CMM Title Research & Due Diligence 5

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

A 'division order' is best described as:

Accepted Answer

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

Answer

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.

Question 3

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:

Accepted Answer

Automatically passes to the grantee under the original deed

Answer

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.

Question 4

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?

Accepted Answer

A probate court order determining heirship or distributing the estate

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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.

(CMM) Certified Mineral Manager Practice Test

(CMM) Certified Mineral Manager Practice Test

CMM Title Research & Due Diligence 5