Question

A title plant is a: 

Selections

• A. Policy of title insurance

• B. Clause in a grant deed

• C. Collection of real estate records

• D. Conventional lender 

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Answer: C

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5 Keys Summary

• A title plant is defined as a system or database that stores a comprehensive collection of property information gathered from public records.

• Title insurance companies maintain and use these systems to research property ownership, identify potential title defects, and prepare title reports.

• The contents of a title plant include historical records of recorded conveyances, encumbrances, deeds, mortgages, liens, and recorded CC&Rs.

• Examining the title plant allows the title company to analyze the “chain of title” history to confirm who currently owns the property and what valid debts or liens exist against it.

• The title plant is distinct from a title insurance policy (which is a contract of indemnity) or a grant deed clause, as it is the collection of source documents used for title investigation.

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