Which of the following best describes a marketable title?
Which of the following best describes a marketable title?
Which of the following best defines a marketable title? A title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer.
Can you sell unmarketable title?
Unmarketable title is the buyer’s bludgeon, not the seller’s. If the buyer wants the property anyway, then the seller must abide by the real estate sale contract and sell it to him.
What is considered a title defect?
The term defective title refers to an impaired title on an asset or a piece of property. The defect or impairment on a title can be in the form of a lien, mortgage, or judgment. Because other parties can lay claim to the property or asset, the title cannot be legally transferred to someone else.
What is the difference between legal title and equitable title?
While a legal title focuses on the duties of the property owner, equitable title refers to the enjoyment of the property. Equitable title is the benefits the buyer will get to use and enjoy when he or she becomes the legal owner.
Which of the following is accepted as proof of marketable title?
An abstract and opinion by an attorney, as well as title insurance is considered evidence of marketable title.
What are the two forms of owner’s title insurance?
There are two types of title insurance: owner’s title insurance, called an Owner’s Policy, and lender’s title insurance, called a Loan Policy. Most lenders require a Loan Policy when they issue you a loan.
Which document is not considered evidence of marketable title?
Which of the following is not considered evidence of marketable title? A record of all previous owners of the property ( title insurance documents include all liens and defects of record and easements, but not the chain of title.
How do you clear a defect from a recorded deed?
Methods include: discharge by the recording of a satisfaction of the mortgage removing the realty from the lien of the mortgage by recording a release; discharge by court order; and, in some limited cases, discharge by a filing by a third party, such as a title insurer, a court-appointed personal representative, or an …
Which of the following liens does not need to be recorded?
mechanic’s lien. Which of the following liens does not need to be recorded to be valid? A statutory lien is created by statute. A real estate tax lien, then, is an involuntary, statutory lien.
How is title insurance calculated?
Title insurance costs are calculated by multiplying the purchase price of your home by the rate per thousand your insurance company uses. The rate per thousand is a going rate that is used for every thousand dollars that is calculated for the value of your home.
Who pays the owner’s title policy?
Who pays for owner’s title insurance or closing costs? In the case of the home buyer’s title insurance policy, it’s customary for the seller to pay the costs of the policy issued to the new homeowner. Mortgage lenders also require a title insurance policy.
