Ch. 1: Title Search & Title
Insurance actual Questions
with 100% correct verified
answers
title - answer the actual ownership of a real property that includes the
bundle of rights in which a party may own a legal or equitable interest;
not an actual document
a deed is the actual document
marketable title - answer a title that is free from significant encumbrances
or defects that might otherwise prevent a purchaser from enjoying or
eventually selling the property
- free from serious defect
- free from legal exposure
- reasonably thought to be marketable should the buyer become a seller at
some point in the future
** While it is expected that a seller has a marketable title
to...well...market, it's NOT A REQUIREMENT.
But it's preferred because a title containing defects can limit or restrict
ownership, so a buyer really needs to know the status of the title BEFORE
accepting the deed. Concerns arising after that point usually require a
legal course of action to remedy.
Which of these would most negatively affect the marketability of a title?
A. the size of the property
B. a mortgage
, C. a mechanic's lien
D. a buyer's credit score - answer C. a mechanic's lien
A mechanic's lien would affect the marketability of a title, as a lien is an
encumbrance.
title search - answer an examination of public records to check for clouds
on a title
a thorough examination of available public records in the county to
determine who has rights to the property and whether any defects exist in
the chain of title
includes:
- wills
- judicial proceedings
- tax records
- special assessments
- recorded liens
- encumbrances that may affect title
chain of title - answer the entire chronological record of a property's
ownership
If there is a gap in the chain of title, the chain is said to be broken. A
broken chain of title results in a CLOUD ON THE TITLE. 🌧⛈🌧
To remove this cloud, an owner may need to initiate a SUIT TO QUIET
TITLE. This would serve as a kind of lawsuit against anyone who has a
claim on the land. If the property owner wins the suit to quiet title, no
further challenges to the title can be brought.
In short, a suit to quiet title clears the title record of any unrecorded
claims.
Insurance actual Questions
with 100% correct verified
answers
title - answer the actual ownership of a real property that includes the
bundle of rights in which a party may own a legal or equitable interest;
not an actual document
a deed is the actual document
marketable title - answer a title that is free from significant encumbrances
or defects that might otherwise prevent a purchaser from enjoying or
eventually selling the property
- free from serious defect
- free from legal exposure
- reasonably thought to be marketable should the buyer become a seller at
some point in the future
** While it is expected that a seller has a marketable title
to...well...market, it's NOT A REQUIREMENT.
But it's preferred because a title containing defects can limit or restrict
ownership, so a buyer really needs to know the status of the title BEFORE
accepting the deed. Concerns arising after that point usually require a
legal course of action to remedy.
Which of these would most negatively affect the marketability of a title?
A. the size of the property
B. a mortgage
, C. a mechanic's lien
D. a buyer's credit score - answer C. a mechanic's lien
A mechanic's lien would affect the marketability of a title, as a lien is an
encumbrance.
title search - answer an examination of public records to check for clouds
on a title
a thorough examination of available public records in the county to
determine who has rights to the property and whether any defects exist in
the chain of title
includes:
- wills
- judicial proceedings
- tax records
- special assessments
- recorded liens
- encumbrances that may affect title
chain of title - answer the entire chronological record of a property's
ownership
If there is a gap in the chain of title, the chain is said to be broken. A
broken chain of title results in a CLOUD ON THE TITLE. 🌧⛈🌧
To remove this cloud, an owner may need to initiate a SUIT TO QUIET
TITLE. This would serve as a kind of lawsuit against anyone who has a
claim on the land. If the property owner wins the suit to quiet title, no
further challenges to the title can be brought.
In short, a suit to quiet title clears the title record of any unrecorded
claims.
