Chapter 11: Recording Title Flashcards
What two objectives does recording a title achieve?
- People can check the condition of titles.
2. Provides protection for owners with existing interest in the property
Where are documents recorded?
In the county where the land in located
Define the three kinds of notices.
Constructive notice: info made public; presumed to know it
Actual notice: direct knowledge gained by reading, seeing, hearing
Inquiry notice: presumed when a reasonable person would have made further inquiries
What is a title cloud and how do you clear it?
It is a title defect of any claim or encumbrance. The process of removing it is called perfecting the title.
What is a title search or title examination?
Looks at records to see who has rights of the property and the condition of the title.
What is an abstract?
A condensed history of all documents affecting title.
What is a chain of title?
A record of the property’s ownership. A missing owner is called a gap.
What is a quiet title lawsuit?
Removes clouds on the title.
Are all documents/assessments recorded?
No, real estate taxes and special assessments do not need to be recorded. Other liens against all property of a person do not need to be recorded.
What is marketable title?
Title free from major defects.
What is a color of title?
A claim of title that is good, but is not.
What 3 kinds of records could be searched in a title search?
- Title record indexes
- Tax records
- Court records
What are the four evidences of proof of ownership?
- Abstract with attorney’s opinion
- Torrens certificate
- Certificate of title
- Title Insurance
What is the abstract of title with lawyer’s opinion?
She reads the abstract and gives her opinion, but doe snot provide any guarantees of title.
What is the Torrens system?
Used to assure and record title in a small # of states. Torrens certificates are prepared in duplicate.
What is a certificate of title?
Prepared by title company after a title search. It expresses the opinion of the title status. no abstract issued.
Do abstracts and certificates guarantee title?
No, there may undetected defects.
What is title insurance?
It indemnifies the owner against loss due to title defects.
How much does an owner’s title insurance policy cover?
The amount paid for the property.
How much does a lender’s title insurance cover?
The loan amount.
What is a certificate of sale policy?
Insures a purchaser of real estate at a court sale.
Define subrogation.
A title company obtains the insured’s legal rights to defend a claim against title.
What is standard coverage title insurance?
Protects against defects in public records, documents, etc…
What is extended coverage?
Protects against defects only found through inspection of the property.
