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92 Cards in this Set
- Front
- Back
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Difference in chain of title and abstract of title?
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chain= list of all owners
abstract=history of events affecting title |
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What is a title report?
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a preliminary current condition of a title
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2 closings that happen at closing?
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close loan between buyer and lender
close on property/execution of sales contract |
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What does RESPA stand for?
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Real Estate Settlement Procedure Act
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What does RESPA do?
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regulates closings on 1-4 family residentials with FEDERALLY related financing
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Who administers RESPA?
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HUD
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RESPA says who chooses title policy?
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any party to the transaction and any party can pay for it
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Does RESPA prohibit kickbacks?
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yes
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What restrictions does RESPA place on tax and escrow accounts?
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no more than 2 months in advance
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RESPA requires lenders to supply borrower a estimate of closing costs within how many days of loan app?
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3 business days
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What form is required for closing?
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HUD Uniform Setlement Statement form
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What is the purpose of the HUD 1?
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divide charges and expenses between buyer and seller, includes prorations
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Where can prorations be found?
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on closing statement or HUD 1 or HUD uniform settlement form
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Who pays for closing day prorations?
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seller if prorating thru closing day
if up to closing day, negotiable |
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What happens to unpaid taxes?
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Debit seller and credit buyer
(also unearned rent and security deposit) |
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Who pays for accrued interest, eisting loan payoff, and fees for title?
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debit seller with no entry for buyer
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Who pays HOA, prepaid taxes, and fuel in tank?
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Debit buyer and credit seller
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Who pays for prepaid interest, charges with loan, points?
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Debit buyer, no entry for seller
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Who is credited on the HUD1 for the loan amount and earnest money deposit?
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Buyer, seller gets credit for sales price
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How will a loan assumption be shown on HUD1?
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debit to seller and a credit to buyer
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What is a change in ownership of real property called?
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alienation
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voluntary alienation?
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when owner transfers title to other usually by written document such as deed or will
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involuntary alienation?
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usually happens in court like foreclosure bankrupcty escheat inheritance without will
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can involuntary alienation occur naturally?
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yes by accretion, avulsion, erosion, and reliction
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An instrument or document that transfers an interest in real property most often by deed patent or will?
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conveyance
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6 requirements of a valid deed?
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competent parties
consideration words of conveyance execution delivery legal description |
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What two competent parties are on a deed?
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grantor and grantee
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What is the Habendum Clause?
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words of conveyance on deed "to have and to hold"
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Who's signature is required on deed?
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grantor only
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Title does not pass until what happens to deed?
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it is delivered and accepted during life of grantor
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4 types of deed?
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General warranty
special warranty bargain and sale deed quitclaim deed |
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which deed offers best protection?
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general warranty deed will ensure seller is conveying good title
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What are covenants and warranties?
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promises from grantor to grantee regarding condition of title
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What is the covenant of seizen?
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the owner owns and has right to sell the property
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What is the covenant against encumberances?
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any limits to title are stated in the deed
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What is a special warranty deed?
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guarantees title only under grantor's ownership
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What is a bargain and sale deed?
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sheriffs, trustees, officers of court use with no guarantees, only promises grantor has right to convey
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What is a quitclaim deed?
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deed that gives NO warranties, used to clear a cloud on title, least protection
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What does the goverment use to transfer title to an individual?
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patent
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What is deication?
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when developer turnsover streets in a subdivision to local gov by recording the plat plan
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testator?
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one who makes a will
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testate?
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one who has a will
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executor
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one named in will to settle the estate
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Title by Devise?
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inheritance to will
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administrator?
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appointed by court to settle an intestate by laws of sescent
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attorney-in-fact?
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someone who haspower of attorney
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probate?
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judicial process to prove or confirm a will
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when must probate begin?
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within 4 years of death, property transfers at probate
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How do you give Constructive Notice of ownership?
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by recording to protect against fraudulent sale
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Must a document by acknowledged before it is recorded?
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yes acknowledged by notary which verifys signature
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what establishes priority of recording?
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time and date atcounty clerks office M-F 8-4:30
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What is difference in title insurance than other insurances?
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it is for the PAST not future
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what establishes priority of recording?
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time and date atcounty clerks office M-F 8-4:30
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what establishes priority of recording?
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time and date atcounty clerks office M-F 8-4:30
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When does one receive a title report?
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at the time of closingf
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What is difference in title insurance than other insurances?
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it is for the PAST not future
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What is difference in title insurance than other insurances?
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it is for the PAST not future
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Who sets premiums for title insurance policies?
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State Board of Insurance
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When does one receive a title report?
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at the time of closingf
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When does one receive a title report?
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at the time of closingf
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Who sets premiums for title insurance policies?
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State Board of Insurance
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Who sets premiums for title insurance policies?
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State Board of Insurance
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What can owners of investment property do to help their taxes
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depreciate their investment
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What can owners of investment property do to help their taxes
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depreciate their investment
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What can owners of investment property do to help their taxes
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depreciate their investment
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Can income producing properties be depreciated?
Can the land? |
Yes improvements can, but not the land
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Can income producing properties be depreciated?
Can the land? |
Yes improvements can, but not the land
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Can income producing properties be depreciated?
Can the land? |
Yes improvements can, but not the land
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What is the economic life of a property?
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period during which improvements contribute to value, or are being depreciated
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What is the economic life of a property?
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period during which improvements contribute to value, or are being depreciated
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when does econmic life of a property end?
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when improvements are fully deprecisted
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What is the economic life of a property?
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period during which improvements contribute to value, or are being depreciated
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when does econmic life of a property end?
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when improvements are fully deprecisted
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when does econmic life of a property end?
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when improvements are fully deprecisted
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What method is used to determine depreciation?
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straight line method
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What method is used to determine depreciation?
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straight line method
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What method is used to determine depreciation?
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straight line method
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Can real estate investors defer taxation of capital gains?
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yes by tax-deferred exchanges if owner holds for 2 years
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Can real estate investors defer taxation of capital gains?
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yes by tax-deferred exchanges if owner holds for 2 years
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Can real estate investors defer taxation of capital gains?
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yes by tax-deferred exchanges if owner holds for 2 years
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What is a boot?
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Additional caspital or property included in a transaction to even out an exchange and taxed at time of exchange
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when can you have a tax-free gain?
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up to $250k if primary residence for at least 2 of last 5 years or $500K for couple
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what is tax deductible for homeowners?
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property taxes, interst on mortgage, discount points, and prepayment penalties
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Can single family home be depreciated for taxes?
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yes if rental property
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How much can 1st time home buyers withdraw from IRA's without penalties for down payment?
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$10K
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What is Foreign Investment and Real Property Tax Act?
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law passed to ensure nonresident aliens pay income tax on sale of property over $300k at 10%
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A buyer not yet gone to closing has what type of title?
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equitable not legal until closing
starts upon binding offer to purchase |
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When do you need a Vendee's Lien?
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when Trustee fails to deliver the deed to the buyer
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What happens to junior liens at foreclosure?
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they are wiped out
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What is a deed in lieu of foreclosure
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lender friendly accepts deed from borrower and accept any junior liens, fastest way for lender to get title
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How many days does lender have to send notice of foreclosure?
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21 days before sale certified, then hung at court house
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what is Lis Pendens?
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constructive notice that a lawsuit on property has been filed and is pending during a foreclosure
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