Title Records Flashcards
(32 cards)
Notice
making the legal interest public
Two Kinds of Notice
- Actual
- Constructive
Constructive Notice
Legal presumption that information has been obtained through due diligence.
Achieved by placing a document in the public record or through physical possession.
All are presumed to have knowledge of recorded interests.
Actual Notice
Information is known directly by an individual (e.g., via inspection or direct knowledge).
If actual notice is proven, the person cannot use ignorance of constructive notice as a defense.
Recording
The act of placing a document in the public record.
Recording is required for
Any document that affects an estate, right, title, or interest in land must be recorded in the county or town where the land is located.
Recording Provides:
Public notice of ownership or other interests.
Legal priority—generally “first in time, first in right”.
Exceptions to Priority
Liens for property taxes
Special assessments
Delinquent IRS obligations
Priority
Refers to the order in which documents are recorded and therefore the order in which interests take effect.
Chain of Title
A historical record of property ownership linking each owner from the original to the current.
What does Chain of Title do?
verify ownership history and uncover defects or breaks (gaps or clouds) in title
Does not include:
Liens
Encumbrances
Documents unrelated to direct ownership
Cloud on Title
Any break in the chain (e.g., name changes, forgeries) requiring a legal action to quiet title.
Title Search
Examination of public records to determine if any defects exist in the chain of title.
Title Search Steps
Begins with the current owner
Proceeds backward through all prior recorded owners
Typically covers 40–60 years, or another statutory period
Marketable Title Acts
Limit how far back the search must go
Eliminate the need to review very old records (e.g., from the 1800s)
Extinguish certain interests and cure defects arising before the root of title (i.e., the first conveyance that starts the chain)
Abstract of Title
A summary report of the title search findings
Prepared by an abstractor
Includes:
- A chronological list of recorded instruments (deeds, liens, etc.)
- All encumbrances and their current status
- A list of public records examined to show the scope of the search
Marketable Title
Title that is acceptable to a reasonably prudent person and will not subject the buyer to litigation.
Under most real estate contracts, sellers are required to deliver marketable title.
Marketable Title must be:
- Disclose no serious defects
- Not rely on doubtful legal/factual questions
- Not expose the purchaser to the hazard of litigation
- Not threaten quiet enjoyment of the property
- Convince a reasonable, well-informed buyer that the title is valid enough to sell or mortgage later
Transfer of unmarketable title is still legally possible, but:
The buyer cannot be forced to accept a conveyance that is materially different from what was promised
Once the buyer accepts an unmarketable title via deed, their only legal remedy may be to sue under deed warranties
Final Title check
Conducted right before closing to ensure no new liens or encumbrances have been recorded since the preliminary report
Preliminary title search + benefits
Often conducted once an offer is accepted
May be required via contract contingency
Buyer benefit: Can review and approve title before closing
Seller benefit: Opportunity to correct title defects early
Proof of ownership
Evidence that title is marketable
Is a deed proof of ownership?
deed alone is not sufficient proof of ownership.
A warranty deed conveys interest, but does not confirm the condition of the title at the time of transfer.
Common instruments used to prove ownership:
Certificate of title
Title insurance
Torrens certificate
