Chapter 5 Flashcards
(25 cards)
The recording system was established to
preserve instruments of title and give evidence of voluntary execution.
give public notice of change or ownership or the existence of liens thereon.
Recordation of instruments which transfer or encumber a parcel of real property will do all of the following EXCEPT
give actual notice of the instruments to third parties who may be affected by the related transactions.
A collection of all recorded instruments, chronologically arranged, affecting title to real property is a(n)
abstract of title.
A “chain of title” is a(n)
record of a property’s grantors and grantees.
The abstract
will compensate the grantee in case of failure.
guarantees the seller’s ability to pay under the warranties found in the deed.
will contain all unrecorded documents concerning the property.
will do none of the above.
Under the abstract method of assurance of title, the
attorney determines whether any liens which existed have been satisfied
A title search done by an attorney will
generally locate defects in title.
Happy Beyer is in the process of purchasing a new home. To protect its interest Ms. Beyer’s mortgagee decided to take out title insurance. The title insurance policy
indemnifies the holder against some, but not all, of the possible defects in title.
The cost of title insurance is
paid only at the time of issuance of the policy.
When the title search indicates a clear title
the buyer still cannot be absolutely certain that the title is good.
Any interest in, or right to, land by third persons, adversely affecting the value of the property, is an
Encumberance
In the states such as Oklahoma which practice “lien theory” in mortgages, title to the real property which is mortgaged is in the name of the
mortgagor
A mechanic’s lien claim arises when a general contractor has performed work or provided material to improve a parcel of real estate on the order of the owner, and the owner has not paid for it. Such contractor has a right to
record a mechanic’s lien and file a court suit within the time required by state law.
The priority of a mechanic’s lien over such liens as mortgages and other non-tax liens is determined by the date of
work of improvement commences.
Public notice that an action at law is pending that may affect the title to specific land or other property is known as
lis pendens.
What is the difference between a general and a specific lien?
A general lien is a lien against all of the debtor’s property, while a specific lien covers only a certain piece of property.
The illegal, wrongful extension of a structure or of any improvement, partly or wholly, on the property of another is a(n)
encroachment.
Should a person erect an improvement on the land of another by mistake and in good faith, the owner of the land on which the encroachment has occurred
may cause the improvement to be removed and may collect for any damage to the property caused by the removal.
An acquired legal privilege or right of use or enjoyment, falling short of actual ownership, which a party may have in the land of another is
a divestment.
An Easement
Restrictions placed on property by sub-dividers which limit a landowner’s ability to exercise absolute control over the condition and use of real property are.
deed restrictions.
Queenie, owner of a 40-lot tract of land, conveys each lot with a restrictive covenant requiring the owner to use the land for residential purposes. One of her grantees, Prince, later sells his lot to Duke, who wants to build a gas station. Which of the following is true?
Duke will be bound by the restrictive covenants in Prince’s deed.
The ability of the state to enact and enforce zoning ordinances stems from its
police powers.
Which statement about building codes is true?
They establish minimum standards in design, structural systems, and construction materials.
Should landowners develop their land without first obtaining building permits, they could be
forced to tear down the buildings.
