Which of the following would NOT be covered by a standard owner's title insurance policy?
Why A lien created by the insured owner after the policy was issued Is Correct
Answer B: A lien created by the insured owner after the policy was issued
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
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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- Title insurance that protects the lender against losses due to title defects is called:Escrow & Title
- In California, who typically pays for the owner's title insurance policy?Escrow & Title
- An extended (ALTA) title insurance policy differs from a standard (CLTA) policy primarily by:Escrow & Title
- Which type of title insurance policy protects the lender's interest in a mortgaged property?Escrow & Title
- A deed that warrants only against defects arising during the grantor's period of ownership is called a:Property Ownership
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
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