Unit 7: Title Records

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2 basic types of given notices

Back 1

constructive notice and actual notice

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Constructive notice

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document is assumed when due diligence (such as a search of public records and inspection of the property) would reveal its existence

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Actual Notice

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

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Recording

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the act of placing documents in the public record

(The first in time, first in right or first come, first served principle)

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Priority

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refers to the order in which documents or liens were recorded

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Chain Of Title

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History of title

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

-does not include liens and encumbrances or any other document not directly related to ownership

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Action To Quiet Title

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A court action that establishes ownership when ownership cannot be traced through an unbroken chain of title.

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Title Search

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

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Abstract Of Title

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Summary report of what the title search found in the public records

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Marketable Title

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Has no reasonable doubt

The buyer of the property won’t be subject to litigation

-must disclose:

•no serious defect •not threaten quiet enjoyment of property •convince the purchaser that they could sell the property or get a mortgage at a later time

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Who performs a public record search to ensure good title is conveyed

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An attorney or title company representative

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Recording

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Any written documents that affect any estate, right, title, or interest in land must be recorded

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Recording Acts

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Generally give legal priority to those interest recorded first

Exceptions:

•liens in property taxes •special assessments •delinquent amounts owed to IRS

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Preliminary title search

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•conducted as soon as an offer to purchase has been accepted (some states)

Usually included contingencies and gives the buyer the right to review and the seller to cure any tule defects

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Public records

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Record your interests at the county level in an abstract document

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Proof of ownership

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evidence that title is marketable

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commonly used to prove ownership.

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•A certificate of title •title insurance •a Torrens certificate

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Certificate Of Title

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•statement of opinion of the title's status on the date the certificate is issued

•not a guarantee of ownership

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certificate of title may be prepared by:

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•a title company •licensed abstractor •or attorney

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Attorney’s Opinion Of Title

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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.

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Title insurance

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

•considered the best defense of a tilte

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Subrogation

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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.

•At he right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party

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ALTA

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American Land Title Association

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exclusions

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uninsurable losses

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Torrens system

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a legal registration system used to verify ownership of real estate

Registration of a title can be canceled by the owner at any time

Front 26

At a typical closing, how many title policies are issued?

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Two

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To be eligible for recording, and thus made part of the public record, a document should be

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drawn and executed according to state law.

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To be eligible for recording, and thus made part of the public record, a document should be

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drawn and executed according to state law.

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Recording real estate documents provides__________ of their contents to the world.

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constructive notice

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___________ are traditionally covered by a standard title insurance policy?

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Improperly delivered deeds

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A policy of title insurance typically does NOT cover

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zoning changes.

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A policy of title insurance typically does NOT cover

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zoning changes.

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The recordation of a warranty deed

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gives constructive notice of an individual’s interest.

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A policy of title insurance typically does NOT cover

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zoning changes.

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The recordation of a warranty deed

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gives constructive notice of an individual’s interest.

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A cloud on the title to a parcel of real estate is

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resolved by an action to quiet title.

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Standard title insurance protects the buyer from

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defects found in public records.

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Mortgagee

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Lender

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Mortgagor

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The borrower

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Im some areas of the country, acceptable proof of title is an abstract and ________

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Attorney’s option of title

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Title insurance will cover title defects found ______ closing

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After

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A deed that has not been recorded will NOT provide ______

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Constructive notice