(Lesson 2) Title Records (Unit #13)

Question 1

Public records relating to real estate

Answer 1

There are public records on each parcel of real estate in a city or county. Public records are crucial in showing who owns land, notice of encumbrances, and establishing priority of liens,

Public records are maintained by:

• recorders of deeds
• county clerks
• county treasures
• city clerks
• collectors
• clerks of court

Question 2

define recording relating to real estate

Answer 2

recording is the act of placing documents in the public record.. recording is essentially for any estate, right, title, or interest in land and these recordings are placed in the appropriate county where the land is located to serve the public.

Question 3

Define notice and constructive notice vs actual notice

Answer 3

Notice: anyone who has an interest in a particular parcel of land and give notice.

Constructive notice: is the legal presumption that information is readily available to through public records. Any individual may access these records for interest of property through due diligence.
**could or should know with reasonable inquiry

Actual notice: an individual who has searched the public records and inspected the physical property. (called direct knowledge)
**knows for certain by personal service

Question 4

define priority in relating to real estate

Answer 4

priority refers to the order of rights in time.

many complicated situations can affect priority of rights in a parcel of real estate.

Question 5

Unrecorded documents

Answer 5

Real estate taxes and special assessments are liens that are usually not recorded on specific parcels of land until sometime after the taxes or assessments are past due.

Question 6

Define chain of title

Answer 6

is a record of the earliest owner to the current owner. It is in order so it forms a chain.

Question 7

Define suit to quiet title

Answer 7

if ownership is broken, or there is a cloud in the chain of title then it is necessary to establish ownership by suit of quiet title. A court action suit where the judge files ownership.

Question 8

Define title search

Answer 8

a title search is an examination of all the public records to determine whether any defects exist in the chain of title.

Question 9

define abstract of title

Answer 9

an abstract of title is a summary report of what the title search found in the public record.

Question 10

Define marketable title

Answer 10

after sale of a real estate sales contract, the seller is required to obtain and deliver a marketable title.
A marketable title is as follows:

• disclose no serious defects and not depend on doubtful questions of law or fact to prove its validity
• not expose a purchaser to the hazard of litigation or threaten the quiet enjoyment of the property; and
• convince a reasonably well informed prudent purchaser, acting on business principles and with knowledge of the facts of their legal significance, that he could sell or mortgage the property at a later time.

Question 11

marketable title vs insurable title

Answer 11

a marketable title means that the chain of title if free from defects.. should any problem occur the title insurer will cover the issue as per the insurance policy.

Question 12

proof of ownership in illinois

Answer 12

a deed by itself is not considered sufficient evidence of ownership in Illinois. the grantee needs some assurance that he is actually acquiring the ownership and that the title is marketable. A certificate of title or title insurance is commonly used to prove ownership.

Question 13

define certificate of title

Answer 13

a certificate of title is a statement of opinion regarding title status on the date the certificate is issued.

Question 14

Define title insurance

Answer 14

title insurance is the contract under which the policyholder is protected from losses arising from defects in the title.