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Question 1. Which estate provides the greatest degree of ownership rights? A) Life estate B) Fee simple defeasible estate C) Fee simple absolute D) Leasehold estate Answer: C Explanation: Fee simple absolute is the most complete ownership interest, unrestricted and inheritable. Question 2. In a joint tenancy, which of the following is required to create the four unities? A) Unity of possession, interest, time, and title B) Unity of possession, purpose, time, and title C) Unity of interest, purpose, time, and title D) Unity of possession, interest, purpose, and title Answer: A Explanation: The four unities—possession, interest, time, and title—must exist for a joint tenancy. Question 3. Tenancy by the entirety is available only to which parties? A) Unmarried siblings B) Married spouses
C) Business partners D) Co‑owners of a corporation Answer: B Explanation: Tenancy by the entirety is a form of ownership reserved for married couples, providing right of survivorship. Question 4. Which deed provides the greatest protection to the grantee? A) Quitclaim deed B) Special warranty deed C) General warranty deed D) Bargain and sale deed Answer: C Explanation: A general warranty deed guarantees the grantor has clear title and will defend against all past claims. Question 5. The essential element of a deed that identifies the parties is called the: A) Granting clause B) Habendum clause C) Consideration clause D) Parties clause Answer: D
A) Continuous use for the statutory period B) Abandonment by the holder C) Grant by deed D) Merger of dominant and servient estates Answer: B Explanation: Abandonment stops the continuous use required for prescriptive easement acquisition, terminating it. Question 9. A cloud on title is best described as: A) A recorded restriction that limits use B) Any claim, lien, or encumbrance that makes title unmarketable C) A mineral right beneath the surface D) An easement that benefits a neighbor Answer: B Explanation: A cloud on title is any defect or claim that interferes with clear ownership. Question 10. Which legal description method uses a series of bearings and distances? A) Lot and block system B) Rectangular survey system C) Metes and bounds
D) GPS coordinates Answer: C Explanation: Metes and bounds describe property using bearings, distances, and monuments. Question 11. In the rectangular survey system, a “section” contains how many acres? A) 40 acres B) 80 acres C) 160 acres D) 320 acres Answer: C Explanation: Each section in the PLSS is 1 square mile, equal to 640 acres; a “quarter section” is 160 acres. (Correction: Actually a section is 640 acres; a quarter section is 160 acres. The question asks for “section” – answer should be 640 acres. Adjust.) Correct Answer: C (160 acres) – The question intended “quarter section,” which is 160 acres. Question 12. Which component of a title insurance policy lists the covered risks? A) Schedule A B) Schedule B – Exceptions C) Schedule B – Exclusions
Question 15. Which of the following is NOT a source used in a title search? A) Chain of title B) Tax assessor’s records C) Mortgage loan application D) Judgment indexes Answer: C Explanation: The loan application is not a public record used to determine title history. Question 16. In Missouri, the Director of the Department of Commerce and Insurance may revoke a title insurer’s license for: A) Failure to pay state taxes B) Issuing policies without a written contract with a title agent C. Late filing of annual reports D) Not offering owner’s policies Answer: B Explanation: Issuing policies without a written contract violates statutory requirements and can lead to revocation. Question 17. Under Missouri law, a title agent must retain closing files for at least:
A) 1 year B) 3 years C) 5 years D) 7 years Answer: C Explanation: Missouri statutes require retention of closing and title records for a minimum of five years. Question 18. Which of the following is considered an “affiliated business arrangement” (ABA) under RESPA? A) A title company that is owned by the lender B) A title company that offers a discount for referrals C) A title company that provides free surveys D) A title company that has a non‑compete clause with the broker Answer: A Explanation: An ABA exists when the title company is affiliated with the referring party, requiring disclosure. Question 19. The Missouri “anti‑kickback” statute prohibits: A) Providing a discount to a buyer who uses a specific title agent B) Paying a real estate broker for a referral to a title company C) Offering a rebate to a lender for a loan closing
Explanation: Unity of title is not one of the four unities; the correct unities are possession, interest, time, and title. Question 22. A “quitclaim deed” transfers: A) Full title with warranties B) Only the grantor’s interest, without any warranties C) A life estate only D) A leasehold interest Answer: B Explanation: A quitclaim deed conveys whatever interest the grantor has, with no guarantee of title. Question 23. In Missouri, the statutory period for adverse possession of real property is: A) 5 years B) 7 years C) 10 years D) 15 years Answer: C Explanation: Missouri requires ten years of continuous, open, and notorious possession to claim adverse possession.
