Deck 12: Title Examinations

Question 1

Constructive notice is imparted to unrecorded instruments that are referred to in a recorded instrument.

Answer 1

True

Question 2

A sequence of subsequent owners to a particular parcel of property, beginning with the original owner and moving through all successive owners to the current owner, is known as a "chain
of title."

Answer 2

True

Question 3

An alphabetical index by last name of all people who are purchasers and holders of mortgages and security deeds is known as a grantee index.

Answer 3

True

Question 4

Constructive notice is not imparted to unrecorded instruments that are referred to in a recorded instrument.

Question 5

A grantor index enables an examiner to build a chain of title from the present to the past.

Question 6

The most common recording statute is the race notice statute.

Question 7

A bona fide purchaser will receive ownership of property subject to all claims which the purchaser has actual or constructive notice.

Question 8

A title examiner would search in the grantee index from the present to some designated point in time in the past.

Question 9

An alphabetical index by last name of all people who are sellers, borrowers, and mortgagors is known as a grantee index.

Question 10

A lis pendens gives notice of a federal tax lien against the property.

Question 11

A grantee index enables an examiner to build a chain of title from the present to the past.

Question 12

A judgment that has been recorded in the public records becomes a lien on all property of the judgment debtor owned at the time of recording as well as any future property acquired by the debtor.

Question 13

A sequence of subsequent owners to a particular parcel of property, beginning with the original owner and moving through all successive owners to the current owner, is known as a "lis pendens."

Question 14

A title examiner would search in the grantee index from the past to a present date.

Question 15

The most common recording statute is the notice recording statute.

Question 16

The most common recording statute is the race recording statute.

Question 17

A judgment, once recorded, is a lien which will last forever unless the judgment is paid.

Question 18

The proper recording in the public records of a real property mortgage will put subsequent purchasers on actual notice of the mortgage.

Question 19

The proper recording in the public records of a real property mortgage will put subsequent purchasers on constructive notice of the mortgage.

Question 20

An alphabetical index by last name of all purchasers and holders of mortgages and security deeds is known as a grantor index.

Question 21

A bona fide purchaser status provides special protection not only to the bona fide purchaser but also to anyone purchasing from the bona fide purchaser.

Question 22

A full title search generally requires that the real property records be searched for a minimum of:

A) 10 to 20 years.
B) 50 to 60 years.
C) 7 years.
D) 100 years.

Question 23

A break in the chain of title is considered a serious title defect.

Question 24

Which of the following would not be constructive notice?

A) Unrecorded mortgage which is attached as an exhibit to the sale contract
B) Matter shown on a survey of the property
C) Recorded easement
D) Recorded federal tax lien
E) None of the above

Question 25

Which of the following persons would not be alphabetically listed in a grantor index?

A) Mortgagor
B) Seller of property
C) Grantor of easement
D) Purchaser

Question 26

Big News Ad Company has leased a portion of Farmer Jane's land for the purpose of installing a billboard sign. The lease is for 50 years and is unrecorded. The sign was built on the leased space and is clearly visible to anyone who visits the property. Farmer Jane sells the leased land to Farmer Bill. Farmer Bill threatens to terminate Big News's lease unless it pays him more rent. Farmer Bill claims that since the lease was not recorded he is a bona fide purchaser and is not bound by the lease terms. Will Farmer Bill be successful with his claim against Big News?

Question 27

Which of the following persons would not be alphabetically listed in a grantee index?

A) Seller of property
B) Mortgagee
C) Holder of an easement
D) Purchaser of property

Question 28

A lis pendens gives notice of a pending lawsuit which affects title to the property.

Question 29

Which of the following would be revealed by a title report?

A) Name of current record title holder
B) Status of taxes
C) List of all easements, covenants, and restrictions
D) None of the above
E) All of the above

Question 30

A person who acquires property by inheritance is generally not a bona fide purchaser for value.

Question 31

Federal tax liens, when recorded, are liens against all the real property owned by the delinquent taxpayer at the time of the recording but are not liens against future property acquired by the delinquent taxpayer.

Question 32

A bona fide purchaser for value would take subject to which of the following claims?

A) Unrecorded mortgage
B) Rights of party in possession of the property
C) Unrecorded easement
D) Civil suit for collection of a debt against the seller of the property

Question 33

A mortgagor's name would be found in the:

A) grantor index.
B) general execution docket.
C) grantee index.
D) plat index.

Question 34

A person who acquires title by inheritance is a bona fide purchaser for value.

Question 35

A recorded notice that a lawsuit affecting title to the property is pending is known as:

A) judgment.
B) civil docket.
C) lis pendens.
D) check down.

Question 36

Federal tax lien that has been recorded is a lien against all the real property owned or subsequently acquired by the delinquent taxpayer.

Question 37

It would be necessary to examine the Uniform Commercial Code financing statement index only if:

A) civil suits were filed against the owner of the property.
B) federal tax liens have been filed against the property.
C) the transaction involves both real and personal property.
D) there are judgments against the owner of the property.

Question 38

A break in the chain of title is not considered a title defect.

Question 39

A title examination is generally performed in the county where:

A) the owner of the property resides.
B) the county where the property is located.
C) the county where the purchaser of the property resides.
D) the county where the title examiner resides.

Question 40

Probate records should be examined when property is acquired or passes through an estate.

Question 41

Main Street Bank believes that it has a recorded mortgage on property from Dawn Sellers. Due to lack of organization at the bank, it cannot find either an original or a copy of the mortgage. Main Street hires a law firm to search title to see if the mortgage has been recorded. Would it be easier for the firm to search the Bank's name in the grantee index or Dawn's name in the grantor index?

Question 42

You have been asked to do a title examination in connection with a proposed sale of a home.
What information should you have in order to do the search?