unit 13 real estate exam

What is the purpose of recording acts?

To provide legal and constructive notice of interests in real estate and create an orderly system of property transfers.

What does recording generally provide?

Constructive notice.

What is constructive notice?

Legal notice presumed because information is properly recorded and publicly available.

What is actual notice?

Knowledge obtained personally, such as through personal service or visiting the property.

Why is recording important?

It makes property interests legally effective against third parties who lack actual knowledge.

Can a transfer document prevent recording?

No. A provision intended to prevent recording is void.

What is marketable title?

Title sufficiently free of significant defects that a purchaser can reasonably obtain title insurance and avoid significant title disputes.

Does a deed prove that title is good or marketable?

No. A deed proves that the grantor conveyed an interest but does not establish the condition or quality of title.

What are the three common forms of title evidence?

Abstract and attorney's opinion, certificate of title, and title insurance policy.

What does title evidence show?

The history and condition of a property's title.

What is a title search?

An examination of public records to determine the history and condition of title.

What is the most commonly used evidence of marketable title in Illinois?

A title insurance policy.