Unit 8 Title Records Flashcards
Define Abstract of Title
The condensed history of the recorded ownership of a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. 122
Define Action to quite title
A court action that establishes ownership when ownership cannot be traced through an unbroken chain of title. 122
Define Actual notice
Express information or fact; that which is known; direct knowledge. 121
Define Attorney’s opinion Of title
An abstract of title that an attorney has examined and has certified to be, in the attorney’s opinion, an accurate statement of the facts concerning the property’s ownership. 124
Define Certificate of title
A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. 123
Define Chain of Title
The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title. 122
Define Constructive Notice
Notice given to the world by recorded documents. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property. 121
Define Marketable Title
Good or clear title, reasonably free from the risk of litigation over possible defects. 123
Define Priority
The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens. 121
Define Recording
The act of entering or recording documents affecting or conveying interests in real estate in the recorder’s office established in each county. Until it is recorded, a deed or a mortgage ordinarily is not effective against subsequent purchasers or mortgagees. 120
Define Subrogation
The right acquired by the title company to any remedy or damages available to the insured when a title company makes a payment to settle a claim covered by a policy. 124
Define Title Insurance
A policy insuring a property owner or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy. 124
Define Title search
title search The examination of public records relating to real estate to determine the current state of the ownership. 122
Define Torrens System
Torrens system A method of evidencing title by registration with the proper public authority, generally called the registrar ; named for its founder, Sir Robert Torrens. 86, 125
Define Americans Land Title Asspciation (ALTA) Policy
A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan. 125