Real Estate Transfer of Property Flashcards
chain of title
A history of conveyances and encumbrances
affecting the title from the time the original
patent was granted, or as far back as records
are available, used to determine how title came
to be vested in current owner.
title conditions
Encumbrances such as liens, conditions,
covenants and restrictions and easements which
affect title to property.
title insurance
A form of indemnity insurance in which title
insurance company holds harmless a person
who acquires an interest in real estate against a
monetary loss caused by an encumbrance on
title that is not listed in the policy and the insured
was unaware of when the policy was issued.
property profile
A report from a title company providing
information about a property’s ownership,
encumbrances, use restrictions and comparable
sales data.
cloud on title
A claim, encumbrance or condition which
impairs the title to real property until disproved or
eliminated as for example through a quitclaim
deed or a quiet title legal action.
assignment
A transfer to another of any property in possession
or in action, or of any estate or right therein. A
transfer by a person of that person’s rights under
a contract.
abstract of title
A summary or digest of all transfers, conveyances,
legal proceedings, and any other facts relied
on as evidence of title, showing continuity of
ownership, together with any other elements of
record which may impair title.
title
Indicates fee position of lawful ownership and
right to property. Bundle of Rights possessed by an
owner. Combination of all elements constituting
proof of ownership.
ALTA title policy (American
Land Title Association)
A type of title insurance policy issued by title insurance
companies which expands the risks normally insured
against under the standard type policy to include
unrecorded mechanic’s liens; unrecorded physical
easements; facts a physical survey would show; water
and mineral rights; and rights of parties in possession,
such as tenants and buyers under unrecorded
instruments.
conveyance
An instrument in writing used to transfer (convey)
title to property from one person to another, such
as a deed or a trust deed.
recording
The process of placing a document on file with a designated public
official for public notice. This public official is usually a county officer
known as the County Recorder who designates the fact that a
document has been presented for recording by placing a recording
stamp upon it indicating the time of day and the date when it was
officially placed on file. Documents filed with the Recorder are
considered to be placed on open notice to the general public of
that county. Claims against property usually are given a priority on
the basis of the time and the date they are recorded with the most
preferred claim going to the earliest one recorded and the next claim
going to the next earliest one recorded, and so on. This type of notice
is called constructive notice or legal notice.
preliminary title report
A report constituting a revocable offer by a title
insurer to issue a policy of title insurance used
by a buyer and escrow to initially establish the
current vesting and encumbrances attached to
title of a property as reflected by public record.
