North Dakota Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the North Dakota exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. North Dakota uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under North Dakota 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 North Dakota practice.
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North Dakota Escrow & Title — Practice Questions & Answers
111 questions on Escrow & Title from the North Dakota real estate question bank. First 10 are free — sign up to unlock all 111.
Q1. A special warranty deed provides that the grantor:
Explanation
A special warranty deed limits the grantor's warranty to defects that arose only during their period of ownership. It does not warrant against defects that existed before they owned the property.
Q2. In North Dakota, escrow is best described as:
Explanation
Escrow is a neutral arrangement where a third party holds funds, documents, or other items until the conditions specified in the agreement are fulfilled, at which point they are delivered to the appropriate parties.
Q3. A lis pendens recorded against a property means:
Explanation
A lis pendens (Latin for 'suit pending') is a recorded notice that a lawsuit has been filed that may affect the title to the property. It warns potential buyers and lenders of the pending litigation.
Q4. Which of the following is TRUE about recording a deed?
Explanation
Recording a deed in the public records provides constructive notice of ownership to the world. While recording is not required for the deed to be valid between parties, it protects the buyer against subsequent claims from third parties.
Q5. A general warranty deed provides the buyer with:
Explanation
A general warranty deed (also called a full warranty deed) provides the broadest protection. The grantor warrants the title against ALL defects throughout the entire history of ownership, not just their period of ownership.
Q6. A quitclaim deed:
Explanation
A quitclaim deed conveys whatever interest the grantor has in the property with no warranties whatsoever. If the grantor has no interest, the grantee receives nothing. It is often used to clear title defects.
Q7. Title insurance protects against:
Explanation
Title insurance protects against losses arising from defects in the title that existed before the policy's effective date, such as forged documents, undisclosed heirs, recording errors, or prior liens.
Q8. Chain of title refers to:
Explanation
Chain of title is the chronological sequence of recorded documents that traces the history of ownership from the original grant to the present owner. A break in the chain can cloud title.
Q9. An abstract of title is:
Explanation
An abstract of title is a condensed history (summary) of all recorded documents in the public record that affect the title to a specific parcel of land. An attorney examines the abstract to render a title opinion.
Q10. A mechanic's lien can be filed against a property by:
Explanation
A mechanic's lien (materialman's lien) is filed by contractors, subcontractors, or suppliers who provided labor or materials for improvements to real property but have not been paid.
Q11. RESPA (Real Estate Settlement Procedures Act) prohibits:
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