escrow
When association that helps escrow agents in their work is the
California escrow association
Tenancy in common
Can be the vesting when 2 or more persons own property together
Deed of trust
Is a device that secures the property as collateral for the note
Grant deed
Is a document that transfers title evidence of property ownership with the keyword Being Grant The Grant deed is the usual form of deed in California and the Western States warranty deeds are often used in the Midwest and on the East Coast
Transaction coordinator (tc)
Is a real estate professional Who assist the agent and broker in the processing of the legal compliant real estate property transaction file generally they are responsible for gathering much of the information managing most of the paperwork meeting deadlines and following up of the contractual items involved in a real estate transaction as part of the pre escrow process.
Escrow holder
Is an agent to both principal buyer and seller
Personal property
Is anything which can be own or possess that is not real property
California standard form fire insurance Policy
It ensures the dwelling against one fire and 2 Lightning
Mortgagee
Lender
A transaction coordinator is a Real estate professional who
Manages all the Paper work Manages all the deadlines
Contract
Written escrow instructions to an escrow holder constitute a contract Or a sign purchase agreement and joint escrow instructions
It is dangerous for an escrow agent to give
Wills And living trust
The years of experience in escrow agent must have before Opening a business is
5 years
What must all Grant deeds have to be recorded?
Acknowledgments Notary seal
Regardless of how much input and work a transaction Coordinator puts into a file who is also be responsible for the proper handling of the transaction file
Broker
Car has established a series of courses to handle transaction paperwork for agents who are then allowed to print what letters and logo on their business cards?
CTC
The C LTA extended coverage policy
Can cover in addition to all the above risks the facts that are discoverable by actual inspection of the land for risk Resulting from encumbrances against the property which may or may not be recorded but which are not required to give constructive notice
Cancelation of escrow
Cancelation is never automatic even when there is such a specification
Escrow checklist
Check's escrow progress
Which of the following best things require individuals to be married
Community property
The escrow holder should be sure if items on the memo sheet are
Conditions of escrow Memoranda
A request for for reconvenes is usually printed on the back of the
Deed or trust
Voluntary liens examples
Deeds of trust and other loans secured by property are examples of voluntary leans
A simple sale escrow usually has the following
Deposit funds A new loan A pay off of the old loan All of the above
When determining the pro rating of a 3 year insurance policy
Divide by 3 then 360
Escrow instructions usually expressed funds as
Dollar amounts
Calling for the buyer's funds comes after you have
Drawn a new deed Receive pest control report Arranged for a fire policy All of the above
A point
Equals 1% of the amount of the loan
Memo sheet
Escrow work she or escrow order she is a printed form supplied by your company that contain space to write down all the elements of the transaction The memo sheet when completed will contain all the information necessary to begin an escrow
Which of the following is not an escrow job
Explain or interpret loan documents
Escrow instructions include
Explanation of consideration Title insurance liability Adjustments and proration All of the above
The Grant deed has which Implied warranties
Free of incumberances After acquired title Seller has not conveyed property All of the above
The last job in a sale sequence
Give money to seller Give deed to buy or
Sub ordination agreement
Giving public notice that the junior deed of trust is intended to be in an inferior lien position to other deeds of trust recording concurrently
Easements
Grant persons and cities or properties other than recorded owners the right to use portions of the property for their own purposes
The escrow holder should seek help from the title officer if the
Grantor is a minor grantor is deceased grantor is incompetent all of the above
The final closing statement must be in a form approved by
HUD
Although the escrow checkless is pre printed most of the entries are
Handwritten
The trustee
Holds naked legal title to the property but only in so far as the trustee may have to sell the property for the lender
C LTA joint protection policy
If issued as ACL TA joint protection policy that covers both owner and lender at once
Fraud
If it is discovered in leitigation that one party has knowingly lied a buddy material fact, or that parties are mistaken as to the matter of agreement or that one party is acting under duress, or threat of duress or that a party is acting under the undue influence of another the escrow may be declared invalid and fraudulent
Drop an escrow
If the parties agree to drop in escrow they must notify you in writing to cancel it
