Ch 17: Recording Acts and Title Insurance Flashcards
Each county in Arizona has a public recorder’s office located in the county seat that records submitted documents that pertain to real property:
a. In the state
b. In the region
c. In the county
d. In the United States
c. In the county ]
Each county recorder’s office records submitted documents that pertain to real property in that county.
Recording does NOT give:
a. Presumption of delivery
b. Priority as to the interest
c. Actual notice
d. Constructive notice
c. Actual notice
Actual notice is the knowledge one has gained based on what has been actually seen, heard, read, or observed.
Real estate title information is BEST found in the records of the:
a. Secretary of State
b. Tax Assessor
c. Vendor
d. County Recorder
d. County Recorder
Real estate title information is found in the records of the County Recorder
The best evidence of Marketable Title is title that is:
a. Covered by a homeowners policy
b. Covered by a title insurance policy
c. Covered by a dwelling insurance policy
d. Has a title commitment
b. Covered by a title insurance policy
The best evidence of marketable title is title that is covered by a title insurance policy.
Escrow and title insurance rates are:
a. Established by the State Banking Department
b. Controlled by the Department of Real Estate
c. Established by each entity
d. Established by the State Department of Financial Institutions
c. Established by each entity
Rates are established by each entity and agreed to by the parties to the contract.
A Title Commitment or Preliminary Title Report should be delivered to the buyer:
a. Within 5 days of opening escrow
b. Within 10 days of opening escrow
c. Within 3 days of opening escrow
d. During the inspection period
d. During the inspection period
The Title Commitment or Preliminary Title Report should be delivered to the buyer during the Inspection Periods.
A Title Insurance Commitment provides all of the following, EXCEPT:
a. Quality of the estate conveyed
b. How the property is to be vested
c. Requirements that must be resolved
d. Zoning classification
d. Zoning classification
A Title insurance Commitment or Policy does not cover zoning classifications.
Escrow departments of escrow and title insurance companies are regulated by:
a. The Arizona Department of Real Estate
b. The Arizona Department of Administration
c. The Arizona Secretary of State
d. The Arizona Department of Financial Institutions
d. The Arizona Department of Financial Institutions
The Arizona Department of Financial Institutions regulates the escrow department of escrow and title insurance companies.
A title insurance policy may be written to protect all of the following, EXCEPT the:
a. Licensee
b. Mortgagee
c. Lessee
d. Owner
a. Licensee
The licensee does not have an insurable interest in the property.
An agreement to waive prior rights in favor of another is:
a. Subordination
b. Subornation
c. Subrogation
d. Subjugation
a. Subordination
Subordination in real estate is used to define the voluntary acceptance of a lower mortgage priority than one would otherwise be entitled to. That use also means an agreement to waiver prior rights in favor of another.
When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is called:
a. Subordination
b. Subrogation
c. Surety
d. Escrow
b. Subrogation
Subrogation is the substitution of one person in the place of another with reference to a lawful claim, such as when an insurance company pays a claim and then has the right to collect from the party causing the loss.
When a buyer desires an extended owner’s title insurance policy:
a. The buyer always pays for the additional premium
b. The seller always pays for the owner’s policy
c. The contract must document who will pay for the coverage
d. The seller must agree to and pay for extended coverage if requested by the buyer.
c. The contract must document who will pay for the coverage
Payment of the title insurance premium is a matter of negotiation and the contract must document who will pay for the coverage including any extra premium for extended coverage.
An owner’s title insurance policy protects the buyer against financial loss due to title defects:
a. That existed at the time the insured received the title
b. In any amount
c. In an amount not to exceed $100,000
d. Any title defect
a. That existed at the time the insured received the title
When acquiring real property, the buyer should protect against financial loss due to title defects with title insurance. A title insurance policy requires the insurance company to compensate the insured for financial loss, up to the face amount of the policy, when the loss results from a title defect. A title policy also requires the insurance company to defend against claims. The policy protects the insured against title defects that existed at the time the insured received the title.
An ALTA title insurance policy on a new loan would normally be charged to:
a. Buyer
b. Trustee
c. Seller
d. Beneficiary
a. Buyer
f the ALTA policy is on a new loan it would be a Lender’s policy for the benefit of the buyer and the buyer almost always pays the premium for such a policy.
All of the following insurance premiums are normally charged to the buyer EXCEPT:
a. Mortgage insurance premium
b. Owner’s title insurance policy
c. ALTA title insurance policy
d. Fire insurance policy
b. Owner’s title insurance policy
The owner’s title insurance policy premium is generally paid by the seller.
