Closing Process Flashcards
Title defects include:
Claims of interest in property by missing heirs or breaks and gaps in the chain of title where ownership cannot be traced from owner to the next.
Marketable
The title must be free from reasonable objections- no serious defects, liens or encumbrances clouding the title.
Complete record of all the recorded instruments affecting the subject property back to the original source, which is often a conveyance from the gov to a private person.
Chain of title
Court action to remove a cloud in title is called
Quiet title action
Title evidence:
Evidence of marketable title and assurance that someone other than he will take whatever action necessary to make the title marketable.
Abstract of Title
A digest in chronological order of the title history to a particular parcel or real estate.full historical summary but holds no guarantee or insurance of title.
Certificate of Title
An opinion if the title without the title abstract. Searched pub records- led to title being properly vested in present owner.
Title registration (torrens system)
Owner submits an abstract of title to the court and files a quiet title suit.
Title insurance
An instrument or doc that protects insured parties against loss by encumbrances, defective title, or adverse claim to title.
Cloud on Title is:
Any item limiting or restricting ownership of the property.