Escrow & Title
In South Dakota, which statement about the 'preliminary title report' is MOST accurate?
AIt is a title insurance policy once issued
BIt reports the current state of title and conditions required for issuance of a title policy, but is not itself a policy✓ Correct
CIt serves as a substitute for an abstract of title
DIt is issued only after the purchase agreement is signed
Explanation
A preliminary title report (title commitment) reports what the title search found and sets conditions for issuing a title insurance policy. It is a commitment to insure, not a policy itself.
People Also Study
Related South Dakota Questions
- In South Dakota, an owner's title insurance policy protects:Escrow & Title
- Which of the following would be found in the public record and shown on a title search in South Dakota?Escrow & Title
- At a South Dakota closing, a buyer's lender requires a lender's title insurance policy. Who typically pays for this policy?Escrow & Title
- A South Dakota title company discovers an easement that was not disclosed to the buyer. If the title insurance policy covers easements, the buyer:Escrow & Title
- A South Dakota lender requires title insurance as a condition of making a mortgage loan. This type of policy is called a:Finance
- In South Dakota, a 'survey exception' in a title insurance policy means the policy:Property Ownership
- In South Dakota, what is the primary purpose of a title insurance policy obtained at closing?Finance
- A South Dakota purchase agreement requires the seller to provide clean title at closing. If the title search reveals an unresolved mechanic's lien, the seller must:Contracts
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.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →