Title

Question 1

What is the document that shows ownership of property rights of an individual or business called?

Answer 1

Title

Question 2

All personal property that is sold or traded must be _____ before the property can be transferred to another party.

Answer 2

Free of liens and other debts (Clean title).

Question 3

What are 3 types of Primary forms of concurrent real estate ownership?

Answer 3

● Tenancy in common ● Tenants by entirety ● Joint tenancy

Question 4

What form of concurrent real estate ownership holds title, individually, for their respective piece of the property. Each individual can transfer, sell or will their part?

Answer 4

Tenancy in common

Question 5

What form of concurrent real estate conveys ownership to a legally married husband and wife, treating the couple as one individual. If one spouse dies, the title is transferred to the living spouse in entirety?

Answer 5

Tenants by entirety

Question 6

What form of concurrent real estate involves two or more individuals holding a real estate title jointly, where both individuals have equal rights to the property during their lifetime. With this type of ownership, the holder cannot transfer, sell, or will their part?

Answer 6

Joint tenancy (Can’t sell the Joint)

Question 7

What is performed by a title company to make sure that there are no issues, liens, or back taxes on the title that would prevent the sale of the asset?

Answer 7

A Title search

Question 8

What is a Chain of title?

Answer 8

The historical transfer of ownership from the first owner back to the last owner in chronological order.

Question 9

What is an Abstract of title?

Answer 9

A record of the title history including transfers, liens, and legal actions that are connected to the property.

Question 10

What document lists all the liens, defects, and obligations that affect the subject property and provides the requirements that must be met before a title company can insure a title as marketable.

Answer 10

A title commitment binder

Question 11

What is a Marketable title?

Answer 11

A title free from reasonable doubt or defect, which can be readily sold or mortgaged. A marketable title may have certain encumbrances that a buyer would be willing to accept.

Question 12

What does it mean to have Clear title?

Answer 12

It means that the owner has an undisputed claim to the property or asset and is clear of all liens.

Question 13

What is Color of title?

Answer 13

Color of title is a title to real property that may have the appearance of a good and valid title to a parcel of property, but in reality it contains a title defect, and cannot transfer or convey ownership. It’s shady!

Question 14

What is Legal title?

Answer 14

Legal title refers to the actual ownership of real property. A borrower who has legal title has the right to transfer ownership of the property or sell the property to another party. (Borrower holds legal title in mortgages)(Trustee holds legal title in Trust Deeds).

Question 15

What is an Equitable title?

Answer 15

Equitable title is associated with a borrower’s financial interest in the property. A borrower may have equitable title to a property that they have invested in, while the Trustee actually holds legal title to that same property.

Question 16

What is used in a legal action taken to clarify ownership of a given property. Can also be used to solve boundary issues or to remove any clouds on the title?

Answer 16

Quiet title action

Question 17

What protects the owner of the property and the mortgage lender against defects or any future claims in the title to the property that happened prior to the time of sale?

Answer 17

Title Insurance

Question 18

When it comes to titles, what is a Simultaneous Issue?

Answer 18

Simultaneous Issue is done in conjunction with the issuance of the owners and the lenders title policies when it is purchased at the same time.

Question 19

This is a claim against a property by a party that is not the owner. Mortgages, easements, deed restrictions, encroachments and property tax liens are Examples. What’s that called?

Answer 19

An encumbrance

Question 20

What’s a Property survey?

Answer 20

Done to determine or confirm land boundaries, such as the plot of land a home sits on, and any sub-surface improvements.

Question 21

What gives the right to use someone else’s property for a specific purpose?

Answer 21

An easement

Question 22

What’s it called where a property owner violates the property rights of his neighbor by building on or extending a structure onto the neighbor’s land or property?

Answer 22

An Encroachment