Escrow & Title
A Washington buyer's lender requires that title be 'marketable.' Marketable title means:
AThe property has been listed on the MLS
BTitle is free from reasonable doubt and defects that would allow a prudent buyer to reject the title✓ Correct
CThe property has recently been appraised
DThe property has no history of use as a rental
Explanation
Marketable title is title that is reasonably free from defects, encumbrances, and doubts that would allow a prudent and knowledgeable buyer to refuse to accept it. Lenders and buyers routinely require marketable title as a condition of the transaction.
People Also Study
Related Washington Questions
- Washington's Marketable Title Act limits title searches by extinguishing old claims after a specified period. This benefits buyers by:Property Ownership
- A Washington 'as is' purchase requires the buyer to accept the property in its current condition. The seller still has a legal obligation to:Contracts
- Washington's consumer protection laws require mortgage lenders to provide borrowers with the Loan Estimate within 3 business days of application. If the lender provides it late, the borrower's primary remedy is:Finance
- Washington uses a deed of trust instead of a mortgage, which means the lender's primary remedy upon default is:Escrow & Title
- A lender's title insurance policy in Washington protects:Escrow & Title
- A Washington borrower's monthly principal and interest payment is $2,100. The lender requires the housing expense ratio not to exceed 28%. What minimum monthly gross income is required?Finance
- Under RESPA, a Washington lender may NOT require a borrower to use a specific:Finance
- An owner's title insurance policy in Washington protects against which of the following defects?Escrow & Title
Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Title InsuranceInsurance 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.
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 Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →