CH 4

Question 1

Title insurance protects the property against losses due to

Answer 1

Defects in Title

Question 2

The title insurer reimburses the property owner for covered losses up to

Answer 2

The face amount of the insurance plus legal expenses

Question 3

The title company’s primary facility which stores copies of all public records from the county in which the property is located, is the

Answer 3

Title plant

Question 4

The chain of title lists

Answer 4

The parties and documents, such as a trust or grant deed and recording date

Question 5

A patent is a deed transferring land from

Answer 5

the federal or state government to a private individual

Question 6

Using the Statement of Information (SI), the title searcher performs a

Answer 6

a general index run

Question 7

If a searcher discovers an error in spelling on a previously recorded deed,

Answer 7

escrow may send a corrected deed to grantor to sign and record

Question 8

Underwriting is defined as

Answer 8

writing under or at the end of something

Question 9

The preliminary title report indicates

Answer 9

the conditions under which a title insurance policy will be offered to a buyer

Question 10

Title policies are written on the basis of a search of public records and other records that impart

Answer 10

Constructive notice

Question 11

assessor’s parcel number

Answer 11

The identification for a piece of land, as assigned by the county’s assessor, that refers to the book, section, and page number of the county’s real property ownership records

Question 12

Chain of title

Answer 12

A history all previous property owners in chronological order beginning with the present then searching back in time for any matter that may affect title

Question 13

clear and marketable title

Answer 13

The condition of title or real property that allows its titleholder to own, use, enjoy, and convey it to another or to encumber

Question 14

cloud on title

Answer 14

Matters that could affect title or prevent the title from being transferred or encumbered

Question 15

date down

Answer 15

The process of searching the chain of title, a history of all previous property owners in chronological order, beginning with the present, then searching back in time for any matter that may affect title

Question 16

preliminary title report

Answer 16

A written opinion of title prepared by the title officer is called a preliminary title report. The report indicates the conditions under which a title insurance policy will be offered to the buyer or borrower, including any exceptions to coverage.

Question 17

defects in title patents

Answer 17

Defects are aspects of the works that are not in accordance with the contract. Defects can be ‘patent’ or ‘latent’: Patent defects are those which can be discovered by reasonable inspection.

Question 18

quiet title action

Answer 18

Used to submit a discrepancy in title to a court for the judge to make a ruling. Unless the issue is complex, the request to have it reconveyed will usually be granted

Question 19

title plant

Answer 19

Instead of visiting the county recorders office to search public records, title companies have established their own facilities where they store copies of all public records they obtain from the county’s recorder office. These plants contain vast computer databases of all public records from the county in which the property is located.

Question 20

title search

Answer 20

The title process begins with a thorough and diligent search of all title records and public documents

Question 21

Real Estate Encumbrances

Answer 21

Real Estate Encumbrances: Deed Restrictions, Liens, Easements, and Encroachments. An encumbrance is a claim or liability against real estate, held by someone other than the fee owner of the property that affects the title to the property, and therefore its value.