Title Insurance Flashcards
Escrow Officer
The Escrow Officer has two main duties. Service -Timely, Escrow closing work hand in hand with everyone involved in the
transaction.
Title Insurance - Detailed oriented: Research properties, write title reports analyze these.
Title Insurance
Title Insurance comes in to play at the closing so the customer is purchasing a property and the realtor that is working with them to solidify the contract
Commitment For Title Insurance
First product that the title company provides also know as the Preliminary report (PR). The PR is what is provided after the research on the property. Such as, county records, court system for judgements and liens.
Title insurance is:
A: A Policy Of Insurance
B: A Protection To All Future Buyers
C: An Opinion
D: A Limited Guarantee Of Marketable Title
D: A Limited Guarantee Of Marketable Title
What are the two main duties of an escrow officer?
A: Sign The Closing Documents & Communicate With Lender
B: Communicate With The Buyer & Lender
C: Service & Title Insurance
D: Communicate With The Buyer & Seller
C: Service & Title Insurance
what is the first document the title company provides?
A: Preliminary Report
B: The Contract
C: The Closing Documents
D: The Communication Reports
A: Preliminary Report
____________ comes in to play at the closing so the customer is purchasing a property
A: Closing Costs
B: Title Insurance
C: Real Estate Agents Contract
D: Brokerage
B: Title Insurance
_________ is the title company’s dedication to issue a title insurance policy for the property after closing.
A: Title Commitment
B: Insurance Commitment
C: Agent Policy
D: Broker Policy
A: Title Commitment
Owners Title Insurance Policy
Seller pays and gives to buyer Insures that they bought the property they intended to buy.
Lenders Title Insurance Policy
Purchased by Buyer Protects the investment of the lender. In addition coverages it offers it grants that lender the ability to foreclose of that property. The full amount of the loan.
ALTA Policy
American Land Title Association The group of underwriters that have written and standardized products.
Subrogation
When you purchase a policy and you sustain a loss, the insurance company pays out on the claim So when the insurance companies can then investigate/determine if the fault lies with someone else and go after their insurance company
Title insurance does not protect against:
A: Zoning Restrictions
B: Easements
C: Forged Documents
D: Forged Documents
A: Zoning Restrictions
Buyer Bob purchased a property for $300,000. His mortgage was for $220,000. How much title insurance coverage did Bob have to pay for?
A: 220,000
B: 100,000
C: 200,000
D: 500,000
A: 220,000
What is an actual notice?
A: When A Person Actually Sends A Written Notice To Others
B: When The Notice Is Send Out To The Buyer
C: None Of The Above
D: All Of The Above
A: When A Person Actually Sends A Written Notice To Others
What is marketable title?
A: When The Seller Promises That The Title Is In Condition To Resell At Full Market Value
B: When The Seller Allows The Agent To Market The Property
C: When The Buyer Wants To Continue To Market The Property
D: All Of The Above
A: When The Seller Promises That The Title Is In Condition To Resell At Full Market Value
The following would give a buyer the least amount of protection:
A: Extended Title Policy
B: Abstract Of Title
C: Attorney’s Opinion
D: Standard Title Policy
C: Attorney’s Opinion
Which type of policy is specifically mentioned in the REPC:
A: Abstract Of Title
B: ALTA Policy
C: Attorney’s Opinion
D: Standard Title Policy
B: ALTA Policy
The type of title insurance policy that the seller buys protects the:
A: Buyer
B: Seller
C: Lender
D: Lender
A: Buyer
If the buyer has a mortgage, the type of title insurance that the buyer purchases protects the:
A: Buyer
B: Seller
C: Lender
D: The Seller Is Not Required To Purchase Title Insurance
C: Lender
An Owner’s Policy covers:
A: Defects Found In Public Records
B: Forged Documents
C: Improperly Delivered Deeds
D: All Of The Above
D: All Of The Above
ALTA stands for:
A: American Land Title Association
B: American Lenders Title Association
C: American Land Title Affiliation
D: American Lenders Title Affiliation
A: American Land Title Association
Encumbrance Defect/Cloud on title
What affects the property
Listed on the PR
Encumbrance like a lien Defect something seller needs to remedy before buyer takes
possession (example Chain of title).
Quiet title action is when a court action is taken to remedy this.
Abstract of Title
The raw research on a piece of property that the title offers have compiled by pulling an abstract from the county recorders office. It includes the entire history of the property.
