Chapter 13: Title Records

Question 1

When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as?

Answer 1

Subrogation

Question 2

Which of the following would be used to clear a defect from the title records?

Answer 2

A suit to quiet title

Question 3

The part of the title insurance policy that sets forth all of the encumbrances and defects that will not be insured against is called the?

Answer 3

Schedule of expectations

Question 4

An abstract of title does not provide evidence of title unless it is accompanied by a?

Answer 4

Legal opinion of title

Question 5

A bill of sale is used to transfer the ownership of?

Answer 5

Personal property

Question 6

When a buyer purchase her home, the title insurance policy she received did not include what?

Answer 6

Record of all previous owners of the property

Question 7

A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called?

Answer 7

An abstract of title

Question 8

When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is?

Answer 8

An encumbrance

Question 9

The recorded history of matters that affect the title to a specific parcel of real property is its?

Answer 9

Abstract title

Question 10

Generally, if some defect is found in the title to real property, the effect on a sales contract is that?

Answer 10

The seller has a reasonable time to correct the defect

Question 11

The reformation of a warranty deed?

Answer 11

Protects the interests of the grantee

Question 12

Documents affecting real estate are recorded are filed with the county in which the property is located to?

Answer 12

Give constructive notice of the real estate interest

Question 13

The best assurance of good title that a real estate purchaser can obtain is a?

Answer 13

Title insurance policy

Question 14

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

Answer 14

A title insurance policy

Question 15

The body of law that covers such topics as security agreements, financing statements, and bulk transfers is the?

Answer 15

Uniform commercial code

Question 16

The recording of a valid deed..

Answer 16

Gives constructive notice of the ownership of real property

Question 17

A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances..

Answer 17

The buyers interest is not fully protected against third parties.

Question 18

The buyer purchases a title insurance policy on the property the buyer is pledging as security for the mortgage loan. What is true?

Answer 18

The amount of coverage is commensurate with the loan amount

Question 19

What document would be an example of proof of ownership?

Answer 19

Title insurance

Question 20

A defect or a cloud on the title may be cured by?

Answer 20

Obtaining quitclaim deeds from all interested parties

Question 21

The primary reason a buyer receives title insurance is?

Answer 21

To ensure that the buyer has marketable title

Question 22

A sales contract requires the seller to deliver marketable title. What is true?

Answer 22

The seller will pay all liens that are pending

Question 23

An outstanding claim or encumbrance, which, if valid, would impair an owners title, is referred to as?

Answer 23

Cloud on title

Question 24

Quieting a title refers to?

Answer 24

The removal of a cloud on the title by court action

Question 25

What is the major difference between the owners title policy and the mortgagees title policy?

Answer 25

The owners policy covers the owner for the sale price of the property, while the mortgagees policy covers only the loan amount

Question 26

What best describes a chain of title?

Answer 26

A list of successive owners of the property up to the present.

Question 27

What is not true regarding title insurance?

Answer 27

The policy does not cover both the borrow or the lender

Question 28

Which of the following is acceptable as the evidence of marketable title?

Answer 28

A title insurance policy