Chapter 7 - Title Records

What would be used to clear a defect from the title records

A suit to Quiet Title

Which of the following is acceptable evidence of a marketable title

A title insurance policy, Torrens certificate, abstract of Title with certificate of title or (letter of opinion from an attorney)

A written summary of the history of all conveyance and legal proceedings affecting a specific parcel of real estate is called:

Abstract of Title

A Bona fide purchaser for value who records his deed will take precedence over a grantee with a prior unrecorded deed

Because the purchaser for value has a right to rely on what is found in the records.

The history of all owners of a specific parcel of real estate is the property's

Chain of Title

All of the following are forms of notice or interests in real property EXCEPT: a) constructive notice b) Inquiry Notice c) Actual Notice d) Delinquency Notice

Delinquency Notice

For deed to be validly recorded in lost states, it must be signed by the grantee. True or False

False

subrogation

When an insurance company attempts to recoup expenses for a paid claim when another payer should have been responsible.

An abstract of Title does not provide evidence of title unless accompanied by

a certificate of title

Chain of title is MOST accurately defined as

a history of all documents and legal proceedings affecting a specific parcel of land. (correct, but why when Billy says it is just a chain of the owners of the property)

Documents affecting real estate are recorded or filed in the county in which the property is located to A) enable interested parties to know where to look to discover the various interests of other parties to the transaction. B) give actual notice of the grantee's interest in the property. C) comply with the terms of the statute of frauds that all transfers for more than one year be in writing and signed. D) prove the validity of the execution of the document.

a) enable interested parties to know where to look to discover the various interest of other parties to the transaction

The recording system performs which of the following functions: a) gives notice to all the existence of documents b) insures title against loss due to third party claims c) Protects against fraud and forgeries d) Cures major defects in title

a) gives notice to all the existence of documents

Which of the following are traditionally covered by a standard title insurance policy? a) improperly delivered deeds b) changes in land use because of zoning ordinance c) unrecorded liens not known to the policyholder d) unrecorded rights of persons in possession

a) improperly delivered deeds

Which of the following statements about evidence of title is true? Select one: a. Abstract of title offers no guarantee of title b. An abstract of title insures the buyer against loss due to any matters that could be disclosed in a title search and also against losses due to "off-record" risks. c. An abstract of title is the most secure evidence a buyer can receive. d. Title insurance insures the lender against loss in case of a default and foreclosure.

a. Abstract of title offers no guarantee of title

Recording a deed is for the greatest benefit of the: Select one: a. Grantee. b. Grantor. c. Attorney. d. Public trustee

a. Grantee.

An owner's title insurance policy protects the owner against: Select one: a. Loss of title to a claimant with superior right of title. b. Losses due to fire damage. c. Loss of property due to mortgage foreclosure. d. Monetary loss resulting from personal judgment liens against the owner.

a. Loss of title to a claimant with superior right of title.

A purchaser went to the county building to check the recorder's records, which showed that the seller was the grantee in the last recorded deed and that no mortgage was on record against the property. The purchaser may assume which of the following? Select one: a. The seller did not mortgage the property, b. All taxes are paid and no judgments are outstanding. c. The seller has good title. d. No one else is occupying the property.

a. The seller did not mortgage the property

Where is the BEST place to find a cloud on title? Select one: a. Title search. b. Warranty deed. c. Appraisal. d. Application for title insurance.

a. Title search.

Which of the following is true about insurance a) it ensures against future losses b) It protects the insured from events before the policy was issued c) It covers changes in land use brought about by zoning ordinances d) It includes defects known to the buyer

b) It protects the insured from events before the policy was issued.

