Chaoter 13

Question 1

Abstract of Title

Answer 1

A condensed history or digest of the title to a parcel of land consisting of a summary of every recorded instrument, together with a statement of all Leon’s, charges or encumbrances affecting title to that land.

Question 2

American Land Title Association (ALTA)

Answer 2

An extended coverage title insurance policy usually protecting the mortgagee against loss due to errors in the public records.

Question 3

Certificate of Title

Answer 3

Issued by a title company, it assures good title as required by a buyer.

Question 4

Chain of Title

Answer 4

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; the succession of owners as revealed through the public records.

Question 5

Contingency

Answer 5

Dependent upon an uncertain future event.

Question 6

Escrow

Answer 6

The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement of contract.

Question 7

Good Funds Act

Answer 7

Requires Escrow to clear all funds and checks before closing.

Question 8

Grantor/Grantee Index

Answer 8

Books found in Bureau of Conveyance showing respective grantor to grantee; or grantee to grantor by year, alphabetically.

Question 9

Land Court

Answer 9

A court designated to preside over the registration of land under the Torrens system; the court which is used to verify title.

Question 10

Lien Letter

Answer 10

A limited title search issued to cover Land Court property in Hawaii.

Question 11

Regular System (Abstract)

Answer 11

For property registration. Deed stamp on the right.
Evidence of title.
VS Land Court (Torrens)

Question 12

Title Insurance

Answer 12

A policy of insurance that indemnifies the holder for loss sustained by reason of a defect in the title, provided the loss does not result from a defect excluded by the policy provisions.
Protects against:
Forgery
Undisclosed heirs
Mistaken legal interpretation of wills
Misfiled documents, unauthorized acknowledgments
Confusion arising from similar names
Incorrectly given marital status or mental incompetence

Question 13

Owner’s policy

Answer 13

Benefit of the owner. Seller pays 60%, buyer pays 40%.

Question 14

Lenders policy

Answer 14

Also called mortgagees policy.
Buyer pays.

Question 15

Torrens System

Answer 15

A system for the registration of land under state law indicating the status of the title, including ownership and encumbrances, without the necessity of additional search of the public records.
Land Court
Set up in 1903
Deed stamp on Left
Must be registered to transfer title.

Question 16

Transfer Certificate of Title (TCT)

Answer 16

The Land Court registration document assigned to a property.