Title Records

Question 1

abstract of title

Answer 1

a summary report of what the title search found in the public record.

Question 2

Actual notice

Answer 2

means that not only is the information available but someone has been given the information and actually knows it. An individual who has searched the public records and inspected the property has actual notice.

Question 3

attorneys opinion of title

Answer 3

An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of the facts concerning the property ownership. used in some areas of the country as evidence of title.

Question 4

certificate of title

Answer 4

A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. Proof of ownership is established by this

Question 5

Constructive notice

Answer 5

legal presumption that information may be obtained by an individual through diligent inquiry. Properly recording documents in the public record serves as constructive notice to the world of an individual’s rights or interest. So does the physical possession of a property.

Question 6

extended coverage

Answer 6

1) property inspection 2) examination of survey 3) unrecorded liens not known of by policyholder

Question 7

financing statement

Answer 7

must be filed for a lender to create a security interest in personal property, including personal property that will become fixtures.

Question 8

Inquiry notice

Answer 8

notice that the law presumes a reasonable person would obtain by making further inquiry into a property.

Question 9

Marketable Title Act

Answer 9

This law extinguishes certain interests and cures certain defects arising before the root of the title—the conveyance that establishes the source of the chain of title.

Question 10

security agreement

Answer 10

Part of the Uniform Commercial Code (UCC), it is required for a lender to create a security interest in personal property by having the borrower sign it.

Question 11

standard coverage

Answer 11

1) defects found in public records 2) forged documents 3) incompetent grantors 4) incorrect marital statements 5) improperly delivered deeds

Question 12

subrogation

Answer 12

The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.

Question 13

suit to quiet title

Answer 13

A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.

Question 14

title insurance

Answer 14

a contract under which the policyholder is protected from losses arising from defects in the title.

Question 15

title search

Answer 15

The examination of public records relating to real estate to determine the current state of the ownership.

Question 16

torrens system

Answer 16

A method of evidencing title by registration with the proper public authority, generally called the registrar, named for its founder, Sir Robert Torrens.

Question 17

uniform commercial code (UCC)

Answer 17

a commercial law statute that has been adopted, to some extent, in all 50 states. The UCC is concerned with personal property transactions; it does not apply to real estate. The UCC governs the documents when personal property is used as security for a loan.