Title Insurance Basics

12 Questions | Total Attempts: 2830

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Insurance Quizzes & Trivia

Preliminary Test for Title Insurance Basics.


Questions and Answers
  • 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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