The purpose of a title search is to:
Why Examine public records to verify ownership and identify encumbrances Is Correct
Answer B: Examine public records to verify ownership and identify encumbrances
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
Any 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.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
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Key Terms to Know
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
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