California Real Estate Salesperson Exam Practice - Quesiton 34

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.

Explanations

A title plant is a system, often a database, that stores a collection of property

information originating from public records. It contains a summary of all recorded encumbrances

and conveyances, including names of grantors and grantees. Title companies use title plants to

investigate potential defects in a property's title and prepare title reports.

Concepts Definitions

• Title Plant: A database or system that stores a collection of property information from

public records, including recorded conveyances and encumbrances. Title companies

examine title plants to research property ownership and identify potential title defects.• Title Insurance: A contract obligation that indemnifies (protects against future potential

losses) or reimburses a designated party for financial losses or damages related to defects

in title. Unlike other insurance, it insures against the past "chain of title" history as of the

policy's issuance.

• Grant Deed: A legal instrument used to transfer interests in property from one private

party to another, which typically includes a granting clause that expresses the conveyance

option, intent, and type of ownership interests.

• Conventional Lender: An institutional lender, such as a commercial bank, savings bank,

thrift, or insurance company, tha