Missou r i Title Insu r an ce Pr odu cer |! |! |! |!
Exam w ith pr ecise detailed |! |! |! |!
answ er s
Title Insurance - Correct answer ✔Insured statement of the condition of
|! |! |! |! |! |! |! |! |! |! |!
title or ownership of real property. For a one-time-only premium, the
|! |! |! |! |! |! |! |! |! |! |!
named insured and their heirs are protected against title defects, liens,
|! |! |! |! |! |! |! |! |! |! |!
encumbrances existing as of the date of the policy and not specifically
|! |! |! |! |! |! |! |! |! |! |! |!
excluded from it. In the event of a claim , the title company provides
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
legal defense from the policyholder and pays any covered losses incurred
|! |! |! |! |! |! |! |! |! |! |!
as a result of such claim.
|! |! |! |! |!
Commitment/Binder 1 - Correct answer ✔Also called a "preliminary |! |! |! |! |! |! |! |! |!
certificate", it's a contract with a title company to issue a specific title
|! |! |! |! |! |! |! |! |! |! |! |! |!
policy, showing only those exceptions contained in the -- and any
|! |! |! |! |! |! |! |! |! |! |!
intervening matters after the date of the -- and prior to the effective date
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
of the policy. The -- contains all information included in the preliminary
|! |! |! |! |! |! |! |! |! |! |! |!
title report, plus a list of requirements that must be met in order to
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
insure the transaction and standard exceptions from coverage that will
|! |! |! |! |! |! |! |! |! |!
appear in the policy |! |! |!
Commitment/Binder 2 - Correct answer ✔1. A preliminary report as to |! |! |! |! |! |! |! |! |! |! |!
the condition of a title and a -- to issue a title insurance policy when
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
certain conditions are met. |! |! |!
,2. A document issued by a title insurance company that contains the
|! |! |! |! |! |! |! |! |! |! |! |!
conditions under which a policy of title insurance will be issued.
|! |! |! |! |! |! |! |! |! |!
Endorsement - Correct answer ✔An addition to or modification of a title |! |! |! |! |! |! |! |! |! |! |! |!
insurance policy which expands or changes coverage of the policy,
|! |! |! |! |! |! |! |! |! |!
fulfilling specific requirements of the insured.
|! |! |! |! |!
Exception - Correct answer ✔A provision in a title insurance binder or
|! |! |! |! |! |! |! |! |! |! |! |!
policy that excludes liability for a specific title defect or an outstanding
|! |! |! |! |! |! |! |! |! |! |! |!
lien or encumbrance, such as easements and restrictions
|! |! |! |! |! |! |!
Requirements - Correct answer ✔Conditions in a title insurance binder |! |! |! |! |! |! |! |! |! |!
that must be met or otherwise cleared before title can be insured and a
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
policy can be issued,|! |! |!
Encumbrance - Correct answer ✔Anything which affects or limits the fee |! |! |! |! |! |! |! |! |! |! |!
simple title to property, such as mortgages, easements, or restrictions
|! |! |! |! |! |! |! |! |! |!
which do not prevent alienation of the fee title by the owner. Liens are
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
special -- which make the property security for the debt.
|! |! |! |! |! |! |! |! |!
Encroachment - Correct answer ✔The situation that exists when a |! |! |! |! |! |! |! |! |! |!
structure is built in whole or part on a neighboring property. Disputes
|! |! |! |! |! |! |! |! |! |! |! |!
arising from a confusion of boundaries may be the result of incorrect
|! |! |! |! |! |! |! |! |! |! |! |!
surveys, or mistakes by builders and/or owners when erecting an
|! |! |! |! |! |! |! |! |! |!
improvement; and may be generally settled by an action at law. However, |! |! |! |! |! |! |! |! |! |! |!
courts of equity will entertain a bill for the settlement of boundaries
|! |! |! |! |! |! |! |! |! |! |! |! |!
when the rights may be established upon equitable grounds. -- may be
|! |! |! |! |! |! |! |! |! |! |! |!
,corrected by giving or selling the said party an easement or lease for the
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
lifetime of the building, or in the case of small structures, actually
|! |! |! |! |! |! |! |! |! |! |! |!
moving it onto the owner's own property.
|! |! |! |! |! |!
