Real Estate Definations Chapter 13

Front 1

Abstract of title

Back 1

The conensed history of a title to 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

Front 2

Actual notice

Back 2

Express information or fact; that which is known' direct knowledge

Front 3

Attorney's opinion of title

Back 3

An abstract of title that an attorney has examined and has certified to, in his opinion, an accurate statement of the facts concerning the property ownership.

Front 4

Certificate of Title

Back 4

A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records.

Front 5

Chain of title

Back 5

The succession of conveyances from some accepted starting point, whereby the present holder of real property derives title.

Front 6

Constructive Notice

Back 6

Notice given to the world by recorded documents. All people are charged with knowledge of such ocuments and their contents, whither or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has on interest in the property.

Front 7

Financing statement

Back 7

A statement to give notice of the security interest that is recorded. security interest in chattels are created by a security agreement then a financing statement is mae to record that interest.

Front 8

Inquiry Notice

Back 8

Notice the law presumes a reasonable person would obtain by inquiring into a property.

Front 9

Marketable title

Back 9

Good or clear title, reasonably free from the risk of litigation over possible defects.

Front 10

Priority

Back 10

The orer 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.

Front 11

Recording

Back 11

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 mortgage ordinarily is not effective against subsequent purchasers or mortgages.

Front 12

Security Agreement

Back 12

An instrument used to create security interests in chattels. The document used is a financing statement.

Front 13

Subrogation

Back 13

The substitution of one creditor for another with the substituted person succeeding to the legal rights and claims of the original claiment. Subrogation is used by the title insurers to acquire from the injured party rights to sue in order to recover damages they have paid.

Front 14

Suit to quit title

Back 14

A court action intended to establish or settle the title to a particular property especially when there is a cloud on the title.

Front 15

Title insurance

Back 15

A policy insuring the owner or mortgage against loss by reasons of defects in the title to a parcel of real estate other than encumbrances defects, and matters specifically excluded by the policy.

Front 16

Title Search

Back 16

The examination of public records relating to real estate to determine the currant state of the ownership.

Front 17

Torrns system

Back 17

A metho of evidencing title by registration with the proper public authority generally called the registrar, named for its founder Sir Robert Torrens.

Front 18

(UCC) Uniform Commercial Code

Back 18

A codification of commercial law adopted in most states that attempts to make uniform all laws relating to commercial transactions incl. Chattels, mortgages and bulk transfers.