Maryland Title Insurance Producer Practice Exam

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• Which term describes a financial arrangement where two parties exchange risk?
• What is a title endorsement?
• What is a preliminary title report?
• Who typically has to be satisfied for the renewal of a Judgment of the Federal Government in Maryland?
• What is considered a material fact in an insurance contract?
• If the deed does not state what form of estate is being transferred, it is assumed that the property is being transferred in which form of title?
• What does "subordination" refer to in the context of liens?
• What does a title search primarily identify?
• How are title insurance rates generally determined?
• What is “dual agency” in real estate transactions?
• What is the primary benefit of having title insurance?
• What does a trustee generally do?
• Which statement describes a title insurance claim process?
• What does the term "probate" refer to in real estate?
• Which of the following is typically included in a mortgage loan policy?
• Under the Real Estate Procedures Act of 1974, all parties to certain real estate transactions receive which type of uniform settlement statement?
• What is a primary function of a title insurance policy?
• What does a title search verify?
• Which of the following best describes the term “market value”?
• How does title insurance help in preventing fraud?
• Under what kind of deed is the legal title of a property held in trust for the lender until repayment is made?
• A quitclaim deed is most often used to achieve which purpose?
• In what way can title insurance benefit lenders?
• What distinguishes a mortgage from a deed of trust?
• Which of the following is NOT a benefit of title insurance?
• Why might a title insurance policy be deemed void?
• What does the term “encumbrance” mean?
• What does “underwriting” mean in terms of title insurance?
• Which of the following is a document required by RESPA?
• Which of the following is an adverse action stemming from credit evaluation made based on the issue of a consumer report to a lending institution?
• How long can a judgment from the federal government be enforced if filed in Maryland?
• What is the purpose of the Truth in Lending Act (TILA)?
• What determines property ownership in a joint tenancy arrangement?
• Who typically pays for title insurance in a real estate transaction?
• What does a title plant provide for title insurance companies?
• If a property agent binds coverage for a risk that actually falls outside the insurer's underwriting requirements, what kind of authority does the agent have?
• What does the term 'commitment' in title insurance imply?
• How frequently should title searches be updated?
• Title insurance is most commonly used in what type of transaction?
• What was the first conveyance instrument in the American Colonies that required the seller to warranty statements regarding the title in writing?
• How long does a standard owner's title insurance policy last?
• What type of entity is created to hold property that does not cease to exist upon the owner's death?
• Which of the following acts governs the disclosure of settlement costs?
• What is the significance of the "effective date" in title insurance?
• In a real estate transaction, what document details the agreements between buyer and seller?
• What is a straw man in real estate?
• If a seller conceals a serious bug infection problem, what type of fraud is this considered?
• What legal concept is crucial in determining property rights and ownership?
• What is the purpose of a settlement statement?
• Can title insurance policies be transferred to new owners?
• Why is timely disclosure crucial in real estate transactions?
• What is the purpose of the Patriot Act?
• In Maryland, what must occur for a criminal felony involving dishonesty to allow participation in insurance business?
• Who typically makes the offer in an insurance contract?
• A stream changes its channel, resulting in land being removed. This phenomenon is known as what?
• What type of issues might a title search uncover?
• Including a grantee that is a trustee of an estate planning trust as an insured under the 2006 owners policy provides coverage when real estate is transferred to?
• In real estate transactions, what does the term "escrow" commonly refer to?
• What does the Insurance Fraud Protection Act prohibit regarding individuals convicted of felony crimes?
• What happens if a title defect is discovered after the policy issuance?
• Laws that limit the maximum amount of interest charged on various types of loans are known as what?
• Which of the following best describes the benefit of title insurance for property buyers?
• What typically follows a title search?
• Which of the following refers to a legal claim against property due to unpaid obligations?
• _____ rights refer to the rights to use the banks of a river, stream, or waterway.
• What is a "cloud on title"?
• Which document typically outlines the responsibilities of the lender and borrower in residential transactions?
• How is risk best defined for insurance purposes?
• What type of estate is known as for the life of another, or "pur autre vie"?
• Which scenario would title insurance typically not cover?
• Which of the following is not a minimum requirement for a contract under the Statute of Frauds?
• Who can contest a title insurance policy?
• What type of policy covers unknown issues in a property’s title?
• What is the purpose of the Maryland Title Insurance Guaranty Fund?
• If mineral rights have been separated from the fee simple estate, what statement is true?
• What is a trustee's deed?
• What role does insurance play in title insurance offerings?
• Why is title insurance necessary even in new construction?
• In terms of property ownership, what does a trustee do?
• What does a title commitment state?
• What are endorsements in title insurance?
• A physical condition of property that increases the chance of loss is referred to as what?
• What does “clear title” refer to in real estate?
• What does a title search primarily help to discover?
• Which legal document represents a buyer's agreement to purchase property?
• What would typically be classified as a “major defect” in a title?
• What term describes the hazard or peril that can cause harm or loss, along with the scope of harm or loss it can cause?
• What is the primary purpose of title insurance?
• Which organization is known as CFPB?
• What happens if a title defect is discovered after closing?
• RESPA stands for which of the following?
• What kind of information would you find in a title commitment summary?
