Resolution Escrow Services

 

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Glossary

  • Deed: A document that transfers ownership of a property. The deed is recorded in the land records where the property is located to put the world on notice of who owns the property.

  • Deed of Trust/Mortgage: A document that secures repayment of the loan taken out to purchase or refinanace a property. The deed of trust/mortgage is recorded to put the world on notice that the property has been pledged as collateral for a loan.

  • Promissory Note: A document that is the borrower's promise to repay the amount of money borrowed. The Promissory Note contains the terms of repayment for the borrower's loan.

  • Title Search: A search conducted of the land records to verify who owns a property and whether there are any liens or judgements that would affect the title to the property.

  • Settlement Statement (HUD-1): A document that summarizes the costs and charges associated with a closing.

  • Escrow: Funds held by a lender for the payment of real estate taxes and hazard insurance (if applicable). If a lender requires that escrows be held, a certain amount of money will be collected at closing to ensure that the lender has enough to pay the taxes and/or hazard insurance when the next bills are issued.

  • Real Estate Taxes: Taxes charged by the city/county/state based on an assessment of the property. Depending on where the property is located, these taxes can be payable either once or twice a year.

  • Hazard Insurance: Also commonly known as Homeowner's Insurance, this insurance protects the homeowner against fire and other harm to their home.

  • Transfer and Recordation Taxes: Taxes that are charged by the city or county in order to transfer title to a property. These taxes are based upon the purchase price of a property. The transfer and recordation tax rates vary depending upon where the property is located. (Note: If a property owner wishes to simply add or remove a person from a title without going through a purchase transaction, there may be transfer and recordation tax implications. Certain transfers are exempt from transfer and recordation taxes. A homeowner should consult a title company if they are considering transferring ownership in a property to determine if there are any taxes that may apply to the transfer.)

  • Survey: A drawing that shows where the improvements on a property sit in relation to the boundary lines. For residential properties, the two most common types of surveys are a boundary survey, for which the survey company sets stakes and gives more precise measurements of the boundary lines of the property, and a house location survey, which simply shows the location of the improvements. A boundary survey is more expensive and takes more time to complete, but can be useful is the owner plans to add improvements to the property.