Title

Question 1

Title is the legal evidence of ownership of a property.

Answer 1

Title

Question 2

Title is transferred when a deed has been

Answer 2

delivered and accepted.

Question 3

primary purpose of a deed is to

Answer 3

transfer title or rights of ownership from one party to another.

Question 4

Equitable title

Answer 4

is the present right to possession with the right to acquire legal title once a preceding condition has been met.

Question 5

Legal title

Answer 5

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.

Question 6

In a Deed of trust the trustee receives what

Answer 6

legal title which gives them the right to sell incase of default.

Question 7

Sales contracts, land contracts and deeds of trust represent what

Answer 7

equitable title of the buyer.

Question 8

The buyer is expected to receive what during the sales transaction

Answer 8

legal title, after the preceding condition has been met the transaction

Question 9

lender is said to have given Constructive Notice when

Answer 9

lender puts a lien on the property

Question 10

Constructive notice is

Answer 10

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

Question 11

Difference between Actual Notice and Constructive Notice is

Answer 11

Actual notice is Notice a party receives in fact or in realty,

as compared with constructive notice which is implied or inferred.

Question 12

An example of actual notice would be the reading of a legal notice in a newspaper.

Answer 12

actual notice example

Question 13

A title search would reveal a chain of title

Answer 13

A chain of title is an analysis of the transfers of title throughout the history of the property.

Question 14

cloud on title.

Answer 14

is a defect in the title of property which prevents the title from being good and marketable.

Question 15

Ex of cloud on title

Answer 15

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.

Question 16

Clear title is

Answer 16

title that is good and marketable, meaning free from encumbrances such as liens.

Question 17

Title insurance protects the policy holder from

Answer 17

losses arising in defects of title

Question 18

No title policy covers everything

Answer 18

example of an item that is not covered by any policy would be changes in land use brought about by zoning.

Question 19

Subrogation is

Answer 19

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.

Question 20

To satisfy a claim a title insurance company will require the policyholder to

Answer 20

subrogate their rights to the title company.

Question 21

There are two types of title insurance policies

Answer 21

the lenders policy and the borrowers policy.

Question 22

As the principal loan amount decreases the lenders coverage decreases, that is untill

Answer 22

final payment is made and then the lender no longer has coverage.

Question 23

If there is a defect in title which was covered by the title policy the title company will

Answer 23

defend the policy holder and pay attorneys fees.

Question 24

Title insurance standard coverage.

Answer 24

Defects that are found in public records
Forged documents
Incompetent grantors
Incorrect marital statements
Improper delivery of deeds

Question 25

Title insurance extended coverage.

Answer 25

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.