Unit 1 Chapter 9

Question 1

“Title”

Answer 1

The word “Title” refers to the collection of rights that a person has in the ownership of real property.

Question 2

title search

Answer 2

In order to qualify the Title, a title search must be done to reveal the legal description of the property, the owners
of record, and any outstanding liens or encumbrances on the property.

Question 3

legal title

Answer 3

Someone who possesses all ownership interests owns legal title to the property.

Question 4

Notice of title – how ownership is evidenced to the public

Answer 4

 Actual notice- knowledge acquired or imparted directly through demonstrable evidence, e.g., presenting
or inspecting a deed, visiting a party in possession.
 Constructive notice- knowledge one could or should have obtained, as presumed by law; imparted by
recording in public records “for all to see.”

Question 5

Evidence of Title

Answer 5

is proof of ownership of real property. The deed is the actual proof, but it is backed up by a
policy of title insurance, an abstract and opinion, or a Torrens certificate. It allows the buyer to determine exactly
what rights are being conveyed.
 Marketable title – free and clear and reasonably free from risk of litigation over defects.
 Cloud – defect that turns up in title commitment but is not identified in the sales contract.
 Patent defect – obvious and can be seen by any knowledgeable person.
 Latent defect – not obvious and could not be identified even by a knowledgeable person.

Question 6

Abstract

Answer 6

An Abstract is a paper record of all transactions concerning a particular piece of land; a history of ownership,
liens, and encumbrances. An abstract:
 must be certified to date of sale,
 is not alone legal evidence of marketable title, and
 is rarely used today due to bulk, age, fragile condition, and need to move them from office to office.

Question 7

Opinion

Answer 7

An Opinion is a letter from an attorney who has examined the abstract and deems the title as meeting all
ownership needs with no questions in its history.

Question 8

Abstract and opinion together DO NOT

Answer 8

protect against forged documents, rights of any parties in possession, and anything that has not been recorded.

Question 9

The Torrens system

Answer 9

is a legal method for the registration of property, used to verify the ownership and encumbrances (except tax liens) without the necessity of an additional search of the public records. The owner receives a Torrens Certificate, which is the title itself, not just evidence of title. Land held under Torrens registration is not subject to claims of adverse possession.