Escrow & Title
What is a 'beneficiary statement' in a Nevada real estate transaction?
AA statement from the seller's estate beneficiaries approving the sale
BA statement from the existing lender (beneficiary of the deed of trust) showing the current loan balance, interest rate, payment history, and conditions — required when the existing loan will be paid off at closing or when a buyer is assuming the loan✓ Correct
CA statement from the title company's beneficiary account
DA statement from the HOA showing special assessment beneficiaries
Explanation
A beneficiary statement (payoff demand statement) is obtained from the existing lender when their deed of trust is being paid off at closing. It shows the exact payoff amount as of the closing date, per diem interest, and any other conditions for payoff and release.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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