Title Search & Real Estate Closings Flashcards
7 cards from real ACP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Title Search & Real Estate Closings flashcards as text
What is the 'right of redemption' in the context of a mortgage foreclosure?
Answer: The borrower's right to reclaim the property by paying the full debt within a statutory period
Statutory redemption allows a defaulting borrower to reclaim their property after foreclosure sale by paying the outstanding debt within the period set by state law.
Which recording act doctrine protects a subsequent bona fide purchaser who records first without notice of a prior unrecorded deed?
Answer: Race-notice statute
Under a race-notice statute, a subsequent purchaser is protected only if they took without notice of a prior conveyance AND recorded before the prior grantee.
What is an easement appurtenant?
Answer: An easement that benefits a neighboring parcel and runs with both properties when sold
An easement appurtenant is attached to the dominant estate and automatically transfers with both the dominant and servient parcels upon sale.
During a title search, a paralegal discovers a deed in the chain signed only by one spouse on community property in a community property state. This likely creates:
Answer: A title defect because both spouses must generally join in conveying community property
In most community property states, both spouses must join in any conveyance of community real property; a deed by one spouse alone is typically void or voidable.
What is the primary purpose of the RESPA (Real Estate Settlement Procedures Act)?
Answer: To require disclosure of all settlement costs and prohibit kickbacks among settlement service providers
RESPA mandates disclosure of settlement costs, prohibits kickbacks and referral fees among settlement service providers, and regulates escrow account practices.
Which instrument conveys after-acquired title from grantor to grantee automatically under the doctrine of estoppel by deed?
Answer: A warranty deed executed before the grantor actually held title
Under estoppel by deed, if a grantor conveys property they don't yet own via warranty deed, title automatically passes to the grantee when the grantor later acquires it.
What does 'proration' at a real estate closing typically address?
Answer: Allocating ongoing expenses like taxes and rent between buyer and seller as of the closing date
Proration adjusts recurring costs (property taxes, HOA dues, prepaid rent) so each party pays only for the period they own or use the property.