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WorksheetsReal Estate 17 Understanding Title Policies
Total questions: 28
Worksheet time: 14mins
Now, for one- to four-family residential dwellings, there are only two recommended policies:
HUD 1
RESPA Homeowner's Policy
ALTA Expanded Coverage Residential Loan Policy
ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence
Marketable titles are
clearly understood ownership, rights, and interests in the land and there are no "clouds on title."
un-insurable
may have clouds on the title
free from reasonable doubt as to the interests held in the land
Insurable title, on the other hand, may technically be unmarketable and may have clouds on title.
True
False
Legal statute of limitations that does not allow someone to claim an interest in real estate after
30 years
50 years
99 years
60 years
All ALTA 2008 policy forms have the following six basic elements:
Covered risks
Duty to defend against legal action
Exclusions
Conditions
All ALTA 2008 policy forms have the following six basic elements:
Schedule B-Exceptions
Schedule A
Conditions
Exclusions
The cost of defending the title does reduce the amount of insurance coverage.
True
False
The exclusions are a list of items that are
covered by the title policy.
considered in the court records.
not covered by the title policy.
The ___ section of the policy outlines the contractual relationship between the insurance company and the insured.
Exclusions
Conditions
Schedule A
Covered Risks
It includes such things as definitions, how to place a claim, and the rights and responsibilities of both the insured and the insurer.
Conditions
Exclusions
Schedule A
Schedule B
Schedule A states the
over all exceptions to title that have not been removed from the title commitment at the time of closing
the invalidity or unenforceability of the insured mortgage on the title
inability or failure of an insured to comply with applicable doing-business laws of the state where the land is situated.
what and who of the policy.
Schedule B
It also covers specific issues pertaining to the mortgage lending institution.
generally carries over all exceptions to title that have not been removed from the title commitment at the time of closing.
generally similar to the homeowner's policy,but also cover issues pertaining to loan policies and the lender's responsibility.
can be used to delete exceptions or coverage or to add to or modify the policy.
In most instances, the title company will accept some form of satisfactory evidence, such as inspections, surveys, or affidavits from the buyers and sellers in order
to delete certain standard exceptions.
close on the property.
to clear any clouds on the property.
to comply with state regulations.
When standard exceptions are deleted, this is known as
consideration
deletions on request.
exceptions.
extended coverage.
All other issues pertaining to the specific parcel, such as the name of the new buyer, the buyer's new mortgage information, and remaining easements and restrictions would then be shown on
Schedule A
Schedule B
Schedule C
Exceptions
Endorsements to the title policy can be used to
delete exceptions or coverage
to add to or modify the policy
amend the policy to the buyer's standards whenever necessary
exclude buyer's from adhering to the policy
In some instances, endorsements can be the most important part of a title policy, specifically crafting the policy to cover such things as air rights, water rights, and mineral rights, or giving special coverage against known title problems.
True
False
What insures that a legal right of access to and
from the land exists?
Conditions
Exclusions
Covered risks
Schedule A or B
Which section of the policy outlines the contractual relationship between the insurance company and the insured?
Covered risks
Exclusions
Conditions
Schedule A or B
What is the list of items shown on the policy
jacket that are not covered by any title policy?
Covered risks
Exclusions
Conditions
Schedule A or B
Which states what and who are being insured and the type of policy?
Insuring provisions
Exclusions from coverage
Conditions and stipulations
Schedule A or B
What section describes the name of the insured and policy amount?
Schedule A
Schedule B
Conditions
Covered risks
Government rights fall under which of the following sections?
Covered risks
Exclusions
Conditions
Schedule A
What is the "meat of the title" as it pertains to the specific parcel being insured?
Covered risks
Exclusions
Conditions
Schedule A and B
Which is used to delete exceptions or coverage, or to modify the policy?
Exclusions from coverage
Eminent domain
Encroachments
Endorsements
What assures title to the estate or interest is as
described in Schedule A?
Covered risks
Exclusions
Conditions
Schedule A or B
All 2008 homeowners' and extended loan policies insure that
there are no liens or encumbrances on the title except as shown in the policy.
you cannot lose possession of the property.
there is physical access to and from the land.
any physical additions you added to your
own property have been paid for.
What one title company refuses to insure, another title company may be willing to insure.
True
False
