Evidence of Title and the Importance of Recording in Texas UNIT EXAM
What's a quiet title action?
An action to locate and notify all who may have some claim on the title, and determine the validity of all claims
Which document is used to establish the path and proof of ownership?
Chain of title
What type of notice results from publicly recording a title transfer?
Constructive notice
Which of the following is true about ownership or title to a property?
Constructive notice to the public of real property ownership occurs when the deed is recorded.
Which document is used to establish proof of ownership and to transfer the title?
DEED
Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title?
Depending on his state's laws, Mario may have marketable title.
Which of the following best describes a marketable title?
Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.
When property changes hands, the deed is recorded. There's a fee for recording. What is the benefit to the grantee of having the deed recorded?
It puts the public on notice regarding ownership.
As a licensee, you're helping a couple buy a new home when you come across issues that could mean there's a cloud on the title. What should you do
Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale.
Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded?
Recording provides constructive notice that he owns the property.
Why is it important to publicly record a deed?
Title representatives and attorneys who perform title searches look for documents that are publicly recorded.
Jeff has filed a quiet title suit against Roger. What's the purpose of this suit?
To clear up a cloud on title
The mortgagee's title insurance policy provides for reimbursement ______________________.
Up to the current outstanding loan balance
Which option is true if a deed is not recorded after closing?
the propertys ownership can be challenged
In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?
the sellers existing mortgage
Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion?
title insurance policy
