Unit 7 Flashcards
Who maintains public records
recorders of deeds, county clerks, county treasurers, city clerks, collectors, and clerks of court.
What are the two types of notice
constructive notice and actual notice.
What is a constructive notice
the presumption that information has been obtained by an individual through due diligence
What is an actual notice
information has actually been attained through due diligence
What is required to be eligible for recording
document must be drawn and executed according to state law
Recording acts give legal priority to interests recorded first by what principle
the first in time, first in right or first come, first served principle
What are some exceptions to this principle
liens for property taxes, special assessments, and delinquent amounts owed to the Internal Revenue Service
What things are typically unrecorded until after it is done
real estate taxes
special assessments
What are some examples of real estate taxes that are not recorded until after they are due
inheritance
franchise
Are there liens that are considered off the record
yes
What is the chain of title
the record of a property’s ownership
If ownership cannot be traced through an unbroken chain, then what can be done to ensure your right to the title
a court action called an action to quiet title
What is a title search
an examination of the public records to determine whether any defects exist in the chain of title
What law makes removes any interests or problems of the property from the time before the original title was founded
the Marketable title act
What is a full abstract of title
a summary report of what the title search
Who prepares an abstract of title
an abstractor
What is a marketable title
title that is acceptable to a reasonably prudent person and which will not subject the buyer to litigation
What does a marketable title need or must do
show no serious defects and doubtful validity;
pose no risk of litigation against the purchaser or threaten the quiet enjoyment
convince a reasonably well-informed and prudent purchaser, using business principles and their legal significance, that the purchaser could sell or mortgage the property at a later time.
When do questions about a marketable title need to be asked
before the acceptance of the deed
Are title searches and reviews sometimes customary in the sales contract
yes
What is a suit of quiet title
A lawsuit for the ownership a property that requests anyone who thinks they have interest in the property to bring forth their evidence for the court to decide who owns it
What level of governement is public records done
county level
Who usu performs a title search
an attorney or title company
Doing a title search for your client might be considered what
conflict of interest
What is proff of ownership
evidence that the title is marketable
What are typically used to convey proof of ownership
certificate of title
title insurance
Torrens certificate
Even though a certificate of title and an attorneys opinion of title are often used as evidence of title, what is wrong with them
they do not guarentee the title because they do not protect the buyer from UNrecorded defects
What is usu obtained as protection against unrecorded defects
title insurance
What is the first thing that title companies do when assessing a property
a preliminary report of title or commitment to issue a title policy
When is the premium for title insurance policies paid
at the closing of the transaction
When a title company makes a payment to settle a claim covered by a policy, the company generally acquires what right
subrogation which is a right to any damages available to the insured
What does a standard title insurance policy cover
Defects found in public records
Forged documents
Incompetent grantors
Incorrect marital statements
Improperly delivered deeds
Can you purchase extended coverage with titile insurance
yes
Who provides the extended title insurance
an American Land Title Association (ALTA) policy
What does an ALTA policy protect against
defects that may be discovered by inspection of the property: rights of parties in possession, examination of a survey, and certain unrecorded liens
Are ALTA policies usu included in sales contracts
yes
What does even extended title insurance not protect agaisnt
Defects and liens listed on the title restrictive covenants easements some water rights current taxes and special assessments Defects known to buyer Changes in land use brought about by zoning ordinances
What does the Torrens system do
provides a certificate of title issued that doesnt need further validation
