Unit 8 Title Records

Question 1

Define Abstract of Title

Answer 1

The condensed history of the recorded ownership of 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. 122

Question 2

Define Action to quite title

Answer 2

A court action that establishes ownership when ownership cannot be traced through an unbroken chain of title. 122

Question 3

Define Actual notice

Answer 3

Express information or fact; that which is known; direct knowledge. 121

Question 4

Define Attorney’s opinion Of title

Answer 4

An abstract of title that an attorney has examined and has certified to be, in the attorney’s opinion, an accurate statement of the facts concerning the property’s ownership. 124

Question 5

Define Certificate of title

Answer 5

A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. 123

Question 6

Define Chain of Title

Answer 6

The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title. 122

Question 7

Define Constructive Notice

Answer 7

Notice given to the world by recorded documents. All persons 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. 121

Question 8

Define Marketable Title

Answer 8

Good or clear title, reasonably free from the risk of litigation over possible defects. 123

Question 9

Define Priority

Answer 9

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. 121

Question 10

Define Recording

Answer 10

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 a mortgage ordinarily is not effective against subsequent purchasers or mortgagees. 120

Question 11

Define Subrogation

Answer 11

The right acquired by the title company to any remedy or damages available to the insured when a title company makes a payment to settle a claim covered by a policy. 124

Question 12

Define Title Insurance

Answer 12

A policy insuring a property 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. 124

Question 13

Define Title search

Answer 13

title search The examination of public records relating to real estate to determine the current state of the ownership. 122

Question 14

Define Torrens System

Answer 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. 86, 125

Question 15

Define Americans Land Title Asspciation (ALTA) Policy

Answer 15

A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan. 125

Question 16

Define evidence of title

Answer 16

Proof of ownership of property; commonly a certificate of title, an abstract of title with lawyer’s opinion, title insurance, or a Torrens registration certificate. 106

Question 17

Define suit to quiet title

Answer 17

A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title. 126

Question 18

Define Warranty Clause

Answer 18

Define A part of the deed in which the seller warrants the title conveyed to the buyer.