Titles unit Exam

What's a trio?

A report that shows the parcel map, owner of record, and property profile

Which of the following provides a summary of the title history?

Abstract of title

Which document is used to fix an error in the title history?

Correction Deed

You've just received a trio from a title company. It contains an assessor's map, property profile, and ______

Deed

Which of the following best describes a marketable title?

Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.

Lisa purchased an older home with a large backyard that's perfect for her pack of collies to romp in. Six months after she bought the property, a total stranger knocked on her door and told her he's the true property owner. After investigating, it turns out the person who sold Lisa the property had forged the deed without the true owner's knowledge. What's true about Lisa's situation?

Her title insurance policy may protect her from loss.

What can buyers do to protect themselves from title issues when purchasing property?

Purchase title insurance.

In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?

The seller's existing mortgage

Paula is bidding on a property that's being sold at a foreclosure auction. She's excited about the great deal she's getting on the property after she finds out she submitted the winning bid. What could cause Paula's great deal to turn into a nightmare?

The title to the property may have hidden issues that could cost her a lot of money to clear.

What special concern do foreclosed properties often present?

There could be hidden title issues.

What's the term for a title examination that searches title history going back fewer than 60 years?

limited search

Which title insurance policy will cover an owner's legal expenses when problems with title occur?

owners policy