Unit 7 Flashcards
Public records are NOT maintained by the clerks of the court.
False
The legal presumption that information may be obtained by an individual through due diligence is called constructive notice.
True
A certificate of title provides a guarantee of ownership.
False
The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning.
True
A buyer took delivery of the deed to a new house but neither recorded the deed nor took possession of the property. Under these circumstances,
the buyer’s interest is not fully protected against third parties.
The recordation of a warranty deed
gives constructive notice of an individual’s interest.
Properly recording documents in the public record provides what type of notice to the world of an individual’s rights or interest?
Constructive
Standard title insurance protects the buyer from
defects found in public records.
A buyer who wants to know whether the title for a property is in good standing would order
an abstract.
Which of the following BEST describes chain of title?
It is a history of all documents and legal proceedings affecting a specific parcel of land.
A policy of title insurance typically does NOT cover
zoning changes.
Which of the following is only covered by an extended coverage title insurance policy?
Unrecorded rights of parties in possession
Documents referred to as title evidence include
policies of title insurance.
All written documents that affect title to real estate should be
made a part of the public record.
Actual notice is
provided when someone has been given information.
A mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?
The amount of coverage is commensurate with the loan amount.
A property buyer should object to any defects in the title to the property
before acceptance of the deed.
A history of all recorded liens and encumbrances is revealed in
the abstract.
Which statement BEST explains why instruments affecting real estate are recorded?
Recording gives constructive notice to the world of the rights and interests claimed in the identified parcel of real estate.
The person who prepares an abstract of title for a parcel of real estate
searches the public records and then summarizes the events and proceedings that affect title.
The deed to a farm was made part of the public record, and the new owners proceeded to take possession of the property, living there and cultivating the acreage. The fact that the new owners live on the property serves as
constructive notice to the world of the rights of the new owners in the property.
Constructive notice is a result of
Constructive notice is a result of
