Unit 8: Title Records Test

Constructive and Actual Notice

Anyone with an interest in a parcel of real estate can take certain steps, called giving notice, to ensure that the interest is made known to the public. The two basic types of notice are constructive notice and actual notice. For each example, indicate the appropriate form of notice.

Indicate which option is appropriate for each sentence below. Cycle through the two available options for each sentence by clicking on the objects in the left column. Click Submit. Once submitted, each incorrect answer will be highlighted in red, and correct ones highlighted in green. Please note you will need to correctly submit each item for the activity to be considered complete.

Gave information personally - Actual notice

Searched public records - Actual notice

The legal presumption that information may be obtained by an individual through due diligence is called constructive notice. (True)

Public records are NOT maintained by the clerks of the court. (False)

Title Policy Protection

A homeowner may be protected against defects in the title depending on the title policy obtained. Indicate the appropriate minimum coverage title policy required for each issue. 

Each sentence or phrase below has a number associated with it. Drag and then drop each number to its appropriate target at the top of the activity. When finished, click Submit. Once submitted, each correct number will remain in the appropriate target. Each incorrect number will turn red and return to its original place. Please note you will need to correctly answer each item for the activity to be considered complete.

1. ALTA

- Results of a survey

- Unrecorded liens

2. Standard

- Forged documents

- Incompetent grantor

- Information in public records

3. Neither

- Zoning

The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning. (True)

A certificate of title provides a guarantee of ownership. (False)

Q : The BEST reason for a buyer to obtain title insurance is

A : to ensure that the seller can deliver marketable title.

(Explanation : The answer is to ensure that the seller can deliver marketable title. Title insurance is considered the best defense of title and is assurance that the grantee is actually acquiring ownership and that the title is marketable.)

Q :