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Questions and Answers
Which document provides a condensed history of ownership and encumbrances affecting a property's title?
Which document provides a condensed history of ownership and encumbrances affecting a property's title?
- Title Insurance Policy
- Abstract of Title (correct)
- Warranty Deed
- Quitclaim Deed
A potential buyer reviews an abstract of title that reveals a complex chain of ownership with several unresolved claims. What is the recommended course of action?
A potential buyer reviews an abstract of title that reveals a complex chain of ownership with several unresolved claims. What is the recommended course of action?
- Require the seller to resolve all claims and provide a clear title before proceeding with the purchase. (correct)
- Proceed with the purchase, as the abstract provides sufficient guarantee of clear title.
- Renegotiate the purchase price to reflect the increased risk of the unresolved claims.
- Purchase title insurance to cover any potential losses from the unresolved claims but proceed with the purchase.
What professional is typically responsible for preparing an abstract of title?
What professional is typically responsible for preparing an abstract of title?
- Real Estate Agent
- Title Company (correct)
- Mortgage Lender
- Home Inspector
An abstract of title is prepared, but a recent mechanic's lien has not yet been recorded. What is a potential consequence?
An abstract of title is prepared, but a recent mechanic's lien has not yet been recorded. What is a potential consequence?
Which of the following is NOT a standard element found within an abstract of title?
Which of the following is NOT a standard element found within an abstract of title?
If an error is discovered in an abstract of title after a property sale, what type of protection could mitigate financial loss for the new owner?
If an error is discovered in an abstract of title after a property sale, what type of protection could mitigate financial loss for the new owner?
How does an abstract of title assist in the process of transferring property ownership?
How does an abstract of title assist in the process of transferring property ownership?
A buyer obtains an abstract of title showing a 'cloud' on the title. What does this generally indicate?
A buyer obtains an abstract of title showing a 'cloud' on the title. What does this generally indicate?
What is the primary difference between an abstract of title and title insurance?
What is the primary difference between an abstract of title and title insurance?
A title company updates an abstract of title before closing. What is the purpose of this update?
A title company updates an abstract of title before closing. What is the purpose of this update?
Flashcards
Abstract of Title
Abstract of Title
A summary of recorded instruments and proceedings affecting the title to a property, arranged chronologically.
Study Notes
- An abstract of title is known as a summary of all the recorded instruments and proceedings which affect the title to property, arranged in the order in which they were recorded.
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Description
An abstract of title provides a concise summary of the documents and events impacting a property's ownership history. It presents a condensed version of recorded instruments and proceedings that have influenced the title. These are arranged chronologically to give a clear picture of the title's evolution.