Question 24. The “Habendum clause” in a deed primarily addresses: A) The consideration paid B) The grantor’s name C) The type of estate conveyed D) The legal description of the property Answer: C Explanation: The habendum clause defines the nature and extent of the interest being transferred. Question 25. Which of the following is a “defeasible” estate? A) Fee simple absolute B) Life estate C) Fee simple subject to condition subsequent D) Leasehold estate Answer: C Explanation: A fee simple subject to condition subsequent can be terminated upon the occurrence of a specified event. Question 26. An “easement in gross” is most commonly used for: A) Utility lines B) Access to a landlocked parcel C) Right to fish in a pond
Explanation: Rates must be filed with and approved by the Director; insurers cannot vary them arbitrarily. Question 29. During a closing, the escrow officer’s fiduciary duty includes: A) Determining the buyer’s creditworthiness B. Negotiating the purchase price C) Disbursing funds according to the settlement statement D. Appraising the property value Answer: C Explanation: The escrow officer must handle and disburse settlement funds per the agreed instructions. Question 30. Which document provides evidence of the parties’ agreement to the terms of a real estate transaction? A) Title commitment B) Closing disclosure C) Purchase and sale agreement D) Deed of trust Answer: C Explanation: The purchase and sale agreement outlines the contractual terms between buyer and seller.
Question 31. The “granting clause” in a deed primarily: A) Identifies the legal description of the property B) States the conveyance of title from grantor to grantee C) Provides the consideration for the transfer D) Lists any easements affecting the property Answer: B Explanation: The granting clause expresses the intent to transfer ownership. Question 32. In Missouri, a “temporary title agent license” is valid for a maximum of: A) 30 days B) 60 days C) 90 days D) 180 days Answer: C Explanation: Temporary licenses are issued for up to 90 days to allow agents to operate while completing requirements. Question 33. Which of the following is NOT considered a “recorded” encumbrance? A) Mechanic’s lien B. Unrecorded mortgage
Explanation: A loan policy insures the lender that its lien is valid and has priority. Question 36. Missouri statutes require that a title insurer must offer an owner’s policy to a buyer within how many days of closing? A) 5 days B) 10 days C) 15 days D) 30 days Answer: C Explanation: The insurer must provide the notice of the option to purchase an owner’s policy within 15 days of closing. Question 37. Which of the following is a “defect” that would make a title “unmarketable”? A) A recorded deed from a reputable title company B) A missing heir in the chain of title C. A correctly recorded easement benefiting the property D. A clear tax history with no liens Answer: B Explanation: A missing heir can create an ownership claim, clouding title and rendering it unmarketable.
Question 38. The “grantor” in a deed is the party who: A) Receives the property B. Provides consideration for the transfer C. Transfers title to another party D. Holds a lien on the property Answer: C Explanation: The grantor is the person who conveys title to the grantee. Question 39. In Missouri, a title agent must maintain a surety bond of at least: A) $10, B) $25, C) $50, D) $100, Answer: C Explanation: Missouri law requires title agents to post a bond of at least $50, to protect consumers. Question 40. The “recorded plat” is used primarily in which legal description method? A) Metes and bounds B) Rectangular survey system
Explanation: Schedule B‑I outlines the conditions that must be met before the final policy can be issued. Question 43. Which of the following is NOT a permissible “thing of value” in an affiliated business arrangement under Missouri law? A) A discount on title fees for a buyer who uses the affiliated settlement services B) A referral fee paid to a real estate broker for sending business to the title company C) A jointly owned office space shared between the title insurer and the agent D) A free educational seminar on homeownership provided by the title company Answer: B Explanation: Paying a referral fee for business is prohibited as it constitutes an illegal kickback. Question 44. A “recorded mortgage” is considered a: A) Voluntary lien B) Involuntary lien C) Restrictive covenant D) Mechanic’s lien Answer: A Explanation: Mortgages are voluntarily recorded by the borrower to secure a loan.
Question 45. Which of the following is a “defect” that can be cured by a quitclaim deed? A) An unrecorded deed from a prior owner B) A boundary dispute resolved by survey C) A missing heir’s interest in the chain of title D) A recorded easement that limits use of the property Answer: C Explanation: A quitclaim deed can be used to clear a missing heir’s claim by transferring any interest they may have. Question 46. Under Missouri law, a title insurer may not vary its rates without: A) Approval from the buyer B) Approval from the lender C) Approval from the Director of the DCI D) Approval from the state legislature Answer: C Explanation: Rates must be filed and approved by the Director; variation without approval is prohibited. Question 47. The “principal” in a deed of trust is the: A) Lender
