Which term is used to refer to the documented confirmation of transfer of land interests?

Prepare for the Michigan State Title Insurance Exam. Enhance your study with flashcards and multiple-choice questions. Understand questions with detailed hints and explanations. Ace your exam!

The correct answer is recording. This term refers specifically to the process of officially documenting and registering the transfer of land interests in public records. By recording a deed, mortgage, or other legal documents related to real estate transactions, the action provides legal evidence of ownership and establishes priority over competing claims to an interest in the property. This process enhances transparency and serves to protect the rights of the parties involved in a transaction by providing a public record that can be accessed for verification.

In contrast, indemnification refers to the compensation or security against loss or damage, typically in the context of insurance policies. Settlement involves the resolution of a dispute or the conclusion of a deal, often regarding the financial aspects of a transaction. Title insurance serves as a protection mechanism for buyers and lenders against losses from defects in the title that may arise despite the recording of documents. Each of these options plays a significant role in real estate transactions, but recording is the key term that specifically addresses the formal confirmation of the transfer of property interests.

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