18) Recording and Assurance of Title Flashcards
Recording Statutes
Laws that require the entry into books of public record the written instruments affecting the title to real property.
Acknowledgement
In conveyancing, the act by which a person who has executed an instrument, before an authorized officer, usually a notary, declares that the instrument is genuine and executed voluntarily.
Legal Notice
A knowledge of another’s interest in real property sufficient to make the adverse interest legally biding to the prospective purchaser or any other party acquiring interest in the property.
Actual Notice
Title information that acquired personally by the interest holder.
i.e. a prospective purchaser may gain information from the seller or from other parties and from firsthand observation of the property.
Implied Notice
Legal notice that is imposed by the law when conditions exist that would lead a reasonable person to inquire further into the condition of the title; also called INQUIRY NOTICE.
Constructive Notice
The knowledge of certain facts that might be discovered by a careful inspection of public records, provided that such information is within the history of title, or discovered by an inspection of the premises.
Race-Notice Statutes
Statutes providing that a subsequent buyer will prevail only if she has no notice of the prior transaction at the time of conveyance.
The winner is the one who records first without prior knowledge that the property had been previously conveyed.
Notice Statutes
Statutes providing that the subsequent buyer prevails over all interested parties who have not recorded their interest at the time the buyer accepts the conveyance and pays consideration for the land without notice of the pre-existing conveyance.
The 2nd purchaser wins over the first purchaser as long as she did not have notice of the first purchase, even if the first purchaser records the deed before the subsequent purchaser.
Chain of TItle
The recorded history of events that affect the title to a specific parcel of land, usually beginning with the original patent or grant.
Abstract of Title
A summary of all the recorded transactions, including deeds, mortgages, judgments, and the like, that affect the title to a specific parcel of land.
Title Insurance
The comprehensive indemnity contract that insures the titleholder against title defects and encumbrances that may exist at the time the policy is issued.
Torrens Certificate
A document issued under the Torrens system; a type of land title registration.
