unit 7

Question 1

What is a marketable title? (merchant)

Answer 1

good or clear title, resonably free from the risk of litigation over possible defects
the buyers goal is to obtain marketable title

Question 2

What is title search

Answer 2

it is when a title examiner reviews public records pertaining to a property
the process is used to establish the CHAIN OF TITLE
anything that may cast doubt on marketable title is CLOUD ON TITLE

Question 3

What is an abstract of title?

Answer 3

it is a historical summary of all recorded documents affecting title to a given parcel of land created through a title search

Question 4

What is title insurance?

Answer 4

it is the best method for insuring marketable title

Question 5

What is a Standard owners policy?

Answer 5

it protects the buyers and thier heirs

helps protect against problems discovered after closing

Question 6

what is a lenders policy?

Answer 6

it protects the mortgagee/lender

Question 7

What is extended owners coverage policy?

Answer 7

it adds protection against problems that are not a matter of public record but would probably be discovered through inspection of the property

Question 8

What is a recorded notice stating that a pending lawsuit may affect title to a particular property?

Answer 8

a Les Pendens