Unit Exam

Related to title insurance what is "subrogation"?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

What is the definition of a marketable title?

A title that is clear and free of encumbrances

What is title commitment

An agreement by a title insurer to issue the final title insurance policy on the property

What information does schedule A of a title Commitment Provide?

Basic facts related to the transaction and property, including a legal description.

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?

File a suit to quiet title

How does title insurance affect the lender?

It protects the lender from loss due to defective titles

Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title?

Murphey, the current owner

The abstract of title can reveal outstanding issues with the property including...

Owners, property liens, taxes, and easements

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy?

Preliminary report

marsha's title insurance policy was issued on closing day, June 18. The policy list the standard exclusions as well as requirements for the company to issue the policy, such as paying off existing recorded liens. which of these will NOT be addressed in the schedule of exceptions?

The local cable company's easement through the property for underground wiring. Marsha dissclosed this to the title company.

Which of these statements about an abstract of title is correct?

an Abstract is condensed history or all recorded documents that impact the title.

If a property has a legal claim against it, what is the property said to have?

cloud on title

Select the statement that accurately describes an abstract of title.

few states require an abstract of title when conveying property.

which of the following is a characteristic of an abstract of title?

provides an attorney's opinion of the title

You know that a title search will need to be performed before a title insurance policy will be issued and your buyer's loan can be funded, but who or what entity can your client expect to conduct the title search?

the title insurance company

Avery is about to close on his dirst home. What will protect him from finacial loss if his ownership later comes into question?

title insurance

Which of the following protects the owner against financial loss if the real estate title has defects?

title insurance

Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership, what can reassure her?

title insurance

What's the purpose of a chain of title?

to establish history of past ownership