Escrow & TitleIntermediateColorado Exam

In Colorado, 'title insurance' premiums are typically paid:

AMonthly as part of the mortgage payment
BAs a one-time premium at closingCorrect
CAnnually renewable like homeowners insurance
DOnly if a title defect is discovered

Why As a one-time premium at closing Is Correct

Answer B: As a one-time premium at closing

Title insurance premiums are paid as a one-time payment at closing. Unlike other insurance, there are no ongoing premiums — the policy provides coverage for as long as the insured (or their heirs) retains an interest in the property.

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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