Title And Insurance Flashcards
Also known as the title examination, is necessary to determine ownership and quality of the title prior to conveyance.
Title search
A clear and unbroken chronological record of ownership of a specific piece of property.
(A gap in this creates uncertainty which is referred to as a cloud on the title, and is also called color of title)
Chain of title
Also known as opinion of title, this is a document prepared by an attorney stating the attorney’s opinion of the status of the title to a piece of property after performing a title search and/or reviewing the abstract of title.
Certificate of Title
A document stating only the current title status of a piece of property. This report, sometimes called a title guaranty, shows objections to clear title such as Karen easements, liens, pending lawsuits, or unpaid mortgages.
Title report
( also referred to as a vendor’s affidavit) is a statement, sworn in front of a notary public or other authorized official, by the seller or grantor of property that identifies the grantor, identifies the grantors marital status, and certifies that the grantor has no new judgments, liens, divorces, and recorded deeds, other potential defects since the title examination was completed. It certifies that the grantor is in possession of the property.
Affidavit of title
This is an insurance policy that protects the policyholder against loss or damages from defects to the title.
Title insurance policy
To a real estate agent this can serve as a checklist to make sure all things are in order so that the sale can go to settlement & that payment can be received.
Tittle Report
Means it’s all yours and no one else’s interest in the property
Clear title
This protects both the buyer and the lender.
Does not cure defects, but insurance against losses due to title defects, other than those specifically included. Requires a one time premium to be paid at settlement. Does not cover the policy holder against future events.
Title insurance
The company issuing title insurance usually reserves the right to pursue third parties to regain and reclaim money. This is called…
Subrogation
This type of Insurance covers Hidden risks in title such as:
Forgeries, deeds delivered after the death of the grantor, missing or undisclosed areas, deeds by minors, mistaken legal interpretation of wills.etc.
Standard title insurance coverage
This policy for example, covers additional defects in title that may be discovered only through the actual inspection of a survey. This policy (often required by lenders)protects the property owner from unrecorded liens, provided the new property owner did not have actual notice of the liens.
Extended title insurance coverage
Classes of title insurance 1/4:
Issued in the name of the property owner with coverage which runs from the time of the purchase for as long as the policyholder owns the property.
Owners policies
Classes of title insurance 2/4:
Issued in the name of the lender to protect its interest in the property with coverage for the loan amount outstanding at the time the claim is paid.
Mortgagee’s policies
Classes of title insurance 3/4:
A less common type of title insurance obtained by lessees when a substantial amount of money is invested in the property such as for building owned on leased land.
Leasehold policies
