What's the purpose of a title exam?
Determine status of title, Assures marketable, Secures security interest and position, mortgage company - need evidence of good title
How to determine clean title
Online record data bases, Basics - Preliminary information - information about property PIN/Grantor/Grantee index (who granted liens/DOT or other encumbrances property), Always check legal description and PIN, Running chain of Title (of the property) - se
What is "Chain of Title"?
History of all conveyances of a parcel evidenced by links
Title Insurance Policy
Insurance protecting the insured against actual loss or damage caused by a defective title to real estate.
Types of title insurance policies
Lender's (Mortgagee's), Owner's, Leasehold
If there is no prior title insurance, then you look how many years back?
30-60 years
If there is an existing insurance policy, you would?
General search and then issue from the date of the last report (update title)
Land Record Indexing shows?
Grantor/Grantee index system, PIN index system, Grantor index, Grantee index same as grantors
PIN index system will?
looks to parcel - not prior owners
Grantor/Grantee index system (Manual or online)
Look at surnames, Check history based on last name
Grantor index will provide?
Grantee, Type of instrument, Book and page of instrument recorded in Register of Deeds, Abbreviated description, Cancellation of Deed
Prob. areas in running a Chain of Title are?
Transfers on death - if gaps appear as result then look at superior court records, Legal description variances, Measuring methods differed - from re-survey or selling part of a larger lot, Names - same names - Jr/Sr.; misspelling, etc., Pin # eliminates m
After assembling the chain of title, you would check to see if the title is marketable or if it has any defects by doing the following?
Checking online computer search, the RoD's office, Superior Court records
When checking for title defects online or at the RoD's office you are looking for?
mortgage re-conveyances and/or satisfactions
When checking Superior Court records you are looking for?
probate cases, judgments, lis pendens, tax liens, mechanics lien assessments
Some defects listed on title report and may render title unmarketable or not in compliance with what was agreed upon can do the following?
by bond, correcting, eliminated, covered by title insurance
An attorney's opinion on title includes?
Description of public record searched and time period, present owner and legal description, Items not covered by search, Specific and general exception to title
An attorney's opinion reveals matters which must be satisfied before closing,
Second lien, unpaid taxes, judgment liens
A number of potential defects are not discovered from the title searchers examination of the records, including:
Heirs (unknown or unknowable), Marital Status, Confusing names, Clerical errors
Title Insurance is a protection policy it?
Is a contract of indemnity, it is not a guarantee against claims
The title company is obligated to do the following?
Pay costs and expense of defending and clearing title defects under policy.
Title insurance covers what time periods?
Insures from the effective date (recording date) and backwards
Mortgagee Policy (Lender) does the following?
covers mortgage and diminishes in value based on balance
Owners Policy does the following?
covers owner equal to the purchase price of property, stays the same throughout ownership, intended to cover current value of property
An Owners policy must be requested by the?
buyer
If a policy has permanent coverage even after sold it is a?
Owners policy
An owners policy insures?
The owner for any loss sustained by reason of a defect or defects in the title to the property being insured.
Leasehold Policy does is for?
long term commercial tenants to protect their investment from a defective title in the owner.
Title Recording provides:
a reliable source of information as to status of ownership
The Conner Act (Pure Race Statute) is:
The person who wins the race to the office of the ROD will prevail even if that person knew about the earlier but unrecorded document.
Example of Documents to be recorded:
Option contracts; right to 1st refusal; Deeds; DOT/Mortgage; Leases more than 3 years; Easements; Restrictive covenants; Assignment of RP interest
Memo of contract is a?
Contract to convey
Recordation guidelines for a Memo of Contract:
Name properties; Describe property; Expiration of contract; Reference of Agreement
Register of Deed requires the following?
8 � X 11 paper or 8 � X 14; 3 inch from the top margin; � inch sides on 1st page and all sides of additional pages; typed in black ink on white paper; font not less than 10 points; okay for blanks in pen; typed or printed on one side of page; type of docu
Non-standard documents filed with ROD can do the following?
Can correct or pay extra fee
NC Marketable Title Act is:
Attempts to enhance the marketability of title to real property by extinguishing many claims to or defects in title that are more than 30 years old.
If one owns property under chain of title for 30 years and no one has recorded claim 30 years affecting during property during 30 years:
then any conflicting claim that predated 30 year claim is extinguished
Statute of Repose starts from?
The event not discovery
Curative Statutes is:
allows for the correction of technical title defects