MARYLAND PRE-LICENSING TITLE INSURANCE EXAM STUDY GUIDE QUESTIONS & ANSWERS

MARYLAND PRE-LICENSING TITLE INSURANCE EXAM
STUDY GUIDE QUESTIONS & ANSWERS.


1) If a buyer defaults on a mortgage, the loan may be accelerated.
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A. True t




B. False -- Correct Answer ✔✔ A. True
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2) Generally, mortgages are assumable. t t t t




A. True t




B. False -- Correct Answer ✔✔ B. False- Note: Permission must be received from
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the lender t




3) A Certificate of Title is generally prepared by:
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A. An underwriter
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B. A title company
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C. An attorney t t




D. The lender -- Correct Answer ✔✔ C. An attorney
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4) Conventional mortgages are mortgages that may not be insured by HUD or VA.
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A. True
B. False -- Correct Answer ✔✔ A. True
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5) Owners of property in Foreclosure have a right of redemption.
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A. True
B. False -- Correct Answer ✔✔ A. True
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,6) A land installment contract is like a rent-to-own contract.
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A. True
B. False -- Correct Answer ✔✔ A. True
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7) Land installment contracts allow title to be transferred to the buyer after the terms of
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the contract are met.
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A. True
B. False -- Correct Answer ✔✔ A. True
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8) With a land installment contract, a buyer retains the right to sell the property.
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A. True
B. False -- Correct Answer ✔✔ B. False
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9) All the following are parties to a deed of trust EXCEPT
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A. Buyer
B. Seller
C. Lender
D. Trustee -- Correct Answer ✔✔ B. Seller
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10) A specific lien is the same as a general lien.
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A. True
B. False -- Correct Answer ✔✔ B. False
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11) Surveys show elevations, improvements, boundaries and the lands relationship to
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surrounding land. t




A. True
B. False -- Correct Answer ✔✔ A. True
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12) A trustee is a person or entity that holds property on behalf of another.
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, A. True
B. False -- Correct Answer ✔✔ A. True
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13) Zoning ordinances are established by
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A. Homebuilders
B. Local Governments t




C. Lenders
D. All of the above -- Correct Answer ✔✔ B. Local Governments
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14) Settlement costs are the same as closing cost.
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A. True
B. False -- Correct Answer ✔✔ A. True
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15) RESPA governs the amount of cost appearing on a settlement sheet.
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A. True
B. False -- Correct Answer ✔✔ B. False - Note: It governs the disclosure of cost
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that is anticipated. t t




16) A loan disclosure form must be given to a purchaser of real property within
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A. 5 days of receiving a loan application
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B. 4 days of receiving a loan application
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C. 3 days of receiving a loan application
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D. 2 days of receiving a loan application -- Correct Answer ✔✔ C. 3 days of
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receiving a loan application t t t




17) The Hud-1 Settlement Statement is generally prepared by
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A. The real estate agent
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B. The lender t




C. The title company
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D. The abstractor -- Correct Answer ✔✔ C. The title company
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