Title Records

Question 1

Constructive notice

Answer 1

Is the legal presumption that information has been obtained by an individual though due diligence. A document placed in the public records serves as notice to the world of an individual’s rights or interests in the property

Question 2

Actual Notice

Answer 2

means no’t only that information of an interest in property is available but also that someone is aware of it. An individual who has searched the public records or inspected the property has actual notice of what is contained in the records or obvious from the property inspection

Question 3

Recording

Answer 3

Is the act of placing documents in the public record. The specific rules for recording documents are a matter of state law. Although the details may vary, all recording acts essentially provide that any written document affects any estate, right, title, or interest in land must be recorded in the county (or, in some estates, the town) where the land is located to serve as public notice

Question 4

Priority

Answer 4

Refers to the order in which documents or liens were recorded. Many complicates situations can affect the priority of rights in parcel of real estate

Question 5

Unrecorded documents

Answer 5

Certain types of liens are not recorded. Real estate taxes and special assessments are liens on specific parcels of real estate and are not usually recorded until after the end of the period for which the taxes or assessments will be due.

-Notice of liens must be gained from sources other than recorder’s office. Evidence of the payment of real estate taxes, special assessments, municipal utilities, and other taxes can be gathered from the tax collectors office.

Question 6

Chain of title

Answer 6

Is the record of a property’s ownership.

Question 7

Quiet Title…..

Answer 7

Key points:
-Court hearing to determine ownership, rec…..

Question 8

Title search

Answer 8

Is an examination of the public record to determine whether any defects exist in the chain of title.

Question 9

Abstract of title

Answer 9

Is a summary report of what the title search found in the public record . The person who prepares this report is called an abstractor.

In Practice-
An abstract of tile is a condensed history of those items that be found in public records. It does not reveal such items as encroachments or forgeries or any interest or conveyances that have not been recorded.

Question 10

Marketable Title a title must

Answer 10

-disclose no serious defects and not depend on doubtful question of law or fact to prove its validity;
-not expose a purchaser to the hazard of litigation or threaten the quiet enjoyment of the property; and
-convince a reasonably well- informed and prudent purchaser, acting on business principles and with knowledge of the facts and their legal significance, that the purchaser could sell or mortgage the property at a later time

Question 11

Public records are maintained by the clerks of the court

Answer 11

Yes

Question 12

The legal presumption that information may be obtained by an individual through due diligence is called constructive notice

Answer 12

True

Question 13

Proof of ownership

Answer 13

Is evidence that tile is marketable. A deed itself is not considered sufficient evidence of ownership

A certificate of title, title insurance, or a Torrens certificate is commonly used to prove ownership.

Question 14

Certificate of title

Answer 14

Is a statement of opinion of the title’s status on the date the certificate is issued.
A certificate of title is not a guarantee of ownership. Rather , it rectifies the condition of the title based on an examination of the public records—a title search.

Question 15

Title Insurance

Answer 15

Is a contract under which the policyholder is protected from losses arising from defects in the title.
Title insurance is considered the best defense of title: the title insurance company will defend any lawsuit based on an insurable defect and pay claims if the title proves to be defective.

Question 16

Torren’s system

Answer 16

Is a legal registration system used to verify ownership of real estate.
where it is recognized, registration in the Torrens system provides evidence of title without the need for an additional search of the public records.

Question 17

The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning

Answer 17

True

Question 18

A certificate of title provides a guarantee of ownership

Answer 18

True

Question 19

Which of the following would create a cloud on title?

Answer 19

A) A slight error in the legal description
B) Misspelling of a grantor’s name
C) An incorrect date
D) all of the above

D

Question 20

which statement BEST explains why instrument affecting real estate are recorded?

Answer 20

Recording gives constructive notice to the world of the right and interests claimed in the identified parcel of real estate.

Question 21

Which of the following is NOT covered by a standard title insurance policy?

Answer 21

Unrecorded right of parties in posssession

Question 22

Which of the following BEST describes chain of title?

Answer 22

Is is a history of all documents and legal proceedings affecting a specific parcel of land

Question 23

Documents referred as title evidence include

Answer 23

Policies of title insurance.

Question 24

What does a suit to quiet title do?

Answer 24

resolves clouds on title

Question 25

A title that has no defects that could carry over as a problem for the next property owners is called

Answer 25

Marketable title Most contracts state that the seller is responsible for providing marketable tile to the property The term marketable means a title has no defects

Question 26

How many title policies are typically issued at a closing?

Answer 26

Two, Thw owners policy for the benefit of the owner and the lender’s policy is for the benefit of the mortgage company.

Question 27

A property with encumbrances that will outlast the closing

Answer 27

Can be sold if a buyer agrees to take it subject to the encumbrances

Question 28

A mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?

Answer 28

A- The amount of coverage is commensurate with with the loan B- The policy is issued for the benefit of the buyer C- The amount of coverage increases as the borrower grows old D- The policy guarantees that the buyer’s equity will be protected The answer is A- The amount of coverage is commensurate with the loan

Question 29

Homeowners are frantic because they want to sell their property and the deed is missing. Which of the following is TRUE?

Answer 29

A- They must buy title insurance B- They should execute a replacement deed to themselves C- They may need to use for quiet title D- They do not need the original deed if it has been recorded Answer is D- They do not need the original deed if it has been recorded.

Question 30

Evidence of marketable title includes which of the following

Answer 30

Title Insurance policy

Question 31

A title search in the public records may be conducted by

Answer 31

Anyone

Question 32

The BEST reason for a buyer to obtain title insurance is

Answer 32

To ensure that the seller can deliver marketable title

Question 33

A buyer bought a house, received a deed, and moved into the residence but neglected to record the document. One week later, the seller died and the heirs in another city, unaware that the property had been sold, conveyed title to a relative, who recorded the deed. Who owns the property?

Answer 33

The buyer

Question 34

The person who prepares an abstract of title for a parcel of real estate

Answer 34

Searches the public records and then summarized the events and proceedings that affect title.

Question 35

The maximum loss for which the company may be liable is

Answer 35

The face amount of the policy