Title Insurance Basics
Preliminary Test for Title Insurance Basics.
- 1.Upon what must a title insurance policy be based in most jurisdictions?
- A.
A reasonable examination of the record title.
- B.
A calculated risk of a known title defect.
- C.
The payment of an annual premium.
- D.
A waiver of tort liability from the insured.
- 2.An insurance broker's first duty is to his insured; the agent's first duty is to the agent's _____________?
- A.
Insured
- B.
Underwriter
- C.
Insurer
- D.
Company
- 3.Which of the following statements is NOT true of title insurance?
- A.
It is a guarantee that title is clear.
- B.
It only requires a one time payment of the premium.
- C.
It involves risk elimination or minimization.
- D.
It covers attorneys' fees for legal defense of title.
- 4.Which of the following IS regulated by RESPA?
- A.
A cash purchase of a residential property.
- B.
The refinance of a first mortgage on a commercial property.
- C.
The purchase of a residential condominium unit with a mortgage.
- D.
The purchase of an industrial property.
- 5.At the conclusion of a closing, $1,000 of the buyer's money is placed in an escrow account by the title insurnace agent closing the transaction pending the resolution of an issue involved in the purchase of a property. To whom does the $1,000 held in escrow belong?
- A.
The Buyer.
- B.
The Seller.
- C.
The Title Insurance Agent.
- D.
No one. The disposition of the money is governed by the escrow agreement.
- 6.A security instrument in real estate generally secures an obligation of the borrower to repay a ________________.
- A.
Sale's agreement
- B.
Deed
- C.
Easement or right of way
- D.
Bond or note
- 7.Which of the following is NOT a common form of security instrument for real property in one or more states?
- A.
A mortgage.
- B.
A security deed.
- C.
A deed of conveyance.
- D.
A deed of trust.
- 8.What is the common instrument used to convey title to real property?
- A.
A mortgage.
- B.
A deed.
- C.
A note.
- D.
A bond.
- 9.Most laws regarding title to real property are set at the _________ level of government.
- A.
Municipal
- B.
State
- C.
National
- D.
International
- 10.In most states, the body of law made by published decisions of appellate courts is called what?
- A.
The Common Law.
- B.
Civil law.
- C.
Res Judicata.
- D.
Estoppel.
- 11.The original thirteen (13) colonies of the United States were colonies of what country?
- A.
England.
- B.
Spain.
- C.
France. France.
- D.
Sweden.
- 12.In most states, the law governing real property comes from two bodies of laws. Which are they?
- A.
Estoppel.
- B.
The Common Law.
- C.
Statues.
- D.
Res Judicata.
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