CH 4 Flashcards
Title insurance protects the property against losses due to
Defects in Title
The title insurer reimburses the property owner for covered losses up to
The face amount of the insurance plus legal expenses
The title company’s primary facility which stores copies of all public records from the county in which the property is located, is the
Title plant
The chain of title lists
The parties and documents, such as a trust or grant deed and recording date
A patent is a deed transferring land from
the federal or state government to a private individual
Using the Statement of Information (SI), the title searcher performs a
a general index run
If a searcher discovers an error in spelling on a previously recorded deed,
escrow may send a corrected deed to grantor to sign and record
Underwriting is defined as
writing under or at the end of something
The preliminary title report indicates
the conditions under which a title insurance policy will be offered to a buyer
Title policies are written on the basis of a search of public records and other records that impart
Constructive notice
assessor’s parcel number
The identification for a piece of land, as assigned by the county’s assessor, that refers to the book, section, and page number of the county’s real property ownership records
Chain of title
A history all previous property owners in chronological order beginning with the present then searching back in time for any matter that may affect title
clear and marketable title
The condition of title or real property that allows its titleholder to own, use, enjoy, and convey it to another or to encumber
cloud on title
Matters that could affect title or prevent the title from being transferred or encumbered
date down
The process of searching the chain of title, a history of all previous property owners in chronological order, beginning with the present, then searching back in time for any matter that may affect title
preliminary title report
A written opinion of title prepared by the title officer is called a preliminary title report. The report indicates the conditions under which a title insurance policy will be offered to the buyer or borrower, including any exceptions to coverage.
defects in title patents
Defects are aspects of the works that are not in accordance with the contract. Defects can be ‘patent’ or ‘latent’: Patent defects are those which can be discovered by reasonable inspection.
quiet title action
Used to submit a discrepancy in title to a court for the judge to make a ruling. Unless the issue is complex, the request to have it reconveyed will usually be granted
title plant
Instead of visiting the county recorders office to search public records, title companies have established their own facilities where they store copies of all public records they obtain from the county’s recorder office. These plants contain vast computer databases of all public records from the county in which the property is located.
title search
The title process begins with a thorough and diligent search of all title records and public documents
Real Estate Encumbrances
Real Estate Encumbrances: Deed Restrictions, Liens, Easements, and Encroachments. An encumbrance is a claim or liability against real estate, held by someone other than the fee owner of the property that affects the title to the property, and therefore its value.