• Long-term escrow may be used in conjunction with:
• What significant change was made in the 2006 ALTA owner's policy regarding disclosures made by a survey?
• What is implied by the legal term 'Presumption'?
• Which statement about the construction and execution of a deed is true?
• Which factor can complicate a title search?
• In most court cases, damages for fraud are awarded based on what condition?
• In what way is an insurance contract unilateral?
• What does ‘risk exchange’ generally refer to in financial terms?
• What is a "closing" in a real estate transaction?
• What is one major difference between title insurance and other types of insurance?
• What is a special warranty deed?
• Which act is also known as the Privacy Act?
• What is the duration for a Maryland Inheritance Tax Lien from the date of distribution?
• What does 'chain of title' imply in real estate?
• Which arrangement also goes by the name 'Safe Harbor'?
• What is a title plant?
• The legislation that disposed of the Northwest Territory after the Revolutionary War included a rectangular survey system known as:
• Why is it not advisable for an executor to sell property under probate without title insurance?
• How does fraud impact title insurance claims?
• In title insurance, what does a title commitment indicate?
• What is the primary purpose of a deed in a real estate transaction?
• Which term refers to the unauthorized release of information by an insurance agent?
• What does adhering to the principle of insurable interest protect against?
• What is an example of an insurable interest?
• Which of the following is an example of property for which a bill of sale is used for in a property transfer?
• What type of claims can title insurance protect against?
• What is the primary role of a title agent?
• What does "marketable title" refer to?
• What methods do title searchers use to gather information?
• Which entity is most likely to issue a trustee’s deed?
• What does TILA stand for?
• Who typically pays the title insurance premium?
• What is typically included in a title report?
• What type of insurance policy is designed to protect lenders?
• In Maryland, which entity regulates title insurance producers?
• The party holding the mortgage is referred to as what?
• Which event can trigger the need for a title insurance claim?
• What is typically done if a co-ownership dispute arises?
• What role does the Maryland Real Estate Commission play?
• What information is typically included in a title commitment?
• Access to property is important for each of the following reasons, EXCEPT:
• What is the report published for the buyer after a title examination is completed called?
• What is a Title Commitment?
• What is meant by "chain of title"?
• What is remapping in the title insurance context?
• A property co-owner's ability to sell their share of the property without needing consent from other co-owners is called what?
• When was the first title insurance policy issued in the land now occupied by the United States?
• Census records may only be used to gain information about persons from what minimum number of years ago?
• Which choice represents a type of estate that includes rights of use during the lifetime of an individual?
• FIRPTA has what requirement in relation to property sales over $300,000?
• What survey system did the US Government begin using in 1785 to dispose of the Northwest Territory?
• What is the primary focus of a title insurance policy?
• Which entity is typically responsible for issuing title insurance policies?
• In the event of a title defect, which party is generally protected by title insurance?
• What is the typical duration of a title insurance investigation?
• Under the Real Estate Procedures Act of 1974, what is the uniform settlement document received by all parties in certain real estate transactions?
• What is the “title insurance premium”?
• The obligation secured by the insured mortgage under the loan policy is the:
• What is a subordination clause in a mortgage?
• What type of risk does title insurance specifically cover?
• The loan policy is considered a type of what, aimed at restoring the insured's financial position prior to a loss?
• What aspect of title insurance might vary from one policy to another?
• What does ALTA stand for in title insurance?
• What term refers to the legal right to possess and use a certain property?
• What is the primary purpose of title insurance?
• What is a real property transfer tax?
• What type of estate is created to avoid probate or provide tax benefits?
• For which purpose is title insurance typically acquired?
• How are title insurance claims typically resolved?
• What does title insurance primarily protect against?
• What do judgment liens generally remain effective for?
• Which of the following is NOT a method for creating easements?
• In a contract of adhesion, disputes are typically resolved in favor of?
• A homeowner takes out a second mortgage on a home. Due to an error by the title company, the first mortgage was never recorded. The second mortgage is recorded. What is the status of the first mortgage?
• The consumer reporting agency must notify the provider of the disputed information within how many days of receiving notice from the consumer?
• How long does title insurance coverage last?
• What does a tract index generally list transactions pertaining to?
• What constitutes a judgment lien?
• What is a revocable trust primarily used for?
• If a property agent binds coverage for a risk that falls outside the insurer's underwriting requirements, what type of authority does the agent have?
• What is an easement?
• What type of title is generally transferred through a warranty deed?
• What must title agents provide to clients at closing?
• Which of the following can be created by a dedication?
• An agent regularly allows insured to pay premiums a few days late. What legal doctrine would be applicable if the insurer tries to deny a claim due to the late payment?
• What does the acronym ABA stand for in the context of real estate?
• What is a property survey?
• What is a lien?
• What might affect the title insurance rate for a property?
• Who does an escrow agent typically represent?
• Which of the following is a common exclusion in title insurance policies?
• What information do producers need to adequately assess title risks?
• Which term refers to the right to use someone else's property, such as a driveway?
• What role does a title company typically play in the closing process?
• What is a title search?
• What must a party prove to successfully challenge a contract of adhesion?
• Which party typically pays for title insurance in a real estate transaction?