Escrow & TitleIntermediateAlaska Exam

In Alaska, a 'gap commitment' in a title insurance transaction is issued to:

ACover the period between the title search and closingCorrect
BAddress the gap between a property's current value and its assessed value
CInsure against losses from undisclosed heirs during probate
DCover environmental conditions not shown in public records

Why Cover the period between the title search and closing Is Correct

Answer A: Cover the period between the title search and closing

A gap commitment provides coverage for the period between the title search date and the recording of the deed and mortgage at closing. During this 'gap' period, other documents could be recorded that would affect the title.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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