Insurance Companies - Correct answer ✔Protect individuals and
|! |! |! |! |! |! |! |!
organizations from financial loss by assuming risk. They analyze |! |! |! |! |! |! |! |! |!
information in insurance applications to determine if a risk is acceptable
|! |! |! |! |! |! |! |! |! |! |!
and is not expected to result in a loss. Applications are often
|! |! |! |! |! |! |! |! |! |! |! |!
supplemented with reports from loss-control consultants. |! |! |! |! |!
Underwriters - Correct answer ✔Must decide whether top issue the |! |! |! |! |! |! |! |! |! |!
policy, the appropriate premium to charge, and write policies that cover
|! |! |! |! |! |! |! |! |! |! |!
these risks. In making this determination, -- serve as the main link
|! |! |! |! |! |! |! |! |! |! |! |!
between the insurance carrier and the insurance agent. An insurance
|! |! |! |! |! |! |! |! |! |!
company may lose business if the -- appraises risks too conservatively, or
|! |! |! |! |! |! |! |! |! |! |!
may have to pay claims if the -- actions are too liberal.
|! |! |! |! |! |! |! |! |! |! |! |!
Chain of Title - Correct answer ✔The history of passing of title
|! |! |! |! |! |! |! |! |! |! |! |!
ownership from the present owner back to the original owner. They
|! |! |! |! |! |! |! |! |! |! |!
include notations of deeds, distribution from estates, certificates of death,
|! |! |! |! |! |! |! |! |!
foreclosures, quiet title, and other recorded transfers of title. Before
|! |! |! |! |! |! |! |! |! |! |!
purchasing property, the purchaser will usually hire a title company to
|! |! |! |! |! |! |! |! |! |! |!
search out the -- and provide a report. In many real estate transactions,
|! |! |! |! |! |! |! |! |! |! |! |! |!
insurance companies issue title insurance based upon the -- to the
|! |! |! |! |! |! |! |! |! |! |!
property when it is transferred. |! |! |! |!
Closing and Settlement - Correct answer ✔In a real estate transaction,
|! |! |! |! |! |! |! |! |! |! |!
the -- is the final exchange in the sale and purchase of real estate where
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
, the title is transferred, financial documents are executed, title insurance
|! |! |! |! |! |! |! |! |! |!
policies are created, and costs are paid. Some of the final documents are
|! |! |! |! |! |! |! |! |! |! |! |! |!
then delivered to the county recorder to be recorded. Depending on local
|! |! |! |! |! |! |! |! |! |! |! |!
practice, the -- is handled by a title company, escrow company, or
|! |! |! |! |! |! |! |! |! |! |! |!
attorney.
Escrow - Correct answer ✔The deposit of instruments, funds and
|! |! |! |! |! |! |! |! |! |!
instructions to an independent third party to carry out the provisions of
|! |! |! |! |! |! |! |! |! |! |! |!
an agreement or contracts. When everything is deposited to enable
|! |! |! |! |! |! |! |! |! |!
carrying out the instructions, it is complete and perfect --. The transfer of
|! |! |! |! |! |! |! |! |! |! |! |!
property or document is completed upon fulfillment of specified
|! |! |! |! |! |! |! |! |! |!
conditions, whereupon the necessary deeds and other instruments are
|! |! |! |! |! |! |! |! |!
recorded.
Transfer Tax and Recording - Correct answer ✔In the state of Missouri,
|! |! |! |! |! |! |! |! |! |! |! |!
there is no -- (which is a tax paid by a buyer or seller each time a
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
property is transferred, as evidenced by the recorder of deeds).
|! |! |! |! |! |! |! |! |!
Paper - Document Formatting Requirements - Correct answer ✔- White,
|! |! |! |! |! |! |! |! |! |!
light-colored, 20# weight without watermarks or logos |! |! |! |! |! |!
- Printed in black or dark ink on one side only
|! |! |! |! |! |! |! |! |! |!
- No continuous forms or permanent binding; stapled documents are
|! |! |! |! |! |! |! |! |! |!
acceptable
Margins & Formatting - Document Formatting Requirements - Correct
|! |! |! |! |! |! |! |! |!
answer ✔- First page shall have top 3 inches of vertical space for
|! |! |! |! |! |! |! |! |! |! |! |! |!
recorder's use shall be blank |! |! |! |!
