Alabama Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Alabama exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Alabama uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Alabama law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Alabama practice.
Alabama Exam Study Resources
Everything you need to pass — in one place.
Alabama Escrow & Title — Practice Questions & Answers
97 questions on Escrow & Title from the Alabama real estate question bank. First 10 are free — sign up to unlock all 97.
Q1. In Alabama, which party typically selects the closing attorney?
Explanation
In Alabama, it is customary for the buyer to select the closing attorney. The closing attorney represents the interests of the lender (if applicable) and facilitates the closing process.
Q2. Which type of title insurance policy protects the lender in an Alabama real estate transaction?
Explanation
A lender's policy (mortgagee policy) protects the lender's interest in the property up to the loan amount. A separate owner's policy protects the buyer's equity interest.
Q3. In Alabama, a title search examines public records to:
Explanation
A title search examines public records to trace the chain of title, identify any outstanding liens, encumbrances, easements, or other claims that could affect ownership.
Q4. A quitclaim deed in Alabama conveys:
Explanation
A quitclaim deed conveys whatever interest the grantor has — if any — with no warranties of title. It is often used between family members or to clear up title defects.
Q5. For a deed to be valid in Alabama, it must include all of the following EXCEPT:
Explanation
A valid deed requires identification of grantor and grantee, words of conveyance, a legal description, and the grantor's signature. The grantee does not need to sign or acknowledge the deed for it to be valid.
Q6. Recording a deed in Alabama protects the buyer by:
Explanation
Recording a deed provides constructive notice to the world that the buyer owns the property. Without recording, a subsequent bona fide purchaser who records first may have a superior claim to the property.
Q7. A lis pendens recorded against an Alabama property indicates:
Explanation
A lis pendens (Latin for 'suit pending') is a recorded notice that there is pending litigation that may affect the title to the property. It warns potential buyers that the property's title is in dispute.
Q8. In Alabama, which of the following encumbrances would NOT be discovered through a title search?
Explanation
An unrecorded easement established by use (prescriptive easement) would not appear in public records and would not be discovered through a title search. This is one reason why a physical inspection of the property is important.
Q9. In Alabama, title to real property is transferred by delivery and acceptance of a:
Explanation
Title to real property passes upon delivery and acceptance of a valid deed. The deed must be delivered to and accepted by the grantee to effectively transfer title.
Q10. A special warranty deed in Alabama is one in which the grantor warrants the title against:
Explanation
A special warranty deed only warrants against defects that arose during the grantor's period of ownership. It does not protect against defects that existed before the grantor acquired the property.
Q11. In Alabama, a mechanic's lien may be filed by:
87 more Escrow & Title questions
Create a free account to unlock all 97 Alabama Escrow & Title questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Alabama topics