Kelly Cards- Clearing Title Flashcards
Oil and gas leases, pipeline agreements or anything else related to the sale of oil and gas is an exception that only appears on which policy
Loan Policy
What is listed in Schedule B of an Owner’s Policy?
Final exceptions which could NOT be removed
Type of exception that is discovered upon examination of that piece of real estate to be insured as affecting its title
Specific Exceptions
Type of exception that is common and usually used on each policy and not usually found in public record (could differ state by state)
Standard or General Exceptions
Examples of Specific Exceptions
mortgages, liens, easements, set back lines, restrictions, current real estate taxes not yet due and payable
A charge or interest in the property to secure payment of a debt or performance of an obligation or duty
Lien
What are the two types of liens
Voluntary and Involuntary Liens
Type of lien that is created by the actions of and with the cooperation of the debtor
Voluntary Lien (ex: mortgages, leases, etc)
Type of lien that is created by a creditor without the cooperation of the debtor
Involuntary Lien (ex: federal, state, private, tax liens, etc)
How does a lien holder enforce a lien?
Through foreclosure or other involuntary sale
Length of time a federal tax lien is good for?
Valid for 10 years and 30 days from the date of assessment
Length of time a federal judgement lien is good for?
Valid for 20 years and is renewable
Length of time a private judgement lien is good for?
Valid for 5 years from the date of the judgement or date of issuance of the last execution (whichever is later)
Length of time a mechanics lien is good for?
6 years from the date of judgement (this is considered a private lien but is the exception to the standard 5 years for private)
Length of time a State of Ohio Judgement is good for?
Valid for 15 years from the date of issuance
What is another word for riparian?
Water rights
The gradual deposit of solid material by water so as to create dry land
Accretion
(page 159 -
What happens when a mineral estate is severed from the surface estate?
It creates a separate chain of title of ownership of the mineral estate
An insolvent party may seek relief when debts exceed assets
bankruptcy
What is an automatic stay in bakruptcy?
No other liens can be attached to the property while under court protection
What are the two main issues that probate handles?
Decedent’s estates and guardianships
When a person dies without a will?
Intestate
When a person dies with a will?
Testate
What are the 4 ways to clear title?
Release, Assignment, Subordination, Affidavit
(page 166-167
Can an affidavit act as an instrument of conveyance alone?
No
Document that explains a discrepancy in a title chain
Affidavit of Facts in aid of title
What does RESPA stand for
Real Estate Settlement Procedures Act
(consumer protection statute)
What is the purpose of RESPA and when did the law pass?
- help consumers become better shoppers for escrow services
- to eliminate kickbacks and referral fees that can increase escrow service costs
- Passed in 1974
What does section 8 of RESPA explain? (page 168)
It is prohibited to give or accept any fee, kickback or something of value in exchange for their use of settlement services
In order to have a legal joint venture and comply with RESPA guidelines, what steps must the agent take in regards to the client?
- Consumer must receive a disclosure of the nature of the relationship and estimated charges
- Consumer must be made aware they are not required to use this business
3.The only thing of value is a return on the ownership interest (not someone taking you out for an evening in exchange for services)
