Escrow & Title
In NJ, an owner's title insurance policy protects the policyholder for:
AOnly the first five years after purchase
BAs long as the insured or their heirs retain an interest in the property✓ Correct
CUntil the mortgage is paid off
DFor the duration of the listing agreement
Explanation
An owner's title insurance policy provides coverage for the life of the insured's ownership interest in the property and extends to heirs who inherit the property. It is a one-time premium paid at closing.
People Also Study
Related New Jersey Questions
- An owner's title insurance policy in NJ protects:Escrow & Title
- An 'owner's title insurance policy' in New Jersey protects:Escrow & Title
- A lender's title insurance policy (mortgagee policy) in NJ protects:Escrow & Title
- A lender's title insurance policy in New Jersey protects:Escrow & Title
- In NJ, a 'certificate of title' (as opposed to a title insurance policy) provides:Property Ownership
- Points paid at closing to reduce the mortgage interest rate are called:Finance
- A NJ homebuyer gets a 30-year fixed loan for $320,000 at 5% annual interest. The monthly P&I payment is approximately $1,718. What is the total interest paid over the life of the loan?Real Estate Math
- A NJ property manager should recommend that their owner client obtain 'umbrella' insurance coverage because:Property Management
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →