Unit 7 Title Records Flashcards
What is recording?
The act of placing documents in the public record
What principle determines the priority of title?
The first in time, first in right or first come, first service principle.
What is constructive notice?
The notices and documents filed in public record.
What is actual notice?
Aka Direct Knowledge. A person who has done the a public records search and has inspected the property.
What is priority?
The order of when documents or liens recorded.
What is chain of title?
Is the record of property ownership.
What is a suit to quite title?
A court action to clear a clouded title, and establish ownership.
What is a title search?
An examination of all public records, to determine if there are defects
What is an abstract of title?
Prepared by an abstractor or attorney is a summary report of what title search found in the public record. It includes all recorded liens and encumbrances. Lists records searched
What is a marketable title?
The seller must deliver this to the buyer it requires:
1-Not have serious defects
2-Not to have exposure to litigation, “quiet enjoyment”
3-Can convince a buyer he can later sell the property.
What is a certificate of title?
Statement of opinion of the status of the title on the date it was issued. Not a guarantee of ownership. Provided by Torrens System
What is title insurance?
Insures against future claims on the property. Owner’s policy or mortgagee’s policy also defines exclusions
What is involved in due diligence?
Search of public records and inspection of the property.
What is a cloud on title?
A gap in the chain or other dispute of ownership
What conditions must be met to serve constructive notice?
Written document that affects estate, right title or interest in land must be drafter and executed according to recording acts. Must be recorded in the pubic records. By designated official (Ie recorder of deeds)
