State Exam Prep Book: Transfer Of Property

Front 1

abstract of title

Back 1

A representation issued by a title company as a guarantee to the named person, not an insurance policy, listing all recorded conveyances and encumbrances affecting title to the described real estate.

Front 2

adjusted basis

Back 2

The cost basis of a property after the application of additions for further improvements and deductions for destruction of improvements and depreciation.

Front 3

ALTA title policy (American Land Title Association)

Back 3

A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy to include unrecorded mechanic's liens; unrecorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.

Front 4

assignment

Back 4

1) A transfer to another of a person's right under a contract such as a mortgage, lease, purchase agreement or option. 2) A tenant's transfer of possessory rights to another.

Front 5

California Land Title Association (CLTA) title policy

Back 5

The standard title insurance policy.

Front 6

chain of title

Back 6

A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in the current owner.

Front 7

cloud on title

Back 7

A claim, encumbrance or condition which impairs the title, not possession, to real estate until eliminated by a release of recorded document, quitclaim deed or a quiet title action.

Front 8

coercion

Back 8

The act of persuading someone to do something against their will by the use of force or threat.

Front 9

color of title

Back 9

Title that has the appearance of validity but has a fatal defect and is ineffective.

Front 10

conveyance

Back 10

A transfer of an interest in title to property from one person to another, such as is effected by a deed or a trust deed.

Front 11

delinquent taxes

Back 11

Property taxes not paid prior to becoming delinquent.

Front 12

parol evidence

Back 12

A rule that prevents a party to a written contract from presenting outside evidence that clarifies the written terms of a contract that appears to be whole.

Front 13

preliminary title report (prelim)

Back 13

A report constituting a revocable offer by a title insurer to issue a policy of title insurance, used by a buyer and escrow for an initial review of the vesting and encumbrances recorded and affecting title to a property.

Front 14

probate sale

Back 14

A court managed sale of a property during the probate process.

Front 15

property profile

Back 15

A report from a title company providing information about a property's ownership, encumbrances, use restrictions and comparable sales data.

Front 16

proration

Back 16

Provisions entitling the seller to a credit for the portion of prepaid sums which have not accrued on obligations a buyer assumes on the day escrow closes, or entitling the buyer to a credit for amounts assumed which accrued unpaid through the day prior to the close of escrow.

Front 17

recording

Back 17

The process of placing a document on file with the Recorder for a county as the designated public official for public notice.

Front 18

recurring costs

Back 18

The regular and continuing costs of a buyer incurred in the closing of an escrow to acquire property. Distinguished from non-recurring costs.

Front 19

severalty

Back 19

Ownership by one person.

Front 20

sheriff's sale

Back 20

A public auction of property held by the sheriff pursuant to a court order to seize and sell the property to satisfy a money judgment.

Front 21

tax deductions

Back 21

Expenses related to real estate ownership that may be deducted from income for purposes of income tax reporting.

Front 22

tax foreclosure sale

Back 22

The sale of a property by the County Tax Collector to pay unpaid property taxes.

Front 23

title

Back 23

Indicates fee position of lawful ownership and right to property. Bundle of Rights possessed by an owner. Combination of all elements constituting proof of ownership.

Front 24

title conditions

Back 24

Encumbrances such as liens, conditions, covenants and restrictions and easements which affect title to property.

Front 25

title insurance

Back 25

A form of indemnity insurance issued by a title insurance company which holds harmless the named insureds against monetary loss caused by an encumbrance not listed in Schedule B of the policy and not known by the insured when the policy was issued.