Study Cards - Tucker School of Real Estate

Chapter 13

Abstract of Title

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A written summary or history of all past conveyances regarding a property, includes a listing of recorded liens and judicial proceedings. Used to establish the "chain of title" in an effort to determine the quality of the title.

Title Insurance

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Policy insuring against loss due to title defects.

Chain of Title

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Series of successive conveyances regarding a property from the original land grant up to today.

Actual Notice

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Actual knowledge.

Constructive Notice

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Theory that information regarding a property's title is available through diligent inquiry of recorded instruments or inspecting for actual possession.

Attorney's Opinion of Title

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Following an inspection of the chain of title and public records, an attorney's opinion as to the title's quality or condition.

Marketable Title

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Title to real estate that is deemed to be good or clear, and free of any litigation.

Certificate of Title

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Instrument prepared by an abstractor or attorney stating the condition of the title. Not title insurance, just a professional's opinion as to the quality of the title.

Priority

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Rights in time. i.e. The 1st mortgage has priority over the 2nd mortgage.

Recording

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The act of placing documents regarding a specific property in the recorder's office to give constructive notice of ownership or other interests. (Deeds, liens, restrictive covenants etc. are commonly recorded).

Title Search

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Systematic review of public records regarding a piece of property to determine ownership and the existence of any liens or claims.

Subrogation

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The substitution of one party for another regarding a lawful claim or right. (i.e. When a title insurance company pays a claim to satisfy a lien that a grantor failed to disclose, they may now sue the grantor through the right of subrogation).

Suit to Quiet Title

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Court proceeding to settle questions regarding title and other claims regarding a property.