Title Records

Question 1

an individual has direct knowledge of documents in the public records and facts revealed by an inspection of the property.

Answer 1

Actual Notice

Question 2

a document is assumed when due diligence (such as a search of public records and inspection of the property) would reveal its existence.

Answer 2

Constructive notice

Question 3

a summary report of what the title search reveals, prepared by an abstractor or an attorney

Answer 3

abstract of title

Question 4

includes all recorded liens and encumbrances and lists records searched but does not indicate forgeries and interests that are unrecorded or could be discovered by property inspection

Answer 4

abstract of title

Question 5

one that a reasonably well-informed and prudent purchaser would accept because it does not have serious defects and does not rely on doubtful questions of law or fact to prove its validity, so that it does not expose the purchaser to litigation or threaten the purchaser’s quiet enjoyment of the property.

Answer 5

marketable title

Question 6

issued as an owner’s policy or mortgagee’s policy and protects the insured from losses arising from defects in title and hidden defects, but it also identifies exclusions from coverage that typically include readily apparent title defects, zoning, and others.

Answer 6

Title insurance

Question 7

provides a certificate of title issued by the county clerk that requires no further search to validate.

Answer 7

Torrens System

Question 8

Evidence of marketable title

Answer 8

proof of ownership

Question 9

To be eligible for recording, and thus made part of the public record, a document should be

Answer 9

drawn and executed according to state law.

Question 10

In many states, acceptable proof of good title to real estate is bolstered by the purchase of

Answer 10

Title insurance

Question 11

the record of a property’s ownership.

Answer 11

chain of title

Question 12

The legal process used to clear a title is

Answer 12

suit to quiet title

Question 13

MOST contracts state that the seller is responsible for providing what type of title to the property?

Answer 13

marketable title

Question 14

provides a certification system for qualifying title insurance companies.

Answer 14

Marketable Title Act

Question 15

certificate of title may be prepared by

Answer 15

a title company.
an attorney.
a licensed abstractor.

Question 16

revealed by a title search

Answer 16

mortgage
mechanic’s lien.
property taxes.

Question 17

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

Answer 17

marketable title

Question 18

In some areas of the country, acceptable proof of title is an abstract and

Answer 18

attorney’s opinion of title.

Question 19

A title that has no defects that could carry over as a problem for the new owner at whatever time the new owner decides to sell the property.

Answer 19

marketable title

Question 20

What does marketable title mean?

Answer 20

free of defects

Question 21

any document, claim, unreleased lien, or encumbrance that might invalidate or impair a title to real property or make the title doubtful.

Answer 21

cloud on title

Question 22

A document that protects against hidden risks, such as forgeries and loss due to defects in the title, and is subject to specific exceptions is called

Answer 22

Title insurance policy

Question 23

At MOST closings, what is the number of title policies issued?

Answer 23

2

Question 24

traditionally covered by a standard title insurance policy?

Answer 24

Improperly delivered deeds

Question 25

A policy of title insurance typically does NOT cover

Answer 25

zoning changes.

Question 26

Which of the following is NOT covered by an extended title insurance policy?

Answer 26

Defects and liens listed in the policy

Question 27

A lender making a loan secured by a mortgage will probably require the borrower to purchase

Answer 27

a mortgagee’s title insurance policy.

Question 28

Evidence of marketable title includes which of the following?

Answer 28

Title insurance policy

Question 29

Defects and liens listed in the title policy are included in the policy as

Answer 29

exclusions

Question 30

Extended coverage in an owner’s title insurance policy would cover

Answer 30

Unrecorded liens not known by the policyholder