Escrow & Title
A preliminary title report (title commitment) is issued by a title company to:
AGuarantee title before the deed is recorded
BIdentify existing liens, encumbrances, and conditions that will affect the title policy✓ Correct
CReplace the need for a title insurance policy
DConfirm that the property is free of all encumbrances
Explanation
A title commitment (preliminary report) is issued prior to closing. It identifies the current status of title, existing liens, encumbrances, and exceptions, and commits the title company to issue a policy upon satisfaction of stated requirements.
Related Tennessee Escrow & Title Questions
- In Tennessee, RESPA requires that borrowers receive a Loan Estimate within how many business days of a completed loan application?
- The purpose of a survey in a real estate transaction is to:
- A title search reveals a judgment lien against the seller from a prior lawsuit. At closing in Tennessee, this lien must typically be:
- A lender's title insurance policy (loan policy) protects:
- In Tennessee, an abstract of title is:
- A subordination agreement is used to:
- In Tennessee, a purchaser who takes title with actual or constructive notice of an earlier, unrecorded interest:
- Tennessee does not impose a state transfer tax on real estate sales. Instead, the state charges a:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →