Unit 4 Recordation, Title Insurance, and Settlement

Question 1

Policies and procedures that regulate recording are established by:

Answer 1

State Law

Question 2

The priority of a recorded instrument is determined by the date of:

Answer 2

Recording

Question 3

when an attorney or a title insurance company traces the ownership of a parcel of land to the beginning of its recorded history, the process is known as the:

Answer 3

Title search

Question 4

A recorded notice stating that a pending lawsuit may affect title to a particular property is a

Answer 4

Lis pendens

Question 5

All the documents that comprise the history of the title are the:

Answer 5

Chain of title

Question 6

After an attorney examines an abstract, he will render a:

Answer 6

Title opinion

Question 7

Protection against incomplete or defective records of title found after closing can best be obtained by securing:

Answer 7

Title insurance

Question 8

Title that is free from reasonable doubts as to its validity is:

Answer 8

Marketable title

Question 9

A problem not covered by standard or extended title insurance is an:

Answer 9

Exception

Question 10

a prorated item paid in arrears will be a:

Answer 10

Credit to the buyer

Question 11

RESPA requires the lender to disclose:

Answer 11

(All settlement costs) in a good faith estimate no later than three days after load application.

Question 12

A prorated item paid in advance settlement will be a :

Answer 12

Debit to the buyer

Question 13

A new loan will show on the settlement statement as a buyer:

Answer 13

Credit

Question 14

Shared items such as property taxes and water bills will be what between the buyer and the seller:

Answer 14

Prorated

Question 15

a mortgagee’s title insurance policy protects the:

Answer 15

Lender

Question 16

the process by which the buyer is expected to inspect, or have someone inspect, both the property (e.g. home inspection) and public records (e.g. title search) is called:

Answer 16

Due deligence process

Question 17

A deed that is not recorded lacks _________ notice.

Answer 17

Constructive

Question 18

A summary of all recorded documents affecting title to a given parcel of land, created through title search is:

Answer 18

Abstract of title

Question 19

If errors or missing documents are found the title is said to be:

Answer 19

Clouded

Question 20

True or False

Unlike most insurance, title insurance premium is paid only once- when the policy is issued at closing.

Answer 20

True

Question 21

A quiet title suit is:

Answer 21

• is used to clear clouded title

- establish ownership under adverse possession

Question 22

RESPA stands for:

Answer 22

Real Estate Settlement Procedures Act

Question 23

Lender and title companies are regulated, and real estate licenses are:

Answer 23

Impacted

Question 24

The escrow agent is a disinterested party who assists in carrying out the transaction according to the terms of the :

Answer 24

Purchase contract

Question 25

True or False

The prorated amount will always be an equal amount with a debit to one party and a credit to the other.

Answer 25

True