Assessment Flashcards
The act of placing documents in the public record
Recording
The legam presumption that information may be obtained through diligent inquiry
Constructive notice
When an individual is actually aware of a fact, they are said to have this type of notice
Actual notice
The order of rights in time, such as who recorded first, which party was in possession first, etc.
Priority
The record of a property’s ownership
Chain of title
A legal action to remove a cloud on the title and establish legal ownership
Action to quiet title
An examination of all the public records to determine if any defects exist in a property’s history of ownership
Title search
The individual who prepares a summary report of the results of a title search
Abstractor
A contract under which a policyholder is protected from losses arising from defects in title
Title insurance
Title problem that is created by a gap in the chain of title or other dispute of ownership
Cloud on the title
To protect the buyer, in some states, a(n) ___ is conducted as soon as an offer to purchase has been accepted
Preliminary title search
The type of notice that means the information is not only available but that someone has given the information and is aware of it is called ___.
Actual notice
If a title has no serious defects, does not expose a purchaser to litigation, and does not cause the property to have a poor likelihood of resale, it is called ___.
Marketable title
Rather than a certificate of title, in some parts of the country an attorney’s ___ is used as evidence of title.
Opinion of title
The premium for a title insurance policy is paid at closing how many times ?
Once
When is the premium for a title insurance policy paid?
at closing
Uninsurable losses, such as zoning ordinances, named in a title insurance policy are called ___.
Exclusions
A summary report of what a title search found in the public record is called a(n) ___.
Abstract of title
The standard coverage title policy insures against hidden effects such as ___.
Improperly delivered deeds
Registration in the ___ provides evidence of title without needing to make an additional search of public records.
Torrens system
The legal presumption that information about rights in a property may be obtained by a person through diligent questioning and research is called ___.
Constructive notice
The following is the complete title record for Lot 27, block 6 of a subdivision. At which point is the chain of title broken?
1. Grantor: Ferris-bumper bulders, Inc. Grantee: Barton & Jane Doyle. By Instrument: Warranty Deed. Conveyance Date: January 19, 1909
2. Grantor: Barton & Jane Doyle. Grantee: Market Title & Trust Company. By Instrument: Trust Deed. Conveyance date: January 20, 1909.
3. Grantor: Market Title & Trust Company. Grantee: Barton & Jane Doyle. By Instrument: Reconveyance Deed. Conveyance date: June 10, 1935
4. Grantor: Barton & Jane Doyle. Grantee: Anton Feldspar. By Instrument: Bargain and Sale Deed. Conveyance date: March 7, 1940
5. Grantor: Peter & Mary Parker. Grantee: Lamont Cranston and Gloria Reeve. By Instrument: Warranty deed. Conveyance date: November 16, 1958
6. Grantor: Lamont Cranston & Gloria Reeve. Grantee: Brookfield Bank & Trust Company. By Instrument: Mortgage. Conveyance date: November 8, 1958
7. Grantor: Lamont Cranston & Gloria Reeve. Grantee: Gerald & Lydia Carlos. By Instrument: Warranty Deed. Conveyance date: September 4, 1979
8. Grantor: Brookfield Bank & Trust Company. Grantee: Lamont Cranston & Gloria Reeve. By Instrument: Release. Conveyance date: May 2, 1995.
Point 5: grantor and grantee
Any individual who is interested in a particular property may review the ___ to learn about the documents, claims, and other issues that affect its ownership.
Public records
A written document that affects any estate, right, title, or interest in land must be recorded in the ___.
County
To be eligible for ___, a document pertaining to real estate must be drawn and executed in accordance with the requirements of the recording acts of the state in which the property is located.
Recording
To be eligible for recording, a ___ must be drawn and executed in accordance with the requirements of the recording acts of the state in which the property is located.
document pertaining to real estate
To be eligible for recording, a document pertaining to real estate must be drawn and executed in accordance with the requirements of the ___ of the state in which the property is located.
recording acts
___ means that not only is the information about property available, but someone has been made aware of that information.
