Download Missouri Title Exam Questions and Answers with Complete Solutions and more Exams Insurance law in PDF only on Docsity!
Missouri Title Exam Questions and
Answers with Complete Solutions |
Already Graded a+ | New update
- The main advantage of performing a like kind exchange of real estate rather than selling it is:
A. The exchange is not recorded B. The exchange is taxed deferred C. The property is less likely to decrease in value D. The exchange usually results in all parties making more profit than if they bought and sold the property - Answer:✅✅B. The exchange is tax deferred
- Why would an insurer be unable to cover catastrophic losses?
A. Insurers are not permitted to insure in many different states, or many geographic locations at once B. Catastrophic insurance is never added by federal programs leaving the burden on the insurer C. The insurer would have to charge low premiums, due to the insured's inability to pay large premiums D. Several exposure units would have losses at the same time, meaning that the insurer would not be able to meet its ongoing financial obligations - Answer:✅✅D. Several exposure units would have losses at the same time, meaning that the insurer would not be able to meet its ongoing financial obligations
- A seller conceal a serious bug infestation problem. What kind of fraud is this an example of?
A. International fraud B. Actual fraud C. Liability fraud D. Constructive fraud - Answer:✅✅B. Actual fraud
- Which if the following is not a type of deed?
A. Remarkability Deed B. Commissioners deed
C. Warranty deed D. Bargain and sale deed - Answer:✅✅A. Remarkability Deed
- Which of the following is not apart of the law of agency?
A. Laws that apply to agents duties B. Laws that apply to boundaries of both insurers and agents C. Laws that apply to the policy forms approved by the state in which the policy was issued D. Laws that apply to insurers responsibilities - Answer:✅✅C. Laws that apply to the policy forms approved by the state in which the policy was issued
- When changes are made to escrow instructions, who must agree to them?
A. The escrow agent B. The buyer C. The seller D. Both the buyer and the seller - Answer:✅✅D. Both the buyer and seller
- Which of the following is a private restriction?
A. A building code B. A restriction placed on a property through neighborhood association C. A federal handicap or disability requirement placed for business property D. A zoning regulation - Answer:✅✅B. A restriction placed on a property through neighborhood association
- Under the FCRA, reasons consumer reports can be issued include each of the following EXCEPT:
A. To a person who intends to use the information for employment purposes B. To a person who intends to use the information for collection purposes C. To a person who intend to use the information do find out if a neighbor has credit troubles D. To a person who intends to use the information in connection with a credit transaction involving the consumer for the extension of credit - Answer:✅✅C. To a person who intend to use the information do find out if a neighbor has credit troubles
- The HUD-1 Settlement Statement is generally prepared by:
A. The real estate agent B. The lender C. The title company D. The abstractor - Answer:✅✅C. The title company
- If a joint tenant sells their interest in a property, the tenancy becomes:
A. Tenants in common B. Sole owner C. Life estate tenant D. All of the above - Answer:✅✅A. Tenants in common
- A power of attorney ceases when:
A. The power of attorney is revoked B. The person granting the power dies C. The family attorney overrides the document D. All of the above - Answer:✅✅B. The person granting the power dies
- Schedule BI of a title commitment is reserved for:
A. Exceptions from coverage B. Requirements C. The legal description D. Endorsements to coverage - Answer:✅✅B. Requirements
- To provide notice that a mortgage has been paid off, the law requires that a satisfaction/release is
A. Recorded at the courthouse where the property is located B. Mailed to the borrower C. All of the above D. None of the above - Answer:✅✅C. All of the above
- Releasing a mortgage is the responsibility of:
A. The buyer B. The seller C. The mortgagee D. The court house - Answer:✅✅C. The mortgagee
- If a surveyor comes out and places property stakes in your property, the type of service he is providing is a:
A. Location survey B. Boundary Survey C. All of the above D. None of the above - Answer:✅✅B. Boundary Survey
- In a foreclosure sale, all interested parties, including creditors:
