LAW OF CONTRACTS Practice Exam 2026
Question and Answer | Premium Revision
Edition | Previously Tested Solutions
• How should the special provisions paragraph be used? -✓✓For adding
factual statements and business details regarding a transaction
• Which of the following would be covered by a title insurance policy? -
✓✓another person claiming ownership to the land
• Which of the following is an acceptable form of good funding? -
✓✓wire transfer
• What is the difference between actual and constructive notice? -
✓✓Constructive notice is the assumption that a diligent individual can
search the public record to gain knowledge; actual notice is direct or
first-hand knowledge.
• Which of the following is TRUE about the chain of title revealed
through a title search? -✓✓A court action called a suit to quiet title is
needed to establish ownership if there is a gap in the chain.
• What does the information in an abstract of title contain? -✓✓Any
claim to a property that has been recorded in public record
, • An owner purchases a home. Months after she closed, an issue
emerged with the title that ended up costing her the property. What
compensates her lender for this loss? -✓✓Lenders title insurance
• What does recording a deed create in the public record? -
✓✓constructive notice
• Which of the following lists contain three forms of evidence of title? -
✓✓certificate of title, title insurance, and opinion of title
• Out of the following options, which is option is considered the BEST
evidence of title? -✓✓title insurance
• Which of these would create constructive notice that you own a
property? -✓✓Recording the deed with the county
• What is constructive notice? -✓✓By recording a deed in publicly
accessible records.
• When applicable, what is the best form of title evidence? -✓✓a
Torrens certificate
• A title policy will most likely insure against: -✓✓an outstanding tax
lien
Question and Answer | Premium Revision
Edition | Previously Tested Solutions
• How should the special provisions paragraph be used? -✓✓For adding
factual statements and business details regarding a transaction
• Which of the following would be covered by a title insurance policy? -
✓✓another person claiming ownership to the land
• Which of the following is an acceptable form of good funding? -
✓✓wire transfer
• What is the difference between actual and constructive notice? -
✓✓Constructive notice is the assumption that a diligent individual can
search the public record to gain knowledge; actual notice is direct or
first-hand knowledge.
• Which of the following is TRUE about the chain of title revealed
through a title search? -✓✓A court action called a suit to quiet title is
needed to establish ownership if there is a gap in the chain.
• What does the information in an abstract of title contain? -✓✓Any
claim to a property that has been recorded in public record
, • An owner purchases a home. Months after she closed, an issue
emerged with the title that ended up costing her the property. What
compensates her lender for this loss? -✓✓Lenders title insurance
• What does recording a deed create in the public record? -
✓✓constructive notice
• Which of the following lists contain three forms of evidence of title? -
✓✓certificate of title, title insurance, and opinion of title
• Out of the following options, which is option is considered the BEST
evidence of title? -✓✓title insurance
• Which of these would create constructive notice that you own a
property? -✓✓Recording the deed with the county
• What is constructive notice? -✓✓By recording a deed in publicly
accessible records.
• When applicable, what is the best form of title evidence? -✓✓a
Torrens certificate
• A title policy will most likely insure against: -✓✓an outstanding tax
lien
