13: Title Records

Unit 13: Title Records

Abstract of Title

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

Actual Notice

Express information or fact; that which is known; direct knowledge.

Certificate of Title

A statement of opinion on the status of a title to a parcel of real property based on an examination of specified public records.

Chain of Title

The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title.

Constructive Notice

Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in this property.

Marketable Title

Good or clear title, reasonably free from risk of litigation over possible defects.

Priority

The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens.

Recording

The act of entering or recording documents affecting or conveying interests in real estate in the recorder’s office established in each county. Until it is recorded, a deed or mortgage originally is not effective against subsequent purchasers or mortgages.

Subrogation

The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. This is used by title insurers to acquire from the injured party rights to sue to recover any claim the insurers have paid.

Suit to quiet title

A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.

Title Insurance

A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy.

Title Search

The examination of public records relating to real estate to determine the current state of ownership.