Unit 7 Title Records

Front 1

Policies and procedures that regulate recording are established by ____________.

Back 1

State law

Front 2

Recording does or does not prove validity of a document.

Back 2

Does not the

Front 3

The priority of a recording instrument is determined by its date of _____________.

Back 3

Recording

Front 4

Public Record System allows documents to be posted for public/legal notice provides _________.

Back 4

Constructive or legal notice

Front 5

A deed does not have to be recorded _____________.

Back 5

To be valid

Front 6

What is actual notice?

Back 6

Inspect property for visible claims such as parties in possession or encroachments

Front 7

What is constructive or legal notice?

Back 7

Inspect public records for liens and persons on the title

Front 8

What is the buyers due diligence?

Back 8

To inspect or have someone inspect both the property and public records

Front 9

Most states require documents to be ___________to be recorded.

Back 9

Acknowledged (notarized)

Front 10

If a deed is not recorded what does it lack?

Back 10

Lacks constructive or legal notice of ownership

Front 11

How is a marketable title determined?

Back 11

Good or clear title, reasonably free from risk of litigation over possible defects

Aka merchantable title

Front 12

What requirements must brokers and salespeople know to make documents valid?

Back 12

1) what makes a title marketable

2. How ownership issues may impact the transfer of title

3. The essential elements of contract and deeds

4. Who is required to sign each document in the transaction

Front 13

Title examiners review public records to identify...

Back 13

1. Ownership

2. Wills

3. Judicial proceedings

4. Other encumbrances that may affect title

Front 14

How far do title searches go?

Back 14

They go back to a certain period of time not to the beginning of time

Front 15

What is chain of title?

Back 15

Is a history of successive recorded ownership documents linked together

Front 16

What is cloud on title?

Back 16

Anything that may cast doubt on marketable title

Example: gap in the chain, unreleased lien, undisclosed encumbrance, court orders

Front 17

What is an abstract of title?

Back 17

A historical summary of all recorded documents affecting title to a given parcel of land

Created through a title search

Front 18

The seller is expected to furnish an updated abstract, which shows all ____________ recorded interests.

Back 18

Current and past

Front 19

After tracing the chain of title, what does the attorney render?

Back 19

Title opinion

1. Shows current status rights

2. Lists objections

3. Often called a certificate of title

Front 20

What is the best method for insuring marketable title?

Back 20

Title insurance

Front 21

When the title insurance company issues a title report, what does it show and not show?

Back 21

1. Shows only the current status of ownership and recorded encumbrances

2. Does not show the history of past ownership or encumbrances

Front 22

Standard Exceptions

Back 22

Items never cover; buyer responsible for checking

a) possession, encroachments, mechanics lien, zoning compliance

Front 23

Special Exceptions

Back 23

Clouds, specific to the property, discovers by examiner

a) easements, restrictive covenants, current mortgages

Front 24

Type of title insurance policies

Back 24

Standard owner’s policy and Lenders policy

Front 25

Standard owners policy

Back 25

Protects the buyers and their heirs

Coverage continues until change of ownership

Front 26

Lenders policy

Back 26

Protects the mortgage/lender

Coverage diminishes as each loan payment is made until loan is satisfied

Front 27

What does a Standard Coverage Policy Protect?

Back 27

Protects the new buyer/owner against problems discovers after closing

Front 28

Standard Coverage Policies cover what errors?

Back 28

1. Error in the title examination

2. Errors in the abstract

3. Errors in public record

4. Hidden defects such as forgery, incompetency, misrepresented material status and improperly prepared deed

Front 29

What does Extended Owners Coverage Policy protect?

Back 29

Add protection against problems discovered through inspection of the party (actual notice)

Examples: parties in possession or adverse possession issues; matters of survey (encroachments); gap period

Front 30

Suit to quiet title

Back 30

Court hearing to determine ownership, recognize valid claims, and quiet invalid claims

a) used to clear clouded titles

b) establishes ownership under adverse possession

Front 31

What is lis pendens?

Back 31

Recorded notice of a pending lawsuit affecting title to property