Exam (elaborations)
Exam- Title Insurance Exam with Complete Solutions
- Course
- Institution
Exam- Title Insurance Exam with Complete Solutions
[Show more]
Content preview
Exam- Title Insurance Exam with Complete SolutionsTitle Insurance Correct Answer-Insured statement of the condition of title or owner ship of
real property. For a one time premium the named insured and their heirs are protected
against title defects, liens, and 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
from the policy holder and pays any covered losses incurred as a result of such claim.
Commitment/Binder Correct Answer-Also called a preliminary certificate or commitment,
it is a binding 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 to insure the
transaction and standard exceptions from coverage that will appear in the policy.
What is a commitment? Correct Answer-A. A preliminary report as to the condition of a
title and a commitment to issue a title insurance policy when certain conditions are met.
B. A document issued by a title insurance company that contains the conditions under which a
policy of title insurance will be insured.
, Exam- Title Insurance Exam with Complete Solutions
Endorsement Correct Answer-An addition to or modification of a title insurance policy
which expands or changes coverage of the policy, specifically fulfilling requirements of the
insured.
Exception Correct Answer-A provision in a title insurance binder or policy that excludes
liability for a specific defect or an outstanding lien or encumbrance, such a easements and
restrictions.
Requirements Correct Answer-Conditions in a title insurance binder that must be met or
otherwise cleared before title can be insured and a policy can be issued.
Encumbrance Correct Answer-Anything which effects 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.
What makes liens special encumbrances? Correct Answer-They make the property security
for the debt.
, Exam- Title Insurance Exam with Complete Solutions
Encroachment Correct Answer-The situation that exists when a structure is built in whole
or part on a neighbor's property.
How are encroachments settled? Correct Answer-A. Action at law
B. Courts of equity may consider a bill for the settlements of boundaries when the rights may
be established upon equitable grounds.
C. Giving or selling the encroaching party an easement or lease for the lifetime of the building
or actually moving it onto the owner's own property (in the case of small structures).
Insurance companies Correct Answer-protect individuals and organizations from financial
loss by assuming risk. They analyze information in insurance applications to determine if a risk
is acceptable and will not result in a loss.
Underwriters Correct Answer-must decide whether to issue the policy, the appropriate
premium to charge, and write policies the cover these risks. In making this determination,
underwriters serve as the main link between the insurance carrier and agent. An insurance
company may lose business of the underwriter appraises risks too conservatively, or may
have to pay claims if the underwriting actions are too liberal.
, Exam- Title Insurance Exam with Complete Solutions
Chain of Title Correct Answer-The history of passing of title ownership from the present
owner back to the original owner. The include notations of deeds, distribution from estates,
certificates of death, foreclosures, quiet title, and other recorded transfers of title.
Closing and Settlement Correct Answer-The closing is the final exchange in the sale and
purchase of the real estate when the title is transferred, financing documents, title insurance
policies are exchanged, and costs are paid. Some of the documents are then delivered to the
county recorder to be recorded.
Who closes a title insurance transaction? Correct Answer-Either a title company, escrow
holder, or attorney.
Escrow Correct Answer-The deposit of instruments, funds, and instructions to an
independent third party to carry out the provisions of an agreement or contract.
What is a complete or perfect escrow? Correct Answer-When everything is deposited to
enable carrying out the instructions.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now