Unit 7 - Title Records Flashcards
What is Notice
Anyone with a parcel of real estate taking certain steps to ensure that the existence of the interest is made available to the public by Constructive and Actual Notice
What is Constructive Notice
The legal presumption that information has been obtained by an individual through due dilligence. A document searchable by public record
What is Actual Notice
Not only that the information of an interest in property is available, but also that someone is actually aware of it. “someone told you”
What is Recording
The act of placing documents in the public record. Document must be drawn and executed according to state law.
What is Priority
Refers to the order in which documents or liens were recorded. Date recorded earliest gets first priority.
What are Unrecorded Documents
Types of liens that are not recorded. (real estate taxes and special assessments) - Off the record liens
What is Chain of Title
The record of a property’s ownership, beginning with the earliest owner.
What is a “cloud” on a title
If ownership cannot be traced through an unbroken chain, a gap in the chain of title.
What is an Action to Quiet Title
A court action used to establish ownership because of a “cloud” on the title
What is a Title Search
An examination of the public records to determine whether any defects exist in the chain of title
What is the Marketable Title Act
Some states have adopted law that limits the time beyone which the title must be searched
What is a full Abstract of Title
A summary report of what the title search found in the public records. Prepared by an Abstractor.
What is an Abstractor
Person who prepares the report of a full Abstract of Title
What is Marketable Title
A title that is acceptable to a resonably prudent person and which will not subject the buyer to litigation.
What 3 things are a must for a Marketable Title
-Disclose no serious defects and not depend on doubtful questions of law or fact to prove its vality
- Not expose a purchaser to the hazard of litigation or threaten the quiet enjoyment of the property
-Convince a reasonably well-informed and prudent purchaser, acting on business principles and with knowledge of the facts and thir legal significance, that the purchaser could sell or mortgage the poperty at a later tim.
“ Same guarantees as a General Warranty Deed”
What is Proof of Ownership
Evidence that title is marketable. A certificate of title, title insurance, or a Torrens certificate is commonly used to prove ownership
What is a Certificate of Title
A statement of opinion of the title’s status on the date the certificate is issued. A certificate of title is not a guarantee of ownership. May be prepared by title company, abstractor, or attorney. Owner, mortgage lender, or buyer may request certificate
What is Title Insurance
A contract under which the policyholder is protected from losses arising from defects in the title.
What does Title Insurance Protect Against
Protects insurer from an event that occurred before the policy was issued.
What is maximum loss for which the company can be liable with title insurance
Cannot exceed the face amount of the policy
What is Subrogation
When a title company makes a payment to settle a claim covered by a policy, the company generally qcquires the right to any remedy or damages available to the insured.
What does Standard coverage protect against
-defects fond in public records
-forged documents
-incompetent grantors
-incorrect marital statements
-improperly delivered deeds
What does ALTA stand for
American Land Title Association
What are 2 types of title insurance policies
-Owners Policy: issued for the benefit of the owner (new buyer) and the owner’s heirs or devisees and is issued for the property’s purchase price
-Lenders Policy (Mortgagee Policy): issued for the benefit of the mortgage lender and the amount of the mortgage loan will determine the amount of coverage
