Unit 1 Chapter 9 Review

Question 1

What does a title search reveal?

Answer 1

Legal description of property, owners of record, outstanding liens or encumbrances

Question 2

What is the distinction between legal title and equitable title?

Answer 2

Legal title is possessing all ownership interests to a property, while equitable title is the interest or right to obtain legal title to a property through a sale between legal owner and buyer.

Question 3

Give some examples of when one might own equitable title rather than legal title.

Answer 3

The buyer, during the period of contract contingency; a mortgagee who has the right to execute a strict foreclosure of the mortgage property (in a lien-theory state); a mortgagor (borrower) in a title-theory state; the buyer under a contract for deed purchase until the contract is fulfilled; the holder of an option to buy.

Question 4

What is an abstract, and is it considered legal evidence of a marketable title?

Answer 4

An abstract is a paper record of all transactions concerning a particular piece of land, including a history of ownership, liens, and encumbrances. By itself, it is not evidence of a marketable title.

Question 5

What is a break in the chain of title, and how is it corrected?

Answer 5

There is an unexplained gap or break in ownership of the property, usually caused by a name change. It is corrected by a Suit to Quiet the Title.