Unit quiz 8 Flashcards
Which of the following is acceptable evidence of marketable title?
A)Affidavit
B)Title insurance policy
C)Trust deed
D)Warranty deed
B) Title insurance policy
Proof of ownership is evidence the title is marketable, and title insurance is used to prove ownership.
Homeowners are frantic because they want to sell their property and the deed is missing. Which of the following is TRUE?
A) They should execute a replacement deed to themselves.
B) They may need to sue for quiet title.
C) They must buy title insurance.
D) They do not need the original deed if it has been recorded.
D) They do not need the original deed if it has been recorded.
A seller delivered title to a buyer at closing. A title search had disclosed no serious defects, and the title did not appear to be based on doubtful questions of law or fact or to expose the buyer to possible litigation. The seller’s title did not appear to present a threat to the buyer’s quiet enjoyment, and the title insurance policy provided was sufficient to convince a reasonably well-informed person that the property could be resold. The title conveyed would commonly be referred to as a(n)
A) abstract of title.
B) marketable title.
C) attorney’s opinion of title.
D) certificate of title.
B) marketable title.
Title that is good enough that a reasonably well-informed person would accept it is called
marketable title.
A buyer bought a house, received a deed, and moved into the residence but neglected to record the document. One week later, the seller died and the heirs in another city, unaware that the property had been sold, conveyed title to a relative, who recorded the deed. Who owns the property?
A) The seller’s heirs
B) Both the buyer and the relative
C) The relative
D) The buyer
D) The buyer
The buyer took possession. The relative who purchased the property from the seller’s heirs was responsible for both checking the public records (which still showed the seller as owner because the buyer had not yet recorded the purchase) and visiting the property to inquire into the rights of any parties in possession. The relative-purchaser’s investigation would have revealed that the seller’s heirs did not have the right to sell the property in question.
Constructive notice can be given in either or both of two ways:
taking possession and/or recording one’s deed
Which statement BEST explains why instruments affecting real estate are recorded?
A) The instruments must be recorded to comply with the terms of the statute of frauds.
B) Failing to record will void the transfer.
C) Recording proves the execution of the instrument.
D) Recording gives constructive notice to the world of the rights and interests claimed in the identified parcel of real estate.
D) Recording gives constructive notice to the world of the rights and interests claimed in the identified parcel of real estate.
The recording of an instrument affecting real estate puts the transaction into the public record so that anyone interested in the title of a parcel will know where to look. Constructive notice means that everyone is charged with knowledge of such documents.
Chain of title is MOST accurately defined as
A) a history of all documents and legal proceedings affecting a specific parcel of land.
B) a report of the contents of the public record regarding a particular property.
C) an instrument or document that protects the insured parties (subject to specific exceptions) against defects in the record of a property’s ownership.
D) the examination of the record and hidden risks such as forgeries, undisclosed heirs, errors in the public records, and so on.
A) a history of all documents and legal proceedings affecting a specific parcel of land.
the entire history, or record, of transactions affecting a property,
Chain of title
(abstract is a summary of relevant facts found when examining the history)
The date and time a document was recorded help establish which of the following?
A) Subrogation
B) Priority
C) Abstract of title
D) Marketable title
B) Priority
All of the following are true regarding public records EXCEPT
A) they establish priority of liens.
B) they provide constructive notice of interests in the identified property.
C) they guarantee marketable title.
D) they give notice of encumbrances.
C) they guarantee marketable title.
Proof of ownership is evidence that
title is marketable
such proof, while it cannot be found in public records, can be assured through a certificate of title, title insurance, or a Torrens certificate.
