Louisiana Practice TestEscrow & Title

Louisiana Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the Louisiana exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Louisiana uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Louisiana 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 Louisiana practice.

Practice Questions

Louisiana Escrow & Title — Practice Questions & Answers

98 questions on Escrow & Title from the Louisiana real estate question bank. First 10 are free — sign up to unlock all 98.

Q1. In Louisiana, the public official who traditionally closes real estate transactions and authenticates deeds is the:

A.Title company representative
B.Notary public
C.Parish recorder
D.Circuit court clerk

Explanation

In Louisiana, a notary public (often an attorney) traditionally presides over real estate closings and authenticates (notarizes) the act of sale, reflecting the state's Civil Law tradition.

Q2. In Louisiana, a real estate sale is recorded in the:

A.State real property registry
B.Parish conveyance records
C.LREC transaction database
D.Federal property records

Explanation

In Louisiana, real estate transactions (acts of sale) are recorded in the parish conveyance records, providing constructive notice of the transfer to subsequent buyers and creditors.

Q3. Constructive notice in real estate means:

A.The buyer was personally informed of a title defect
B.Information is publicly recorded and available for anyone to discover
C.The seller verbally disclosed all material facts
D.The lender notified the buyer of all liens

Explanation

Constructive notice means that information is publicly recorded (such as in parish conveyance records or mortgage records) and is presumed to be known by anyone who searches the records.

Q4. An 'act of sale' in Louisiana real estate is equivalent to which document in most other states?

A.A deed
B.A mortgage
C.A purchase agreement
D.A title commitment

Explanation

An 'act of sale' in Louisiana is the equivalent of a deed in other states — it is the formal document that transfers title (ownership) of immovable property from seller to buyer.

Q5. In Louisiana, which office maintains the public records of real estate transactions?

A.The LREC
B.The Louisiana Secretary of State
C.The parish clerk of court / conveyance records
D.The U.S. District Court

Explanation

In Louisiana, real estate transactions are recorded in the conveyance records maintained by the parish clerk of court. These records provide constructive notice of all recorded interests.

Q6. Title insurance in Louisiana protects against:

A.Future zoning changes
B.Known title defects the buyer agreed to accept
C.Hidden title defects, liens, or encumbrances that were not discovered in the title search
D.Physical damage to the property

Explanation

Title insurance protects buyers and lenders against hidden title defects — such as undisclosed heirs, forgeries, or recording errors — that were not found during the title search but existed prior to the policy date.

Q7. In a Louisiana real estate closing, the party that typically acts as a settlement agent and prepares the act of sale is the:

A.Listing broker
B.Real estate attorney or notary
C.Parish tax assessor
D.Mortgage lender

Explanation

In Louisiana, closings are typically handled by a real estate attorney (who is also a notary public). The notary prepares and authenticates the act of sale, disburses funds, and records the transaction.

Q8. A 'lis pendens' recorded against a Louisiana property means:

A.The property has a valid survey on file
B.There is a pending lawsuit affecting title to the property
C.The property taxes are current
D.The seller has accepted an offer

Explanation

A lis pendens is a recorded notice that a lawsuit has been filed involving the title to a specific property. It warns potential buyers and lenders that the title may be affected by the litigation.

Q9. An owner's title insurance policy in Louisiana is typically paid for by:

A.The lender at closing
B.The seller at closing (though negotiable)
C.Both parties equally
D.The LREC from license fees

Explanation

In Louisiana, it is customary for the seller to pay for the owner's title insurance policy, though this is negotiable. The buyer typically pays for the lender's title insurance policy.

Q10. What is a 'cloud on title' in Louisiana real estate?

A.A property with excellent title and no encumbrances
B.Any claim, lien, or encumbrance that makes the title questionable or unmarketable
C.A property listed at above-market value
D.A title policy that has expired

Explanation

A cloud on title is any claim, lien, or encumbrance that raises doubt about the validity of the seller's title and makes it difficult to transfer marketable title to a buyer.

Q11. In Louisiana, mortgage loans are recorded in the:

A.Conveyance records
B.Mortgage records (mortgage registry)
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