Louisiana Title Insurance Exam
Questions and Answers Latest Version
Already Passed
What is the main purpose of title insurance?
✔✔To protect against financial loss due to title defects
Who typically pays for the lender’s title insurance policy in Louisiana?
✔✔The borrower, unless negotiated otherwise
What does a title search primarily examine?
✔✔Public records related to ownership and liens on a property
Who issues a title commitment?
✔✔A licensed title insurance underwriter or agent
What is a title commitment?
✔✔A promise to issue a title insurance policy after closing, subject to certain conditions
1
,What is the role of the title insurance agent?
✔✔To conduct title searches, issue commitments, and facilitate closings
What is a defect in title?
✔✔Any legal issue that affects ownership or marketability of the property
What is a lien?
✔✔A legal claim or charge against property for unpaid debts
What is a judgment lien?
✔✔A lien resulting from a court ruling against the property owner
What is the purpose of an owner’s title insurance policy?
✔✔To protect the buyer from future claims against the property title
When does the owner’s title insurance policy become effective?
✔✔On the date of closing
2
,What is the effective date of a lender’s title insurance policy?
✔✔The date the mortgage or deed of trust is recorded
What does a standard title insurance policy not cover?
✔✔Defects known to the insured but not disclosed to the insurer
How long does a title insurance policy remain in effect?
✔✔As long as the insured or their heirs hold an interest in the property
What is an easement?
✔✔A right to use someone else’s property for a specific purpose
What is the chain of title?
✔✔The historical record of ownership transfers of a property
What is a break in the chain of title?
✔✔A missing or unclear link in the ownership history
3
, What is a quitclaim deed?
✔✔A deed that transfers whatever interest the grantor has without guarantees
What is a warranty deed?
✔✔A deed that guarantees clear title to the property
Who typically performs the title closing in Louisiana?
✔✔A title agent, attorney, or notary authorized to handle real estate transactions
What is an encumbrance?
✔✔Any claim, lien, or liability attached to real property
What is marketable title?
✔✔Title free from major defects that a reasonable buyer would accept
What is the difference between a preliminary title report and a final title policy?
✔✔The preliminary report lists exceptions; the final policy reflects actual coverage
4
Questions and Answers Latest Version
Already Passed
What is the main purpose of title insurance?
✔✔To protect against financial loss due to title defects
Who typically pays for the lender’s title insurance policy in Louisiana?
✔✔The borrower, unless negotiated otherwise
What does a title search primarily examine?
✔✔Public records related to ownership and liens on a property
Who issues a title commitment?
✔✔A licensed title insurance underwriter or agent
What is a title commitment?
✔✔A promise to issue a title insurance policy after closing, subject to certain conditions
1
,What is the role of the title insurance agent?
✔✔To conduct title searches, issue commitments, and facilitate closings
What is a defect in title?
✔✔Any legal issue that affects ownership or marketability of the property
What is a lien?
✔✔A legal claim or charge against property for unpaid debts
What is a judgment lien?
✔✔A lien resulting from a court ruling against the property owner
What is the purpose of an owner’s title insurance policy?
✔✔To protect the buyer from future claims against the property title
When does the owner’s title insurance policy become effective?
✔✔On the date of closing
2
,What is the effective date of a lender’s title insurance policy?
✔✔The date the mortgage or deed of trust is recorded
What does a standard title insurance policy not cover?
✔✔Defects known to the insured but not disclosed to the insurer
How long does a title insurance policy remain in effect?
✔✔As long as the insured or their heirs hold an interest in the property
What is an easement?
✔✔A right to use someone else’s property for a specific purpose
What is the chain of title?
✔✔The historical record of ownership transfers of a property
What is a break in the chain of title?
✔✔A missing or unclear link in the ownership history
3
, What is a quitclaim deed?
✔✔A deed that transfers whatever interest the grantor has without guarantees
What is a warranty deed?
✔✔A deed that guarantees clear title to the property
Who typically performs the title closing in Louisiana?
✔✔A title agent, attorney, or notary authorized to handle real estate transactions
What is an encumbrance?
✔✔Any claim, lien, or liability attached to real property
What is marketable title?
✔✔Title free from major defects that a reasonable buyer would accept
What is the difference between a preliminary title report and a final title policy?
✔✔The preliminary report lists exceptions; the final policy reflects actual coverage
4
