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39 Cards in this Set
- Front
- Back
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What is a marketable title?
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Free from any significant liens and defects.
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What is title insurance?
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Insures policy holder against losses due to defects in title.
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What is covered in the standard coverage of title insurance?
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Defects found in public record, forged documents, incompetent grantors, incorrect marital status, improperly delivered deeds.
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What is covered in the extended coverage of title insurance?
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Has standard coverage plus property inspection, rights of person in possession, examination of survey, unrecorded liens not known of my purchaser.
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What does a standard and extended not cover?
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Both defects and liens listed in policy, defects know to buyer, changes in land use by zoning ordinance.
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When do you pay for title insurance?
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One time premium paid at transfer of title (beginning-before closing) and policy remains in force until property is transferred again.
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What should be done if you have a title problem?
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It can be cured by affidavit or correction deed; quiet title action requires court procedure to clear title, a.k.a. suit to quite title.
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Properties with problems are referred to as
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"clouded title" or "cloud on title" frequently caused by break in chain of title or "gap".
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What is a transfer by descent (survivors)?
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When a person dies intestate (without a will) personal and real property will pass according to laws of the state know as statute of descent and distribution; closeness of relationship determines rights; varies from state to state.
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What is transfer of will?
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Effective only after death; must adhere to laws of state; cannot supersede state laws of dower or courtesy where in effect.
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What is a probate proceedings?
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It is a legal process to determine validity of will, who heirs are, assets of estate. Court must be petitioned for a hearing; judge appoints administrator if no executor named in will.
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What is escheat?
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Provides for ownership to revert to state when owner dies intestate (no will) without survivors or abandons the property.
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What is foreclosure?
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Property pledged as security is sold to satishy debt for default; brings the rights of all parties to an end; property is transferred free of all encumbrances subsequent to foreclosed upon debt.
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What is a title abstract?
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It is a brief history or recorded instruments; judgement is not passed on condition of title.
Attorney examines abstract and renders opinion. |
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What is a certificate of title?
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Title examiner prepares after checking public records; states property's owner of record and present encumbrances; generally no attorney's opinion.
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What is Torrens system?
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State guarantees title; certificate of title prepared by registrar; signature cards signed by owners to prevent forgery; liens, mortgages recorded on original title certificate; land acquired can never be taken by adverse possession.
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What is a lien?
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A debt or charge against a property.
It is considered an encumbrance Attached to property and run with the land. |
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What can lien holder do if debtor is not paying of the lien?
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Debt not repaid, the lien holder has right to have it paid out of debtor's property, usually through a court sale.
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What is a specific lien?
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affects specific property pledged only (usually only the house). Examples of specific liens: mechanic's lien, mortgage lien, property tax lien, utility lien, vendee's lien, vendor's lien.
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What is a general lien?
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Affects all property of debtor, both real and personal (common with farm loans). Includes: judgments, estate and inheritance taxes, debts of a deceased person, corporation franchise taxes, IRS taxes.
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What is a mechanic's lien?
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Specific involuntary statutory lien on real property only, will not attach to personal property.
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Mechanic's lien provides security to whom?
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Those that provide material or labor in improving property.
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What priority does a Mechanic's lien have?
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It is established as of date of filing or "1st in time, 1st in line".
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What is Uniform Commercial Code (UCC) Filing?
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It is a security, financing, lender protection against loss on trade fixtures or merchandise inventory.
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What is lis pendens?
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Latin word for litigation pending; a recorded legal document.
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What does a lis pendens do?
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It gives constructive notice an action affecting property is pending.
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Under a lis pendens can the property that is going through litigation be sold?
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No it is unmarketable during litigation and cannot be freely encumbered or sold until removed.
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Is lis pendens a lien?
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No it is not a lien but a notice to the public that this property is in court and that if you have an interest in this real property you will need to file a lien on it.
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What is a judgement?
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A court ordered general lien on both real and personal property of debtor for nonpayment of a debt.
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If debtor owns property in different counties what will you need to do?
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File in every country debtor owns property in; failure to do so by you would eliminate real property from the judgement in counties you do not file in.
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If real and personal property is sold proceeds what happens with the money?
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All money goes to creditor until judgement is satisfied.
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What is an attachment?
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Is a legal process of the courts to seize and hold in court custody property of the defendant (person being sued) while lawsuit and judgement are pending.
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What happens to the property when the court hearing is final?
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Proceeds will go to the creditor until the judgement is satisfied.
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When is attachment removed?
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Not until judgment is satisfied.
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What is a writ of execution?
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Court order that allows officer of court to levy and sell property of defendant.
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How long does writ of execution last?
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Until judgment is satisfied.
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Which liens take priority over "first in time, first in line"?
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Property taxes and special assessments generally take precedence over all other liens; direct liens. All other liens have priority as filed.
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Why do we have a recording of real property?
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it is a statutory requirement; all documents affecting real estate must be recorded to protect owning parties; recorded in country property is in
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Why is it necessary to have records of real estate?
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It reveals condition of title; purchasers can rely on public record; gives notice to world of ownership.
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