Finance
What is 'title examination' and why does it occur before a Hawaii lender funds a mortgage?
AA. The lender examines the physical condition of the property before funding
BB. An attorney or title company examines the public record to verify clear marketable title, identify liens, and confirm the borrower's authority to mortgage the property✓ Correct
CC. The county examines permit history before allowing a mortgage
DD. A state-required examination of all property documents before recording
Explanation
Title examination (title search) reviews public records to verify: the borrower has clear title, no undisclosed liens or encumbrances exist, the borrower has authority to mortgage the property, and title insurance can be issued. Lenders require clear title and title insurance as conditions of funding a mortgage loan.
Related Hawaii Finance Questions
- What is the 'Community Reinvestment Act' (CRA) and how does it affect lending in Hawaii?
- What is a 'due-on-sale' clause in a mortgage?
- What is Private Mortgage Insurance (PMI) and when is it typically required?
- What is 'credit score' and how does it affect a Hawaii borrower's mortgage terms?
- In Hawaii, which entity insures deposits in savings and loan associations and savings banks that provide mortgage loans?
- What is 'subject to' sale versus 'assumption' in Hawaii mortgage transactions?
- What is 'loan-to-value ratio' (LTV) and why is it important to lenders?
- In Hawaii, 'mortgage fraud' includes which of the following?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →