If a property has been exempted in a bankruptcy case, what is the minimum action a title examiner should take?

It's essential for a title examiner to document the evidence that a property has been exempted in a bankruptcy case because this step establishes a clear record indicating the status of the property concerning the bankruptcy proceedings. Proper documentation is crucial in title examination as it provides transparency and prevents potential disputes or claims by creditors who may have rights to the property.

By documenting the exemption, the title examiner ensures that all stakeholders have access to the relevant legal information, which aids future transactions and reassures any parties interested in the property about its legal standing. This action is foundational in maintaining the integrity of the title and providing an accurate representation of the property’s status in relation to any bankruptcy filings.

Taking this step is more fundamental than merely acknowledging the property or notifying creditors, as those actions do not create a formalized record. Conducting a new appraisal may not be necessary since the exemption does not directly relate to the property’s value but rather to its legal standing in bankruptcy.