Exam w ith pr ecise detailed |! |! |! |!
answ er s
Title Insurance - Correct answer ✔Insured statement of the condition of
|! |! |! |! |! |! |! |! |! |! |!
title or ownership of real property. For a one-time-only premium, the
|! |! |! |! |! |! |! |! |! |! |!
named insured and their heirs are protected against title defects, liens,
|! |! |! |! |! |! |! |! |! |! |!
encumbrances existing as of the date of the policy and not specifically
|! |! |! |! |! |! |! |! |! |! |! |!
excluded from it. In the event of a claim , the title company provides
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
legal defense from the policyholder and pays any covered losses incurred
|! |! |! |! |! |! |! |! |! |! |!
as a result of such claim.
|! |! |! |! |!
Commitment/Binder 1 - Correct answer ✔Also called a "preliminary |! |! |! |! |! |! |! |! |!
certificate", it's a contract with a title company to issue a specific title
|! |! |! |! |! |! |! |! |! |! |! |! |!
policy, showing only those exceptions contained in the -- and any
|! |! |! |! |! |! |! |! |! |! |!
intervening matters after the date of the -- and prior to the effective date
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
of the policy. The -- contains all information included in the preliminary
|! |! |! |! |! |! |! |! |! |! |! |!
title report, plus a list of requirements that must be met in order to
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
insure the transaction and standard exceptions from coverage that will
|! |! |! |! |! |! |! |! |! |!
appear in the policy |! |! |!
Commitment/Binder 2 - Correct answer ✔1. A preliminary report as to |! |! |! |! |! |! |! |! |! |! |!
the condition of a title and a -- to issue a title insurance policy when
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
certain conditions are met. |! |! |!
,2. A document issued by a title insurance company that contains the
|! |! |! |! |! |! |! |! |! |! |! |!
conditions under which a policy of title insurance will be issued.
|! |! |! |! |! |! |! |! |! |!
Endorsement - Correct answer ✔An addition to or modification of a title |! |! |! |! |! |! |! |! |! |! |! |!
insurance policy which expands or changes coverage of the policy,
|! |! |! |! |! |! |! |! |! |!
fulfilling specific requirements of the insured.
|! |! |! |! |!
Exception - Correct answer ✔A provision in a title insurance binder or
|! |! |! |! |! |! |! |! |! |! |! |!
policy that excludes liability for a specific title defect or an outstanding
|! |! |! |! |! |! |! |! |! |! |! |!
lien or encumbrance, such as easements and restrictions
|! |! |! |! |! |! |!
Requirements - Correct answer ✔Conditions in a title insurance binder |! |! |! |! |! |! |! |! |! |!
that must be met or otherwise cleared before title can be insured and a
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
policy can be issued,|! |! |!
Encumbrance - Correct answer ✔Anything which affects or limits the fee |! |! |! |! |! |! |! |! |! |! |!
simple title to property, such as mortgages, easements, or restrictions
|! |! |! |! |! |! |! |! |! |!
which do not prevent alienation of the fee title by the owner. Liens are
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
special -- which make the property security for the debt.
|! |! |! |! |! |! |! |! |!
Encroachment - Correct answer ✔The situation that exists when a |! |! |! |! |! |! |! |! |! |!
structure is built in whole or part on a neighboring property. Disputes
|! |! |! |! |! |! |! |! |! |! |! |!
arising from a confusion of boundaries may be the result of incorrect
|! |! |! |! |! |! |! |! |! |! |! |!
surveys, or mistakes by builders and/or owners when erecting an
|! |! |! |! |! |! |! |! |! |!
improvement; and may be generally settled by an action at law. However, |! |! |! |! |! |! |! |! |! |! |!
courts of equity will entertain a bill for the settlement of boundaries
|! |! |! |! |! |! |! |! |! |! |! |! |!
when the rights may be established upon equitable grounds. -- may be
|! |! |! |! |! |! |! |! |! |! |! |!
,corrected by giving or selling the said party an easement or lease for the
|! |! |! |! |! |! |! |! |! |! |! |! |! |!
lifetime of the building, or in the case of small structures, actually
|! |! |! |! |! |! |! |! |! |! |! |!
moving it onto the owner's own property.
|! |! |! |! |! |!
