Unit 13 - Title Records

Question 1

Abstract Of Title

Answer 1

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

Question 2

Actual Notice

Answer 2

Express information or fact; that which is known; direct knowledge. (also called direct knowledge)

Question 3

Certificate Of Title

Answer 3

A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records.

Question 4

Chain Of Title

Answer 4

The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title.

Question 5

Constructive Notice

Answer 5

Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.

Question 6

Marketable Title

Answer 6

Good or clear title, reasonably free from the risk of litigation over possible defects.

Question 7

Priority

Answer 7

The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens.

Question 8

Recording

Answer 8

The act of entering or recording documents affecting or conveying interests in real estate in the recorder’s office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective against subsequent purchasers or mortgagees.

Question 9

Subrogation

Answer 9

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 to recover any claims the insurers have paid.

Question 10

Suit To Quiet Title

Answer 10

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

Question 11

Title Insurance

Answer 11

A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy.

Question 12

Title Search

Answer 12

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

Question 13

Lender’s title policies

Answer 13

A lender’s policy is issued for the benefit of the mortgage company. This policy is usually paid for by the buyer at the closing. The amount of the coverage depends on the amount of the mortgage loan. As the loan balance is reduced, the coverage decreases.