NJ TITLE INSURANCE FINAL EXAM 2026 ACTUAL
QUESTIONS AND SOLUTIONS RATED A+
✔✔Valid contracts - ✔✔Those contracts that have mutual agreement, consideration,
competent parties and legal purpose.
✔✔Lessee / Mortgagee / Grantee - ✔✔Tenant ; the lender of the property ; acquires the
title
✔✔Time Sharing - ✔✔The lease or ownership of a property for the specific time. Within
the year and which repeats each year for the length of these or Forever.
✔✔Habendum Clause - ✔✔"To have and to hold" clause that explains ownership being
transferred
✔✔Lessor / Mortgagor / Grantor - ✔✔landlord / owner of property / person who sells or
gives land
✔✔Tenants In Common - ✔✔Ownership by more than one party where the interest do
not have to be equal. NO rights of survivorship
The partners own the property together and have a right to device pair shares.
✔✔Variance - ✔✔Change the use of a property that does not meet zoning requirements
✔✔Littoral Rights - ✔✔Land bordering bodies of water (oceans, seas, or large lakes)
affected by tide currents
✔✔Caveat Emptor - ✔✔Latin term denoting "buyer beware".
✔✔Trust Deed (Deed of Trust) - ✔✔An instrument used to create a mortgage lien by
which the borrower / mortgagor conveys title to a trustee, who holds it as security for the
benefit of the note holder (the lender)
✔✔Township - ✔✔An area of 36 sections of one square mile each on a rectangular
survey. Each square mile contains 640 acres
✔✔Right Of Way - ✔✔The right to pass over the property of another.
✔✔Liquidated Damages - ✔✔An amount of money agreed to in advance by buyer and
seller that serves as compensation if one party does not live up to the contract
Sum agreed on to serve as damages in case of future default
,✔✔Tenancy by the Entireties - ✔✔Special tenancy between husband and wife
- owners have right of survivorship & no right to partition
✔✔Encumbrance - ✔✔- Anything that might adversely affect the marketability of title
- A claim, lien, charge, or liability attached to and binding in real property (liens run with
the land, attached to the property not owner)
✔✔Building Codes - ✔✔Municipalities have enacted ordinances (a set of rules) to
specify construction standards that must be met when repairing to erecting buildings
✔✔Equity - ✔✔The difference between the market value of a property and the
outstanding liens.
✔✔Easement by Necessity - ✔✔If the only access to a parcel is through another's
property the owner may acquire this to reach his or her land
✔✔Dowers Right - ✔✔A wife's right to a life estate in her deceased husband's share of
the property.
✔✔Demise
devise - ✔✔a transfer of property by lease
by will?
✔✔Estate - ✔✔The degree, quantity, nature, and extent of interest that a person has in
real property, alive or deceased
✔✔Exclusionary Zoning - ✔✔Zoning with the intent to discriminate against low and
middle-income housing.
✔✔Common Elements - ✔✔Areas in properties owned in common by Condominiums
owners as a group.
✔✔Equitable Title (estate) - ✔✔Interest acquired by buyer with land contract.
When someone has a legal right to Title which is being held by another.
✔✔Easement - ✔✔A right acquired by one party to use the land of another party for a
special purpose.
, ✔✔Eminent Domain - ✔✔The right of government to take privately owned real estate for
the public good and owner receives just compensation
✔✔Deed Restrictions - ✔✔Limitations placed on the use of the property by private
parties (not government) and found in the deed
✔✔Contractual Ability - ✔✔Signifies that parties are legally competent to contract
✔✔Curtesy Rights - ✔✔Rights of a husband to a life estate in his deceased wife share
of the property
✔✔Escheat - ✔✔State laws or the government have the right to acquire real estate
when there is no will left and are no compatible heirs
✔✔Commingling - ✔✔Mixing of personal funds with the funds of clients (stealing)
✔✔Defeasance Clause - ✔✔When debt is repaid, the mortgagee has no further claim to
property.
A mortgage clause which cause for the return of the title to the mortgagor when the debt
is satisfied / repaid
✔✔Convey - ✔✔Transfer title to - by sale or gift
✔✔Fee Simple - ✔✔Highest type of interest in real estate recognized by law
✔✔Fee determinable - ✔✔An estate in land that can terminate in the occurrence or
nonoccurence of a specified event; "as long as"
✔✔Remainderman - ✔✔Third party who will eventually gain ownership
✔✔Reversionary interest - ✔✔Future interest of an owner
✔✔Lien - ✔✔A financial claim against property that provides security for a debt or
obligation of the property owner
✔✔Specific lien - ✔✔Placed against one parcel of real estate only
(Mortgage, child support, property taxes)
✔✔Priority - ✔✔Determines the order a lien would be paid off in case of a foreclosure
- determines by the date of recording in the public records where property is located
QUESTIONS AND SOLUTIONS RATED A+
✔✔Valid contracts - ✔✔Those contracts that have mutual agreement, consideration,
competent parties and legal purpose.
