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46 Cards in this Set
- Front
- Back
Buyers Concerns |
Closing Costs Liens Favorable Inspections Results Leases or pre-existing tenants Title Evidence
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Final Property Inspection |
Reserves the rights to make final inspection Final Walkthrough |
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Title Evidence |
To ensure no liens exist |
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Sellers Concerns |
Buyer doesn't back out Nothing happens before closing Receive payment |
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Lender Concerns |
Value of property is maintained Clean title (No existing Leins) |
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Real Estate Professionals role at Closing |
Collecting commission Conducting walkthroughs |
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Lenders Interest In Closing |
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! |
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IRS Service Reporting Requirements |
Land Inherently permanent structure (building, commercial, residential) Condo and its appurtenant fixtures and common elements Shares in a cooperative housing corporation |
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Conducting the closing (closing escrow) |
Buyer and seller never meet, everything is handled by escrow agents. |
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Exchange |
Transference of title to the buyer |
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Settlements |
Closing escrow is generally not practiced in MD |
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Mortgage Disclosure Improvement Act (MDIA) |
Prevents consumers from receiving low interest rates without knowing of hidden fees at settlement. low interest rates without knowing of hidden fees at settlement. |
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Loan Estimate Forms |
Must be provided to consumer 3 business days after loan application is submitted to lender |
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Closing disclosure form |
Itemizes all charges that are normally paid by borrower and seller
Must be submitted 3 days before closing |
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How closing statements work |
Accounting of the parties debits and credits |
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Debit |
A charge - an amount a party owes and must pay at closing |
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Credit |
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. |
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Transfer Tax |
Responsibility varies based on local practices |
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Recording expenses |
Seller usually pays for re ordering cost unless both parties agreed otherwise |
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Title expenses |
Buyer pays |
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Appraisal fee |
Buyer pays |
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Survey Fee |
Buyer Pays |
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Lein |
Charge or claim against a persons property to enforce payment of money |
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Vise Lein |
Voluntary Involuntary Statutory Equitable |
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Voluntary lein |
Something that you created by property owners action Mortgage is voluntary |
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Involuntary |
Not a matter of Choice |
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Statutory lein |
Created by Law Example - Tax Lein |
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Equitable lein |
Common law - If someone Sues you in court. Created by judgement of court |
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General Lein |
Can be a lein on any item. Effects all property - personal or real property |
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Specific Lein |
Only applies to property in question. No other items are touched. |
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Effect of lein on title |
Lein doesn't mean the property cant be sold. Effects the value of the property. |
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Subordination agreement |
Allows the leinholders to change priority of the leins |
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Two types of real estate taxes |
The general real estate taxes and special assessments |
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General real estate tax is known as |
Ad valorem tax ( according to the value) |
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Exceptions from general taxes |
Laws exempt from paying taxes |
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Assessments |
Is done once every 3 years |
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Equalization |
Assesment equalization factor. Government helps people with taxes. |
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Special assesment |
Fund Public improvements to the property |
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Mortgage lien |
Is specific and voluntary |
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Mechanics lien |
Specific and involuntary |
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Judgement |
Involuntary and general |
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Lis pendens |
Pending litigation. It's not a lien |
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Estate and inheritance tax liens |
General, statutory, involuntary |
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Lien for municipal utilities |
Specific, equitable, involuntary |
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IRS tax lien |
General, statutory, involuntary |
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Bail bond lien |
Specific, statutory, voluntary |