Unit 10

Question 1

Recording

Answer 1

The act of placing documents in public record. Written documents affecting land must be recorded in the country where the land is located. Must be acknowledged by a notary public.

Question 2

Notice

Answer 2

Anyone interested in a parcel of real estate can give notice. Interest is known to anyone who inquires. 2 types of notice

• Constructive: Legal presumption that info is available and can be obtained by an individual through diligent inquiry. Evidence is readily available.
• Actual (direct knowledge): Info is available and someone has been given the info and actually knows it.

Question 3

Chain of title

Answer 3

the record of a property ownership over a period of time.

Question 4

Suit to quiet title

Answer 4

court action that establishes ownership when is the chain of ownership is broken.

Question 5

Title search

Answer 5

Examination of all public records to determine whether any defects exist in the chain of title.

Question 6

Marketable Title Act

Answer 6

Extinguishes certain interests and cures certain defects arising before the root of the title.

Question 7

Abstract Title

Answer 7

summary report of what the title search found in the public record. The person who prepares the report is an abstractor. They search all public records and then summarize the various events and proceedings that affected the title throughout its history. All recorded liens and encumbrances are included. Does not include encroachments or forgeries.

Question 8

Attorneys opinion of title

Answer 8

An attorney prepares a written report about the condition of the ownership.

Question 9

Marketable Title

Answer 9

Seller is required to deliver marketable title.

• one that does not have any serious defects, does not depend on doubtful law or fact to prove validity
• Does not expose a purchaser to litigation or threaten quiet enjoyment
• convince a reasonably well informed and prudent purchaser that the property could be sold or mortgaged
• insurable by a reputable title insurance company at normal rates.

Question 10

Certificate of title

Answer 10

Certifies the condition of the title based on the title search.

Question 11

Title insurance

Answer 11

protects the insured from an event that occurred before the policy was issued rather than against future events. Best defense of title. There is standard coverage and extended coverage.
Standard: defects found in public records, forged documents, incompetent grantors, incorrect marital status, improperly delivered deeds
Extended: Standard coverage plus defects discoverable through…Property inspection, examination of survey, unrecorded liens.
Not covered: defects and liens listed in the policy, defects known to the buyer, changes in land use brought about by zoning ordinances.

Question 12

Uniform Commercial Code (UCC)

Answer 12

commercial law stature that has been adopted to some extent in all 50 states. Applies to personal property transactions. It does not apply to real estate. Financing statement: give notice of a security interest in personal property item

Question 13

Subrogation

Answer 13

Company generally acquires the right to any remedy r damages available to the insured.