When Ursula purchased her home, the title insurance policy she received did NOT include which of following ? A) A legal description of the insured real estate B) A record of all of the previous owners of the property C) A list of defects not covered D) The kind of estate or interest being insured

b) a record of all of the previous owners of the property

The recordation of a warranty deed: a) guarantees ownership b) protects the interests of the grantee c) prevents claims of parties in possession d) provides defense against adverse possession

b) protects the interests of the grantee

The BEST reason for a buyer to obtain title insurance is A) that the mortgage lender requires it. B) to ensure that the seller can deliver marketable title. C) to ensure that the abstractor has prepared a complete summary of title. D) to pay future liens that may be filed.

b) to ensure that the seller can deliver marketable title

All of the following are forms of notice or interests in real property EXCEPT Select one: a. Constructive notice b. Delinquency notice c. Inquiry notice d. Actual notice

b. Delinquency notice

A broker finds a prospective buyer for a single-family dwelling, and the subject of title insurance has come up. The buyer wants the greatest owner protection available. Which of the following should the broker recommend? Select one: a. Abstract of title. b. Extended coverage policy of title insurance. c. Certificate of title. d. Standard coverage policy of title insurance.

b. Extended coverage policy of title insurance.

When a mortgagee requires a title insurance policy on the secured property, the: Select one: a. Policy protects the interests of the lender and the owner. b. Policy is assignable. c. Mortgagee will require both an owner's and a lender's policy. d. Policy is for the life of the mortgagor.

b. Policy is assignable.

The only daughter in a large family inherited a condominium apartment from her father after a lengthy probate proceeding in which there were many conflicting claims to the apartment. Before selling the property she would be BEST advised to obtain a: Select one: a. Termite report. b. Title opinion. c. New mortgage. d. Survey.

b. Title opinion.

For a prospective buyer of real estate to investigate the validity of the title, the buyer should request a/n: Select one: a. Warranty deed. b. Title search. c. Estoppel certificate. d. Survey.

b. Title search.

A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a/n Select one: a. certificate of title. b. abstract of title. c. affidavit of title. d. title insurance policy.

b. abstract of title.

The history of all owners of a specific parcel of real estate is the properties Select one: a. abstract of title. b. chain of title. c. title insurance policy. d. certificate of title.

b. chain of title.

A standard form of policy of title insurance protects against loss resulting from all of the following except: a) lack of capacity by the grantor b) Forgery in the chain of title c) Encroachments on the property d) Failure to deliver an earlier recorded deed

c) Encroachments on the property

An abstract of Title accomplishes which of the following? a) guarantees validity of title b) Insures title c) Gives a history of the title, including the recorded encumbrances against the property d) Protects the purchaser against any forgeries in the record

c) Gives a history of the title, including the recorded encumbrances against the property

The mortgagee (lender) received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is true? a) The policy is issued for the benefit of the buyer b) The policy guarantees that the buyer's equity will be protected c) The amount of coverage is commensurate with the loan amount d) The amount of coverage increases as the borrower's equity increases

c) The amount of coverage is commensurate with the loan amount

Which of the following documents serves as the BEST evidence of good title a) Mortgage b) Warranty Deed c) Abstract of Title d) Bill of Sale

c) abstract of title

All of the following would be considered evidence of marketable title except: a) an abstract of title with a legal opinion b) A title commitment or title insurance policy c) A certificate of title by real estate broker d) certificate of title by a real estate attorney

c) certificate of title by a real estate broker

All of the following are true regarding public records except: a) The give notices of encumbrances b) they establish priority of liens c) they guarantee marketable title d) They provide constructive notice about interests in the property

c) they guarantee marketable title

An abstract of title is BEST described as a/n: Select one: a. Summary of each deed in a title search. b. Appraisal of the lands and the improvements. c. Brief digest of the title to a particular property. d. Summary of all improvements and encroachments on the property.

c. Brief digest of the title to a particular property.

A sells a portion of property to B. B promptly records the deed in the appropriate county office. If A tries to sell the same portion of property to C, which of the following statements is TRUE? Select one: a. Because C purchased the property from its rightful owner, C is presumed by law to be aware of B's prior interest. b. Because C's purchase of the property is the more recent, it will have priority over B's interest, regardless of when B recorded the deed. c. C has been given constructive notice of the prior sale because B promptly recorded the deed. d. C has been given actual notice of the prior sale because B promptly recorded the deed.

c. C has been given constructive notice of the prior sale because B promptly recorded the deed.

A buyer is interested in buying property in another state without an inspection. The buyer should obtain: a. Bargain and sale deed. b. Quitclaim deed. c. Extended coverage title insurance policy. d. Abstract of title.

c. Extended coverage title insurance policy.