Actual notice
A search of the ___ will disclose all recorded liens that exist against a property.
Public records
The ___ is the record of a property’s ownership, beginning with the earliest owner.
Chain of title
In a typical ___, the chain of title is examined beginning with the present owner and tracking backwards to the earliest records of ownership, or a definite period of years depending on state law.
Title Search
In a typical title search, the ___ is examined beginning with the present owner and tracking backwards to the earliest records of ownership, or a definite period of years depending on state law.
chain of title
In a typical title search, the chain of title is examined beginning with the ___.
present owner
A(n) ___ insurance policy protects a homeowner against rights of parties in possession and unrecorded liens.
Extended coverage title insurance policy
Extended coverage title insurance is provided by a(n) ___.
American Land Title Association (ALTA)
___ title insurance policies include the protections of a standard title insurance policy plus additional protections.
Extended coverage
One of the requirements of ___ is that it could convince a reasonably well-informed and prudent purchaser, acting on business principles and with full knowledge of the significant facts, that the property could be resold or mortgaged at a later time.
Marketable title
A(n) ___ should disclose no serious defects, should not depend on doubtful questions of law, and should convince a reasonably well-informed and prudent purchaser, acting on business principles and with full knowledge of the significant facts, that the property could be resold or mortgaged at a later time.
Marketable title
A certificate of title is evidence of, but not a guarantee of ___.
Ownership
A(n) ___ is evidence of ownership, but not a guarantee of ownership.
Certificate of title
A(n) ___ is a statement of opinion of the title’s status on the date it is issued.
Certificate of title
Cause for a buyer of real estate to become worried would be if the seller’s evidence of title was a(n) ___.
Recorded deed
To serve as public notice, a deed is recorded in the ___.
county
Five years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, X was the owner of the property and Z was an active partner in the construction company. The property is in Cook County, but the lien was recorded in Dupage County. Now, Z is trying to buy the property from X. A title search in Cook county disclosed no liens against the property. Because of the mistake in recording, Z has ___ of the liens, but not ___.
Z has actual notice but does not have constructive notice
Shortly after closing on the purchase of a parcel of real estate, the buyer discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. Because the buyer has accepted the deed, the only recourse is to…
Sue the seller under any covenants contained in the deed
The reason that deeds and liens and other claims are recorded is to give ___.
Constructive notice
A history of all recorded liens and encumbrances is revealed in the ___.
Abstract
The person who prepares a certificate of title
the abstractor
Which of these would be covered in a standard title insurance policy?
a) defects discoverable by physical inspection
b) unrecorded liens
c) forged documents
d) easements and restrictive covenants
Forged documents
A title insurance policy that protects the interest of a mortgage is called a(n) ___.
Lender’s policy
In the states in which it has been adopted, the ___ limits the time beyond which title records must be searched.
Marketable Title Act
Who may conduct a title search in the public records?
Anybody
___ gives constructive notice to the world of the rights and instruments of a party in a particular parcel of real estate.
Recording
A purchaser went to the county building to check the recorder’s records. She found that the seller was the grantee in the last recorded deed, and no mortgage was on record against the property. The purchaser may assume that…
The seller did not mortgage the property
The date and time a document was recorded establishes ___.
Priority
What establishes priority?
The date and time a document was recorded
Mary sold her home to Lynn. Lynn moved into the home but did not record the deed. A few weeks later, Mary died. Her heirs in another city were unaware that she had sold the home. The heirs conveyed title to David, who actually recorded the deed. Who owns the property?
Lynn
If a property has encumbrances that will outlast the closing, the property can be sold if…
A buyer agrees to take it subject to the encumbrances
An abstract and attorney’s opinion constitutes acceptable proof of ___.
Ownership
Chain of title refers to….
A record of a property’s ownership
___ refers to a record of a property’s ownership
Chain of title
A seller delivered a deed to a buyer at the closing. A title search disclosed no serious defects, and the title did not appear to be based on doubtful questions of law or fact nor did it appear to expose the buyer to possible litigation. The seller’s title did not appear to present a threat to the buyer’s quiet enjoyment, and the title policy was sufficient to convince a reasonably well-informed person that the property could be resold. The title conveyed would commonly be called a(n) ___.
