D. closing
The process in which agreed-on costs are paid and legal title is
transferred
from seller to buyer in exchange for consideration
H. escrow holder
Acts as a neutral agent of both seller and buyer
I. escrow instructions
Written directions, signed by a seller and buyer, detailing the
procedures
necessary to close a transaction and directing the
escrow officer how to
proceed
S. unilateral instructions
Escrow instructions in which the buyers sign one set of instructions
and
the sellers sign another
B. bilateral instructions
Escrow instructions in which the sellers and buyers sign the same set
of
instructions
C. chain of title
Chronological summary of all useful documents discovered in a title
search regarding the ownership of a property
N. marketable title
Good or clear saleable title reasonably free from risk of litigation
over
possible defects
Q. standard policy
A title insurance policy issued to homebuyers that only covers
matters of
record
O. payoff demand
The amount of the unpaid principal balance, the daily interest rate,
and
any other amounts due on a loan payoff so the escrow
officer’s accounting
will be correct at the closing
L. hazard insurance
A property insurance policy that protects the owner and lender
against
fire, windstorm, vandalism, and other hazards
G. documentary transfer
tax
A tax collected on all transfers of real property located in the
county.
The amount of the payment is entered on the face of the deed
E. closing statement
An accounting of funds made to the seller and buyer separately.
Required
by law to be made at the completion of every real
estate transaction
K. good funds
Funds that have already cleared the bank such as cashier’s checks,
certified checks, or wired funds
M. impound account
A trust account set up for funds set aside for future costs relating
to a
property
T. walk-through
The buyer’s final viewing of the property prior to closing to be
certain it is
in the same condition as when the purchase offer
was made
R. title insurance
protects real estate owners from challenges to their property
titles.
P. preliminary report
(prelim) is prepared to verify the legal ownership
of the
property.
report indicates whether the seller currently holds
title
to the property
J. extended coverage policy
title insurance covers everything that a
standard policy
covers, plus other unrecorded hazards,
F. contingencies
possible future events or circumstances that are uncertain and may or may not occur
A. beneficiary statement
sets forth the unpaid balance of the loan amount and the
condition of the debt is requested from the lender by the escrow holder.