Missouri Title Insurance Producer Exam Guaranteed Success
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Missouri Title Insurance Producer Exm Guaranteed
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Missouri Title Insurance Producer Exm Guaranteed
Missouri Title Insurance Producer Exam Guaranteed Success
Title Insurance Terms and Definitions
1. Title Insurance ️ - An insured statement of the condition of title or ownership of real property. For a one-time-only
premium, the named insured and their heirs are protected against title def...
Missouri Title Insurance Producer Exam Guaranteed Success
Title Insurance Terms and Definitions
1. Title Insurance ✔️
- An insured statement of the condition of title or ownership of real property. For a one-time-only
premium, the named insured and their heirs are protected against title defects, liens, encumbrances
existing as of the date of the policy and not specifically excluded from it. In the event of a claim, the title
company provides legal defense for the policyholder and pays any covered losses incurred due to such a
claim.
2. Commitment/Binder 1 ✔️
- Also called a "preliminary certificate," it's a contract with a title company to issue a specific title
policy, showing only those exceptions contained in the commitment and any intervening matters after
the date of the commitment and prior to the effective date of the policy. The commitment contains all
information included in the preliminary title report, plus a list of requirements that must be met in order
to insure the transaction and standard exceptions from coverage that will appear in the policy.
3. Commitment/Binder 2 ✔️
- 1. A preliminary report regarding the condition of a title and a commitment to issue a title insurance
policy when certain conditions are met.
- 2. A document issued by a title insurance company that states the conditions under which a title
insurance policy will be issued.
4. Endorsement ✔️
- An addition to or modification of a title insurance policy which expands or changes coverage of the
policy, fulfilling specific requirements of the insured.
5. Exception ✔️
- A provision in a title insurance binder or policy that excludes liability for a specific title defect or an
outstanding lien or encumbrance, such as easements and restrictions.
6. Requirements ✔️
, - Conditions in a title insurance binder that must be met or otherwise cleared before title can be
insured and a policy can be issued.
7. Encumbrance ✔️
- Anything that affects or limits the fee simple title to property, such as mortgages, easements, or
restrictions which do not prevent alienation of the fee title by the owner. Liens are special
encumbrances that make the property security for the debt.
8. Encroachment ✔️
- The situation that exists when a structure is built wholly or partially on a neighboring property.
Disputes may arise from boundary confusion, often due to incorrect surveys or builder/owner mistakes.
9. Insurance Companies ✔️
- Protect individuals and organizations from financial loss by assuming risk. They analyze information in
insurance applications to determine if a risk is acceptable and not expected to result in a loss.
Applications are often supplemented with reports from loss-control consultants.
10. Underwriters ✔️
- They must decide whether to issue the policy, the appropriate premium to charge, and write policies
that cover these risks. Underwriters serve as the main link between the insurance carrier and the
insurance agent. An insurance company may lose business if the underwriter appraises risks too
conservatively or may have to pay claims if their actions are too liberal.
11. Chain of Title ✔️
- The history of passing title ownership from the present owner back to the original owner, including
deeds, distributions from estates, certificates of death, foreclosures, quiet title actions, and other
recorded transfers. Before purchasing property, a title company is often hired to search out the chain of
title and provide a report.
12. Closing and Settlement ✔️
- In a real estate transaction, the closing is the final exchange in the sale and purchase of real estate
where the title is transferred, financial documents are executed, title insurance policies are created, and
costs are paid.
, 13. Escrow ✔️
- The deposit of instruments, funds, and instructions to an independent third party to carry out the
provisions of an agreement or contracts. The transfer of property or documents is completed upon
fulfillment of specified conditions.
14. Transfer Tax and Recording ✔️
- In Missouri, there is no transfer tax, which is a tax paid by a buyer or seller each time a property is
transferred.
15. Paper - Document Formatting Requirements ✔️
- White, light-colored, 20# weight without watermarks or logos; printed in black or dark ink on one
side only; no continuous forms or permanent binding; stapled documents are acceptable.
- First page shall have the top 3 inches of vertical space for the recorder's use blank; minimum 3/4"
margins on all other margins on the first page and all subsequent pages; print or type size shall not be
smaller than 8-point type; document must be sufficiently legible to produce a clear reproduction.
- No attachments stapled or otherwise affixed to any page is allowed except as necessary to comply
with statutory requirements (a firmly attached label with a bar code or return address is acceptable).
19. First Page Information - Document Formatting Requirements ✔️
- Every document (except plats and surveys) must contain the following information below the 3"
margin:
- Title of the document
- Date of the document
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