Unit 13 - Title Records

Question 1

Define Recording

Answer 1

Act of placing documents in the public record

Gives public constructive notice

Question 2

Define Constructive Notice

Answer 2

Legal presumption that info may be obtained by an individual through due deligence

Question 3

Define Actual Notice

Answer 3

Not only is the info available, someone has been given the info and knows it

Question 4

Define Priority

Answer 4

Order of rights in time

Question 5

Define Chain of Title

Answer 5

The record of a property’s ownership

Question 6

Define Title Search

Answer 6

Examination of all public records to determine if any defects exist in chain of title

Question 7

Define Marketable Title Act

Answer 7

Extinguishes certain interests and cures certain defects before root of the title

Question 8

Define Root of Title

Answer 8

Goes back 40 years into the titles history

Question 9

Define Abstract of Title

Answer 9

Summary of what the title search found

Question 10

Define Marketable Title

Answer 10

Must disclose no serious defects
Not expose purchaser to litigation
Convince a well informed purchaser that the property could be sold

Question 11

Define Certificate of Title

Answer 11

Statement of opinion regarding title status on the date certificate issued

Question 12

Define Abstract & Attorney Opinion

Answer 12

An opinion of title status based on review of the abstract by an attorney

Question 13

Define Title Insurance

Answer 13

Contract where policy holder is protected from losses arising from a defective title

Question 14

Define Standard Title Insurance

Answer 14

Protects against 
 defects found in the title
 forged documents
 incorrect marital statements
 improperly delivered deed

Question 15

Define Extended Title Insurance

Answer 15

Covers all things listed in the standard title insurance plus
defects through property inspections
examination of survey
unrecorded liens not known by the policy holder

Question 16

What is not covered by either policy?

Answer 16

Defects and liens listed in the policy
Defects known to the buyer
Changes in land use brought forth by zoning