Title & Closing Terms
What is a title in real estate?
A title is the legal right to own, use, and sell a property.
What is a survey in real estate?
A survey is a detailed map showing the boundaries, dimensions, easements and physical features of a property.
What does “vesting” mean in real estate?
Vesting refers to how a person or people hold legal title or ownership to a property.
What is a title commitment?
A title commitment is a document issued by a title company that outlines the terms and conditions under which it will issue a title insurance policy.
What’s the most common room buyers focus on when touring a home?
The kitchen! It’s often considered the heart of the home and a major selling point.
What is earnest money in a real estate transaction?
Earnest money is a deposit made by a buyer to show they’re serious about purchasing the property. It’s usually held in escrow until closing.
Why might a buyer want a new survey before closing?
To confirm property boundaries, detect encroachments, and ensure the legal description matches the actual property.
What is sole ownership?
Sole ownership means the property is owned by one individual in their name alone.
What is Schedule A of a title commitment?
Schedule A lists the basic information about the transaction—such as the buyer, seller, purchase price, and proposed title insurance coverage.
What U.S. holiday weekend is known for a big spike in home shopping activity?
Memorial Day weekend—many buyers use the extra time off to tour homes and make offers.
What is a title search and why is it important?
A title search is a review of public records to confirm the legal ownership of a property and to check for liens or claims. It ensures the buyer gets a clear title.
What is an encroachment in a property survey?
An encroachment is when a structure (like a fence or shed) crosses into a neighboring property or easement area.
What is joint tenancy with right of survivorship?
It’s a form of co-ownership where if one owner dies, their share automatically transfers to the surviving owner(s), bypassing probate.
What does Schedule B, Part I of a title commitment show?
It shows the requirements that must be met before the title insurance policy can be issued, like releasing liens or recording documents.
True or False: Staging a home can help it sell faster and for more money.
True. Staged homes often sell quicker and may receive higher offers because buyers can visualize the space better.
What is title insurance and who does it protect?
Title insurance protects the buyer from financial loss due to defects or disputes in the property’s title, like unknown liens or ownership claims.
What is a survey affidavit and when is it commonly used in real estate closings?
A survey affidavit is a sworn statement by the seller affirming that no changes have been made to the property since the last survey. It’s commonly used to allow the buyer or lender to accept an existing survey instead of requiring a new one.
What is the difference between tenants in common and joint tenancy?
Tants in common can own unequal shares and there’s no right of survivorship—each owner’s share goes to their heirs. Joint tenants must have equal ownership and include right of survivorship.
What is found in Schedule B, Part II, and why is it important?
It lists the exceptions to coverage—items not covered by the title insurance policy, such as easements, restrictions, or unpaid taxes.
What percentage of buyers find their home online first before contacting an agent?
About 50% of buyers begin their home search online before reaching out to a real estate agent.
What does the term “cloud on title” mean, and how can it affect closing?
A “cloud on title” refers to any issue or claim that may affect the legal ownership of a property. It can delay or prevent closing until it’s resolved.
How can a survey affect title insurance coverage?
A new or updated survey can help remove standard title exceptions (like boundary disputes), offering the buyer more comprehensive coverage under their title policy.
How might vesting affect estate planning or taxation?
Different vesting types can impact how property is transferred at death, who inherits it, and how it's taxed—especially in cases involving probate, step-up in basis, or community property laws.
How can a title commitment reveal potential issues that may delay or prevent closing?
A title commitment may show unresolved liens, ownership disputes, boundary issues, or missing legal documents in its requirements or exceptions. If not addressed before closing, these issues can delay the transaction or even make it uninsurable.
What U.S. city is known for having the most expensive real estate per square foot?
San Francisco, California – regularly ranks at the top, with prices often exceeding $1,000 per square foot for residential properties.