Lender’s Extended Coverage covers:
A: Everything Covered By Standard Coverage
B: Unrecorded Rights Of Persons In Possession
C: Unrecorded Liens Not Known To The Policy Holder
D: All Of The Above
D: All Of The Above
Where does recording of the house happen?
A: County Recorders Office And It Must Have A Recorders Stamp
B: At The Lenders Office
C: At The Agents Office
D: Recording Happens With The Broker
A: County Recorders Office And It Must Have A Recorders Stamp
In which order does the closing process happen?
A: Funding & Recording
B: Lending & Notifying The Agent
C: Notifying The Broker & Informing The Agent
D: Sign The Closing Docs & Notifying Agent
A: Funding & Recording
Chain of Title
The historical report of all the owners of a piece of property, going back in time. Each owner is a link in the chain. This is obtained from going through each deed and recording the owner. What the lender is looking for is a 24 month chain, looking for red flags.
Where does the recording of the house take place?
A: The County Recorders Office
B: The Agents Office
C: The Brokerage
D: None Of The Above
A: The County Recorders Office
Exceptions/Exclusions
It is an agreement of what is and is not insured. If in the PR the title insurance company finds things they do not cover in the policy, they will pull those out and that is what is called an exception or an exclusion.
Actual Notice
When a person actually sends written
notice to another
Constructive Notice
When a person comes across more information by other means of information
Marketable Title
When the seller promises that the title is in the condition to resell at full market value.
Commitment For Title Insurance Components
General details of transaction verify accuracy.
date
Lender
parties
buyer
owners policy
address
legal description from county role
Schedule B1
Requirements Section The things that required to happen for the title insurance to insure the property. As in an instrument against the title that is recorded.
Schedule B2 Exceptions
- these things do not insure The gap, period of time between the issuance and recording takes places
Date down of the title search, takes another quick look at the title, just to ensure nothing else has been recorded. There is a list of exceptions.
Seller Requirement
In the seller’s discloser that the seller is required to provide the preliminary title
report to the buyer.
Title Insurance Policies
Options of Lenders and Sellers Policies
The owners policies Traditionally standard coverages, however, the industry changed and wanted more, the markets wanted more the title industry revamped and came up with the homeowners policy, it is now the preferred policy.
Run to Record
Recording happens at the county recorders office and has a recorders stamp. Utah is a “Run to the Recorders” State.
The type of title insurance the Buyer purchases protects the:
A: Buyer
B: Seller
C: Lender
D: Mortgage Insurer
C: Lender
This former US President’s father would have greatly benefited from having title insurance:
A: George Washington
B: Abraham Lincoln
C: Ulysses S. Grant
D: Herbert Hoover
B: Abraham Lincoln
Billy purchased a property for $400,000. His mortgage was for $320,000. How much title insurance coverage did Billy have to pay for?
A: 400000
B: 320000
C: Billy Gets To Decide How Much Title Insurance He Feels He Needs
D: Billy Is Not Required To Purchase Title Insurance
B: 320000
Of the following, which one would give a buyer the greatest amount of protection:
A: Extended Title Policy
B: Abstract Of Title
C: Attorney’s Opinion
D: Standard Title Policy
A: Extended Title Policy
Title insurance does not protect against:
A: Zoning Restrictions
B: Defects The Purchaser Knew About But Failed To Disclose
C: Exceptions Stated In The Policy
D: All Of The Above
D: All Of The Above
A defect in the title is also referred to as a(n):
A: Affidavit
B: Quit Claim
C: Cloud
D: Abstract
C: Cloud
An “Abstract of Title” is:
A: A Cloud On The Title
B: A Chronological Chain Of Title
C: Defective Title
D: Lender’s Coverage
B: A Chronological Chain Of Title
A “Chain of Title”:
A: Is A Chronological History Of Recorded Ownership
B: A Cloud On Title
C: Defective Title
D: Owner’s Coverage
A: Is A Chronological History Of Recorded Ownership
Utah is a:
A: “Run To Record” State
B: “First To Record” State
C: “Relay To Record” State
D: “Race To Record” State
A: “Run To Record” State
Which of the following can be used to clear a defect in title?
A: A Quit Claim Deed
B: A Court Action To Quiet The Title
C: The Recording Of An Affidavit To Remove All Uncertainty
D: All Of The Above
D: All Of The Above
