RE Law ch. 8
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Created by:
shelicew12 on March 15, 2012
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37 terms
Terms | Definitions |
|---|---|
 Title | The right to possess real estate as evidence by historical record. |
| Recording | The act of placing in the public record documents that give the world notice of the information therein. |
| Constructive notice | Notice imputed to a person by law due to its existence in the public records whether the person has actually inspected the public records or not. |
| Actual notice | Title information that is acquired personally by someone. |
| Inquiry notice | Notice of facts that create duty to inquire further whether unrecorded interests exist. |
| Recording statutes | State statutes that govern the manner in which documents are recorded in the public record and the effect such recording has on the subsequent purchasers, creditors, mortgagees, and other parties who may have an interest in the property. |
| Bona fide purchaser | A good faith purchaser who pays value and is without notice, either actual or constructive, of a prior adverse claim. In most states, the requirement that the good faith purchaser "pays value" means that a buyer who pays only "nominal consideration," a token amount disproportionately small when compared with market value, does not qualify as a bona fide purchaser. |
| Notice statute | Under a "notice" recording statute, an unrecorded conveyance is not valid against later bona fide purchasers. |
| Race-notice statue | Under a race-notice statute, a later purchaser not only must be bona fide but also must record the deed before other purchasers. |
| Race statute | Under a pure race statute, the first to record wins. The purchaser need not be bona fide or without notice. |
| Torrens system | A system for registration of land under which a court issues a certificate of title that states the status of the title. |
| Basic form | A property and liability policy that provides coverage for landowners from eleven specified perils. |
| Broad form | A property and liability policy that provides coverage for landowners from eighteen specified perils. |
| Comprehensive ("all-risk") form | Property and liability policy that provides coverage for landowners from all perils except enumerated exceptions. |
| Coinsurance clause | A clause in a property insurance policy in which the insurer provides indemnity for only a certain percentage of the insured's loss, reflecting the relative division of risk between insurer and insured. |
| Workers' compensation | Compensation provided to the employees who suffer injury or sickness arising out of and in the course of employment. |
| Insurable interest | A sufficient interest in the property to be insured so that the loss of the property would result in monetary damage to the insured. |
| Subrogation | Right of an insurer, upon payment of a claim, to "step into the shoes" of its insured and assert any claims that the insured may have against others. |
| Mortgagee loss (standard) clause | A clause in a mortgage insurance policy that indemnifies the mortgagee for a loss even if the act that damages or destroys property would otherwise provide coverage for the mortgagor. |
| Mortgage insurance | Insurance protecting the mortgagee from losses when encumbered property is damaged or destroyed. |
| General (standard) exceptions | Certain potential defects or liens against a title to land that are not contained in the public record and are excluded from coverage in a title insurance policy. |
| Gap | the time period between the insurance of a title commitment and the recording of the documents to be insured. |
| Specific (special) exceptions | Certain actual or potential defects or liens against a title that are unique to a certain piece of property and are excluded from coverage in a title insurance policy. |
| Chain of title | A record of successive conveyance (or other forms of alienation) affecting a particular parcel of land that are arranged consecutively from the government or original source of title down to the present holder. |
| Tract index | A land records system in which conveyances of interests in real property are indexed geographically by tracts. |
| Grantor-grantee index | A land records system in which conveyance of interests in real property are indexed in two separate indices, first alphabetically according to the grantor's surname and then alphabetically according to the grantee's surname. |
| Abstract of title | A compilation of the chain of title, usually prepared by a title company or an attorney, providing copies or summaries of all recorded instruments including deeds, mortgages, discharges, and tax liens. |
| Title opinion | A written statement from an attorney which gives an analysis of the title search regarding the current ownership rights in the property. It states whether there is any kind of lien or cloud in the title to the property. |
| Certification of title | A statement of opinion by an attorney that describes the state of the title to a parcel of land. |
| Slander of title | Occurs when one publishes information, which is untrue and disparaging to another's property interests in land that can result in the impairment of its marketability. |
| Title insurance | Insurance designed to indemnify a landowner for lasses from defects in the title or lien against the land. |
| Mortgagee title insurance policy | Insurance that protects the lender against loss or damage resulting from defects in the title or the enforcement of liens against the land. |
| Owner's title insurance policy | Insurance that protects the purchaser borrower's equity against loss or damage resulting from defects in the title or from the enforcement of liens against the land. |
| Simultaneous issue discounts | Discount in the premium price paid by the purchaser borrower for buying both a mortgagee and an owner's title insurance policy. |
| Title commitment | A letter from a title insurance company in which it commits to issuing a title insurance policy on the insurance policy on the insured subjects to a certain conditions and requirements. |
| Action to quiet title | An action compelling someone to establish his claim on an interest in land or forever be estopped from asserting it. |
| Exclusive/exceptions | Certain potential defects or liens against a title to land that are excluded from coverage in a title insurance policy. |
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