a. Have a right to notice b. Must be present at the foreclosure c. Must execute the foreclosure deed d. None of the above - Answer:✅✅A. Have a right to notice
- An acceleration clause in a deed of trust:
a. Allows the borrower to pay off their mortgage early without penalty b. Does not allow the borrower to pay their mortgage off early c. Allows the lender to demand the balance due upon default d. None of the above - Answer:✅✅C. Allows the lender to demand the balance due upon arrival
- RESPA is regulated by:
a. Frannie Mae b. Department of Housing and Urban Development B. Freddie Mac C. Salle Mae - Answer:✅✅B. Department of Housing and Urban Development
A. Events occurring before the issuance of a policy B. Events occuring after the issuance of a policy C. All of the Above D. None of the above - Answer:✅✅A. Events occurring before the issuance of policy
- Pursuant to RESPA, the title company used to conduct a closing should be chosen by'
A. The real estate agent B. The seller C. The lender D. The buyer - Answer:✅✅D. The Buyer
- If a title company is offering a reissue rate the title search will probably be
A. A 60-year search B. A 20-year search C. A bring to date D. A 30-year search - Answer:✅✅C. A bring to date
- In a refinance transaction, the title company may use an abbreviated one page HUD- statement called:
A. HUD-1 Addendum B. HUD-1 Supplement C. HUD-1A D. None of the above - Answer:✅✅C. HUD-1A
- RESPA entitles a borrower to receive the closing disclosure form at least:
A. 10 days before settlement B. 5 days before settlement C. 3 days before settlement D. 1 day before settlement - Answer:✅✅D. 1 Day before settlement
- The HUD-1 settlement statement is:
A. 1 Page B. 2 Pages C. 3 Pages D. 4 Pages - Answer:✅✅C. 3 Pages
- In an insurance contract, what is the material fact?
A. A circumstance which directly and accidentally causes loss or damage to a property B. A fact which would prompt an insurer to decline an insurance application or not cover the risk related to the fact C. A statement made by a witness to the signing of the contract D. A misstated zip code in the applicant's address - Answer:✅✅B. A fact which would prompt an insurer to decline an insurance application or not cover the risk related to the fact
- A _______________ trust's terms cannot be changed.
A. Testamentary B. Revocable C. Irrevocable D. Intervivos - Answer:✅✅C. Irrevocable
- Who. does an escrow agent represent?
A. Buyer B. The Court C. Both Buyer and Seller D. Seller - Answer:✅✅C. Both Buyer and Seller
- The legal concept that puts the insurance company in the place of the insured for the purpose of claiming rights to the amounts it has paid, and should rightfully be paid by another party is:
A. Substitutious B. Subrogation C. Substitution D. Simulation - Answer:✅✅B. Subrogation
A. A computerized data base with all probate records B. A public file in which all records related to a probate estate are placed C. A registration of probate that contains records of estate proceedings D. A probate court which settles matters concerning estate proceedings - Answer:✅✅B. A public file in which all records related to a probate estate are placed.
- Each of the following may be listed as "Requirements" of the insured in Schedule B of the Commitment EXCEPT:
A. The insured must pay the insurer the premium, fees and charges for the policy B. The insured must notify the insurer of anyone not referred to in the Commitment who will get an interest in the land or will make a loan on the land C. The insured must provide a survey to the insurer of the land to be insured D. The insured must have documents signed, delivered and recorded that are satisfactory to the insurer that create the interest in the land and/or mortgage to be insured - Answer:✅✅C. The insured must provide a survey to the insurer of the land to be insured
- A title contract that states that if condition it contains are satisfied, a title will be issued is a:
A. Commitment B. Convent C. Compact D. CCR - Answer:✅✅A. Commitment
- To dispose of the Northwest Territory, the United States government passed legislation in 1785 to begin using a survey system called:
A. The Public Land Survey System B. The Thomas Jefferson Land Lot System C. The Meridian and Baseline system D. The Northwest Survey System - Answer:✅✅A. The Public Land Survey System
- An agent regularly allows insureds to pay premiums a few days late and then the insures try to deny a claim to the insured because the premium was a few days late. What legal doctoring would be applicable in this case?
