Pop Quiz!

 

We’ve tried to share a large amount of info on a lot of topics surrounding title insurance. Let’s see how well you remember that info with a little pop quiz.

 

Who does the attorney at the title company represent? 

The title company represents the lender.

 

If a transaction is $242,400, what is the amount of transfer tax on the transaction?

$1,067 (242.5 x 4.4)

 

What is a “title commitment”?

It’s when the title company tells the lender that they will issue a title insurance policy subject to their requirements.

 

A town’s tax year runs from July through June, with taxes typically paid October 1st and March 1st/ If you are closing on February 10th, who will receive a credit at closing for taxes if they are already paid?

The seller received the credit (March is already paid).

 

What is a “mil rate”?

A mil rate is the amount of tax payable per dollar of taxable value. (Example: a mil rate of 20 is really a 2% rate, or .02)

 

What is a “back policy”, and how is it useful to title companies?

A back policy is evidence that a title search has previously been performed on the property and the title company is able to rest upon that and begin its own title search at that point.

 

What is a “warrantee deed” vs. a “quitclaim deed” vs. a “release deed”?

Warrantee Deed – conveys the property with certain promises or covenants, which last forever.

Quitclaim Deed – the same as a warranty deed, except covenants only last during the seller’s period of ownership.

Release Deed – no covenants at all.

 

What changes to a closing disclosure will trigger a new 3-day waiting period to start?

Change to the APR, adding a pre-payment penalty, a loan product change which causes the disclosed information to become inaccurate.