CHCP Post-Closing Procedures & Recording 4

Question 1

In a race-notice recording state, a subsequent purchaser prevails over a prior unrecorded deed only if the subsequent buyer:

Accepted Answer

Records first and had no actual notice of the prior deed

Answer

In race-notice states, a subsequent bona fide purchaser must both record first AND lack notice of the prior unrecorded conveyance to prevail.

Question 2

What is the purpose of a 'post-closing letter' sent to the buyer after closing?

Accepted Answer

To summarize recorded document information, policy numbers, and important dates

Answer

A post-closing letter typically includes recording information, title policy details, and reminders about tax and insurance obligations.

Question 3

When a lender's deed of trust is recorded at closing, priority over a previously unrecorded deed from the same grantor is established by:

Accepted Answer

The act of recording first with the county

Answer

Under recording statutes, a lender who records its deed of trust first generally obtains priority over prior unrecorded interests.

Question 4

Which entity is responsible for paying recording fees and transfer taxes when they are not otherwise allocated in the purchase contract?

Accepted Answer

Determined by local custom or the closing disclosure allocation

Answer

Recording fees and transfer taxes are allocated per the purchase contract or, in its absence, by local custom as reflected on the Closing Disclosure.

Question 5

A closing agent inadvertently fails to record the deed for 10 days after closing. Which risk is most significant during this period?

Accepted Answer

A judgment lien against the seller could attach and gain priority

Answer

During the unrecorded gap, a creditor could file a judgment against the seller that attaches to the property before the buyer's deed is recorded.

(CHCP) Certified Home Closing Professional Practice Test