✔✔Lessee / Mortgagee / Grantee - ✔✔Tenant ; the lender of the property ; acquires the
title
✔✔Time Sharing - ✔✔The lease or ownership of a property for the specific time. Within
the year and which repeats each year for the length of these or Forever.
✔✔Habendum Clause - ✔✔"To have and to hold" clause that explains ownership being
transferred
✔✔Lessor / Mortgagor / Grantor - ✔✔landlord / owner of property / person who sells or
gives land
✔✔Tenants In Common - ✔✔Ownership by more than one party where the interest do
not have to be equal. NO rights of survivorship
The partners own the property together and have a right to device pair shares.
✔✔Variance - ✔✔Change the use of a property that does not meet zoning requirements
✔✔Littoral Rights - ✔✔Land bordering bodies of water (oceans, seas, or large lakes)
affected by tide currents
✔✔Caveat Emptor - ✔✔Latin term denoting "buyer beware".
✔✔Trust Deed (Deed of Trust) - ✔✔An instrument used to create a mortgage lien by
which the borrower / mortgagor conveys title to a trustee, who holds it as security for the
benefit of the note holder (the lender)
✔✔Township - ✔✔An area of 36 sections of one square mile each on a rectangular
survey. Each square mile contains 640 acres
✔✔Right Of Way - ✔✔The right to pass over the property of another.
✔✔Liquidated Damages - ✔✔An amount of money agreed to in advance by buyer and
seller that serves as compensation if one party does not live up to the contract
Sum agreed on to serve as damages in case of future default
,✔✔Tenancy by the Entireties - ✔✔Special tenancy between husband and wife
- owners have right of survivorship & no right to partition
✔✔Encumbrance - ✔✔- Anything that might adversely affect the marketability of title
- A claim, lien, charge, or liability attached to and binding in real property (liens run with
the land, attached to the property not owner)
✔✔Building Codes - ✔✔Municipalities have enacted ordinances (a set of rules) to
specify construction standards that must be met when repairing to erecting buildings
✔✔Equity - ✔✔The difference between the market value of a property and the
outstanding liens.
✔✔Easement by Necessity - ✔✔If the only access to a parcel is through another's
property the owner may acquire this to reach his or her land
✔✔Dowers Right - ✔✔A wife's right to a life estate in her deceased husband's share of
the property.
✔✔Demise
devise - ✔✔a transfer of property by lease
by will?
✔✔Estate - ✔✔The degree, quantity, nature, and extent of interest that a person has in
real property, alive or deceased
✔✔Exclusionary Zoning - ✔✔Zoning with the intent to discriminate against low and
middle-income housing.
✔✔Common Elements - ✔✔Areas in properties owned in common by Condominiums
owners as a group.
✔✔Equitable Title (estate) - ✔✔Interest acquired by buyer with land contract.
When someone has a legal right to Title which is being held by another.
✔✔Easement - ✔✔A right acquired by one party to use the land of another party for a
special purpose.
, ✔✔Eminent Domain - ✔✔The right of government to take privately owned real estate for
the public good and owner receives just compensation
✔✔Deed Restrictions - ✔✔Limitations placed on the use of the property by private
parties (not government) and found in the deed
✔✔Contractual Ability - ✔✔Signifies that parties are legally competent to contract
✔✔Curtesy Rights - ✔✔Rights of a husband to a life estate in his deceased wife share
of the property
✔✔Escheat - ✔✔State laws or the government have the right to acquire real estate
when there is no will left and are no compatible heirs
✔✔Commingling - ✔✔Mixing of personal funds with the funds of clients (stealing)
✔✔Defeasance Clause - ✔✔When debt is repaid, the mortgagee has no further claim to
property.
A mortgage clause which cause for the return of the title to the mortgagor when the debt
is satisfied / repaid
✔✔Convey - ✔✔Transfer title to - by sale or gift
✔✔Fee Simple - ✔✔Highest type of interest in real estate recognized by law
✔✔Fee determinable - ✔✔An estate in land that can terminate in the occurrence or
nonoccurence of a specified event; "as long as"
✔✔Remainderman - ✔✔Third party who will eventually gain ownership
✔✔Reversionary interest - ✔✔Future interest of an owner
✔✔Lien - ✔✔A financial claim against property that provides security for a debt or
obligation of the property owner
✔✔Specific lien - ✔✔Placed against one parcel of real estate only
(Mortgage, child support, property taxes)
✔✔Priority - ✔✔Determines the order a lien would be paid off in case of a foreclosure
- determines by the date of recording in the public records where property is located
