CH 6

A home owner had a title insurance policy in the amount of $90,000 on his home. The claim was filed against the property, and the title insurance company paid out $15,000 to settle the claim. The coverage under the policy would continue at

$75,000

Smith, and abstracter, prepared the abstract on a property being conveyed to Bruce. Should Bruce's title later prove out to be defective, Smith could be held liable if the title defect was based on

A mistake due to negligence in searching the title

The premium for a title insurance policy is

A single premium, paid upon issuance

Before a title company will issue a title insurance policy on a property,

A title report must be prepared showing the apparent condition of the report

A person who searches land titles as an occupation may be known as a

Abstracter

A formal declaration by a person signing a document that he, in fact, did sign a document is known as a

Acknowledgment

When a person is aware of another's rights or interest in real property, that person is said to have

Actual notice

In a search of the grantors index one will find sellers names listed in

Alphabetical order

A summary of all recorded documents affecting title to a parcel of land is called a

An abstract of title

A lis pendens index is

An index of pending lawsuits

Should a title insurance company elect to fight a claim in court, the legal expenses incurred will be

Assumed by the title insurance company without affecting the coverage

Title insurance companies were originally organized to provide protection for

Attorneys and abstracters

Which of the following would commit an insurance company to issue a title policy?

Binder

An investor is considering the purchase of a 100 unit apartment building that is fully occupied. Which of the following would be true?

By their presence, the tenants are giving constructive notice of the right to be there

When one has traced the ownership of a parcel of land to the beginning of its recorded history, without reference to any encumbrances or other documents affecting the title, the result is a

Chain of title

In completing a title search, which of the following would an abstractor do first?

Check the grantee index to verify the present owners claim of title

Instruments are recorded in the public records in what order?

Chronological order, as received for recordation

Notice provided by recording an instrument in the public records is

Constructive notice

The public recorders office is also known as

County clerks office

You are standing in the backyard of the house that is offered for sale. You want to buy the house, but the fence surrounding the backyard appears to encroach onto the land of the next-door neighbors. Which of the following would normally disclose such an encroachment?

Current survey

Protection against a loss occasioned by which of the following would not be covered by title insurance?

Destruction of improvements by a tornado

Marketable title to real estate is title which is

Free of reasonable doubt as to ownership

Which of the following are the same?

Grantor = seller

Deeds and other instruments which affect land titles should be recorded

Immediately after execution and delivery

Which of the following is true of a lenders policy of title insurance?

It is assignable to subsequent holders of the mortgage loan

Regarding a quiet title suit, all of the following are true except

It removes all claims to title other than the owner's

Among the sources which have to be checked to establish an unbroken chain of title would be

Judgment rolls

Instruments affecting land transfers are recorded in the jurisdiction in which the

Land is situated

The purpose of having a person's signature acknowledge is to

Make the document admissible to the public records

The name of the borrower would be filed alphabetically in the

Mortgagor index

Because of a controversy over how a will was probated, several parties are claiming small interests and one person a major interest in a single parcel of land. The major owner wants to sell but the title companies have refused to ensure the title. The major owners alternatives are to

Negotiate and obtain quitclaim deeds from the minor owners

Randy convey the property to Sam by a deed dated June 1. Sam did not record the deed nor take possession of the property. On June 10 the same year, Randy conveyed the same property to Taylor, who properly searched the records and visited the property. Taylor properly recorded his deed and took possession of the property. Later, Sam claimed ownership based on his earlier deed. Will Sams claim be recognized?

No, because Sam did not provide legally required notice of his ownership and did not take possession.

Bill purchased real estate from Hank without making a visual inspection of the land for signs of notice. The American title insurance company insured the title. Bill later discovered that Hank had previously conveyed the land to Steve who was in possession at the time of Bill's purchase, but had not recorded his deed. Is Bill's potential loss covered by the title insurance company?

No, because the title insurance policy would not protect against claims which could have been discovered by a visual inspection or inquiry of persons in possession

The purchase of title insurance eliminates the need for

None of these

Laws of each state decree that a deed, mortgage, or other instrument affecting real estate is not effective if it is

Not recorded

In the normal course of events, when an abstract of title is sent to an attorney for examination, the attorney will render a

Opinion of title based on the facts contained in the abstract

Which of the following would usually provide the greatest assurance to an owner that the title to his property is marketable?

Owners policy of title insurance

Each document brought to a public recorders office for recordation is

Photocopied

Priority of recorded instrument is determined by the date of

Recordation

Documents are recorded by

Submitting the original document which is photocopied and placed on file

When both an owner's and a lender's policy of title insurance is purchase simultaneously,

The combined cost is slightly more than for an owner's policy alone

Records in the public recorders office may be inspected by

The general public

An unrecorded deed to land is binding upon

The parties to the deed

Protection against incomplete or defective records of the title to land can best be obtained by securing

Title insurance

A quiet title suit is necessary for a

Torrens certificate

The Torrens certificate of title is more meaningful than an attorney's certificate of title because the

Torrens certificate is founded on judicial decision

Title insurance policies are issued to protect against something

Which happened in the past

The statute of frauds established a requirement that

Written deeds be used to transfer real estate ownership

A title insurance policy issued for the protection of a lender who has taken real estate as collateral for a loan is called a

a lender's policy

Which of the following would not ordinarily be checked in searching a title to a parcel of land?

chattel mortgage records