Title Records

Question 1

Constructive notice

Answer 1

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 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

Inquiry notice

Answer 3

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

Question 4

suit to quiet title

Answer 4

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

Question 5

title search

Answer 5

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

Question 6

Marketable Title Act

Answer 6

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 7

abstract of title

Answer 7

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

Question 8

certificate of title

Answer 8

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 9

attorneys opinion of title

Answer 9

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 10

title insurance

Answer 10

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

Question 11

subrogation

Answer 11

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 12

standard coverage

Answer 12

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

Question 13

extended coverage

Answer 13

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

Question 14

torrens system

Answer 14

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

Question 15

uniform commercial code (UCC)

Answer 15

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.

Question 16

security agreement

Answer 16

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 17

financing statement

Answer 17

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