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Title Producer Chapters 10-11 questions and answers 2025 latest update.
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Title Producer Chapters 10-11 questions and answers 2025 latest update.
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Title Producer Chapters 10-11 questions and answers
2025 latest update
For title insurance purposes, the lender in a real estate transaction: -
answer The lender that issues a mortgage would suffer loss if the
collateral to the mortgage were harmed. Lenders have an insurable
interest in the real property for which they fund a loan.
The correct answer is: has insurable interest in the property
There is evidence of a recording system existing in ______________ in 1676.
The New Jersey Conveyance Act of 1799 serves as the basis of the current
state Recording Act. - answer There is evidence of a recording system
existing in New Jersey in 1676.
The correct answer is: New Jersey
If a lender is the insured in a title policy and has an actual loss of
$325,000 due to a forged deed, because of the concept of indemnity, the
title insurer: - answer The lender will be paid the amount of actual loss.
Lenders have an insurable interest in the title of real property for which
they fund a loan. Insurable interest is closely tied to the principle of
indemnity. Most insurance contracts are indemnity contracts. This means
that the insured can only be compensated for the amount of the loss; he
cannot make a profit due to an insured loss. In most contracts, insurance
payment cannot exceed the amount of insurable interest in the property
or risk being insured.
The correct answer is: will pay the lender the amount of the actual loss,
and no more, up to the limits of the insurance policy
In a fee simple absolute title conveyance involving an owner's interest,
mineral rights: - answer Mineral Rights: rights to gaseous liquid and solid
, minerals on or under a piece of property. Mineral rights can be transferred
when title is transferred, retained by the grantor, or transferred to a party
other than the grantee.
The correct answer is: can be conveyed
Which of the following is not a step taken in a real property transaction to
attain title assurance? - answer "Title assurance" refers to establishing
that all aspects of the title are valid. Many steps are taken in a real
property transaction to attain title assurance. These steps include the
conducting of surveys; examination of records at the registry of deeds, at
the recording office, at government tax offices, at the registry of probate
and at the vital records office; and engaging a lawyer or taking other legal
action to clear a title of claims.
The correct answer is: An examination of records at a hospital
Title insurers offer policies for titles involving mortgages called ______. -
answer Lender policies insure a mortgage company's or other real estate
lender's interests in title. They provide broader coverage than an owner's
policy. Under a lender policy, liability of the insurer decreases over time
because the loan amount decreases. Lender's policies are written for the
loan amount, and once the mortgage is paid off the policy coverage
ceases. The lender's interest in the property has ended and without an
interest in the property, there is no need for lender's coverage.
The correct answer is: Loan or lender policies
The insured under the owner's title policy is notified that a portion of his
property is being condemned in order for the county to build a bike path.
The insured files a claim with the title insurance company for this loss. The
title insurance company: - answer Rights of eminent domain are a
covered risk only if a notice of the exercise of these rights, describing any
part of the land, is recorded in the public records.
The correct answer is: Will not pay for this loss because eminent domain is
an excluded risk unless a notice of the exercise of this right was in the
public records at the time the policy was issued
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