reconveyances
In all re conveyances accept that completely in house transaction the seller pays interest up to and including the day the lender receives final payment or as per the instructions written in the demand
Fiduciaries relationship
In fiduciary relationship that is the agent has a duty to act in the highest faith and to protect the trust and confidence of his principles
Statement of information
Is a strictly confidential method of eliminating leans that may be against persons with names that are the same as or similar to those of the seller or buyer
Acceleration clause
Is an installment note provides that when the trust or fails performer acquired act such as paying the property taxes the lender has a right to demand the entire payment of the loan
American land title association the lender's policy
Is design for the protection of real property loans both institutional and private
Trustee's sale
Is here she fails to do so the property will be sold at auction any public trustee sale
Commission instructions
Is it simple printed form that gives us crew permission to pay the broker his or her commission
Severalty
Is ownership by one person or corporation
Due on sale clause
Is regarded as synonymous with the alien nation clause
Escrow settlement sheet
Is the accounting report for escrow
Promissory note
Is the promise to pay according to the stated conditions a sum of money
After acquired title
Is title to property of fired after the owner attempts to sell or transfer the title to another person before here she actually got legal title
A statement of information is requested by title companies because
It helps eliminate leans with names the same as or similar to the principal It reduces confusion
Exculpatory
It means we do not and 10 to assume any blame or Gil if the matter sets out here are not resolved as Written
California property Tax time table
January 1st Property tax becomes a lien on real property July 1st Fiscal year starts November 1st 1st installment is due and delinquent after December 10th at 5:00 p.m. February 1st 2nd installment is due and delinquent after April 10th at 5:00 p.m.
Deficiency judgment
Kiss the property must be sold at the foreclosure sale and the selling amount is less than is owed on the loan the beneficiary can not get a judgment called a deficiency judgment This protection extends to the owner of 1 to 4 residential units where the owner lives in one of the units
Loan fees include
Loan origination fee Loan processing fee Credit report All of the above
encumbrance
Means more than loans against the property It covers calls the following since any of them could affect clear title Liens such as Taxes, trust deeds, and involuntary liens. Covenants, Conditions, And restrictions Easements
Escrow instructions
Most title in escrow companies provided computer system with escrow instructions that are printed once the escrow holder has filled in the blanks then struction spell out exactly the terms and conditions escrow holder is to follow to close escrow
Full reconveyance
Must be recorded in the county records and the trustee must keep it as proof that here she no longer owes money to the beneficiary
Calling for the buyer's funds comes
Near and Of escrow
Which of the following is not a basic process in the escrow procedure
Negotiate between the principles or the parties to the escrow
Incompetent
Not having or showing the necessary skills to do something successfully (Not of sound mind, legally insane, or non compos mentis)
property taxes
November 1- first installment due December 10-first installment delinquent. February 1- second installment due and payable April 10- second installment delinquent. June30 - end fiscal year July 1- beginning new fiscal year.
The adjustment and payment
O the adjustment payment of property taxes extremely uporn in escrow a slip up here could result in the property being forcibly held for public sale by the state
The purpose of an escrow memo is to
Obtain all information about the transaction
Bi lateral escrow instructions
One set of instructions is prepared that include instructions for the buyer seller lender and escrow holder The set of instructions is signed by both the buyer and seller
Commission for the realestate cells person is paid
Only if escrow is instructed to
When hiring an in house transaction coeordinate or ideally you should start by looking within your firm for a potential candidate but if there is not a logical contract conscientious person available you might expand your search to
Other agents outside your brokerage Knowledgeable people of really say transactions like title insurance representatives
liens
Our financial Obligations against the property
Covenants conditions and restrictions
Our rules that apply to the land and building such as zoning regulations and restrictions on building's height and Architectural style Restrictions are not usually printed on grand deeds nor are they using spelled out in the prelims or policies.
He transaction coeordinate or may be asked to border a preliminary title report because it contains various details about a property including ?
