Chapter 14 And 15

Front 1

Buyers Concerns

Back 1

Closing Costs

Liens

Favorable Inspections Results

Leases or pre-existing tenants

Title Evidence

Front 2

Final Property Inspection

Back 2

Reserves the rights to make final inspection

Final Walkthrough

Front 3

Title Evidence

Back 3

To ensure no liens exist

Front 4

Sellers Concerns

Back 4

Buyer doesn't back out

Nothing happens before closing

Receive payment

Front 5

Lender Concerns

Back 5

Value of property is maintained

Clean title (No existing Leins)

Front 6

Real Estate Professionals role at Closing

Back 6

Collecting commission

Conducting walkthroughs

Front 7

Lenders Interest In Closing

Back 7

If buyer obtains new financing or assumes sellers existing loan

Lender wants fo ensure priority over other leins!

wants fo ensure priority over other leins!

Front 8

IRS Service Reporting Requirements

Back 8

Land

Inherently permanent structure (building, commercial, residential)

Condo and its appurtenant fixtures and common elements

Shares in a cooperative housing corporation

Front 9

Conducting the closing (closing escrow)

Back 9

Buyer and seller never meet, everything is handled by escrow agents.

Front 10

Exchange

Back 10

Transference of title to the buyer

Front 11

Settlements

Back 11

Closing escrow is generally not practiced in MD

Front 12

Mortgage Disclosure Improvement Act (MDIA)

Back 12

Prevents consumers from receiving low interest rates without knowing of hidden fees at settlement.

low interest rates without knowing of hidden fees at settlement.

Front 13

Loan Estimate Forms

Back 13

Must be provided to consumer 3 business days after loan application is submitted to lender

Front 14

Closing disclosure form

Back 14

Itemizes all charges that are normally paid by borrower and seller

Must be submitted 3 days before closing

Front 15

How closing statements work

Back 15

Accounting of the parties debits and credits

Front 16

Debit

Back 16

A charge - an amount a party owes and must pay at closing

Front 17

Credit

Back 17

Amount entered in a persons favor. Amount already been paid, or reimbursed.or an amount the buyer promises to pay in form of a loan.

Front 18

Transfer Tax

Back 18

Responsibility varies based on local practices

Front 19

Recording expenses

Back 19

Seller usually pays for re ordering cost unless both parties agreed otherwise

Front 20

Title expenses

Back 20

Buyer pays

Front 21

Appraisal fee

Back 21

Buyer pays

Front 22

Survey Fee

Back 22

Buyer Pays

Front 23

Lein

Back 23

Charge or claim against a persons property to enforce payment of money

Front 24

Vise Lein

Back 24

Voluntary

Involuntary

Statutory

Equitable

Front 25

Voluntary lein

Back 25

Something that you created by property owners action

Mortgage is voluntary

Front 26

Involuntary

Back 26

Not a matter of Choice

Front 27

Statutory lein

Back 27

Created by Law

Example - Tax Lein

Front 28

Equitable lein

Back 28

Common law -

If someone Sues you in court. Created by judgement of court

Front 29

General Lein

Back 29

Can be a lein on any item.

Effects all property - personal or real property

Front 30

Specific Lein

Back 30

Only applies to property in question. No other items are touched.

Front 31

Effect of lein on title

Back 31

Lein doesn't mean the property cant be sold.

Effects the value of the property.

Front 32

Subordination agreement

Back 32

Allows the leinholders to change priority of the leins

Front 33

Two types of real estate taxes

Back 33

The general real estate taxes and special assessments

Front 34

General real estate tax is known as

Back 34

Ad valorem tax ( according to the value)

Front 35

Exceptions from general taxes

Back 35

Laws exempt from paying taxes

Front 36

Assessments

Back 36

Is done once every 3 years

Front 37

Equalization

Back 37

Assesment equalization factor. Government helps people with taxes.

Front 38

Special assesment

Back 38

Fund Public improvements to the property

Front 39

Mortgage lien

Back 39

Is specific and voluntary

Front 40

Mechanics lien

Back 40

Specific and involuntary

Front 41

Judgement

Back 41

Involuntary and general

Front 42

Lis pendens

Back 42

Pending litigation. It's not a lien

Front 43

Estate and inheritance tax liens

Back 43

General, statutory, involuntary

Front 44

Lien for municipal utilities

Back 44

Specific, equitable, involuntary

Front 45

IRS tax lien

Back 45

General, statutory, involuntary

Front 46

Bail bond lien

Back 46

Specific, statutory, voluntary