6A.REAL ESTATE CLOSINGS

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Brigita Safyra
Mind Map by Brigita Safyra, updated more than 1 year ago
Brigita Safyra
Created by Brigita Safyra almost 7 years ago
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6A.REAL ESTATE CLOSINGS
  1. MARKETABLE TITLE Good or clear title, reasonably free from the risk of litigation over possible defects.
    1. TITLE SEARCH of the public records The process of examining all relevant records to confirm that the seller is the legal owner of a property and that there are no liens or other claims outstanding.
    2. CONSTRUCTIVE NOTICE Notice given by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.
      1. CHAIN OF TITLE All the times a title has moved from owner to owner, until the present. Attorneys use this history to evaluate the title's status. (A gap in the chain of title is "cloud on title")
        1. CLOUD ON THE TITLE Any encumbrance or claim that might invalidate a title to a property. also called title defect.
          1. SUIT TO QUIET TITLE A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.
            1. ABSTRACT OF TITLE a summarized chronological history of title to a property,listing all recorded documents that affect the title.
              1. TITLE INSURANCE Insurance to protect a lender or owner against loss in the event of a property ownership dispute. Title insurance is most frequently used for mortgages, and is required by a large number of lenders.
                1. OWNERS POLICIES In title insurance, this is the part of the policy that protects the borrower in the event something were to go wrong with the title, such as a lien that was missed in the title search. This policy is designed to protect the borrower against losses of this type.
                2. REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) of 1974 requires mortgage lenders,mortgage brokers or services of home loans to provide borrowers with pertinent an timely disclosures of the nature and costs of the real estate settlement process.
                  1. HUD Department of Housing and Urban Development. Federal agency responsible for encouraging housing development.
                    1. HUD-1 A document prepared by a closing agent describing a real estate transaction, including the escrow deposits for taxes, commissions, loan fees, points, hazard insurance, and mortgage insurance. also called closing statement or settlement sheet.
                    2. CLOSING The finalizing of the sale of a property, as its title is transferred from the seller to the buyer. also called settlement. Final step in real estate transaction.
                      1. BILL OF SALE A document that transfers title of an asset from a seller to a buyer.
                        1. SURVEY The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachments or easements.
                          1. SATISFACTION OF MORTGAGE Save to Favorites Definition A document acknowledging the payment of a mortgage debt.
                            1. HOMEOWNERS INSURANCE Insurance that combines liability insurance and hazard insurance. Required by most mortgage lenders.
                              1. SETTLEMENT STATEMENT (also known as CLOSING STATEMENT) Definition Detailed document provided to the buyer and seller of a piece of property that outlines what is owed by both parties participating in the transaction. This statement is provided as part of closing proceedings on the property and is required by federal law. All costs associated with the sale are included in this official document.
                                1. DEBITS(like debts) are sums of money owed.
                                  1. CREDITS are sums of money received.
                                  2. PRORATION Expenses that are allocated between the seller and the buyer; expenses that are either prepaid or paid in arrears that are divided or distributed between buyer and seller at the closing.
                                    1. ACCRUED EXPENSES An expense that is incurred, but not yet paid for, during a given accounting period.
                                      1. PREPAID EXPENSES are the items on settlement statement the seller has already paid.
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