1. Processing Real Estate Loans
Chapter 11
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2. Qualifying the Title
• Notices—constructive notice and actual notice
• Abstracts and opinion of title
• Title insurance
• Title faults
• Surveys
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3. Disclosures in California Real Estate
Transactions
• Real estate transfer disclosures
• Delivery of a pest control inspection report
• Disclosure of geological hazards
• Disclosure of hazardous waste deposits
• Thermal insulation disclosure
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4. Disclosures in California Real Estate
Transactions, cont.
• Special flood area disclosure
• Special city and country ordinances
• Foreign investment real estate tax
• Condominium documents disclosure
• Disclosure for real property loans
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5. Costs of Securing a Loan
• RESPA requires good-faith estimate
• Points
• Placement or origination fee
• Impound funds (escrow accounts)
• Property taxes
• Hazard insurance
• Title insurance
• Mortgage insurance
• Assessment liens
• Interest adjustments
• Prepayment penalties
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6. Additional Costs
• Prorations
• Interest
• Property taxes
• Insurance premiums
• Additional prorations
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7. Additional Processing Concerns
• Closing statements
• Servicing the loan
• Assignment of the loan
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