Chapter 9 Section 1

Question 1

title

Answer 1

-title means ownership
-title to real property is the ownership of specified rights in property that forms an estate

Question 2

equitable title

Answer 2

-the right to gain ownership interest in the future

Question 3

actual notice of ownership

Answer 3

-provided by physical possession
-can be expressed or implied

Question 4

constructive notice of ownership

Answer 4

-achieved by recording documents in the public records
-documents are recorded in the office of the clerk of the circuit court in the county where the property is located

Question 5

protecting title

Answer 5

-marketable, merchantable, or clear title to real property is title in fee simple that is free from litigation and defects, which enables the owner to hold it in peace or sell it

Question 6

root of title

Answer 6

-to ascertain whether or not title is good and merchantable, the record of ownership must be traced back for a period of time necessary to assure that no outstanding or unresolved claims exist against the title
-this time period is called the root of title
-in FL the root of title extends back 30 years from the recording of the claim

Question 7

chain of title

Answer 7

-a chain of title is created by a search of the public records that results in a timeline of recorded documents that links all past owners of a parcel of land from the root of title to present day
-other documents such as: mortgages, judgements, divorces, deaths, births, tax liens, and other documents that may have an effect on the title to property

Question 8

title plant

Answer 8

-abstracting and title insurance companies compile copies of the documents from the public records into a title plant
-the title plant contains all of the documents that pertain to real estate, which are arranged to the date of recording in the public records

Question 9

title search

Answer 9

-since many different types of documents may affect the title to property, a search of all such documents must be made
-notations are made of regarding any documents that could affect the title
-this process is called a title search

Question 10

the abstract

Answer 10

-it may be desirable to have copies made of all documents that have an effect on the title to the property that is investigated
-these can then be assembled in date order and placed in a binder
-a cover page is called the caption or caption page
-when compiled in this fashion, it is called an abstract

Question 11

abstract update

Answer 11

-since an abstract ends at a certain period of time, it may become necessary to obtain current information about the property in the future
-an update is a newer version of a prior abstract

Question 12

opinion of title

Answer 12

-when an attorney conducts such a review and renders a written opinion, it is called an opinion of title
-only the attorney’s opinion and could be faulty
-lawsuit against the attorney could be necessary if a defect is later discovered

Question 13

title insurance/cloud on title

Answer 13

-any claims or other factors that could cause the title to a property to be declared invalid
-title insurance provides financial protection against losses sustained as the result of a defective title
-does not provide protection against all defects
-basic coverage can protect: incorrect signatures, forgery, fraud, restrictive covenants, encumbrances, or judgements

Question 14

lender’s insurance policy

Answer 14

-policy protects the lender by paying the unpaid balance of the loan if the borrower should lose title to the property as the result of a title defect
-if loan is sold to another lender, mortgagee policy is transferable to the new lender

Question 15

owner’s title insurance policy

Answer 15

-mortgager’s title insurance policy is not transferable
-policy is in effect for as long as the original purchaser of the policy owns the property
-amount of insurance remains the same regardless of property value increase

Question 16

curing defects in title

Answer 16

-property with a defective title is said to have cloud on title
-in order to make a property merchantable, title defects must be eliminated

Question 17

quitclaim deed

Answer 17

-may be used to cure a defect in title by having the party who has a potential claim or interest in the property relinquish the claim by voluntarily executing a quitclaim deed

Question 18

suit to quiet title

Answer 18

-filed in court with all potential claimants required to appear in court to assert their claim
-court renders decision

Question 19

marketable record title to real property (MARTA)

Answer 19

-purpose is to eliminate claims in antiquity which are old unresolved claims that are most likely not supported due to the passage of time
-any claim outstanding 30 years is eliminated as a matter of law
-exceptions exist if implied interests by occupancy or use are known, or if evidence of an interest in property is recorded in documents at the root title or later

Question 20

methods of acquiring title

Answer 20

-transferring ownership from one to another is called alienation of title

Question 21

deed

Answer 21

-a document that conveys title from one party to another when real property is solf or conveyed by gift
-deeds are most common

Question 22

will

Answer 22

-document that provides for transfer of title upon death of individual
-willful disposition of property is called devise and recipient is called devisee

Question 23

descent and distribution

Answer 23

-this system provides for the transfer of title to legal descendants upon death of an individual that died intestate
-probate law established the order in which such assets must be allocated and provides for the distribution of property to those entitled to receive them

Question 24

escheat

Answer 24

-the reversion of property to the state if someone dies intestate and has no known heirs

Question 25

eminent domain

Answer 25

-government's right to take private property through a process called condemnation, for public benefit

Question 26

adverse possession

Answer 26

-legal principle under which an owner may lose title to another person who has taken control of the property -person who claims ownership must enter into an open, adverse, hostile, and exclusive possession of the property for a period of seven continuous years -possession must be hostile to the true owner and must be under a claim of ownership -possessor must pay all real estate taxes for all years of possession -if true owner slept on his rights and failed to eject the trespasser, title may be lost to hostile claimant