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Questions and Answers
What is an agreement by the title company to issue a policy of title at a later date called?
What is an agreement by the title company to issue a policy of title at a later date called?
- A commitment (correct)
- A binder
- An interim binder
- A waiver
Which of the following is NOT a characteristic of a binder?
Which of the following is NOT a characteristic of a binder?
- Temporary
- A policy of title insurance (correct)
- Both a and b
- Guaranteed coverage
What does a 'Guarantee of Title' imply about the liability?
What does a 'Guarantee of Title' imply about the liability?
- Has only stated liability (correct)
- Guarantees a refund
- It provides full indemnification
- Means lenders have unlimited interest
Where can involuntary judgments typically be found?
Where can involuntary judgments typically be found?
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An easement is created for the benefit of which entity?
An easement is created for the benefit of which entity?
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What is filed when a judgment is paid off?
What is filed when a judgment is paid off?
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How should satisfactions of judgment and partial releases be handled?
How should satisfactions of judgment and partial releases be handled?
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Why might an escrow officer not see the actual policy of title?
Why might an escrow officer not see the actual policy of title?
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When does an ALTA lender's policy remain in effect?
When does an ALTA lender's policy remain in effect?
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What must be filed upon the satisfaction of a judgment?
What must be filed upon the satisfaction of a judgment?
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Study Notes
Title Insurance and Agreements
- A commitment refers to an agreement by the title company to issue a policy at a later date.
- An interim binder and a binder are also terms associated with preliminary agreements for title insurance.
Binder Characteristics
- A binder functions as a temporary insurance agreement but is not considered a full policy of title insurance.
Guarantee of Title
- A "Guarantee of Title" offers indemnification but has only stated liability, meaning it limits the extent of coverage.
- New owners do not receive this guarantee automatically, and lenders may prefer guarantees over policies.
Judgments and Title Reporting
- Involuntary judgments are disclosed in the preliminary title report, which provides an overview of issues that might affect ownership.
Easements
- An easement benefits the dominant tenement, allowing specific rights to usage over the servient tenement’s property.
Judgment Documentation
- A satisfaction of judgment is filed when a judgment is paid off, confirming the debt has been settled.
Recording Requirements
- Both satisfactions of judgments and partial releases should be recorded to maintain accurate public records.
Title Policy Distribution
- Escrow officers typically do not see the actual title policy because it is directly sent to the principals involved in the transaction.
ALTA and CLTA Policies
- An ALTA lender's policy remains effective until a reconveyance is issued, marking the end of the loan obligation.
- A CLTA policy remains effective until the property is conveyed to a new owner, after which the policy ceases to be in effect.
Title Insurance and Agreements
- A commitment refers to an agreement by the title company to issue a policy at a later date.
- An interim binder and a binder are also terms associated with preliminary agreements for title insurance.
Binder Characteristics
- A binder functions as a temporary insurance agreement but is not considered a full policy of title insurance.
Guarantee of Title
- A "Guarantee of Title" offers indemnification but has only stated liability, meaning it limits the extent of coverage.
- New owners do not receive this guarantee automatically, and lenders may prefer guarantees over policies.
Judgments and Title Reporting
- Involuntary judgments are disclosed in the preliminary title report, which provides an overview of issues that might affect ownership.
Easements
- An easement benefits the dominant tenement, allowing specific rights to usage over the servient tenement’s property.
Judgment Documentation
- A satisfaction of judgment is filed when a judgment is paid off, confirming the debt has been settled.
Recording Requirements
- Both satisfactions of judgments and partial releases should be recorded to maintain accurate public records.
Title Policy Distribution
- Escrow officers typically do not see the actual title policy because it is directly sent to the principals involved in the transaction.
ALTA and CLTA Policies
- An ALTA lender's policy remains effective until a reconveyance is issued, marking the end of the loan obligation.
- A CLTA policy remains effective until the property is conveyed to a new owner, after which the policy ceases to be in effect.
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Description
Test your knowledge on title insurance concepts with this quiz. Questions cover binders, commitments, and guarantees of title. Perfect for real estate professionals and students alike.
