Escrow & Title
In Montana, 'actual fraud' in a real estate title transaction involves:
AAn innocent mistake in a title document
BDeliberate misrepresentation or concealment of material facts with intent to deceive, causing the defrauded party to suffer loss✓ Correct
CA simple clerical error in a recorded document
DA good-faith dispute about property boundaries
Explanation
Actual fraud involves intentional misrepresentation, concealment, or deception with intent to induce reliance and cause harm. Title insurance typically provides coverage against loss from fraudulent prior deeds or forged instruments in the chain of title.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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