Final answer:
The three methods of title assurance are the Torrens system, abstract of title, and certificate of title. Each provides a different level of assurance and is used to verify legal ownership and identify any issues with a property's title. The correct answer to the student's question is (d) All of the above.
Step-by-step explanation:
The question 'What are the three general methods of title assurance?' pertains to the procedures and systems established to assure the validity of a property title when transferring real estate. Title assurance is an important aspect of property transactions as it ensures the buyer that they will have legal ownership without disputes from other parties. Let's delve into the three methods listed:
- Torrens system: This system involves a legal registration process that guarantees the title to the land. Once registered, the state issues a certificate of title that notes the property's legal owner and any encumbrances, such as liens or mortgages on the property. The Torrens system is known for its certainty and government guarantee but is only available in certain jurisdictions.
- Abstract of title: An abstract is a detailed history of all the documents that affect the title of the property. This can include deeds, wills, trusts, divorce decrees, court litigations, tax sales, and more. An attorney or a title insurance company typically reviews an abstract to determine if there are any defects or issues with the title.
- Certificate of title: A certificate of title is a statement of opinion on the status of the title, made by an attorney or title insurance company, based on a review of the abstract of title. While it provides information on the condition of the title and any claims, it does not guarantee the validity of the title like the Torrens system.
In answering the student's question, all three methods listed (a) Torrens system, (b) Abstract of title, and (c) Certificate of title are utilized as general methods of title assurance to some degree in different jurisdictions, making (d) All of the above the correct option.