12.4 Flashcards

1
Q

_____reimburses the buyer for losses from certain types of title problems discovered after closing and anytime during the owner’s period of ownership

A

Title insurance

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2
Q

Does Title Insurance cover problems resulting from governmental action (like zoning changes or condemnation).

A

No - never

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3
Q

How is title insurance paid

A

paid at closing with one premium payment

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4
Q

T/F: An owner’s policy lasts as long as the policy holder or her heirs own the property.

A

True

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5
Q

T/F: Even without a third-party making a claim against the owner, if a covered defect is discovered, the title company may have to pay the owner compensation for the reduced value of the property.

A

True

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6
Q

Riders aka

A

Endorsements

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7
Q

CLTA

A

California Land Title Association

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8
Q

ALTA

A

American Land Title Association

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9
Q

Lenders policy aka ___ aka ____

A

Mortgagee’s policy

ALTA policy

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10
Q

Buyers policy aka

A

Homeowners policy

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11
Q

______ insurance: Escrow holder at Seller’s expense will purchase a CLTA/ALTA homeowner’s policy of title insurance for the benefit of Buyer

A

Buyers title insurance

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12
Q

T/F: If the buyer requests Any riders or additional coverage past the Buyer’s Title Insurance, they will be at Buyer’s expense.

A

True

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13
Q

____ policy benefits the lender;

____ policy benefits the buyer

A

Extended;

Homeowner

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14
Q

T/F: both extended policies and homeowners policies are based on a visual inspection of the property as well as a title search

A

True

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15
Q

T/F: Rebates, referral fees, and kickbacks are prohibited for title insurers

A

True

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16
Q

If a company charges less than the price indicated on the rate schedule filed with the Commissioner, this is a(n) _____

A

Illegal rebate

17
Q

T/F: In California, it’s illegal for an insurer to prepare a preliminary report at no charge.

A

True