Escrow & Title
A North Dakota title company issuing a title insurance policy will most likely exclude coverage for which of the following?
ARecorded liens disclosed in the title search
BDefects known to the insured (buyer) but not disclosed to the title company
CClaims of tenants in actual possession of the property
DAll of the above✓ Correct
Explanation
Standard title insurance policies exclude coverage for matters known to the insured but not disclosed to the insurer, matters that would be disclosed by a physical inspection, rights of parties in possession, and recorded matters shown in the title search. Buyers should read policy exclusions carefully.
People Also Study
Related North Dakota Questions
- In North Dakota, which of the following is a title insurance policy that protects the lender?Escrow & Title
- In a North Dakota real estate closing, the party who typically pays for the owner's title insurance policy is:Escrow & Title
- A North Dakota title insurance policy has an exception for 'matters that would be disclosed by an accurate survey.' This exception may be removed if the buyer:Escrow & Title
- In North Dakota, which party typically pays for the title insurance in a standard residential transaction?Contracts
- In North Dakota, the 'ALTA' (American Land Title Association) extended coverage title insurance policy provides broader coverage than the standard policy by also protecting against:Escrow & Title
- North Dakota mineral rights can be leased to an oil company under what is commonly called a(n):Property Ownership
- A North Dakota homeowner's insurance premium is $1,440 per year. At closing, the seller has prepaid the entire annual premium, and the buyer assumes coverage from the closing date (July 1). How much does the buyer owe the seller for the prepaid premium (using a 360-day year)?Real Estate Math
- An Internet listing service in North Dakota uses neighborhood demographic data in its advertising algorithm, resulting in certain listings being shown less often to minority buyers. This could be a:Fair Housing
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Study This Topic
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →