Title Flashcards
What is another word for ownership in real estate?
Title
Title is not physical paper; evidence of ownership is recorded on deeds.
What is the purpose of a deed in real estate?
Used to convey title; serves as evidence of ownership.
Who is the grantor in a real estate transaction?
Seller who conveys title to the buyer.
Who is the grantee in a real estate transaction?
Buyer who receives title through the deed.
What role does an escrow/title officer play?
Neutral third party that holds funds and assets in trust until the contract is fulfilled.
What is an Abstract of Title?
A raw research certification that includes the property’s entire chronological history.
What does the Attorneys Opinion of Title provide?
An attorney examines an abstract and assesses its accuracy, offering minimal protection to the buyer.
What is a Chain of Title?
A historical report of all owners through each deed and recording.
What does a lender look for in a Chain of Title?
24-month consecutive chain and any red flags.
What is a Defect/Cloud on Title?
Encumbrances that need to be fixed before the buyer takes title.
How can a defect on title be cleared?
Through Quiet Claim Deed, Quiet Title Action, or recording an affidavit.
What does Marketable Title guarantee?
Seller promises clear title to resell at full market value.
What is meant by ‘run to record’?
Recording at the county recorder’s office with the recorder’s stamp.
Define Alienation in real estate.
Title transfer of real property from one person to another, either voluntary or involuntary.
What is a Quiet Title Action?
A lawsuit to establish title to real property.
What is a non-disclosure state?
A state where sales price is private, despite other ownership and mortgage information being public.
What does Title Insurance provide?
A limited guarantee of marketable title, protecting the buyer if problems are found later.
What does Title Insurance not cover?
Zoning restrictions, defects known but not disclosed, policy exceptions.
What is a PR Preliminary Report?
A contract to issue title insurance policy after closing, provided by the seller.
What is included in Schedule A of a PR Preliminary Report?
General details of the transaction, verifying accuracy of date, parties, owners, policy, lender, and address.
What is found in Schedule B1 of a PR Preliminary Report?
Requirements section outlining what must happen for title insurance to insure the property.
What does Schedule B2 of a PR Preliminary Report detail?
Exceptions/exclusions, stating what is and isn’t insured.
What is the difference between general, standard, and special exceptions in title insurance?
General affects every property; standard is on every commitment; special is property tax exception.
What is an Owners Policy in title insurance?
Policy purchased by the seller to protect the buyer, covering defects and ensuring quiet title.
What does ALTA stand for?
American Land Title Association.
What is the ALTA Homeowners Policy?
A residential policy with 28 coverages, not applicable for raw ground or vacant lots.
What does a Lenders Policy protect?
Protects the lender and grants the ability to foreclose the full loan amount.
What is subrogation in title insurance?
The process where the insurance company investigates fault after sustaining a loss.
Define actual notice.
Written notice.
Define constructive notice.
Information obtained through means other than written notice.
