Title Insurance Quiz

1. What is title insurance?

Insurance that protects the home from damage Insurance that protects against defects in title ownership Insurance that protects the lender only Insurance that replaces homeowner's insurance

2. What is an owner's title insurance policy?

Protects the lender Protects the homeowner from title defects Protects the real estate agent Protects the seller

3. What is a lender's title insurance policy?

Protects the homeowner Protects the lender's interest in the property Protects the title company Protects the real estate agent

4. What does a title search do?

Searches for liens and encumbrances on the property Searches for the best interest rate Searches for the buyer's credit history Searches for the property's value

5. What is a title defect?

A physical problem with the home An issue that affects ownership rights to the property A problem with the mortgage rate A zoning violation

6. When is title insurance purchased?

At closing Before the inspection After the loan is approved When the home is sold

7. Is title insurance required?

Lender's title insurance is required; owner's is optional Both are required by law Neither is required Only owner's title insurance is required

8. What is a title commitment?

A promise to buy the property A preliminary report showing the status of title A contract between buyer and seller A loan agreement

9. What is a lien?

A legal claim against a property for debt A type of insurance A property boundary A home inspection

10. What does "clear title" mean?

The property has no defects The title has no liens or encumbrances The property is brand new The seller has moved out

Quiz Results