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.