Title Research & Due Diligence Flashcards

Which of the following title defects is generally considered 'incurable' without litigation?

Answer: An outstanding interest held by an adverse claimant who refuses to quitclaim

An outstanding adverse claim held by a party who will not voluntarily execute a curative instrument typically requires a quiet title action to resolve, making it incurable without litigation.

A 'division order' is best described as:

Answer: An administrative document directing a purchaser how to distribute proceeds among interest owners

A division order is a statement of ownership signed by all interest owners directing the purchaser of production to distribute revenues according to each owner's decimal interest.

Under the 'after-acquired title' (estoppel by deed) doctrine, if a grantor conveys land they don't yet own and later acquires it, the title:

Answer: Automatically passes to the grantee under the original deed

Under after-acquired title (estoppel by deed), when a grantor who conveyed land they didn't own later acquires it, that title automatically inures to the benefit of the grantee without any additional conveyance.

When evaluating heirship in a title chain, which document has the highest evidentiary value for establishing the identity of heirs to a deceased mineral owner?

Answer: A probate court order determining heirship or distributing the estate

A court order—such as a judgment determining heirship or an order of distribution in a probate proceeding—provides the strongest legal evidence of heirship because it is a judicial determination binding on all parties.

In a unitization agreement, a 'tract participation factor' is used to:

Answer: Allocate unit production and costs among participating tracts based on acreage or other agreed metrics

A tract participation factor (or allocation factor) determines each tract's proportionate share of unit production revenues and costs, typically based on acreage, recoverable reserves, or a negotiated formula.

Which of the following best explains why a title examiner should review probate records even when a subsequent deed in the chain appears to convey full title?

Answer: A deed from an administrator may be voidable if the probate proceeding was defective or jurisdiction was lacking

An administrator's or executor's deed derives its authority from the probate proceeding; if the proceeding lacked proper jurisdiction or was procedurally defective, the deed may be voidable, leaving the title cloud.

A 'ratification' of an oil and gas lease by a previously omitted mineral interest owner has the primary effect of:

Answer: Binding the ratifying owner to the existing lease terms and curing the defect caused by their omission

Ratification binds the ratifying mineral owner to the existing lease terms and validates the lease as to their interest, curing the title defect caused by their failure to execute the original instrument.