Title Records - Chapt 8

Front 1

These documents are open to anyone that is interested in a particular property

Back 1

Public Records

Front 2

A review of the public records will reveal

Back 2

documents, claims, and other details that affect the property's ownership and is properly called a - TITLE SEARCH.

It is used to determine if the owner, in fact, owns the property and the title is free and clear of any other interests on the property

Front 3

An _________ typically perform a search of the public records to ensure that good title is being conveyed.

Back 3

Attorney or Title Company.

The individual that prepares the summary of the results (ABSTRACT of TITLE) is called the ABSTRACTOR

Front 4

True or False

Public records regarding taxes, judgements, probate, and marriage also offer important information about the title to a particular property

Back 4

True

Front 5

True or False.

In most states, written documents that affect land must be recorded in the county where the land is located

Back 5

True.

The specific rules of recording documents are a matter of state law. Any written documents must be recorded in the county (in some states, town) where the land is located to serve as public notice.

Front 6

Normally recording acts give legal priority - first in time, is the first to be paid, with the exception of OFF-THE RECORD LIENS.

What are the exceptions?

Back 6

Real Estate/property taxes

special assessments

IRS liens

This info is available in the tax collector's office, paid tax receipts, and letter from municipalities

Front 7

True or False

Eligible Recordings are to be written according to Federal Laws and mandates

Back 7

False.

The documents must be drawn and executed according to STATE law. Some require notary, specific typeset, size of documents, etc.

Front 8

Anyone can give notice with an interest in a parcel of real estate. What are the these steps called?

Back 8

GIVING Notice.

Two types of notice

- constructive (presumption)

- Actual (direct knowledge, known)

Front 9

The record of property's ownership is called

Back 9

The Chain of Title.

It begins with the earliest owner and pass to many individuals. The grantee of the first title becomes the grantor of the transfer, thus forming the chain.

The chain does not include liens and encumbrances or any other document related to ownership

Front 10

True or False.

Constructive notice means that information about a property is not only available, but that SOMEONE has been given access to that information.

Back 10

False.

Constructive notice is information that is available to the world and is presumed you know. The purchaser or lender is responsible for discovering the info and is presumed to have done so

Front 11

True of False.

When someone has been given notice personally and is aware of the fact is -- Actual Notice

Back 11

True.

Actual Notice is when you inform the person directly and they are, in fact, aware.

Front 12

When examining the chain of title you search from the _______ record of ownership to the _____

Back 12

The present owner working backwards to the first owner.

If there is an ownership that cannot be traced it is considered a GAP in the CHAIN of TITLE.

Front 13

True or False

A title PROBLEM is created by uninterrupted acts in the chain of title or a dispute

Back 13

False.

A Cloud of Title is created by a GAP or PROBLEM in the chain of title or another dispute.

Front 14

To take legal action to establish ownership and remove a cloud is called

Back 14

Action to quiet title

Front 15

True of False.

The abstract of title includes unrecorded liens such as encroachments or forgeries

Back 15

False.

The summary includes recorded liens and encumbrances of public records searched.

It does not list forgeries or interests that are unrecorded.

Front 16

True of False

An extended standard coverage of title insurance policy protects a homeowner against rights of parties in possession and unrecorded liens.

Back 16

True.

It includes the basic coverage as well as additional protections

Front 17

What is a marketable title?

Back 17

A title that will convince a reasonable well-informed and prudent purchaser, acting on facts, that the property could be resold or mortgaged at a later time.

This would allow QUIET ENJOYMENT of the property.

Front 18

Can the buyer raise questions about a Marketable title after they have accepted the deed?

Back 18

No.

Questions should be raised BEFORE acceptance of the deed. If not, the only available recourse may be to sue the seller under any covenants of warranty contained in the deed.

Front 19

A history of all recorded liens and encumbrances is revealed in

Back 19

The Abstract.

It is the most complete documentation of recorded liens and encumbrances.

Front 20

True of False

A certificate of title is a guarantee of ownership?

Back 20

False.

It certifies the condition of the title based on an examination of the public records of a title search.

The can be issued by a Title company, ABSTRACTOR, or attorney.

Front 21

Rather than a certificate of title in some parts of the country an ________________ is used as evidence of title.

Back 21

Attorney's opinion.

It is an opinion of the status of the title based on a review of the abstract.

Front 22

The premium for a title insurance policy is paid ________

Back 22

ONCE at Closing.

Always advise your seller to purchase title insurance. It will cover any issues that arise during the process of selling. If a heater goes out the insurance will pay for it. If the deal falls through you will not have to pay for it, but you would have gotten a BRAND NEW heater installed for FREE

Front 23

Registration in the _________ provides evidence of title, issued by the county clerk, that does not require further search to validate.

Back 23

Torrens System.

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

Front 24

Uninsurable losses, such as zoning ordinances, named in a title insurance are called.

Back 24

Exclusions.