Escrow & Title
A title insurance company that pays a claim for a covered title defect then steps into the insured's position to pursue recovery from the responsible party. This is called:
AIndemnification
BSubrogation✓ Correct
CEstoppel
DNovation
Explanation
Subrogation allows the title insurer, after paying a claim, to assume the insured's rights against the party responsible for the title defect. This allows the insurer to seek reimbursement from whoever caused the loss.
Related Tennessee Escrow & Title Questions
- An 'earnest money escrow agreement' specifies how the earnest money will be dispersed in the event of:
- In Tennessee, recordation tax on the transfer of real property is charged at what rate?
- A quitclaim deed:
- A 'gap' in the title occurs when:
- A title search reveals a judgment lien against the seller from a prior lawsuit. At closing in Tennessee, this lien must typically be:
- RESPA requires that buyers receive the Closing Disclosure:
- In Tennessee, real estate closings are most commonly handled by:
- An 'ALTA' title insurance policy provides broader coverage than a standard policy because it includes coverage for:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →