TITLE INSURANCE LICENSING EXAM QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
Title insurance primarily protects against:
A. Defects in ownership rights
B. Property damage
C. Rent loss
D. Property taxes
Answer: A
Rationale: It protects against legal issues affecting ownership.
2.
A title search is:
A. Examination of public records for ownership history
B. Property appraisal
C. Lease agreement review
D. Insurance claim process
Answer: A
Rationale: Verifies legal ownership chain.
3.
A chain of title refers to:
A. History of property ownership transfers
B. Lease contracts
C. Tax payments
D. Insurance policies
Answer: A
Rationale: Shows ownership succession.
4.
,A cloud on title is:
A. Any defect or claim affecting ownership
B. Clear ownership
C. Insurance coverage
D. Lease agreement
Answer: A
Rationale: Creates uncertainty in title.
5.
Title insurance is typically paid:
A. Once at closing
B. Monthly
C. Yearly
D. Never
Answer: A
Rationale: One-time premium at purchase.
6.
The two main types of title insurance are:
A. Owner’s and lender’s policies
B. Renters and sellers
C. Tax and insurance policies
D. Lease and mortgage policies
Answer: A
Rationale: Protects both buyer and lender.
7.
A lender’s title policy protects:
A. The mortgage lender’s interest
B. The buyer only
C. The seller only
D. The tenant
Answer: A
Rationale: Covers loan security.
, 8.
An owner’s title policy protects:
A. Property owner’s equity
B. Lender only
C. Tenant only
D. Broker only
Answer: A
Rationale: Protects ownership rights.
9.
Title insurance underwriting involves:
A. Assessing risk of title defects
B. Setting rent prices
C. Approving loans
D. Inspecting property condition
Answer: A
Rationale: Determines insurability of title.
10.
Encumbrance refers to:
A. Any claim or restriction on property
B. Rental income
C. Insurance policy
D. Appraisal value
Answer: A
Rationale: Includes liens and easements.
11.
An easement gives:
A. Right to use another’s property
B. Ownership of property
C. Loan approval
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
Title insurance primarily protects against:
A. Defects in ownership rights
B. Property damage
C. Rent loss
D. Property taxes
Answer: A
Rationale: It protects against legal issues affecting ownership.
2.
A title search is:
A. Examination of public records for ownership history
B. Property appraisal
C. Lease agreement review
D. Insurance claim process
Answer: A
Rationale: Verifies legal ownership chain.
3.
A chain of title refers to:
A. History of property ownership transfers
B. Lease contracts
C. Tax payments
D. Insurance policies
Answer: A
Rationale: Shows ownership succession.
4.
,A cloud on title is:
A. Any defect or claim affecting ownership
B. Clear ownership
C. Insurance coverage
D. Lease agreement
Answer: A
Rationale: Creates uncertainty in title.
5.
Title insurance is typically paid:
A. Once at closing
B. Monthly
C. Yearly
D. Never
Answer: A
Rationale: One-time premium at purchase.
6.
The two main types of title insurance are:
A. Owner’s and lender’s policies
B. Renters and sellers
C. Tax and insurance policies
D. Lease and mortgage policies
Answer: A
Rationale: Protects both buyer and lender.
7.
A lender’s title policy protects:
A. The mortgage lender’s interest
B. The buyer only
C. The seller only
D. The tenant
Answer: A
Rationale: Covers loan security.
, 8.
An owner’s title policy protects:
A. Property owner’s equity
B. Lender only
C. Tenant only
D. Broker only
Answer: A
Rationale: Protects ownership rights.
9.
Title insurance underwriting involves:
A. Assessing risk of title defects
B. Setting rent prices
C. Approving loans
D. Inspecting property condition
Answer: A
Rationale: Determines insurability of title.
10.
Encumbrance refers to:
A. Any claim or restriction on property
B. Rental income
C. Insurance policy
D. Appraisal value
Answer: A
Rationale: Includes liens and easements.
11.
An easement gives:
A. Right to use another’s property
B. Ownership of property
C. Loan approval