Insurance Companies - Correct answer ✔Protect individuals and
|! |! |! |! |! |! |! |!
organizations from financial loss by assuming risk. They analyze |! |! |! |! |! |! |! |! |!
information in insurance applications to determine if a risk is acceptable
|! |! |! |! |! |! |! |! |! |! |!
and is not expected to result in a loss. Applications are often
|! |! |! |! |! |! |! |! |! |! |! |!
supplemented with reports from loss-control consultants. |! |! |! |! |!
Underwriters - Correct answer ✔Must decide whether top issue the |! |! |! |! |! |! |! |! |! |!
policy, the appropriate premium to charge, and write policies that cover
|! |! |! |! |! |! |! |! |! |! |!
these risks. In making this determination, -- serve as the main link
|! |! |! |! |! |! |! |! |! |! |! |!
between the insurance carrier and the insurance agent. An insurance
|! |! |! |! |! |! |! |! |! |!
company may lose business if the -- appraises risks too conservatively, or
|! |! |! |! |! |! |! |! |! |! |!
may have to pay claims if the -- actions are too liberal.
|! |! |! |! |! |! |! |! |! |! |! |!
Chain of Title - Correct answer ✔The history of passing of title
|! |! |! |! |! |! |! |! |! |! |! |!
ownership from the present owner back to the original owner. They
|! |! |! |! |! |! |! |! |! |! |!
include notations of deeds, distribution from estates, certificates of death,
|! |! |! |! |! |! |! |! |!
foreclosures, quiet title, and other recorded transfers of title. Before
|! |! |! |! |! |! |! |! |! |! |!
purchasing property, the purchaser will usually hire a title company to
|! |! |! |! |! |! |! |! |! |! |!
search out the -- and provide a report. In many real estate transactions,
|! |! |! |! |! |! |! |! |! |! |! |! |!
insurance companies issue title insurance based upon the -- to the
|! |! |! |! |! |! |! |! |! |! |!
property when it is transferred. |! |! |! |!
Closing and Settlement - Correct answer ✔In a real estate transaction,
|! |! |! |! |! |! |! |! |! |! |!
the -- is the final exchange in the sale and purchase of real estate where
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
, the title is transferred, financial documents are executed, title insurance
|! |! |! |! |! |! |! |! |! |!
policies are created, and costs are paid. Some of the final documents are
|! |! |! |! |! |! |! |! |! |! |! |! |!
then delivered to the county recorder to be recorded. Depending on local
|! |! |! |! |! |! |! |! |! |! |! |!
practice, the -- is handled by a title company, escrow company, or
|! |! |! |! |! |! |! |! |! |! |! |!
attorney.
Escrow - Correct answer ✔The deposit of instruments, funds and
|! |! |! |! |! |! |! |! |! |!
instructions to an independent third party to carry out the provisions of
|! |! |! |! |! |! |! |! |! |! |! |!
an agreement or contracts. When everything is deposited to enable
|! |! |! |! |! |! |! |! |! |!
carrying out the instructions, it is complete and perfect --. The transfer of
|! |! |! |! |! |! |! |! |! |! |! |!
property or document is completed upon fulfillment of specified
|! |! |! |! |! |! |! |! |! |!
conditions, whereupon the necessary deeds and other instruments are
|! |! |! |! |! |! |! |! |!
recorded.
Transfer Tax and Recording - Correct answer ✔In the state of Missouri,
|! |! |! |! |! |! |! |! |! |! |! |!
there is no -- (which is a tax paid by a buyer or seller each time a
|! |! |! |! |! |! |! |! |! |! |! |! |! |! |! |! |!
property is transferred, as evidenced by the recorder of deeds).
|! |! |! |! |! |! |! |! |!
Paper - Document Formatting Requirements - Correct answer ✔- White,
|! |! |! |! |! |! |! |! |! |!
light-colored, 20# weight without watermarks or logos |! |! |! |! |! |!
- Printed in black or dark ink on one side only
|! |! |! |! |! |! |! |! |! |!
- No continuous forms or permanent binding; stapled documents are
|! |! |! |! |! |! |! |! |! |!
acceptable
Margins & Formatting - Document Formatting Requirements - Correct
|! |! |! |! |! |! |! |! |!
answer ✔- First page shall have top 3 inches of vertical space for
|! |! |! |! |! |! |! |! |! |! |! |! |!
recorder's use shall be blank |! |! |! |!
