Escrow & Title
In Ohio, which of the following recording errors would be most likely to create a 'cloud on title'?
AA typographical error in the grantee's middle name that does not affect identification
BA deed recorded in the wrong county — creating doubt about whether title was properly transferred✓ Correct
CA minor rounding error in the purchase price
DAn incorrect recording fee paid at time of filing
Explanation
Recording in the wrong county does not provide constructive notice for that property (which is recorded in the county where it is located). It creates a cloud on title by raising doubts about whether the transfer was properly effected.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
Recording Requirements
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