TITLE INSURANCE COMPREHENSIVE EXAM
PREP QUESTIONS AND SOLUTIONS
VERIFIED STUDY RESOURCE
●● Why is recording the deed important?
Answer: It establishes priority and gives constructive notice.
●● Who has priority if a seller sells the same property to two different
buyers?
Answer: The first buyer to record the deed.
●● What is constructive notice?
Answer: Notice presumed because information is in the public record.
●● What occurs when you have actual notice?
Answer: You see or are told something directly about the property.
●● What is the legal presumption if no easement is recorded?
Answer: Presumes no easement exists.
●● What does title refer to?
Answer: The legal ownership of property and related rights.
, ●● How is a marketable title best described?
Answer: Free from defects or encumbrances that a reasonable buyer
would object to.
●● What is an insurable title?
Answer: May have known defects, but the title company agrees to insure
over them.
●● What must a title show to be marketable?
Answer: Clear evidence of ownership and be free of clouds.
●● Why do lenders require proof of marketable title?
Answer: They need to resell the property or use it as collateral if
necessary.
●● How do sellers typically prove ownership and marketability of title?
Answer: Through a title commitment or abstract of title from a title
company.
●● What is the main purpose of a title search?
Answer: To identify defects, liens, encumbrances, and confirm
ownership.
PREP QUESTIONS AND SOLUTIONS
VERIFIED STUDY RESOURCE
●● Why is recording the deed important?
Answer: It establishes priority and gives constructive notice.
●● Who has priority if a seller sells the same property to two different
buyers?
Answer: The first buyer to record the deed.
●● What is constructive notice?
Answer: Notice presumed because information is in the public record.
●● What occurs when you have actual notice?
Answer: You see or are told something directly about the property.
●● What is the legal presumption if no easement is recorded?
Answer: Presumes no easement exists.
●● What does title refer to?
Answer: The legal ownership of property and related rights.
, ●● How is a marketable title best described?
Answer: Free from defects or encumbrances that a reasonable buyer
would object to.
●● What is an insurable title?
Answer: May have known defects, but the title company agrees to insure
over them.
●● What must a title show to be marketable?
Answer: Clear evidence of ownership and be free of clouds.
●● Why do lenders require proof of marketable title?
Answer: They need to resell the property or use it as collateral if
necessary.
●● How do sellers typically prove ownership and marketability of title?
Answer: Through a title commitment or abstract of title from a title
company.
●● What is the main purpose of a title search?
Answer: To identify defects, liens, encumbrances, and confirm
ownership.
