Exam Guide for NJ Title Insurance Licensing Study Material

Exam Guide for NJ Title Insurance Licensing Study Material All of the following are characteristic of an ALTA loan EXCEPT: A. Exceptions B. Exclusions C. Contingencies D. Conditions - CORRECT ANSWER-C. Contingencies The policy limit noted in a title insurance policy applies to: A. Each defect B. Each claim C. Per year D. Cumulative claims - CORRECT ANSWER-D. Cumulative claims Zoning ordinances are establish by: A. Home builders B. Local Government C. Lender D. All the above - CORRECT ANSWER-B. Local government A good faith estimate must be given to a purchaser of real property within: A. 5 days of receiving a loan application B. 4 days of receiving a loan application C. 3 days of receiving a loan application D. 2 days of receiving a loan application - CORRECT ANSWER-C. 3 days of reviewing a loan application The HUD-1 Settlement Statement is generally prepared by: A. The real estate agent B. The lender C. The title company D. The abstracor - CORRECT ANSWER-C. The title company If a joint tenant sells their interest in a property, the tenancy becomes: A. Tenants in common B. Sole owner C. Life estate tenant D. All of the above - CORRECT ANSWER-A. Tenants in common In Maryland, funds received by title companies form a sales transaction must be deposited into: A. An operating account B. An IOLTA account C. A trust account D. A general account - CORRECT ANSWER-C. A trust account A power of attorney ceases when: A. The power of attorney is revoked B. The person granting the power dies C. All of the above D. None of the above - CORRECT ANSWER-B. The person granting the power dies Schedule BI of a title commitment is reserved for: A. Exceptions from coverage B. Requirements C. The legal description D. Endorsements to coverage - CORRECT ANSWER-B. Requirements To provide notice that a mortgage has been paid off, a satisfactions must be: A. Recorded B. Mailed to the borrowers C. All of the above D. None of the above - CORRECT ANSWER-C. All of the above Releasing a mortgage is the responsibility of: A. The buyer B. The seller C. The mortgagee D. The courthouse - CORRECT ANSWER-C. The mortgagee In Maryland, if a release is not available for recording, the following may be recorded in its place: A. Promissory note, stamped paid in full by the note holder B. Copy of the cancelled check with an affidavit C. All of the above D. None of the above - CORRECT ANSWER-C. All