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Flashcards in Title Records Deck (17)
1

Constructive notice

legal presumption that information may be obtained by an individual through diligent inquiry. Properly recording documents in the public record serves as constructive notice to the world of an individual's rights or interest. So does the physical possession of a property.

2

Actual notice

means that not only is the information available but someone has been given the information and actually knows it. An individual who has searched the public records and inspected the property has actual notice.

3

Inquiry notice

notice that the law presumes a reasonable person would obtain by making further inquiry into a property.

4

suit to quiet title

A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.

5

title search

The examination of public records relating to real estate to determine the current state of the ownership.

6

Marketable Title Act

This law extinguishes certain interests and cures certain defects arising before the root of the title—the conveyance that establishes the source of the chain of title.

7

abstract of title

a summary report of what the title search found in the public record.

8

certificate of title

A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. Proof of ownership is established by this

9

attorneys opinion of title

An abstract of title that an attorney has examined and has certified to be, in his or her opinion, an accurate statement of the facts concerning the property ownership. used in some areas of the country as evidence of title.

10

title insurance

a contract under which the policyholder is protected from losses arising from defects in the title.

11

subrogation

The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.

12

standard coverage

1) defects found in public records
2) forged documents
3) incompetent grantors
4) incorrect marital statements
5) improperly delivered deeds

13

extended coverage

1) property inspection
2) examination of survey
3) unrecorded liens not known of by policyholder

14

torrens system

A method of evidencing title by registration with the proper public authority, generally called the registrar, named for its founder, Sir Robert Torrens.

15

uniform commercial code (UCC)

a commercial law statute that has been adopted, to some extent, in all 50 states. The UCC is concerned with personal property transactions; it does not apply to real estate. The UCC governs the documents when personal property is used as security for a loan.

16

security agreement

Part of the Uniform Commercial Code (UCC), it is required for a lender to create a security interest in personal property by having the borrower sign it.

17

financing statement

must be filed for a lender to create a security interest in personal property, including personal property that will become fixtures.