Escrow & TitleIntermediateAlaska Exam

In Alaska, which of the following is TRUE about owner's title insurance?

AIt is required by Alaska law for all real estate transactions, though this can vary by county
BIt is optional but protects the owner against covered title defects discovered after closingCorrect
CIt only covers defects that arise after the closing date
DIt is always less expensive than lender's title insurance

Why It is optional but protects the owner against covered title defects discovered after closing Is Correct

Answer B: It is optional but protects the owner against covered title defects discovered after closing

Owner's title insurance is not required by Alaska law but is strongly recommended. It protects the owner against financial losses from covered title defects that existed before closing — such as undisclosed liens, forged signatures in the chain of title, or missing heirs — for as long as the owner holds 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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