Title Insurance & The UCC Code

Question 1

A UCC-1 form would be used in a transaction that included:

a. personal property of a business
b. commercial real property
c. rolling options via a bulk sale
d. a lease on real estate

Answer 1

A. personal property of a business

Question 2

Which is most likely to reveal all of the owners in a property’s history?

a. certificate of title
b. abstract of title
c. title report
d. affidavit of title

Answer 2

B. abstract of title

Question 3

To obtain a full disclosure concerning encumbrances, taxes and assessments, a buyer can:

a. read the listing agreement
b. read the purchase contract
c. order a title insurance policy
d. rely on the seller

Answer 3

C. order a title insurance policy

Question 4

A chain of title is a:

a. measurement used by a surveyor
b. listing of all recorded instruments affecting the title
c. certificate of the title
d. list of the heirs of a deceased owner

Answer 4

B. listing of all recorded instruments…

Question 5

A summary of the history of a title is called the

a. abstract of title
b. certificate of title
c. chain of title
d. title insurance

Answer 5

A.

Question 6

A policy of title insurance in favor of the mortgagee usures the:

a. lender
b. seller and lender
c. owner and lender
d. owner

Answer 6

A. lender

Question 7

A standard title insurance policy includes coverage for

a. items of record which are not disclosed in the policy
b. zoning ordinances
c. persons in possession of the property
d. errors a survey would show

Answer 7

A. items of record…

Question 8

In a standard owner’s title insurance policy, the page of exceptions indicates the:

a. legal description
b. type of interest being insured
c. method of ownership for the buyers
d. liens and encumbrances of record

Answer 8

D. liens and encumbrances…

Question 9

Which of the following items is covered by a standard owner’s policy of title insurance?

a. encroachments
b. survery errors
c. person in possession
d. forgeries

Answer 9

D. forgereis

Question 10

An ALTA policy would be terminated under all of the following circumstances EXCEPT:

a. sale of the property and assumption of the load
b. sale of the property with the buyer originating a new FHA load
c. refinance of the property
d. acceptance of a deed in lieu of foreclosure by the lender

Answer 10

A. sale of the prop…..

Question 11

When a title insurance company pays a claim and then takes legal action against the party responsible for the claim, it is known as:
a. subordination
b. subrogation
defeasance
c. defeasance
d. escheat

Answer 11

B. Subrogation

Question 12

When is a preliminary title report or commitment for title insurance issues?

a. before closing
b. during closing
c. after closing
d. when the deed is recorded

Answer 12

a. before

Question 13

An owner’s title insurance policy will cover claims due to:

a. misfiled documents
b. unrecorded easements
c. zoning violations
d. future assessments

Answer 13

A. misfiled docs

Question 14

If solar equipment is leased, to secure their interest with a lien, the lessor will require the prop owner to execute:
a. deed of trust
b mortgage
c. security agreement
d. estoppel agreement

Answer 14

C. security agreement

Question 15

To prioritize a security agreement signed by a lessee of solar equipment, the lessor may:

a. record a deed of trust with the county
b. file a UCC-1 financing statement with the Secretary of State
c. have a title company conduct a UCC-1 serach through the Secretary of State
d. require the lessee to record the lease

Answer 15

B. File a UCC-1…

Question 16

Upon receipt of a preliminary title report, a licensee should:

a. keep it in the transaction file for 5 years
b. forward it to the client by email
c. alert the client to any exceptions that would affect use or ownership rights
d. compare it to the abstract of title

Answer 16

C. Alert…

Question 17

Schedule B. on a title policy would not contain which of the following:

a. liens
b. type of conveying deed used
c. exceptions
d. cc&rs

Answer 17

B. type…

Question 18

A preliminary title report would disclose all of the following except

a. tax liens
b. easements
c. zoning
d. judgments requiring resolution

Answer 18

C. zonine