Chapter Eight - Title and Title Protection Flashcards Preview

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Flashcards in Chapter Eight - Title and Title Protection Deck (21)
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1

TITLE AND TITLE PROTECTION

-  State Recording Acts are essential to title protection.

-  Recording: entering into public record.  

2

Constructive Notice

-  Constructive Notice: is notice that is deemed to be given because the facts are readily available.

3

Actual Notice

-  Actual Notice: when one knows a fact concerning a property through direct knowledge or when notice is expressly given.

4

Acknowledgement

-  Acknowledgement: a formal declaration made by person singing the document the he is indeed singing as a free and voluntary act.  Taken by:

-  Notories

-  Attorneys

- County Clerk 

- Registrars

- Surrogates

5

Bona Fide Purchaser

-  A party who has paid value for an estate in real property without actual constructive notice of an already existing estate in the same parcel.

6

TITLE INSURANCE 

Title Insurance Defined

-  Title Insurance: a contractof indemnity under which a title insurance company, for a one time payment agrees to indemnify the insured.  

-  Title company also defends any lawsuite attacking the title which is based on a defect covered by the policy.

-  Total policy coverage diminishes as damage payments are made to the insured.  

7

Exclusions

-  Exclusions: those matters that the policy expressly indicates are not within the coverage provided.  (Condemnation...)

 

8

Exceptions

-  Exceptions: relate to matters that were never intended to be the subject of title insurance.

-  They are matters that the title company cannot insure because the constitute objections to the title.  

9

Examination of Title Records Prior to Purchase

Abstract

-  Abstract of Title: condensed historical records of all grants affecting the property.  

-  Cahin of Title: attempts to trace an unbroken chain of former owners back fro 60 years.

10

Undiscovered or Hidden Defects

-  An owner's title insurance policy insures title against loss from both undiscovered and undiscoverable defects.

11

Run-Down Search / Continuation

-  conducted to reveal any matters of record which have occurred between the time of the initial search and the closing of title.  

12

Action to Quiet Title

-  Legal action necessary to clarify the status of title and remove any clouds on the title.

13

Examination of Title

-  Examination of Title: process of reviewing the info discovered in a search or abstract by those who will prepare a Committment (title report and binder).

14

Committment

-  Issuance of a committement is based on the results of the title search, judgement search, and tax assessment search.

-  Outlines terms and conditions.  

-  Terminates nine months from its effective date or the closing of title, which ever occurs first.  

15

Uniform and Ununiform Provisions

-  Uniform: same policy by policy.

-  Ununiform: differ from policy to policy.  

16

Title Insurance Coverage

-  Title to the insured land is in the name of the insured.

-  Any defect in or lien or encumbrance on the title.  

-  Protection against loss arising from lack of right of access to the property.

-  Marketability: title that if free of defects and and liens.

17

FORMS OF TITLE INSURANCE

-  Owner's (Fee) Policy:

-  Mortgage or Loan Policy

18

Affidavits of Title

-  Representations made by the seller and buyer.

19

Subrogation

-  The right to take legal action against a third party responsible for a loss to an insured for which a claim has been paid.  

20

Ednorsements

-  Endorsement: a written statement that is used to modify the contents and coverages of a title insurance policy or committment.  

21

The New Jeersey Department of Banking and Insurance

-  Regulates policy forms and endorsements as well as premiums and charges.