Chapter 10 - Title Records Flashcards
Which of the following is acceptable as the evidence of marketable title?
Title Insurance Policy
When the title insurance company settles a claim, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as
-subrogation
Which of the following would be used to clear a defect from the title records?
-Suit to Quiet Title
The part of the title insurance policy that sets forth all the encumbrances and defects that will NOT be insured against is called the …
-schedule of exceptions
An abstract of title does NOT provide evidence of title unless it is accompanied by …
-Certificate of title
The Uniform Commercial Code (UCC) is a commercial law that applies to:
-Personal Property Transactions
At closing, the title insurance policy includes all of the following EXCEPT:
-A record of all of the previous owners of the property
A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called …
-an abstract of title
When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is …
-an encumbrance
Generally, if some defect is found in the title to real property, the effect on a sales contract is that …
-the seller has a reasonable time to correct the defect.
All of the following are considered evidence of marketable title EXCEPT
- an abstract of title with a legal opinion
- a title commitment or title insurance policy
- a certificate of title by a real estate broker
- a certificate of title by a real estate attorney
-a certificate of title by a real estate broker
The recordation of a warranty deed
-protects the interest of the grantee
Documents affecting real estate are recorded or filed with the county in which the property is located to
-give constructive notice of the real estate interest
A document that projects against hidden risks, such as forgeries and loss due to defects in the title, subject to specific exceptions, is called
-a title insurance policy
The body of law that covers such topics as security agreements, financing statements, and bulk transfers is the
Uniform Commercial Code
The recording of a deed …
gives constructive notice of the ownership of real property
A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances, the …
-buyer’s interest is not fully protected against third parties.
The mortgagee purchases a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?
- The policy is issued for the benefit of the buyer
- The policy guarantees that the buyer’s equity will be protected.
- The amount of coverage is commensurate with the loan amount.
- The amount of coverage increases as the borrowers equity increases.
-The amount of coverage is commensurate with the loan amount.
A defect or a cloud on the title may be cured by
-Obtaining a quitclaim deeds from all interested parties.
All of the following are true regarding public records EXCEPT
- they give notice of encumbrances
- they establish priority of liens
- they guarantee marketable title
- they provide constructive notice about interest in the property.
-they guarantee marketable title
The primary reason a buyer obtains title insurance is …
to ensure that the abstractor has prepared a complete summary of title.
Quieting a title refers to
-the removal of a cloud on the title by court action
