Recording is the act of entering documents affecting or conveying interests in real estate in the county clerk's records. Until it is recorded, a ____ or ______ generally is not effective against subsequent purchasers or mortgages.
deed or mortgage
The _________________ requires that instruments affecting interests in real estate be in writing to be enforceable.
statute of frauds
Written instruments are required for all transfers of title or interest, whether by deed, mortgage, or lease.
true; (unless the lease is for one year or less)
As long as taxes are paid and liens do not become delinquent, it is expected that a fee simple title will remain marketable.
Public records should reveal what to the purchaser?
condition of the title
Texas recording acts, all instruments affecting any estate, right, title, or interest in land must be recorded in the office of the county clerk in the ________ where the land is located.
To be eligible for recording, an instrument must be drawn and executed in conformity with the provisions of the recording statutes of the state in which the real estate is located. What does this mean?
-you have to have a promulgated form, or have the recording written in the way the state requires it and have it notizated or have to witnesses there when you sign.
The _________________ Act (2001) and the ______________ Act (2005) permit a county clerk to receive, index, store, archive, and transmit electronic documents and provide access to documents and information by electronic means.
Uniform Electronic Transaction Act
Uniform Real Property Electronic Recording Act
let buyer beware
Anyone who has an interest in a parcel of real estate can take certain steps, called giving notice, to ensure that the knowledge of the interest (ownership) is accessible to the public. It is up to the buyer or mortgagee (lender) to inspect and search the public records of the property. What are two basic types of notices to find out info of a property?
-constructive notice: a concept based on the legal presumption that info may be obtained by an individual through diligent inquiry; research
-Actual notice: not only is info available but someone has been given the info and actually knows it; aka direct knowledge; has access to info and someone told them the property it owned by so-and-so.
__________ refers to the order of rights in time. Many complicated situations can arise that affect the priority of rights in a parcel of real estate--who recorded first, which party was in possession first, or who had actual or constructive notice.
priority; doesn't matter if the deed gets recorded or not, possession is priority.
EX: even if Jeff sells property to Amber, and Amber does not record that she is taking over the deed, but takes possesssion. Jeff forgets he sold to Amber and since it is still in his name sells to Buck. Amber still owns the property, not Buck.
Certain types of liens such as, real estate taxes, special assessments and inheritance taxes, are not recorded in the public records. How would you find out about them?
-go to the source on where they are recorded, not the county clerk's office. Evidence of payment may be paid reciepts and letters.
plural for index
Chain of title is the record of a property's ownership, it reveals a complete line of fee title owners from the original grant to the most current property owner. If ownership cannot be traced through an unbroken chain, it is said that there is a gap in the chain. What must be done to establish new ownership?
-court action called suit to quiet title; basically gives the title clear start.
A __________ is an examination of all public records in the county to determine who has the rights in the property and whether any defects exist in the chain of title.
An ____________ is a condensed history of all the instruments found in the title search that affect a particular parcel of land.
abstract of title
A person who prepares this report is called an abstracter; researches and summarizes the various events and proceedings that affected the title through its history; all recorded liens and encumbrances are included, along with their current status
A deed is considered satisfactory evidence of title.
false: a deed contains no proof of the kind or condition of the grantor's title at the time of conveyance.
What three things gives a grantee assurance that he/she is actually acquiring ownership and that the title is good and indefeasible; evidence of title?
-abstract of title
-attorney's opinion of title
Steps for providing evidence for title; First an __________ is hired to prepare an abstract of title, which is a certificate indicating which records were searched and which records were not searched in preparation of the report. Then the abstract is submitted to the buyer's ________, who must examine the entire abstract. Because both these methods do not guarantee protection from defects that cannot be discovered from the public records, most lenders require ____________, which protects from losses arising from defects in the title.
An abstracter does not pass judgement on or guarantee the condition of the title.
The attorney's opinion of title does not protect against defects that cannot be discovered from the public records, and mistakes can be made in creating the abstract or the attorney's opinion.
true; that's why most lenders require title insurance.
