sometimes even the brokerage.

Answer 16

Interest-bearing Trust Account

Question 17

Which real estate term is this?

A property title that is considered free from defect and, therefore, insuring against others claims against it.

Answer 17

Marketable Title

Question 18

Which real estate term is this?

Expenses that need to be prorated, like annual taxes already paid by a seller.

Answer 18

Prepaid Items

Question 19

Which real estate term is this?

Distribution of closing costs based on the time each party owns a property during a sales transaction.

Answer 19

Prorating/Proration

Question 20

Which real estate term is this?

A lawsuit to establish ownership of real property by silencing other claims.

Answer 20

Quiet Title

Question 21

Which real estate term is this?

Federal act ensuring disclosure of closing costs in residential property transactions with a new mortgage.

Answer 21

Real Estate Settlement Procedures Act

(RESPA)

Question 22

Which real estate term is this?

The final step in a real estate transaction where the title is transferred, documents are signed, and funds are disbursed.

Answer 22

Settlement

(aka, Closing)

Question 23

Which real estate term is this?

A document that details all fees, charges, and credits involved in a real estate transaction, usually provided to both buyer and seller at closing.

Answer 23

Settlement Statement

(aka, Closing Statement)

Question 24

Which real estate term is this?

Legal document identifying who owns the property and their interests.

Answer 24

Title/Certificate of Title

Question 25

# Which real estate term is this? Commitment issued by a title company, reporting findings from a title search.

Answer 25

Title Commitment/Commitment to Issue

Question 26

# Which real estate term is this? Proof of ownership of a piece of property.

Answer 26

Title Evidence/Evidence of Title

Question 27

# Which real estate term is this? Exclusions from coverage identified during a title search.

Answer 27

Title Exceptions

Question 28

# Which real estate term is this? Process examining the history of a property in preparation for ownership transfer.

Answer 28

Title Search

Question 29

# Which real estate term is this? Administrative charge for transferring title of real property.

Answer 29

Transfer Fee

Question 30

# Which real estate term is this? A specialized inspection concerned with the health and condition of trees on the property.

Answer 30

Arborist Inspection

Question 31

# Which real estate term is this? The point at which the borrower and lender become obligated to each other, often at closing.

Answer 31

Consummation

Question 32

# Which real estate term is this? Provides a detailed report on electrical systems, including code compliance and need for upgrades.

Answer 32

Electrical Inspection

Question 33

# Which real estate term is this? Ensures that the fireplace is functioning appropriately, properly funneling smoke out of the house, and addresses the status of the fireplace liner to determine if it needs to be replaced.

Answer 33

Fireplace Inspection

Question 34

# Which real estate term is this? Covers the home’s structure, roof, plumbing, electrical, HVAC, exterior and interior, ventilation, and fireplaces.

Answer 34

General Home Inspection

Question 35

# Which real estate term is this? An HVAC specialist assesses the state of the climate control systems in a house.

Answer 35

Heating and Air Conditioning Systems Inspection

Question 36

# Which real estate term is this? Opportunities in real estate transactions for professionals to assess specific areas of expertise.

Answer 36

Inspections

Question 37

# Which real estate term is this? A professional assessment for signs of wood-boring pests like termites or carpenter ants.

Answer 37

Pests, or Termite Inspection

Question 38

# Which real estate term is this? Tests for proper operation of all mechanical devices, surface conditions, filtering functions, etc.

Answer 38

Pool and/or Spa Inspection

Question 39

# Which real estate term is this? An inspection to assess the condition of the roof, potentially saving costs if issues are found after closing.

Answer 39

Roof Inspection

Question 40

# Which real estate term is this? A professional will often digitally “scope” sewer lines with a video camera and inspect septic tanks and their inlets and outlets to determine proper (or improper) functioning.

Answer 40

Sewer or Septic System Inspection

Question 41

# Which real estate term is this? Certain inspections not always or ever covered by a general inspection.

Answer 41

Special Inspections

Question 42

# Which real estate term is this? Include termites, carpenter ants, cockroaches, beetles, or any signs of damage by them.

Answer 42

Wood-boring pests