RP UNIT7 Flashcards
What is the purpose of public records?
To give the public legal and constructive notice of written documents that affect real estate
Who maintains public records?
Recorders of deeds, County clerks, County treasurers, City clerks, Collectors, Clerks of courts
Define constructive notice.
The legal presumption that information is available and may be obtained through due diligence
What is actual notice?
Direct or actual knowledge including knowing what has been recorded and personal inspection of the property
What does the act of recording entail?
Placing documents in the public record
Where must documents be recorded according to recording acts?
In the county (or town in some states) where the real estate is located
What does a recorded document usually reveal?
The condition of title
How is priority generally established?
By the date and time of recording
What are unrecorded documents?
Specific liens like real estate tax liens and statutory liens such as inheritance tax liens
What is a chain of title?
Record of a property’s ownership linking the passage of ownership to subsequent owners
What happens if there is a gap in the chain of title?
A suit to quiet title is required to establish ownership
What is a title search?
An examination of public records to determine defects in the chain of title
How long does a title search typically cover?
40–60 years or other definite period depending on state statute
What is an abstract of title?
A summary report of items about a property found in public record
What is required for a title to be considered marketable?
No serious defects and must not depend on doubtful questions of law or fact
What does unmarketable title mean?
Can still be transferred but its defects may limit or restrict ownership
What does a certificate of title represent?
A statement of opinion of the title’s status as of the date of the certificate
Who prepares a certificate of title?
A title company, licensed abstractor, or an attorney
What is the role of title insurance?
Insures the policyholder against loss due to defects in the title
What does a preliminary report of title include?
Name of insured party, legal description of property, estate or interest covered, conditions and stipulations, schedule of exceptions
What are typical exclusions from title insurance policies?
Defects and liens listed in the policy, defects known to the buyer, changes in land use due to zoning ordinances
What is the Torrens system?
A system where written application to register the title is made with the county court
What does the registrar issue in the Torrens system?
Certificate of title
Fill in the blank: A title is marketable if it does not expose a purchaser to the hazard of _______.
[litigation]
True or False: A title search begins with the original source of ownership.
False
