Escrow & Title
In a Utah real estate transaction, the 'wet settlement' requirement means:
AAll funds must be collected in cash
BFunds must actually be disbursed at or before recording (no dry closings where title is recorded before funds are received)✓ Correct
CAll parties must be physically present at the closing table
DThe transaction must close during rainy season
Explanation
A wet settlement requires that loan funds be available (disbursed) at or near the time of recording. Dry closings (where title records before funds are confirmed) can create risk for sellers and lenders.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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.
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