Marketable title
The person person who prepares an abstract of title for a parcel of real estate searches the ___ and then summarizes the events and proceedings that affect title.
public records
The person person who prepares an abstract of title for a parcel of real estate searches the public records and then summarizes the ___ and ___ that affect title.
events and proceedings
The person person who prepares an abstract of title for a parcel of real estate searches the public records and then summarizes the events and proceedings that affect ___.
Title
The person person who prepares a(n) ___ for a parcel of real estate searches the public records and then summarizes the events and proceedings that affect title.
abstract of title
A homeowner wants to sell her property but cannot find her deed. In this situation, she does not need the deed to sell if it was ___.
Recorded
Mortgage title policies protect which parties from loss?
Mortgage companies
Which of these is traditionally covered by a standard title insurance policy?
a) unrecorded rights of persons in possession
b) changes in land use due to zoning ordinances
c) improperly delivered deeds
d) unrecorded liens not known of by the policyholder
Improperly delivered deeds
The documents called ___ include title insurance.
title evidence
The legal presumption that information can be obtained through diligent inquiry is called ___.
Constructive notice
What is necessary for a deed to be recorded in Illinois?
a) Full address of the grantee
b) The names of the grantor and grantee typed or printed below their signatures
c) An escrow exemption statement
d) Permanent tax index number
Full address of the grantee
The act of recording gives legal priority to those interests recorded ___.
First
A Chicago resident purchases farmland in southern IL as an investment. The deed to the Chicago resident should be recorded in the recorders office of the…
County where the farmland is located
The population of Outlet County is 54,000. Who is the recorder of deeds?
County clerk
The act of placing documents in the public record
Recording
___ is a contract under which the policy holder is protected from losses arising from defects in the title
Title insurance
The record of a property’s ownership
Chain of title
A summary report of what the title search found in the public record
Abstract of title
An examination of all public records to determine whether any defects exist in the chain of title
Title search
In a title search, the title is traced…
Backward to its origin
The ___ searches all the public records and then summarizes the various events and proceedings that affected the title throughout its history
Abstractor
A listing of all conveyances from owner to owner
Chain of title
Examination of public records
Title search
Title free from major defects
Marketable title
Judicial action to remove clouds on the title
Quiet title suit
Legal presumption that information may be obtained
Constructive notice
Contract that protects against losses from title defects
Title insurance
History of all documents affecting title
Abstract of title
What is considered the best defense of title?
Title insurance
A statement of opinion regarding title status on the date that the certificate is issued
Certificate of title
A(n) ___ is not a full guarantee of ownership, but instead it certifies the condition of the title’s history based on a title search.
certificate of title
A certificate of title is not a full guarantee of ___.
Ownership
A certificate of title certifies the condition of the title’s ___ based on a title search
history
A certificate of title certifies the condition of a title’s history based on a(n) ___
Title search
The ___ will defend any lawsuit based on an insurable defect and pay claims if the title proves to be defective.
Title insurance company
The title insurance company will defend any lawsuit based on a(n) ___ and pay claims if the title proves to be ___.
Insurable defect
Defective
The title insurance company will defend any lawsuit based on an insurable defect and pay claims if the ___ proves to be defective.
Title
the documents called ___ include title insurance
title evidence
In Illinois, what is used as evidence of title and is an opinion of title status?
Abstract and attorney’s opinion of title
A(n) ___ must be recorded within one year after expiration of the redemption period or it will become null and void.
Tax deed
A tax deed must be recorded within ___ after expiration of the redemption period or it will become null and void.
one year
A tax deed must be recorded within one year after ___ of the redemption period or it will become null and void.
Expiration
A tax deed must be recorded within one year after expiration of the ___ or it will become null and void.
redemption period
A tax deed must be recorded within one year after expiration of the redemption period or it will become ___ and ___.
Null and void
