© 2012 cengage learning. recordation, abstracts, and title insurance chapter 6

© 2012 Cengage Learning

© 2012 Cengage Learning

Recordation, Abstracts, and Title Insurance

Chapter 6

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In This Chapter

Methods of determining ownership How ownership is determined from

public records Title insurance

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Public Records Constructive Notice – recording documents. Actual Notice – knowledge based on what

one has seen, heard, read, or otherwise observed.

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Recording Act Requires real estate documents to be

recorded in the county clerk’s office in the county in which the property is located.

A deed to a lot in Corpus Christi would be filed at the Nueces County Courthouse in Corpus Christi!

Texas law requires recorded real estate documents to be binding on third parties.

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The county clerk’s office serves as a central information stationfor changes in rights, estates, and interests in land.

Public Recorder’s Role

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Recording Requirement Document must be

acknowledged.

Filed in county where property is located.

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Acknowledgment

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Public Records Document recorded in chronological

order. Copies bound into books. Book and Page reference. Grantor and Grantee Indexes.

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Electronic Recording Texas adopted a new Electronic Recording

Act which provides that an electronic document (a document that is received by the county clerk in electronic form) can be recorded in the county clerk’s office in the county in which the land is located, in addition to the traditional paper documents that are recorded.

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Chain of Title

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Ownership Proof Abstract of Title Title Insurance

Title commitment Texas Title Policy Policy Premiums Loan Policy Claims for Losses

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TEXAS TITLE POLICYThe standard Texas title insurance policy form provides insurance coverage for loss of title. It must be issued on a form promulgated by the Texas Department of Insurance.

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Texas Title Insurance Policy Premium

customary for the seller to pay for the insurance

rates are set by the Texas Department of Insurance

Owner’s Policy Mortgagee’s Policy Claims for losses

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Title

Marketable Title is one free from reasonable doubt as to who the owner is.

Quite Title suit – the legal process to remove a title defect or “title cloud.”

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Key Terms Abstract Acknowledgment Actual notice Chain of title Constructive notice

Marketable title Mechanic’s lien Quite title suit Title insurance