A. Warranty
B. Arrete C. Estoppel D. Waiver - Answer:✅✅C. Estoppel
- In an insurance contract, who makes the offer?
A. The government B. The insurer C. The agent D. The applicant - Answer:✅✅D. The applicant
- Prorations appear on the closing statement as:
A. Pluses and minuses B. Superior and inferior numbers C. Debits and credits D. Positives and negatives - Answer:✅✅C. Debits and credits
- In the order of intense distribution in most states, who would be second online to receive a deceased property?
A. Parents B. Siblings C. Children D. The surging spouse - Answer:✅✅C. Children
- The priority of judgement liens is generally based on their timing as compared with other liens against the property. The legal principal that applies is:
A. "First in time, first in right" B. "Longer the delay, the later the priority" C. "Priority is king" D. "The later the priority, the better the lien" - Answer:✅✅A. First in time, first in right
- A tract index list all of the transactions relating to:
- Schedule _____ includes the amount of insurance, name of insured, and the legal description. - Answer:✅✅Schedule A
- Schedule _____ includes the requirements, exceptions from coverage, and open mortgage. - Answer:✅✅Schedule B
- Schedule ______ includes the requirements ONLY. - Answer:✅✅Schedule BI
- Schedule _______ includes the exceptions ONLY. - Answer:✅✅Schedule BII
- A ______________ _______________ deed only guarantees protection from things that happened under the current property owner. - Answer:✅✅Special Warranty Deed
- A ________________ ________________ deed is used if the grantor warrants a property against claims forever, and guarantees protection. - Answer:✅✅General Warranty Deed
- A _____________________ deed offers the least amount of protection to the buyer. - Answer:✅✅Quitclaim Deed
- An __________ policy is used for a home buyer. - Answer:✅✅Owner's Policy
- A ____________ policy is generally used in a refinance transaction. - Answer:✅✅Lender's Policy
- A _____________ policy is used for a renter. - Answer:✅✅Leasehold Policy
- A ______________ policy is used by a contractor. - Answer:✅✅Construction Policy
- __________ ______________ ____________ are competitive, and must be filed by the underwriter. - Answer:✅✅Title Insurance Rates
- __________ ______________ _____________ are calculated based on loan amounts and/or purchase price, and are filed with the commissioner of insurance. - Answer:✅✅Title Premium Rates
- RESPA stands for... - Answer:✅✅Real Estate Settlement Procedures Act
- A _______________ _____________ is used if you pay ground rent. - Answer:✅✅Leasehold Estate
- A ______ ___________ ________________ is 100% transferrable and is the most common. - Answer:✅✅Fee Simple Estate
- A _______ ____________ says that when someone dies, the property is then transferrable. - Answer:✅✅Life Estate
- In reinsurance, which party is the ceding insurer?