A property with encumbrances that will outlast the closing Select one: a. cannot have a deed recorded without a survey. b. can be sold only if title insurance is provided. c. can be sold if a buyer agrees to take it subject to the encumbrances. d. cannot be sold.

c. can be sold if a buyer agrees to take it subject to the encumbrances.

An abstract of title does NOT provide evidence of title unless it is accompanied by a Select one: a. letter of insurance coverage. b. copy of title insurance policy. c. certificate of title. d. letter of warranty

c. certificate of title.

In the states in which it has been adopted, the Marketable Title Act Select one: a. provides a certification system for qualifying title insurance companies. b. disqualifies use of an attorney's opinion of title as acceptable evidence of title. c. limits the time beyond which title records must be searched. d .establishes standardized forms for abstracts of title.

c. limits the time beyond which title records must be searched.

A seller delivered title to a buyer at closing. A title search had disclosed no serious defects, and the title did not appear to be based on doubtful questions of law or fact or to expose the buyer to possible litigation. The seller's title did not appear to present a threat to the buyer's quiet enjoyment, and the title insurance policy provided was sufficient to convince a reasonably well-informed person that the property could be resold. The title conveyed would commonly be referred to as a Select one: a. abstract of title. b. attorney's opinion of title. c. marketable title. d. n) { e. certificate of title.

c. marketable title.

The person who prepares an abstract of title for Select one: a. issues title insurance. b. insures the condition of the title. c. parcel of real estate searches the public records and then summarizes the events and proceedings that affect title. d. inspects the property.

c. parcel of real estate searches the public records and then summarizes the events and proceedings that affect title.

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called a/n Select one: a. chain of title. b. certificate of title. c. title insurance policy. d. abstract of title.

c. title insurance policy.

All of the following are acceptable evidence of marketable title except: a) an abstract with legal opinion b) a Torrens certificate c) a Title insurance policy d) A property owner's warranty deed

d) A property owner's warranty deed

In real estate transactions, all of the following documents are usually recorded except the a) deed b) second mortgage c) Purchase-money mortgage d) offer to purchase

d) Offer to purchase

The chronological record of all conveyances and encumbrances affecting the recorded title to real property is known as a) Chain of Title b) Title insurance policy c) Cloud on Title d) Title report

d) Title report-Usually a title company conducts a title search of the chain of title in the public records to see what, if any, clouds on the title there may be. This accumulation of research would be called a title report. A title insurance policy insures against losses suffered owing to certain undisclosed title defects

To serve as public notice, a deed is recorded in the a) state capital b) city where the owner lives c)largest city in the state d) county or, in some states, the town where the property is located

d) county or, in some states, the town where the property is located

A suit to quiet title refers to A) a title insurance company's search of the title. B) a mortgagor relinquishing title after foreclosure. C) the deposit of a title with an escrow agent. D) the removal of a cloud on the title by court action.

d) the remove of a cloud on the title by court action

The records assembled in chronological order that document the chain of title are called a/n: Select one: a. Title insurance policy. b. Affidavit of title. c. Cloud on title. d. Abstract of title.

d. Abstract of title.

The date and time a document was recorded help establish which of the following? Select one: a. Abstract of title b. Subrogation c. Marketable title d. Priority

d. Priority

All of these are acceptable evidence of an owner's title EXCEPT Select one: a. a title insurance policy. b. a certificate of title. c. an abstract of title and attorney's opinion. d. a recorded deed.

d. a recorded deed.

A title search in the public records may be conducted by Select one: a. attorneys and abstractors only. b. attorneys, abstractors, and real estate professionals only. c. anyone who obtains a court order under the Freedom of Information Act. d. anyone.

d. anyone.

The part of the title insurance policy that sets forth all of the encumbrances and defects that will NOT be insured against is called the A) schedule of defects. B) citation clause. C) non-exclusionary clause. D) exclusions.

exclusions

A Suit to Quiet title refers to:

the removal of a cloud on the title by court action.

All of the following liens need to be recorded to be valid EXCEPT: a) Mortgage Lien b) Real Estate Tax Lien c) Judgment Lien d) Mechanic's Lien

Real Estate Tax Lien

The best way to discover a flaw in the recorded title to a piece of real property is by:

Undertaking a search of title (Title Search)