Ownership liens and encumbrances and easements
The reconveyance is a polite way to
Pay off a loan of record
Ways to end escrow
Performance Written agreements between parties Interpleader action by escrow
Installment note with a balloon payment
Periodic Payments with a large payment at the end
Aliennation clause
Permits the lender to require that then tyerman be paid whenever though riginal trustor sells or transfers ownership of the property
Freeze the loan
Permitting no further action on the count so that it will be in the condition you expect when it is recorded Freezing the account prevent sudden changes such as unexpected large loan payments totally outside escrow that could foul up you are accounting for escrow
These men's Grant the right to use portions of the property to
Persons Entities Properties All of the above
When the escrow holder send the check to pay off alone in must include
Principal Interest Interests to cover mailing time All of the above
Escrow is a
Process
Valid deeds must have
Proper writing Acknowledgement CapableParty Delivery and acceptance Proper signatures Legal transfers
A valid deed must have
Proper writing Proper signatures Delivery and acceptance All of the above
Involuntary liens
Property Texas special assessments for sewers or sidewalks judgments and mechanical liens are involuntary liens
Property Taxes
Property taxes are the most common adjustments in escrow
The C LTA standard coverage policy
Provides joint protection for both lender and owner the standard a LTA policy is for the protection of the lender
Request for notice
Provides the superior deed of trust folder with notice that the junior deed of trust holder wants to be given notice should the superior deed of trust holder recording notice of the fall and where to send the Notice
After receiving signed amendments from both parties
Put a copy in the file Send certified Copy to
Community property
Refers to the property acquired during marriage Community property is the only manner of vesting which depends exclusively upon martial status
He transaction coeordinate are basically works for which side of the transaction?
Sale listing side Buying purchase agreement side Either a or B or both
Upon further authorisation
The same ment is important in in that it makes clear that you are only asking for a report on the condition of the title and do not want anything recorded until you give later permission
Land contract
The seller retains full title of the property until the final payment has been made
The escrow process is Essentially the same throughout California the difference are?
Timing of the steps The use of amendments to estro instructions When escrow instructions are signed All of the above
Title insurance
Title insurance has a one time premium or policy fee paid when the policy is issued
The rican vans this charges the relationship between
Trustor trustee Beneficiary All of the above
A full re conveyance is completed by the trustee when
Trustor makes payments Beneficiary receive payments
Delayed recording
When the new Grant deed on deed of trust are recorded the loan department will issue a full re conveyance which will be recorded a few days after the closing of us grew this is called delayed recording and is perfectly proper in a reckon veins while it can be an appalling mistake and recording the deed and new loans
When must your opinion and be said
Whenever your opinion is requested about the manner of vesting or funding you must suggest they seek the advice of their tourney or other counsel of choice to not give legal or financial advice
Hypothecation
Which is the Putting up of a property as collateral for a loan without giving up possession of it
Organization
Within the organization of each escrow agent corporation there must be one or more persons possessing a minimum of 5 years of responsible escrow experience
The escrow settlement Sheet is
Written pencil
Vesting is absolutely necessary when typing the name of the
grantee buyer
Straight note
All paid at once at the end
Preliminary title report
A preliminary title report is a good start to most real estate transactions because it contains various details about a piece of real state including Ownership Leans and encumberances Easements
Bi lateral instructions
A single instruction signed by both buyers and sellers in the South is called a bi lateral instruction
The escrow officer is considered
A stakeholder
Stakeholder
A stakeholder is the agent of the respective parties until the escrow closes
Trust deed Deed of trust
A trust deed more commonly referred to as a deed of trust is not a transfer deed it is a financial instrument acting as a security device do not confuse Trustees deed with Trust deed
