statuses. A list of all of the public records examined is also

General Real Property Law: Title Records Flashcards

Abstract of titlea written history or summary of all of the documents of importance the title search found in the public records. The abstractor searches all the public records, then summarizes the various events and proceedings that affected the title throughout its history.All recorded liens and encumbrances are included, along with their current statuses. A list of all of the public records examined is also provided as evidence of the scope of the search.An abstract of title is a condensed history of those items that can be found in public records. Itdoes notreveal such items as encroachments, forgeries or any interests or conveyances that have not been recorded.The four evidences of title are:an abstract of title,a certificate of title,a Torrens certificate ortitle insurance.Color of TitleA condition in which a title appears to be good, but because of a certain defect, it is in fact invalid. For example, someone who receives title on a forged deed has color of title.Notary PublicA public officer who functions as an official witness. The duties of a notary are to administer oaths; to attest and certify documents of his or her signature and official seal, giving them credit and authenticity; to take acknowledgments of deeds and other conveyances; and to perform certain official acts, such as protesting rates and bills. One who has a beneficial interest in a document cannot act as a notary public to the same document.Certificate of titlea statement of opinion of the title's status on the date the certificate is issued. A certificate of title is not a guarantee of ownership. Rather, it certifies the condition of the title based on an examination of the public records-a title search. The certificate may be prepared by a title company, a licensed abstractor or an attorney. An owner, a mortgage lender or a buyer may request the certificate.Recording Documents RulesThe specific rules for recording documents are a matter of state law and will vary somewhat from state to state. All states require that any written document that affects any interest in real estate must be recordedin the county where the land is located to serve as public notice.Title SearchA title search is an examination of all the public records to determine whether any defects exist in the chain of title.The records of the conveyances of ownership are

examined, beginning with the present owner. Then the title is traced backward to is origin (or 40 to 60 years, depending on local custom). The time beyond which the title must be searched is limited in states that have adopted the Marketable Title Act. This law extinguishes certain interests and cures certain defects arising before the root of the title-the conveyance that establishes the source of the chain of title. In Missouri, the root is considered to be 45 years. Under most circumstances, then, it is necessary to search only from the current owner to the root.A title search usually is not ordered until after the major contingencies in a sales contract have been cleared-for instance, after a loan commitment has been secured. Before providing money for a loan, a lender generally orders a title search to ensure that no lien is superior to its mortgage lien. In most cases, the cost of the title search is paid by the buyer, although this is negotiable between the parties.An abstract and attorney's opinion of title used in some areas as evidence of title. It is an opinion of the status of the title based on a review of the abstract.

Similar to a certificate of title, the opinion of title does not protect against defects that cannot be discovered from the public records. Many buyers purchase title insurance to defend the title from these defects.

Evidence of Titleproof that the title is marketable. The standard real estate sales contract contains the seller's promise to deliver marketable title to the buyer at closing.A deed by itself is not considered sufficient evidence of ownership. Even though a warranty deed conveys the grantor's interest, it contains no proof of the condition of the grantor's title at the time of the conveyance. The grantee needs some assurance that he or she is actually acquiring ownership and that the title is marketable. One of the four evidences of title is commonly used to give the buyer proof that the seller is the lawful owner and that the title is in fact marketable.Chain of TitleChain of title is the succession of a property's ownership from starting point in the past to the present. Beginning with the earliest owner, title may pass to many individuals. Each owner is linked to the next so that a chain is formed. An unbroken chain of title can be traced through linking conveyances from the present owner back to the earliest recorded owner.Priorityrefers to the order of rights in time. Many complicated situations can affect the priority of rights in a parcel of real estate-who recorded first; which party was in possession first; who had actual or constructive notice. How the courts rule in any situation depends, of course, on the specific facts of the case. These are strictly legal questions that should be referred to the parties' attorneys.Quiet Title ActionA court action intended to establish or settle the title to a particular property, especially where there is a cloud on the title.Extended CoverageA title insurance policy that covers risks normally excluded by most standard-coverage policies. The extended coverage policy insures against loss by reason of the same title defects that the standard coverage policy does, plus losses resulting from matters that could only be discovered by a physical inspection of the property, inquiry of parties in possession or a survey.Types of PoliciesTitle insurance does not offer guaranteed protection against all defects. A title company will not insure a bad title or offer protection against defects that clearly appear in a title search. The policy generally names certain uninsurable losses, called exclusions. These include zoning ordinances, restrictive covenants, easements, certain water rights and current taxes and special assessments.The different types of policies depend on who is named as the insured. An owner's policy is issued for the benefit of the