2025 update |AYPO Real Estate Principles of Real Estate | latest
|COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS | GET IT 100% ACCURATE!!
Why Qualify the Title - ANSWER-Qualifying the title is a process of
examining public records and tracing the property's legal history to
determine the lien position of a mortgage. The qualifying is performed
through a process often referred to as an abstract of title or title search.
The search can reveal a number of critical issues including confirming:
Who the actual "owner of record" is, i.e., the seller indeed has the right to
sell the property that ownership is not in dispute
That there are no other claims, such as mechanic's liens, second
mortgages or other debts that could interfere with the legal enjoyment of
the property
That the property being offered as collateral is, in fact, the one being
purchased
Conducting a Title Search - ANSWER-To perform your own preliminary
search, go to the county clerk's office or access the Texas website and
locate the county in which you want to do a title search. Be sure to have
as much of the following information that applies to the title search:
Property address
,Subdivision, block or lot number
In Texas, sales contracts state that the buyer should get an O
The Qualifying Process - ANSWER-Lenders are especially concerned with
the subject property's insurability because it is the collateral protecting
their financial interest. There generally are three methods used to ensure
that a title is clear of any claims that might prevent a buyer or lender
from accepting a title. The methods are:
Abstract and Opinion
Title Insurance
The Torrens System
An abstract title: - ANSWER-involves a search tracing ownership and and
potential claims against a property title
Title Commitment in Texas - ANSWER-A title commitment is a title
company's promise, or commitment, to issue a title insurance policy on
the subject property upon closing, including the same terms, conditions,
and exclusions that will be in the actual insurance policy. The commitment
describes the rights being conveyed in a real property property
transaction, as well as any restrictions on those rights, or rights that may
have been granted to others on that property.
,Title Exceptions - ANSWER-The title company generally insures only
against issues arising, or becoming known, after the title has transferred
to the new owner. Prior to issuing the title commitment, as discussed, the
title company abstractor has researched the title already and will exclude
from coverage any items identified that could affect the title to the
property.
These exclusions are referred to as "exceptions," and, if encountered as
issues during ownership of the property, the title company can't be held
responsible for correcting or insuring them.
What in title cant be held responsible? - ANSWER-Exceptions listed in the
title insurance policy
Lender Closing Costs - ANSWER-two to five percent of the purchase price
of the home in closing fees.
When should lender provide closing disclosure and breakdown? -
ANSWER-At least three business days prior to consummation, the lender
must provide the borrower with the Closing Disclosure statement, which
includes a breakdown of closing fees
, Real estate has been estimated to represent approximately - ANSWER-
one-half of the world's total economic wealth.
The buyer's ability to finance the property is an important, if not the ------
-, contingency in most residential transactions, and a significant driver in
the entire real estate-based economy. - ANSWER-primary
Texas is a:
a. Lien Theory
b. Title Theory - ANSWER-a. Lien Theory
Lien Theory - ANSWER-In lien theory states such as Texas, the security for
a mortgage is a lien placed on the property, which is removed once the
loan is fully repaid. The title (or other legal instrument documenting the
rights and privileges of the holder of the title) is actually held by the
buyer/property owner. This makes foreclosure more challenging than
when the lender (as in a title theory state) or a third party (as in a deed
of trust) hold actual title. In all of these cases, the buyer/property owner
holds equitable title to the property.
|COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS | GET IT 100% ACCURATE!!
Why Qualify the Title - ANSWER-Qualifying the title is a process of
examining public records and tracing the property's legal history to
determine the lien position of a mortgage. The qualifying is performed
through a process often referred to as an abstract of title or title search.
The search can reveal a number of critical issues including confirming:
Who the actual "owner of record" is, i.e., the seller indeed has the right to
sell the property that ownership is not in dispute
That there are no other claims, such as mechanic's liens, second
mortgages or other debts that could interfere with the legal enjoyment of
the property
That the property being offered as collateral is, in fact, the one being
purchased
Conducting a Title Search - ANSWER-To perform your own preliminary
search, go to the county clerk's office or access the Texas website and
locate the county in which you want to do a title search. Be sure to have
as much of the following information that applies to the title search:
Property address
,Subdivision, block or lot number
In Texas, sales contracts state that the buyer should get an O
The Qualifying Process - ANSWER-Lenders are especially concerned with
the subject property's insurability because it is the collateral protecting
their financial interest. There generally are three methods used to ensure
that a title is clear of any claims that might prevent a buyer or lender
from accepting a title. The methods are:
Abstract and Opinion
Title Insurance
The Torrens System
An abstract title: - ANSWER-involves a search tracing ownership and and
potential claims against a property title
Title Commitment in Texas - ANSWER-A title commitment is a title
company's promise, or commitment, to issue a title insurance policy on
the subject property upon closing, including the same terms, conditions,
and exclusions that will be in the actual insurance policy. The commitment
describes the rights being conveyed in a real property property
transaction, as well as any restrictions on those rights, or rights that may
have been granted to others on that property.
,Title Exceptions - ANSWER-The title company generally insures only
against issues arising, or becoming known, after the title has transferred
to the new owner. Prior to issuing the title commitment, as discussed, the
title company abstractor has researched the title already and will exclude
from coverage any items identified that could affect the title to the
property.
These exclusions are referred to as "exceptions," and, if encountered as
issues during ownership of the property, the title company can't be held
responsible for correcting or insuring them.
What in title cant be held responsible? - ANSWER-Exceptions listed in the
title insurance policy
Lender Closing Costs - ANSWER-two to five percent of the purchase price
of the home in closing fees.
When should lender provide closing disclosure and breakdown? -
ANSWER-At least three business days prior to consummation, the lender
must provide the borrower with the Closing Disclosure statement, which
includes a breakdown of closing fees
, Real estate has been estimated to represent approximately - ANSWER-
one-half of the world's total economic wealth.
The buyer's ability to finance the property is an important, if not the ------
-, contingency in most residential transactions, and a significant driver in
the entire real estate-based economy. - ANSWER-primary
Texas is a:
a. Lien Theory
b. Title Theory - ANSWER-a. Lien Theory
Lien Theory - ANSWER-In lien theory states such as Texas, the security for
a mortgage is a lien placed on the property, which is removed once the
loan is fully repaid. The title (or other legal instrument documenting the
rights and privileges of the holder of the title) is actually held by the
buyer/property owner. This makes foreclosure more challenging than
when the lender (as in a title theory state) or a third party (as in a deed
of trust) hold actual title. In all of these cases, the buyer/property owner
holds equitable title to the property.
