NEW JERSEY TITLE PRODUCER 2024 Final Exam Q & A

NEW JERSEY TITLE PRODUCER 2024 Final Exam Q & A ALTA 1 - CORRECT ANSWER-Street Assessments ALTA 2 - CORRECT ANSWER-Truth in lending owners policy - CORRECT ANSWER-insures estates of ownership, remains constant over the life of the property. Covers property line disputes. A type of title insurance issued in the name of the property owner. Coverage runs from the time of purchase for as long as the policyholder owns the property. mortgage lender policy (loan policy) - CORRECT ANSWER-lender policy insures mortgage company interest (written for the loan amount) Broader coverage than the owner policy. Should foreclosure occur it becomes owner policy- lender takes possession of property. leaseholder coverage - CORRECT ANSWER-NOT an owner policy. Lease for a specified period of time. State requires that a leasehold interest be recorded. When are covered risks included in title policies insured? - CORRECT ANSWER-as of the date of the policy Title Assurance - CORRECT ANSWER-All aspects of title are valid (surveys, examination of records, registry of deeds) Does a title insurance policy provide absolute assurance of title ? What does title insurance protect against? - CORRECT ANSWER-No, title insurance protects against the risk of financial harm due to some error or omission that occurred in the past. Examples of what title insurance insures.. - CORRECT ANSWER-only matters of title - insures against risks, accurancy and sufficiency of abstract, title examination and matters disclosed in a survey and site inspections of property. Easements - CORRECT ANSWER-rights landowner has to use land of another, road or pathway to access land , any right that is material to dominant estate. Easement Appurtenant - CORRECT ANSWER-Right or privilege improvement passing with principal property. Not always part of property. Ex. a right of way through the neighbors yard. Passes with title to the dominant estate. May be encumbrance on the land, reduce the value of the land. How are easements created? - CORRECT ANSWER-Dedication, deed or grant. Not by oral agreement, are transferrable. Easement by Necessity - CORRECT ANSWER-Access to property through adjoining property. Essential for the use and enjoyment to a tract of land. Easement by Prescription - CORRECT ANSWER-Acquired through open uninterrupted and adverse use of another's real property. Adjoining owner does not stop the use of his or her property, time lapses and the use becomes an easement.