A. The government B. The third party, presiding insurer C. The insurer who originally wrote the policy D. The insurer to whom the policy shifted - Answer:✅✅C. The insurer who originally wrote the policy
- A stream changes its channel, and land is removed, this is known as:
A. Avulsion B. Accretion C. Accession D. Easement - Answer:✅✅A. Avulsion
- The obligation insured by the insured mortgage under the loan policy is the:
A. Insured B. Policy subject C. Indebtness D. Insurance liability - Answer:✅✅C. Indebtness
- If mineral rights have been separated from few simple estate then:
A. There are no endorsements available B. They cannot separate from land C. They are never stated as an exemption of coverage D. They are not insurance - Answer:✅✅D. They are not insurance
- When was the first title insurance policy done? - Answer:✅✅The 1800s
- A __________ ____________ gives the borrowers rights and the lenders interest in the property. - Answer:✅✅Granting Clause
- An _______________ ______________ allows the mortagee to demand payment in full if the borrower is in default. - Answer:✅✅Acceleration Clause
- The ________________ of ____________ gives the mortgagor title to the property and the ability to use it as collateral. - Answer:✅✅Covenant of Seisin
- The _________ on ________ Clause prohibits the mortgagor from selling or transferring the property without written consent from the mortgagee. - Answer:✅✅Due on Sale Clause
- When the same buyer pays off a mortgage note or loan and a new mortgage for the buyer is created with the same property as security, the transaction is:
A. A refinance B. A purchase money mortgage C. A transfer of conveyance D. A reverse mortgage - Answer:✅✅A. A Refinance
- The type of transaction that enable the seller to get someone into the house quickly where the seller holds the title and the buyer has time to save for the down payment and arrange for the financing of the mortgage is:
A. A purchase money mortgage transaction
B. A non purchase mortgage transaction C. A lease option transaction D. A ground lease transaction - Answer:✅✅C. A lease option transaction
- A conditional conveyance of real property as security for the payment of debt or the fulfillment of some obligation is a:
A. Lien B. Mortgage C. Deed of trust D. Land trust - Answer:✅✅B. Mortgage
- _____________ ____________ is when people purchase insurance due to high risk. - Answer:✅✅Adverse Selection
- What is the main purpose of reinsurance? - Answer:✅✅To increase the ceding insurers capacity to write business.
- Where can a titles true marketability be tested?
A. In court B. At a property C. At a notary office D. In an insurers office - Answer:✅✅A. In Court
- In real estate, marketability is often used as a synonym for:
A. Unacceptability B. Transferability C. Insurability D. Agreeability - Answer:✅✅B. Transferability
- _____________ ________________ can be used as an Environmental Protection Lien, Planned Unit Development, or Condominium. - Answer:✅✅Policy Endorsements
- ___________ ________ is a private corporation dealing in the purchase of first mortgages.
- Answer:✅✅Fannie Mae (FNMA)
- ____________ ______ is a Federal Agency that purchases both conventional and federally insured first mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System. - Answer:✅✅Freddie Mac
- __________ _______ is a wholly-owned US corporation that guarantees privately issued securities backed by pools of mortgages insured by FHS, FMHA, or VA. - Answer:✅✅Ginnie Mae
- HUD stands for... - Answer:✅✅Department of Housing and Urban Development
- __________ is the federal department responsible for the major housing programs in the United States. - Answer:✅✅HUD
- ___________ is a form settlement statement required by HUD where federally related mortgages are being made on residential properties. - Answer:✅✅HUD 1
- ______________ is a sum of money owed as a debt on which interest is payable. - Answer:✅✅Principal
- A ________ _________ deed is one that does not imply that the grantor holds title, but that surrenders and gives to the grantee any possible interest or rights that the grantor may have in the property. - Answer:✅✅Quit Claim Deed
- __________ _________ is an action in proper court to remove record defects or possible claims of other parties named in the action. - Answer:✅✅Quiet Title
- REIT stands for.... - Answer:✅✅Real Estate Investment Trust
- _________ is a product of federal tax legislation formed as a business trust, under a special statute or as a corporation for the purpose of investing in real estate or mortgages on real estate. - Answer:✅✅REIT
- ___________ is a combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy and dispose of real estate or an inheritable right or interest therein. - Answer:✅✅Title
- __________ _______ is a geographically filed assemblage of title information that helps in expediting title examinations. - Answer:✅✅Title Plant
- ___________ _________ is an examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate. - Answer:✅✅Title Search
- A _________ is a particular parcel of land. - Answer:✅✅Tract
- An _______________ is an insurance company that issues insurance policies to the public or to another insurer. - Answer:✅✅Underwriter
- A _______________ _________ is a legal instrument used to transfer interest in real property in which the grantor guarantees no defects in title as far back as the origins of the property. - Answer:✅✅Warranty Deed
- ______________ is law passed by local governments regulating the size, type, structure, nature and use of land or buildings. - Answer:✅✅Zoning
