Unit 8: Title Records

To serve as public notice, a deed is recorded in the

Because land is immobile, it makes sense to record all information about title to the property in the county where it is located. Some owners frequently relocate, and they would be hard to find.

A woman purchased property from a man. Shortly after closing, the woman discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What can she do now?

Because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed.

All of these are acceptable evidence of an owner's title EXCEPT

A recorded deed is nothing more than that. Other verifications of thorough examinations of recorded documents can affect the title.

A certificate of title is a guarantee of legal ownership.

False. A certificate of title is evidence but not a guarantee of ownership. A certificate of title is a statement of opinion of the title's status on the date the certificate is issued.

A search of the public records will disclose all liens that exist against a property.

False. A search of the public records will disclose all recorded liens that exist against a property.

Constructive notice means that information about a property is not only available, but that someone has been given access to that information.

False. Actual notice means that not only is the information about property available, but someone has been given access to that information.

Any written document that affects any estate, right, title, or interest in land must be recorded in the county in which the property owner resides.

False. Any written document that affects any estate, right, title, or interest in land must be recorded in the county or, in some states, town in which the property is located.

In a typical title search, the chain of title is examined, beginning with the earliest records of ownership and proceeding forward up to the present owner.

False. In a typical title search, the chain of title is examined beginning with the present owner and tracing backwards to the earliest records of ownership or a definite period of years, depending on state statute.

To be eligible for recording, a document pertaining to real estate must be drawn and executed in accordance with the requirements of the federal government.

False. To be eligible for recording, a document pertaining to real estate must be drawn and executed in accordance with the requirements of the recording acts of the state in which the property is located.

Which of these would be covered in a standard title insurance policy?

Forged documents

Five years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, a man was the owner of the property and a woman was an active partner in the construction company. The property is in county A, but the lien was recorded in county B. Now, the woman is trying to buy the property from the man. A title search in county A disclosed no liens against the property. Which of these is TRUE?

The woman has actual notice of the lien but not constructive notice, because of the mistake in recording.

One of the requirements of marketable title is that it could convince a reasonably well-informed and prudent purchaser, acting on business principles and with full knowledge of the significant facts, that the property could be resold or mortgaged at a later time.

True. A marketable title should disclose no serious defects, should not depend on doubtful questions of law, and should convince a reasonably well-informed and prudent purchaser, acting on business principles and with full knowledge of the significant facts, that the property could be resold or mortgaged at a later time.

An extended standard coverage title insurance policy protects a homeowner against rights of parties in possession and unrecorded liens.

True. Extended coverage as provided by an American Land Title Association (ALTA) policy includes the protections of a standard policy plus additional protections.

Any individual who is interested in a particular property may review the public records to learn about the documents, claims, and other issues that affect its ownership.

True. Public records are open to anyone interested in a particular property. A review of the records will reveal the documents, claims, and other details that affect its ownership.

The term chain of title refers to the record of a property's ownership.

True. The chain of title is the record of a property's ownership, beginning with the earliest owner.

A title insurance policy that protects the interests of a mortgagee is called

a lender's policy.

A history of all recorded liens and encumbrances is revealed in the

abstract

The person who prepares a certificate of title is the

abstractor.

In the states in which it has been adopted, the Marketable Title Act

limits the time beyond which title records must be searched.

The reason that deeds and liens and other claims are recorded is to give

constructive notice.