Lex 211 Chs. 12 & 13 Review Questions

Lex 211 Chs. 12 & 13 Review Questions - Summer Phillips...

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Summer Phillips Kimberly Turner Lex 211 – Hy 1 Chapter 12 Review Questions 1. Why is it important to have a title examination performed? To ensure that a seller has the ability to convey good title to the purchaser at the time of the closing or that a borrower has good title to the property being pledged as security for a loan. 2. What is the difference between actual and constructive notice? Actual notice includes any facts that the purchaser can see with his or her own eyes, any facts that the purchaser learns about the property, and any information the circumstances of which should put the purchaser on duty to conduct an investigation that would lead to the finding of certain facts in regard to the property. Constructive notice is a presumption of law that charges a purchaser with the responsibility of learning about all title matters that would result from an inspection of the property or an examination of the public real property records. 3. What are the 3 types of recording statutes, and how do they differ? 1) Race Statute – Under the race statute, priority between successive grantees of the same land from a common grantor is determined by who wins the race to the recording office. No notice is imparted to a subsequent purchaser or encumbrancers until the instrument is recorded in the prescribed manner. 2) Notice Statute – This type of statute relies on the notice given by the recording of the instrument or on the notice obtained through means other than recording. Under the notice statute, the grantee of a deed is not required to record the deed to obtain the priority in title over some subsequent purchaser of the same property.
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3) Race-Notice Statute – This combines the notice principle that knowledge of a prior unrecorded instrument serves as notice in the same manner as the proper recording of the instrument with the recording principle that the first party to record an instrument has priority of title, regardless of whether that person was a prior or subsequent purchaser. 4. Identify at least 5 potential title problems, and explain how to solve them. 1) Improper and Missing Power of Attorney – This defect may be cured by having the current owner obtain and record a correction deed or quitclaim deed signed by the prior owner. 2) Notice of Lis Pendens – This usually requires that the suit itself for which the lis pendens serves as notice be settled or dismissed with prejudice. 3)
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This note was uploaded on 04/30/2011 for the course LEX 211 taught by Professor Grode during the Spring '11 term at Wilson Tech.

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Lex 211 Chs. 12 & 13 Review Questions - Summer Phillips...

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