Title Flashcards
Title is the legal evidence of ownership of a property.
Title
Title is transferred when a deed has been
delivered and accepted.
primary purpose of a deed is to
transfer title or rights of ownership from one party to another.
Equitable title
is the present right to possession with the right to acquire legal title once a preceding condition has been met.
Legal title
is usually title without ownership rights such as the title placed in a trustee under a Deed of Trust or the title in a vendor under a land contract.
In a Deed of trust the trustee receives what
legal title which gives them the right to sell incase of default.
Sales contracts, land contracts and deeds of trust represent what
equitable title of the buyer.
The buyer is expected to receive what during the sales transaction
legal title, after the preceding condition has been met the transaction
lender is said to have given Constructive Notice when
lender puts a lien on the property
Constructive notice is
Notice of certain facts which are implied bylaw to a person because he could have discovered the fact by reasonable diligence or by inquiry into public records
Difference between Actual Notice and Constructive Notice is
Actual notice is Notice a party receives in fact or in realty,
as compared with constructive notice which is implied or inferred.
An example of actual notice would be the reading of a legal notice in a newspaper.
actual notice example
A title search would reveal a chain of title
A chain of title is an analysis of the transfers of title throughout the history of the property.
cloud on title.
is a defect in the title of property which prevents the title from being good and marketable.
Ex of cloud on title
Amanda Bauer owns a property as single woman than marries Stephen Belkin and takes on Stephens’s last name. She is now Amanda Belkin, However on title it still says Amanda Bauer, and this would be a cloud on title.
Clear title is
title that is good and marketable, meaning free from encumbrances such as liens.
Title insurance protects the policy holder from
losses arising in defects of title
No title policy covers everything
example of an item that is not covered by any policy would be changes in land use brought about by zoning.
Subrogation is
the substitution of once creditor for another. Subrogation allows the title insurance company to sue the guilty party in order to recover any claims they have paid to the seller to settle a title claim.
To satisfy a claim a title insurance company will require the policyholder to
subrogate their rights to the title company.
There are two types of title insurance policies
the lenders policy and the borrowers policy.
As the principal loan amount decreases the lenders coverage decreases, that is untill
final payment is made and then the lender no longer has coverage.
If there is a defect in title which was covered by the title policy the title company will
defend the policy holder and pay attorneys fees.
Title insurance standard coverage.
Defects that are found in public records Forged documents Incompetent grantors Incorrect marital statements Improper delivery of deeds
Title insurance extended coverage.
Extended coverage include everything in a standard policy plus defects found in a property inspection. Which would include unrecorded rights of parties in possession, examination of survey. unrecorded liens, not known by a policy holder.
