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9 Cards in this Set
- Front
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Title Abstracts |
Awritten distillation of the record search process. It summarizes all recordeddeeds and other recorded items in the chain of title, including encumbrances. - Complete:chain of title back to the sovereign - Mostarranged chronologically, with a synopsis or summary of all items found,including those believed to have no present operative effect on title - givesthe purchaser sufficient information to decide whether record title isacceptable (interpretation is left to the reader) |
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Attorneys’ Title Opinions andCertificates |
Reflectsthe attorney’s professional opinion that based on the evidence he/she has,title appears marketable - Titleattorney promises, by implication if not expressly, that he/she has donecompetent, professional work, complying with the norms established by andfollowed in the legal community where she practices - Liability based on negligence - Not a guarantee |
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North Bay Council, Inc., BoyScouts v. Bruckner - ATTY Title Opinion Negligence Elements (4) |
Negligence Elements: 1. relationship, as of client andattorney 2. attorney’s duty to exercisecare, skill, and knowledge in providing legal services to the client 3. breach of that duty 4. connection of legallyrecognized causation between the breach and resulting harm to the client - Standard of care to discloseand explain the significance of any feature of the title, subject to discoverywithin the requisite scope of the lawyer’s title examination, that would lead areasonably prudent purchaser to refuse to take conveyance of the property, atleast when paying full value for it |
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North Bay Council, Inc., Boy Scouts v. Bruckner - Reasonably Prudent Purchaser in ATTY Title Opinion |
Features that are subject to suchdisclosures and advice include, not only actual defects and encumbrances, but anyapparent defects and encumbrances subject to reasonable objection as creatingrisks of adverse claims or losses that the prudent buyer would refuse to run. Interpretation of the terms of a deed is an issue of law, to be decidedby the court |
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North Bay Council, Inc., Boy Scouts v. Bruckner - Proving Causation for ATTY Title Opinion Negligence |
Causationmay be established by proof that the plaintiff completed the purchase in solereliance on the defendant’s opinion that the title was free from the cloudunder consideration, and that the subsequent delay and litigation were withinthe risk of harm that the defendant’s opinion failed to disclose |
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Title Insurance |
A formof title assurance that serves as an alternative to an abstract of title or alawyer’s opinion - Providesa vehicle for stating an opinion of title within the context of an insurancepolicy - theinsurer searches the records and discloses its findings; and it insuresundisclosed risks - Insurerhas absolute liability for insured defects. A title insurance company paysclaims for losses stemming from insured risks, regardless of whether it was atfault (negligent) in searching title |
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Title insurancecommitment/title insurance binder/preliminary title report |
usedduring executory period of contract, after title search is done, promise toissue a policy, on a designated standard form, provided that it receives the insurancepremium and that certain other specified conditions are met |
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Title Policy, its 5 Key Parts, General Rule |
Issued only after closing - Mostcommon policy are standardized forms from American Land Title Association(ALTA) - Keyparts of a policy: 1) the insuring provisions, 2) the conditions and stipulations, 3) the exclusions from coverage, 4) the exceptions from coverage (typically listed onSchedule B), 5) and the endorsements - Generalrule of thumb: if a title matter affects the insured land and the policy doesnot exclude it from coverage, then it is an insured risk |
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Title Commitment v. Title Policy |
Commitment:a promise to issue a full policy, if certain preconditions are met. Used whilethe contract is executory, the measure of fulfilling the seller’s titleobligations, what you rely on before the closing Policy:what you walk away with from the closing, what you rely on after the closingand if liable on deed covenants |
