Unit 8 Vocabulary

Question 1

Recording

Answer 1

is the act of placing documents in the public record

Question 2

constructive notice

Answer 2

is the legal presumption that information has been obtained by an individual through due diligence.

Question 3

Actual notice

Answer 3

means not only that information of an interest in property is available but also that someone is actually aware of it

Question 4

Priority

Answer 4

refers to the order of when documents or liens were recorded.

Question 5

chain of title

Answer 5

the record of a property’s ownership

Question 6

action to quiet title

Answer 6

If ownership cannot be traced through an unbroken chain, a gap in the chain of title or cloud on the title is said to exist. In such a case, it is necessary to establish ownership by a court action called an

Question 7

title search

Answer 7

is an examination of the public records to determine whether any defects exist in the chain of title

Question 8

Abstract Of Title

Answer 8

a summary report of what the title search found in the public records

Question 9

marketable title

Answer 9

Under the terms of the typical real estate sales contract, the seller is required to deliver to the buyer

Question 10

certificate of title

Answer 10

is a statement of opinion of the title’s status on the date the certificate is issued.

Question 11

attorney’s opinion of title

Answer 11

are used in some areas of the country as evidence of title

Question 12

Title insurance

Answer 12

a contract under which the policyholder is protected from losses arising from defects in the title.

Question 13

subrogation

Answer 13

When a title company makes a payment to settle a claim covered by a policy, the company generally acquires the right to any remedy or damages available to the insured.

Question 14

Torrens system

Answer 14

is a legal registration system used to verify ownership of real estate.