Escrow & TitleIntermediateNorth Carolina Exam

A 'title search' in NC involves:

AA physical inspection of the property

BExamining public records to trace ownership history and identify any encumbrances or defectsCorrect

COrdering a new survey of the property

DContacting all prior owners to verify the chain of title, which is the standard approach used

Why Examining public records to trace ownership history and identify any encumbrances or defects Is Correct

Answer B: Examining public records to trace ownership history and identify any encumbrances or defects

A title search involves examining recorded public records (deeds, liens, judgments, easements) to verify ownership and identify any claims, encumbrances, or defects that could affect title.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.