13. Title Records Flashcards
ABSTRACT OF TITLE
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.
ACTUAL NOTICE
Express information or fact; that which is known; direct knowledge.
ATTORNEY’S OPINION OF TITLE
An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of the facts concerning the property ownership.
CERTIFICATE OF TITLE
A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records.
CHAIN OF TITLE
The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title.
CONSTRUCTIVE NOTICE
Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.
FINANCING STATEMENT
A short notice of the security agreement that contains a complete description of the items against which a lien applies. See also Uniform Commercial Code.
INQUIRY NOTICE
Notice the law presumes a reasonable person would obtain by inquiring into a property.
MARKETABLE TITLE
Good or clear title, reasonably free from the risk of litigation over possible defects.
PRIORITY
The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens.
RECORDING
The act of entering or recording documents affecting or conveying interests in real estate in the recorder’s office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective against subsequent purchasers or mortgagees.
SECURITY AGREEMENT
An agreement that the UCC requires the borrower to sign that contains a complete description of the items against which a lien applies. See also Uniform Commercial Code.
SUBROGATION
The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.
SUIT TO QUIET TITLE
A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.
TITLE INSURANCE
A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy.
