(Ch. 8) Vocab (Title & Title Protection)

Question 1

A formal declaration made by the person signing the document that he is indeed that person, signing the document as a free and voluntary act.

Answer 1

Acknowledgment

Question 2

When one knows of a fact concerning a property through direct knowledge or observation, or when notice is expressively or actually giving

Answer 2

Actual Notice

Question 3

A party who has paid value for an estate or other interest in real property without actual or constructive notice of an already existing state or interest in the same parcel.

Answer 3

Bona fide Purchaser

Question 4

Notice that is deemed to be given because the facts to which it relates are readily available or would be obvious from inspection.

Answer 4

Constructive Notice

Question 5

A condensed historical record of all grants affecting the property including all the deeds, mortgages, wills and judicial proceedings together with all other recorded liens and encumbrances affecting title

Answer 5

Abstract of Title

Question 6

A national association of more time than 2,000 land title companies established to encouraged uniformity and quality in the title insurance policies

Answer 6

ALTA

Question 7

A sequential history of the conveyances, encumbrances and records of ownership to a piece of property through the years from the original grant to present, as revealed through the public records. (Back 60 years)

Answer 7

Chain of Title

Question 8

A promise, such as that by a title insurer to write a specific policy of title insurance in favor of a named insured in a specific amount, subject to the requirements, exceptions, conditions and stipulations contained in the form. (Title Report or Binder)

Answer 8

Commitment

Question 9

Elected official in many US states who is responsible for the documents and records of a county

Answer 9

County Clerk’s Office

Question 10

A person to whom a gift is made

Answer 10

Donee

Question 11

Title policy that insures the interest of a mortgage or lender to the title or real property.

Answer 11

Mortgagee or Loan Policy

Question 12

An officer of the court who is authorized to take acknowledgements to certain document, such as deeds and mortgages, and before whom affidavits may be sworn

Answer 12

Notary Public

Question 13

Document which shows the seller transferred their legal ownership

Answer 13

Owner’s Title

Question 14

The entrance of writing instruments into the public record to serve as constructive notice to the world of their existence

Answer 14

Recording

Question 15

The right to take legal action against a third party responsible for a loss to an insured for which a claim has been paid

Answer 15

Subrogation

Question 16

A contract of indemnity under which a title insurance company, for one time payment, agrees to indemnify the insured, thus the risk of loss as in other insurance policies is transferred from the property owner or beneficiary to an insurance company.

Answer 16

Title Insurance

Question 17

A promise, such as that by a title insurer to write a specific policy of title insurance in favor of a named insured in a specific amount, subject to the requirements, exceptions, conditions and stipulations contained in the form. (Title Report or Binder)

Answer 17

Title Report

Question 18

An examination of public records to records to determine if the seller of real estate holds the interest that he alleges to hold and to ascertain

Answer 18

Title Search

Question 19

Those matters that the policy expressively indicates are not within the coverage provided

Answer 19

Exclusions

Question 20

They are matters that the title company cannot insure because they constitute objections to title.

Answer 20

exceptions

Question 21

Search conducted to reveal any matters of record which have occurred between the time of the initial search and the closing of title

Answer 21

Continuation

Question 22

outstanding claim or encumbrances which would impair the seller’s ability to pass clear title.

Answer 22

Cloud on Title

Question 23

If legal action is necessary to clarify the status of title

Answer 23

Action To Quiet Title

Question 24

Title which, according to the court, is sufficiently free of defects and liens that the purchaser must accept the title’s condition as satisfactory.

Answer 24

Marketable Title