Methods of Title assurance

Question 1

What is Title Assurance?

Answer 1

Assures the validity of buyer’s title

Question 2

2 forms of Title assurance

Answer 2

1. Title insurance from title abstract company
2. Covenants for title–these are covenants grantor gives in warranty deeds personally warranting good title

Question 3

Remedies in a deed

Answer 3

Once he accepts deed, his remedies under the real estate contract are:

• Under a Quit Claim deed: NO Lawsuit
• Under Warranty Deed : Can Sue

Question 4

6 Warranties/ Covenants in a Warranty Deed

Answer 4

3 Present warranties: can sue by settlement day
1. Seisin
2. Right to Convey
3. Against Encumbrances

3 Future Warranties: Sue Any time even after but must have been evicted / These Run with the Land
4. Further assurance
5. Quiet Enjoyment
6. Warranty

Question 5

1.Seisin

Answer 5

*Covenant says that seller has valid ownership, thus is lawfully seized of property he is selling

BREACH—grantor has FSA but deeds/ transfers to grantee a LE

Question 6

2. Right to Convey

Answer 6

• Grantor/Seller has power to convey property to grantee/ Buyer

*BREACH–grantor gives deed to grantee BUT there is an outside interest in a third party. (doesn’t matter of the grantee knew)

Question 7

3. Against Encumbrances

Answer 7

*Grantor promises there are no outside encumbrances attached to the property

*BREACH–existence of a mortgage, judgment lien, easement, dower rights, etc.

Question 8

4. Further Assurance

Answer 8

*Grantor promises that if problems arise concerning title later, grantor will do whatever it takes to perfect the title

*Least important covenant

Question 9

5. Quiet enjoyment and 6. Warranty

Answer 9

*Grantor can be liable for damages if grantee is evicted for any reason by paramount/prevailing title holder