Title Records

Question 1

Title Records

Answer 1

required by law to provide legal, public, and constructive notice to the world of interest or rights in real estate. There are laws that require parties in a real estate transaction to give legal and constructive notice of their interest. It is known as recording and comes under the recording acts

Question 2

SC Note *

Answer 2

All deeds in S.C should be recorded IMMEDIATELY. Deed first recorded has priority. (SC Rase Notice Jurisdictions)

Question 3

Documents Normally Recorded at the RMC or County Clerks Office

Answer 3

Deeds, Options to purchase, mechanic liens, releases, land contracts, easements, long-term leases, mortgages, contract of sale

Question 4

Documents NOT normally recorded are

Answer 4

real property taxes, special assessments

Question 5

Two forms of Notice

Answer 5

Recording and party in possession

Question 6

Construction Notice

Answer 6

a presumption of law that charges a buyer or lender with the responsibility of learning of record documents and their contents, where or not they have actually examined them (comes under the legal maxim of Caveat Emptor-let the buyer beware). Records are typically found in the RMC office.

Question 7

Actual Notice

Answer 7

direct knowledge - once public records have been searched and the property has been inspected for parties in possession, a person has actual notice upon receiving this information

Question 8

Chain of Title

Answer 8

show a recorded history of all matters that affect a title over a period of time. This includes ownership, encumbrances and liens. Each owner is linked so that a chain is formed. The history can be found in the Grantor-Grantee Indexes. If owners cannot be traced in the origin of the title, there is said to be a “gap” and a “Suit to Quiet Title” is necessary to establish ownership

Question 9

Evidence of Title

Answer 9

Effective proof is based on a search of public records so the buyer can be satisfied that evidence of the title exists by acquiring the title search and title insurance. The deed is not considered sufficient evidence of title

Question 10

Four Types of Evidence of title

Answer 10

Abstract or Title, Certificate of Title, Torrens System, Title Insurance

Question 11

Abstract of Title

Answer 11

(with lawyers opinion) - the buyers lawyer examines the abstract and writes a report called Attorneys Opinion. The lawyer is providing an opinion of the titles status, but does not provide any guaranteed of the title.

Question 12

Certificate of Title

Answer 12

(attorneys opinion of title) is issued by the purchasers attorney, title company or licensed based abstractor. It is saying he has examined the entire abstract from the origin of that title and gives the results of his evaluation

Question 13

Torrens System

Answer 13

(not used in SC) - a system for the registration of land, used to verify the ownership and encumbrances (except tax liens) without the necessity of an additional search of public records.

Question 14

Title Insurance

Answer 14

Indemnifies the insured against loss sustained as a result of defects in the title other than those exceptions listed in the policy. Standard and Extended Coverage

Question 15

Standard Coverage

Answer 15

usually insures against defects found in the public records plus such others as forged documents, documents of incompetent grantors, incorrect marital statements and improperly delivered deeds

Question 16

Extended coverage

Answer 16

Adds lists only discovered by inspection of the property, examination of survey, unrecorded liens, etc.

Question 17

Types of Titles

Answer 17

Marketable & Equitable

Question 18

Marketable Title

Answer 18

One that is relatively free of defects (seller –> buyer) so that the purchaser can be assured that there is little likelihood of having to defend the title. It does not necessarily mean a perfect title but one that is reasonable free from risk of litigation over possible defects. Sometimes referred to as a merchantable title

Question 19

Equitable Title

Answer 19

the interest held by any purchaser who has signed a valid and accepted contract of sale, or a vendee in a contract for deed, installment contract, or land contract. It is the right to ownership to property in the future (before closing, when the title is in another names.)

Question 20

Actual Notice

Answer 20

express information or fact, that which is know, direct knowledge

Question 21

Cloud on title

Answer 21

any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful ; usually revealed by a title search and removed by either a quit claim deed or suit to quiet title.

Question 22

Coinsurance Clause

Answer 22

A clause in insurance policies covering real property that requires the policy holder to maintain fire insurance coverage generally equal to at least 80% of the property actual replacement cost

Question 23

Homeowners Insurance Policy

Answer 23

A standard package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability.

Question 24

Multiperil Policies

Answer 24

Insurance Policies that offer protection from a range of potential perils, such as those of a fire, hazard, public liability and casualty. DO NOT INCLUDE FLOOD INSURANCE - SEPARATE