Pre escrow transaction checklist
Agency disclosure this form does not so like any type of agency but rather describes a 3 agencies available to the seller buyers and agents. Transfer disclosure statement The transfer disclosure statement must be filled out primarily by the Seller. Foreign investment in real property tax act The FIR PTA should also be filled out by the seller and the buyer must acknowledge receipts of same Deposit The agent can and should have the buyers bring their own earnest money deposit to the escrow company. Preliminary title report Be sure to read the PTR for any exceptions and bring these to the buyer's attention further not reading the PTR can be devastating Termite inspection The termite inspection if available and even if it's not part of the escrow must be approved by the buyer. Repairs The request for repairs from the buyer needs a written response or request for repairs from seller to Buyer
Agent
Agent is anyone who is properly authorized to act for another
Alaska Arizona California Idaho Nevada and wisconsin
All have community property with rights of survivorship
Escrow
An escrow is created when a separate written agreement instructs a neutral 3rd party to hold funds and only proceed when All the agreed to conditions have been performed
Extended coverage indorsement
An extended coverage endorsement that will ensure you against the additional perils of when storm explosion hail aircraft smoke right and vehicles not attributed to a strike or civil commotion
California land title association standard covered policy
Another commonly issued policy of title insurance in California is the C LTA standard covered policy
Land patents Or Land grants
Are given by a monarch or a government to a citizen and returned 4 or as a reward for faithful and meritorious service
Escrow instructions
Are usually computer generated forms that permit the listing of all the funds and documents that will move through escrow and specify the Conditions under which they may be transmitted
Quit claim deeds
Are you scavay less than full ownership in real property such as part ownership or mineral rights
How often in 110 year. CAL BRE conduct an audit of a brokerage
As often as they want
CAL BRE S regulations
As per regulations it is a broker's legal responsibility to maintain a property transaction file for 3 years we recommend the longer statue of limitations requirement 10 years.
Joint tenancy
Contains the right of survivorship without probate
Escrow instructions
Escrow instructions advise the escrow holder how to make the arrangements for completing the transaction and here she must not deviate from them
Transaction File
Even though a copy of the appropriate parts of the transaction file will have been given to escrow on property transaction files must be kept for 3 years by the broker and their subject to audit by CAL BRE
Every state
Every state has its own land title association and Florida it is the Florida land title sociation FLT a
Forgery
Forgery is the production of something counterfeit or fradulent.
Sub TypesGrant deeds
Gift deed Granted as a gift of love and affection no other consideration is necessary but is void if given to defraud creditors Tax Deed Given is property is sold as payment of pass do property Taxes Sheriff's Deed Granted to the purchasers at a court ordered sale Administrators deed or executor's deed Given to the purchaser of the deceased person's real property Trustees deed Given to the purchaser of property at a trust deed foreclosure sale Guardians deed Use by a garden to transfer the real property of minors or incompetence
S croes in California are
Highly recommended
Not all contracts must be in writing
Most contracts involving real property must be in writing personal property item such as refrigerators Are transferred with a bill of sale a written contract is not necessary for enforcement any court of law for transfers of personal property where the amount paid is under 500$
Real property
Real property is land and those things affixed to it . a thing is affixed to land if It is attached to the land by Roots It is embedded and in it such as retaining wall a basement well or septic system. It is attach in any way to 123 by way of mortar nails bolts or screws This is usually called a fixture and includes anything which contributes in a basic way to the proper intended use of the property such as Built-In store equipment or bathroom fixtures
Which of the following is not one part of the 3 page Car transaction checklist
Servicing your listing before and during the escrow.
