Title Records Flashcards
an individual has direct knowledge of documents in the public records and facts revealed by an inspection of the property.
Actual Notice
a document is assumed when due diligence (such as a search of public records and inspection of the property) would reveal its existence.
Constructive notice
a summary report of what the title search reveals, prepared by an abstractor or an attorney
abstract of title
includes all recorded liens and encumbrances and lists records searched but does not indicate forgeries and interests that are unrecorded or could be discovered by property inspection
abstract of title
one that a reasonably well-informed and prudent purchaser would accept because it does not have serious defects and does not rely on doubtful questions of law or fact to prove its validity, so that it does not expose the purchaser to litigation or threaten the purchaser’s quiet enjoyment of the property.
marketable title
issued as an owner’s policy or mortgagee’s policy and protects the insured from losses arising from defects in title and hidden defects, but it also identifies exclusions from coverage that typically include readily apparent title defects, zoning, and others.
Title insurance
provides a certificate of title issued by the county clerk that requires no further search to validate.
Torrens System
Evidence of marketable title
proof of ownership
To be eligible for recording, and thus made part of the public record, a document should be
drawn and executed according to state law.
In many states, acceptable proof of good title to real estate is bolstered by the purchase of
Title insurance
the record of a property’s ownership.
chain of title
The legal process used to clear a title is
suit to quiet title
MOST contracts state that the seller is responsible for providing what type of title to the property?
marketable title
provides a certification system for qualifying title insurance companies.
Marketable Title Act
certificate of title may be prepared by
a title company.
an attorney.
a licensed abstractor.
revealed by a title search
mortgage
mechanic’s lien.
property taxes.
A title that has no defects that could carry over as a problem for the next property owners is called
marketable title
In some areas of the country, acceptable proof of title is an abstract and
attorney’s opinion of title.
A title that has no defects that could carry over as a problem for the new owner at whatever time the new owner decides to sell the property.
marketable title
What does marketable title mean?
free of defects
any document, claim, unreleased lien, or encumbrance that might invalidate or impair a title to real property or make the title doubtful.
cloud on title
A document that protects against hidden risks, such as forgeries and loss due to defects in the title, and is subject to specific exceptions is called
Title insurance policy
At MOST closings, what is the number of title policies issued?
2
traditionally covered by a standard title insurance policy?
Improperly delivered deeds
A policy of title insurance typically does NOT cover
zoning changes.
Which of the following is NOT covered by an extended title insurance policy?
Defects and liens listed in the policy
A lender making a loan secured by a mortgage will probably require the borrower to purchase
a mortgagee’s title insurance policy.
Evidence of marketable title includes which of the following?
Title insurance policy
Defects and liens listed in the title policy are included in the policy as
exclusions
Extended coverage in an owner’s title insurance policy would cover
Unrecorded liens not known by the policyholder
