MARYLAND PRE-LICENSING TITLE INSURANCE EXAM STUDY GUIDE QUESTIONS WITH FULLY SOLVED ANSWERS.

MARYLAND PRE-LICENSING TITLE INSURANCE EXAM STUDY
GUIDE QUESTIONS WITH FULLY SOLVED ANSWERS.


1) Typically in Maryland, the premium for an owner's insurance policy is paid by the
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A. Seller
B. Buyer
C. Lender
D. Split between seller and buyer -- Correct Answer ✔✔ B. Buyer
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2) Which of the following would permit a lender to make a claim against a title insurance
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company?

A. Borrowers default in payment pursuant to a promissory note t t t t t t t t




B. Failure of title agent to issue a loan policy within the time period prescribed by
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the MIA. t




C. Failure of the title company to reduce settlement fees
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D. Failure of title company to pay the borrowers future taxes yearly -- Correct
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Answer ✔✔ D. Failure of title company to pay the borrowers future taxes
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yearly

3) Generally, all of the following appear on a HUD-1 statement or Loan Disclosure
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Form EXCEPT
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A. Commission
B. Lenders fees t




C. Title fees t




D. Credit Score -- Correct Answer ✔✔ D. Credit Score
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4) Standard title insurance forms/policies are created by
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A. MLTA

, B. ALTA
C. Commission of insurance t t




D. Insurance underwrite -- Correct Answer ✔✔ B. ALTA t t t t t t t




5) All of the following appear in a title insurance commitment EXCEPT
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A. Requirements
B. Exceptions
C. Amount of coverage t t




D. Income or ability to pay -- Correct Answer ✔✔ D. Income or ability to pay
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6) All of the following are necessary for a complete title search EXCEPT
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A. Search of property history
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B. Search person(s)/judgment history
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C. Search of grantor/grantee index
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D. Search of employment history -- Correct Answer ✔✔ D. Search of
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employment history t




7) All of the following are exceptions in a policy EXCEPT
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A. Easement
B. Deed restriction
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C. Right of way
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D. Interest rate -- Correct Answer ✔✔ D. Interest rate
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8) The effective date on a title commitment is
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A. The date of the last deed transfer
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B. The date of the last refinance
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C. The date of the title search
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D. The last date records are made available at the court house -- Correct Answer
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✔✔ D. The last date records are made available at the court house
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9) All of the following are true EXCEPT
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, A. Loan policies insure the mortgage or note holder
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B. Owner policies insure the owner t t t t




C. Construction loan policies are obsolete t t t t




D. Leasehold policies are for ground rent properties -- Correct Answer ✔✔ C.
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Construction loan policies are obsolete t t t t




10) When a ground rent is redeemed with SDAT, the ground rent lease is
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A. Cancelled and the property becomes fee simple t t t t t t




B. Extinguished and the property becomes fee simple t t t t t t




C. Waived and the property becomes fee simple
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D. NOTA -- Correct Answer ✔✔ B. Extinguished and the property becomes fee
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simple

11) All of the following are examples of endorsements EXCEPT
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A. Environmental protection endorsement t t




B. Planned unit development endorsementt t t




C. FHA mortgage endorsement
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D. Condominium endorsement -- Correct Answer ✔✔ C. FHA mortgage t t t t t t t t t




endorsement

12) MAHT was created to
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A. To assist victims who suffer because of errors and omissions of title insurers
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B. To assist with mortgage payment for low income homeowners
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C. To assist with the purchase of property for low income individuals
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D. To assist victims of fraud -- Correct Answer ✔✔ C. To assist with the
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purchase of property for low income individuals
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13) The concept that deeds and real estate contracts must be in writing is based on the
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A. Statute of seisin t t




B. Principals of contracts t t




C. Statute of frauds t t




D. Principals of real property -- Correct Answer ✔✔ C. Statute of frauds
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