section 20 unit 3

We know how often title insurance is paid, but how much does it cost?

$1 per $1,000 of insurance purchased

What's the purpose of title insurance?

It protects the buyer against loss resulting from previously unreported title defects.

At what point in the sales transaction process does the title insurance company issue the title insurance policy?

Once the requirements have been satisfied, and the seller has delivered the deed to the buyer

What three things happen after a claim is submitted on a title policy?

The title company reserves the right to collect payment from whoever caused the loss. The amount of a loss the insurance company pays is deducted from the coverage amount. The title insurance company will either pay the debt or challenge the claimant in court.

Which of these statements about title insurance are correct?

Title insurance provides assurance that the property owner has marketable title. Title insurance protects the buyer against loss resulting from previously unreported title defects. Title insurance protects the lender from loss due to defective title.

Monica is selling her house. Her appraiser, Tom, is using a title search method that only looks back as far as when the last title search was performed. The method he's using assumes the last search was done accurately and legally, and that any issues were resolved. Which method is Tom using?

Torrens system

What are some of the actions that will take place to protect both buyers and their lenders? a title company representative reviews the title report with the buyer and discusses any red flags

does take place

What are some of the actions that will take place to protect both buyers and their lenders? the seller provides a notarized letter stating the property title is clear

doesn't take place

Match the title insurance terms with their correct descriptions. protects lender or buyer from a greater range of defects

extended coverage policy

true or false A Torrens search goes back several decades.

false

true or false most states use the Torrens system

false

What are the two most common ways to mitigate the effects of title issues?

initiate an action to quiet title purchase title insurance

The claims for loss statement is a pretty important part of the title policy. What is its purpose?

it states how the company will handle any claims that arise after the purchase

can tell us which of the following are characteristics of the insurance. Insured amount includes any equity the owner has in a property

no

As we know, nothing in life is free, and that includes title insurance. How often is the policy owner required to pay for title insurance?

once

Match the title insurance terms with their correct descriptions. discusses the property, encumbrances, and what's covered by insurance

preliminary report

Match the title insurance terms with their correct descriptions.' title insurance that protects the buyer from basic title defects

standard coverage policy

Match the title insurance terms with their correct descriptions. gives the title company permission to pursue the party who caused a title insurance loss or claim payout

subrogation

What are some of the actions that will take place to protect both buyers and their lenders? a title search/ examination occurs to uncover any claims against the title

takes place

What are some of the actions that will take place to protect both buyers and their lenders? title insurance is purchased as part of the transaction

takes place

The appraiser of Garran's property used the Torrens system to perform a title search. Now a claim has been filed. Who or which entity will be the title guarantor?

the state

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

title insurance

Why would a mortgage lender have a title policy?

to protect is investment on a loan it had extended on a property

true or false a Torrens certificate is issued and lists the state as the title grantor

true

true or false a Torrens sears only goes back to the last time a title search was performed on the property

true

true or false the Torrens system assumes the last search performed was done accurately and legally

true

can tell us which of the following are characteristics of the insurance. Doesn't make exceptions for ownership claims that could be refuted or confirmed through a visual inspection of the property

yes

can tell us which of the following are characteristics of the insurance. Is assignable to future loan holders (for example, if the loan is sold to another lender in a loan package on the secondary mortgage market)

yes

can tell us which of the following are characteristics of the insurance. Only offers protection up to the amount remaining on the mortgage loan

yes