Unlike other insurance policies that insure against future losses, ____ insurance protects the insured from an event that occurred before the policy was issued.
Premiums for title insurance policies are standardized and set by the State Board of Insurance and they are paid only once.
Title companies issue various forms of title insurance policies, the most common of what are what four types?
-owner's title insurance policy; assures owner that the title is as stated subject only to certain specifiec exceptions; reimbursement is up to purchase price
-mortgagee's title insurance policy; assures a lender that it has a valid first lien (or second) against the property; reimbursement is up to the lender's coverage
-leasehold title insurance policy; assures a lessee that the lease is valid
-certificate of sale title insurance policy; is issued to a purchaser in a court of sale and ensures the purchaser's interest in property sold under a court order
An owner's title insurance policy on residential property, if issued to an individual, provides for continuation of coverage in four situations: what are they?
-inheritance of property from the original named insured
-receipt of title in a dissolution of marriage with the original named insured
-transfer of title into a living trust by the original named insured
-transfer of a trust to beneficiaries upon the death of the original named insured.
The __________ requires the seller, under oath, swear that no easements have been granted on the property and that no material change exists in the structures, fences, structures on adjoining properties, conveyances, or replats.
In most cases, when does the real estate agent deliver a copy of the sales contract to a title company to begin the title search?
as soon as the property goes under contract
According to the provisions of the Texas promulgated sales contract, the seller has ___ days from the date the title company receives the contract to deliver to the buyer a "commitment for title insurance" and deliver, at the buyer's expense , copies of ______________ and ___________ evidencing exceptions in the commitment other than the standard printed exceptions.
-restrictive covenants and documents
-if the commitment is not delivered within 20 days, the time for its delivery is automatically extended up to 15 days
On completion of examination, the title company issues a commitment to issue a title policy. What is a commitment? And what does it include?
-a commitment for title insurance is not the actual title policy but rather a statement of the terms and conditions on which the title insurance underwriter is willing to issue the title policy. It is the "offer" by the underwriter to enter into a legal contract with the proposed insured under stated conditions. It includes:
-the name of the insured party
-the legal description
-the estate or interest covered
-a schedule of all exceptions, consisting of encumbrances and defects found in the public records
-conditions and stipulations under which the policy is issued.
Exactly which defects the title company will insure against depends on the type of policy it issues and the endorsements requested by the mortgagee. What are some coverage, endorsements and exclusions of standard coverage?
-defects found in public records
-liens or encumbrances on title
-incorrect marital statements
-improperly delivered deeds
-lack of legal access to and from land
-lack of good and indefeasible title
-Rights of parties in possession
-unrecorded liens not known of by policyholder
-EPA lien endorsement
-Homestead or community property or survivorship rights
-Guaranty against rollback taxes
Exclusions (Not Covered)
-Defects and liens listed in policy
-Rights of eminent domain
-Questions of survey
-Claims arising by reason of bankruptcy or insolvency
If a title company uses an existing survey when providing area and boundary coverage, the seller is required to provide what?
a T-47 affidavit
A __________ is one that is so free from significant defects that the purchaser can be assured against having to defend the title and would willingly accept it.
Generally a marketable title must:
-be free of any significant _____ and ________.
-disclose no serious defects and not be dependent on doubtful questions of law or fact to prove its validity
-not expose a purchaser to the hazard of _________ or threaten the quiet enjoyment of the property, and
-convince a reasonably well-informed and prudent person acting on business principles and willful knowledge of the facts and their legal significance that she in turn could sell or mortgage the property at a ___________.
-liens and encumbrances
-fair market value
Title insurance companies in Texas insure ____ and _________ title, rather than marketable title.
good and indefeasible title
When the title examination is completed, the title insurance company notifies the buyer in writing of the condition of the title. This notifications is called?
commitment for title insurance
A purchaser of real estate is charged with knowledge of all recorded documents, as well as with the responsibility to
learn the rights of the parties in possession
Recording gives constructive notice to the world of the rights and interests in a particular parcel of real estate.
When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is called...