section 12 unit 4: Qualifying the Title
What information does Schedule A of a title commitment provide? a. Basic facts related to the transaction and property, including a legal description b. Exceptions that the title policy will not cover c. Information on how to dispute a title commitment d. Requirements that must met before a title policy will be issued
a. Basic facts related to the transaction and property, including a legal description
Buyer Sally is hoping to buy the Sandersons' condo. During a title search, a cloud on the title is discovered. What might happen to the transaction? a. It will come to a halt until the cloud is cleared. b. it will proceed as usual c. Sally will need to make a more significant down payment on the Sandersons' property. d. The Sandersons will insist that Sally find a new lender.
a. It will come to a halt until the cloud is cleared.
Which commitment section matches the schedule to its description and provides information related to the transaction, including legal description and parties? a. Schedule A b. Schedule B-1 c. Schedule B-2 d. Schedule C
a. Schedule A
Which document is used to establish the path and proof of ownership? a. chain of title b. deed c. survey d. title
a. chain of title
Payment of taxes that have been levied against the property and are due a. requirement b. exception
a. requirement
Signed warranty deed a. requirement b. exception
a. requirement
Where can a party reviewing a title commitment find basic details about the transaction? a. schedule a b. schedule b-1 c. schedule b-2 d. this is not contained in the title commitment
a. schedule a
A suit to quiet title may be filed by a buyer in an attempt to remove a cloud on the title. a. true b. false
a. true
Often, especially when a lender is involved, the discovery of a cloud halts the transaction. a. true b. false
a. true
The attorney's opinion will include items that impact the title and that are public record, such as liens and easements. a. true b. false
a. true
The buyer should retain an attorney to provide an opinion of the title's soundness. a. true b. false
a. true
Usually, the seller must take action to remove any clouds on the title. a. true b. false
a. true
When a title search reveals a fault, such as a lien or encroachment issue, this is called a cloud on the title. a. true b. false
a. true
Obtained from a title insurance company to provide evidence of title
abstract of title
What information does Schedule B-2 of a title commitment provide? a. Basic facts related to the transaction and property, including a legal description b. Exceptions and flaws that the title insurance policy will not cover c. Information on how to dispute a title commitment d. Requirements that lenders must meet before a title policy will be issued
b. Exceptions and flaws that the title insurance policy will not cover
Which of these is a reason a lender may require a survey be performed? a. To obtain an accurate depiction of the neighborhood where the property is located b. To uncover potential changes that may have occurred to the property over time c. To discover any liens on the property
b. To uncover potential changes that may have occurred to the property over time Yes. It's possible that over time, changes could have occurred. These might include improvements made to the property, zoning changes, encroachments, or changes to the lot size. The survey will help ensure the accuracy of a property's legal description.
Encroachment indicated on the property tax map a. requirement b. exception
b. exception
Taxes not currently shown as liens or not yet due a. requirement b. exception
b. exception
Foreclosed properties rarely have clouded titles. a. true b. false
b. false
The attorney's opinion provides a guarantee of title. a. true b. false
b. false While the opinion does offer some assurance to impacted parties, it's not a guarantee of the condition of the title.
Title insurance is a common method for obtaining insurance of good title. Who is protected by title insurance?
borrower lender
What may happen to a transaction if a cloud on the title is discovered? a. The buyer will need to find a new lender. b. The buyer will need to increase the down payment. c. The transaction comes to a standstill until the cloud is cleared. d. the transaction proceeds as normal
c. The transaction comes to a standstill until the cloud is cleared.
Where can a party that's reviewing a title commitment find exceptions that aren't covered by the title insurance policy? a. schedule a b. schedule b-1 c. schedule b-2 d. the insurance information
c. schedule b-2
Which section of a commitment identifies exceptions to title insurance coverage? a. schedule a b. schedule b-1 c. schedule b-2 d. schedule c
c. schedule b-2
The title is acceptable, and Kathy's attorney Amy has provided a certificate of title opinion. Which of the following will be issued? a. a chain of events b. a deed c. an appraisal d. A title insurance policy
d. A title insurance policy The title commitment comes before closing; the title insurance policy is issued after closing. The commitment says that a title company is willing to issue title insurance under certain conditions. The policy provides coverage for the property.
Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion? a. chain of title b. deed c. survey d. Title insurance policy
d. Title insurance policy
Jacob has received a call from his lender that there is a problem with the title on his property. Why would he want to file suit to quiet title? a. To add a cloud to the title b. To delete the title ownership history c. To place a lien on his property d. To remove the clouds on the title
d. To remove the clouds on the title
Proves ownership of the property
evidence of title
Means that the property's title is free and clear of liens and only subject to loan payoff and any taxes owed
marketable title
Provides information related to the transaction, including legal description and parties
schedule A
Lists required actions to take before the title policy will be issued
schedule b-1
Identifies exceptions to title insurance coverage
schedule b-2
At the closing, Rebecca has a________________, which provides evidence of title and a summary of the title history.
title binder
Protects the buyer from defects in the title
title insurance
Rebecca is purchasing a house from the Smiths. She has obtained financing, and her lender requires her to have______________.
title insurance
A search of public records to provide a title commitment or abstract of title
title search
The company she selects conducts a____________ to ensure that the title to her new home is______________.
title search marketable