Chapter 13

Question 1

Recording

Answer 1

• The act of placing a document in the public record.

- Any recording of real estate must be recorded in city or county property is located.

Question 2

Notice

Answer 2

Constructive notice: notice that is available

Actual notice: notice that is available and known.

• notice to the world

Question 3

Priority

Answer 3

The order of when documents or liens were recorded.

Question 4

Unrecorded documents

Answer 4

Certain types of liens are not recorded until they are past due.

• Real estate taxes
• Special assessments

Question 5

Chain of title

Answer 5

The record of ownership from who owns the property now, to all the way back to the first recoded owner.

Question 6

Gap (or cloud) in the chain of title

Answer 6

This happens when someone gets title under one name and transfers it under another. Or when there is a forged deed.

Question 7

Suit to quiet title

Answer 7

A court action to establish ownership of property which has a cloud or gap in the chain of title.

Question 8

Title search

Answer 8

An examination of all public records to determine if there are any defects in the title.

Question 9

Abstract of title

Answer 9

The report of the title search prepared by “an abstractor”.

The report doesn’t reveale any encumbrances which haven’t been recorded

Question 10

Marketable title

Answer 10

The type of title a seller must provide.

• disclose no serious defects or doubtful
• not expose buyer to hazard of litigation.
• well informed and prudent purchaser acting on business principals.

Question 11

Unmarketable title

Answer 11

Once buyer has accepted a deed with unmarketable title, the only legal recourse is to sue under any covenants of warrantee contained in deed.

Question 12

Certificate of title

Answer 12

A statement of opinion of title status on the date of issue.

• used as proof of ownership but not guaranteed.
• unrecorded encumbrances will not be discovered.
• forged documents will not be discovered

Question 13

Attorneys opinion of title

Answer 13

Similar to a certificate of title.

Doesn’t legally protect against defects that are not discovered in public record.

Question 14

Title insurance

Answer 14

Insurance on title defect.

• pay once.
• insures against future losses

Question 15

Preliminary report of title

Commitment to issue title priority

Answer 15

This describes the type of policy that will be issued after abstract of title

Question 16

Title coverage

Standard policy coverage

Answer 16

• insures title as it is known through public record.
• insures against hidden defects such as forged documents
  Conveyance through incompetent grantor
  I properly delivered deeds

Question 17

Title coverage

Extended coverage

Answer 17

American land title association (ALTA)

• Defects that may be discovered upon inspection.
• unrecorded liens.

Question 18

Torrens system

Answer 18

A system of registering titles.