1. © 2012 Cengage Learning

2. Recordation, Abstracts, and Title Insurance Chapter 6

3. © 2012 Cengage Learning In This Chapter Methods of determining ownership How ownership is determined from public records Title insurance

4. © 2012 Cengage Learning Public Records Constructive Notice – recording documents. Actual Notice – knowledge based on what one has seen, heard, read, or otherwise observed.

5. © 2012 Cengage Learning 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.

6. © 2012 Cengage Learning The county clerk’s office serves as a central information station for changes in rights, estates, and interests in land. Public Recorder’s Role

7. © 2012 Cengage Learning Recording Requirement Document must be acknowledged. Filed in county where property is located.

8. © 2012 Cengage Learning Acknowledgment

9. © 2012 Cengage Learning Public Records Document recorded in chronological order. Copies bound into books. Book and Page reference. Grantor and Grantee Indexes.

10. © 2012 Cengage Learning 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.

11. © 2012 Cengage Learning Chain of Title

12. © 2012 Cengage Learning Ownership Proof Abstract of Title Title Insurance  Title commitment  Texas Title Policy  Policy Premiums  Loan Policy  Claims for Losses

13. © 2012 Cengage Learning TEXAS TITLE POLICY The 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.

14. © 2012 Cengage Learning 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

15. © 2012 Cengage Learning 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.”

16. © 2012 Cengage Learning Key Terms Abstract Acknowledgment Actual notice Chain of title Constructive notice Marketable title Mechanic’s lien Quite title suit Title insurance