Section 2 - Chapter 13

Question 1

recording is:

Answer 1

the act of placing documents in the public record

Question 2

constructive notice is:

Answer 2

legal presumption that information may be obtained by due diligence

Question 3

actual notice or direct knowledge is:

Answer 3

someone specifically has been given the information and knows it for sure

Question 4

priority is:

Answer 4

order of rights in time

Question 5

chain of title is:

Answer 5

record of the property’s ownership

Question 6

suit to quiet title is:

Answer 6

court action to establish ownership

Question 7

abstract of title is:

Answer 7

summary report of what the title search found in the public record

Question 8

marketable title must:

Answer 8

have no defects, not threaten hazard of litigation, allow to sell the mortgage at a later time — proof of ownership is evidence that title is marketable

Question 9

certificate of title is:

Answer 9

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

Question 10

title insurance is:

Answer 10

a contract under which the policy holider is protected from loses arising from defects in the title

Question 11

subrogation is:

Answer 11

title company’s right to any remedy or damages available to the insured

Question 12

proof of ownership of title by 3 ways:

Answer 12

certificate of title, abstract and attorney’s opinion, and title insurance (title insurance best way)