A complete checklist of tasks you may want your transaction coordinator to do for you should include
Servicing your listing before the Sale Servicing your listing during the Escrow. Arrange documents for you after the escrow has closed All of the above
Warranty deeds
Spell out in specific wording exactly what they warrant usually that the grand tour has lawful authority to sell or transferred title and that here she would defend the title against the claims of others
Documentary transferred tax
Tax applied to the actual money consideration in a transaction involving a recordable deed may vary from one as go to another
tax rates
Tax rate is 0.55 cents in California The tax applies to all real property transfers that involve actual money consideration over $100 is figured @ 55 cents per each $500 of consideration and an additional 55 for any portion of 500000 are is remaining is a consideration happens to be and even 1000 for instance 37000 the tax can be conventually figured at $1 . 10 per 1000
California land title
The California land title association was founded in 1907
Grant deed
The Grant deed uses the word Grant to conveyed title there are 3 main types of Gran deeds listed here is a descending power of their warranties The land patent or land Grant The warranty deed The Grant deed
Oversight of the property transaction file
The careful and detailed oversight of the property transaction file by the broker is the foundation for fulfilling their required management and supervision function mandated by the realestate commissioner and regulation 2725
Common loans
The common form of loans for real property in California is a deed of trust and note
The deed
The deed is Possibly the most valuable evidence of title that can be associated with land
Full reconveyance
The instrument that discharges the dept and ends the tripartite borrower lender trust holder agreement is called the full reconvyance
Fire insurance
The lender requires that fire insurance be at least as great as the amount of the loan
California land title association homeowner policy
The most commonly issued policy of title insurance for residential property is the C LTA
Fully amortized
The note whether fully amortized which means equal monthly payments including principal and interest
Who pays the escrow fees
The principal pays the escrow fees
Freehold State
These kinds of ownership indicate by the word feet are called Freehold estate
Uni lateral instructions
This slight difference in priorities generally results and separate instructions for buyers and sellers in the North unilateral instructions
Deed transfer
Throughout the world the most common method of acquiring ownership or title to real property is by deed transfer
Realestatey brokers may conduct Escrow if the escrow Are
Transactions where the broker is an agent for buyer or seller
Community property with right of survivorship
Transfers ownership to the spouse a death with income tax benefits
Life estate
Where title is given for the lifetime of the grantee
Beneficiary (Lender)
bank or private lender
Trustor
borrower
mortgagor
borrower
A preliminary report of title is synonymous with
The prelim the title report
Fiscal
The property text timetable follows the fiscal not the calendar year
The authors estimate what maximum magic number of transactions that an agent can handle before here she risk losing control of pre S girl paperwork and should hire ATC
18 Transactions per year
The California escrow association was founded in
1956
How many principles other than the neutral escrow are usually involved in an escrow
2
Unilateral Escrow instructions
2 complete sets of a Escrow instructions each containing all conditions and provisions common to both principals are prepared With unilateral instructions the various conditions and provisions may be in a different order from one set of instructions to the next
Title insurance policy
A buyer should have a title insurance policy for the full amount of the purchase price a lender will request the amount of coverage in their lenders instructions generally the minimum they were request is amount of the loan and may request as much as 125% For example if the loan is in the amount of 100000 some lenders will request that the coverage be in the amount of a 125000 then title insurance premium is based on the maximum amount of coverage the lender is requesting
The title order with the words upon further authorization is
A condition of Title A Preliminary report
The main transfer of real property California is
A deed
Deed
A deed is a written instrument which transfers the title to real property from one owner to another
Initial money put into the Escrow is called
A deposit
Full release of mortgage
A full release a mortgage executed adding knowledge notarized by the mortgagee it may be obtained by any of the above methods and treated the same way as escrow
Transaction Coordinator
A person who assist the agent and broker in the 1st processing of the realestate file gathering on for mation paperwork and following up of the contractual items also the transaction coeordinate are puts together the final broker file of the real estate transaction
Voluntary
Applied to property by owners such as a deed of trust
liens
Are a general term to describe any kind of incumbrance against the property
The reasonable length of time for an escrow is
Sixty days
A statement of information requires
Social security numbers Address Occupations All of the above
Involuntary
Such as a mechanic's lien abstract of judgment franchise tax board F TB taxes property taxes or IRS liens
The 1st step in the escrow procedure is
Take Escrow
Checklist
Tesco requirements she is a pre printed sheet use for keeping track of the escrow progress
Assignment of beneficial interests
That 1 recorded will make it a matter of public that the beneficial interests of the deed of trust has been assigned to a new beneficiary
The pest control notice of completion should be approved by
The buyer