Understanding Land Ownership and Title Insurance

The video tutorial explains the process of land transfer from a city to a developer in 1950, the inheritance of the property by the developer's brother-in-law in 1970, and the subsequent sale to a new owner in 2000. It highlights potential legal issues that can arise if a long-lost heir claims ownership, emphasizing the importance of title insurance to protect against such disputes.

What was the primary reason the city decided to sell the plot of land in 1950?

• To establish a community center

• To create a commercial complex

• To generate revenue and address a housing shortage

• To build a park

What is the role of a deed in property transactions?

• It serves as a contract for construction

• It provides a valuation of the property

• It records the transfer of property ownership

• It lists the property taxes due

Who became the owner of the property after the developer and his wife passed away?

• The city

• The developer's son

• A real estate company

• The developer's brother-in-law

What did owner three do before purchasing the house in 2000?

• Visited the developer's family

• Consulted a lawyer

• Conducted a title search

• Renovated the house

What might a title search reveal about a property?

• The architectural style of the house

• The history of ownership and any liens

• The best time to sell the property

• The neighborhood crime rate

What unexpected event occurred in 2001 that challenged the property ownership?

• A fire destroyed the house

• A long-lost child of the developer claimed ownership

• The city reclaimed the land

• The house was declared a heritage site

What could happen if a property transaction is deemed invalid?

• The property value increases

• The transaction is taken to court

• The property is automatically sold

• The owner receives a tax refund

Why is title insurance important for property buyers?

• It covers the cost of home repairs

• It protects against unforeseen claims on the property

• It guarantees a fixed interest rate on mortgages

• It provides legal advice for free

Who typically requires title insurance during a property purchase?

• The local government

• The real estate agent

• The lender providing the mortgage

• The previous owner

What is a potential risk if a title search is not thorough?

• The property might be undervalued

• Unforeseen claims might arise

• The house might need renovations

• The neighborhood might change