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MD Pre-Licensing Title Insurance Prep
- Set 3 Exam 114 Questions and
Answers (A+ Solution Guide)
A licensed title producer is authorized to sell and/or solicit title insurance on behalf of:
A. The Maryland Insurance Commissioner
B. The appointing title insurer
C. All title insurers
D. The State of Maryland - Answer:✅✅C. All title insurers
The tenancy most often selected by married couples taking title of real property is?
A. Joint tenants
B. Tenants in common
C. Tenants by the entirety
D. Tenant in severalty - Answer:✅✅C. Tenants by the entirety
The insured closing protection letter is issued by the title insurance underwriter and is always requested by this party?
A. Seller
B. Buyer
C. Title Producer
D. Lender - Answer:✅✅D. Lender
A deed that contains warranties that are not limited or restricted in its scope to the current seller is said to be this type of deed:
A. Trustee's deed
B. Quit Claim deed
C. Special Warranty deed
D. General Warranty deed - Answer:✅✅D. General Warranty deed
A licensed title insurer may issue?
A. Title insurance only
B. Title and property insurance
C. Title, property and casualty insurance
D. Life insurance - Answer:✅✅A. Title insurance only
A title insurance producer who receives an inquiry from the Maryland Insurance Administration MUST reply as directed by the:
A. Underwriter
B. Insurer
C. Commissioner
D. Maryland Insurance Administration - Answer:✅✅C. Commissioner
The MD Insurance Commissioner does NOT have the authority to examine what?
A. Final records of policyholders
B. Financial condition of insurers
C. Proceeds raised for the purpose of organizing an insurer
D. Accounts of insurance producer, surplus, lines, brokers or adjusters - Answer:✅✅C. Proceeds raised for the purpose of organizing an insurer
Title insurance premiums are filed with the Maryland Insurance Administration and remain in effect for how long?
A. 5 years
B. 7 years
C. 12 years
D. Until reviewed and approved - Answer:✅✅D. Until reviewed and approved
A. Felony
B. Speeding ticket
C. Not meeting minimum production goals
D. Not passing the title producer pre-licensing course - Answer:✅✅A. Felony
The Maryland Insurance Commissioner is not responsible for:
A. Approving insurance rates
B. Approving policy forms
C. Administering insurance laws
D. Endorsing insurers - Answer:✅✅D. Endorsing insurers
Title insurance premiums are paid how often?
A. Weekly
B. Monthly
C. Annual
D. Single - Answer:✅✅D. Single (One time payment)
Which of the policies protects a lender from damages resulting from a title defect?
A. Mortgage guaranty
B. Loan
C. Leasehold owner's
D. Owner's - Answer:✅✅B. Loan
This relationship best describes the relationship between title insurance producer (TIP) and a title insurance producer independent contractor (TIPIC)?
A. Joint venture
B. Controlled business association
C. Employer and employee
D. Principal and agent - Answer:✅✅D. Principal and agent
Maryland title insurance policy does not insure against loss resulting from:
A. Title defect
B. Lack of a right of access to and from the land
C. Unmarketability of the title
D. Exercise of police powers - Answer:✅✅D. Exercise of police powers
Which of the following endorsements is issued for a planned unit development?
A. Party wall endorsement
B. Planned community endorsement
C. Planned neighborhood endorsement
D. Planned unit development endorsement - Answer:✅✅D. Planned unit development endorsement
What privacy notice is required by the Maryland Insurance Administration?
A. Notice of the rescission regarding the transaction
B. The notice regarding errors and omissions concerning the transaction
C. A notice reflecting agency policy regarding non-public financial info/privacy
D. A notice regarding the condition of the property at the time of transaction - Answer:✅✅C. A notice reflecting agency policy regarding non-public financial info/privacy
In a residential transaction including a loan secured by a purchase money deed of trust, the title insurance producer must be certain that the loan has been funded before:
A. The final title bring-to-date
B. The seller executes an owner's affidavit
C. The effective date of the hazardous insurance policy
D. The deed of trust is executed and delivered - Answer:✅✅D. The deed of trust is executed and delivered
The payment of open taxes for a subject property would be inserted in what section of a title insurance commitment?
A. Exception
B. Endorsement
C. Requirement
D. Policy - Answer:✅✅C. Requirement
Both the title insurance commitment and the title insurance policy will include:
A. Endorsements
B. Exceptions
C. Requirements
D. Title Search - Answer:✅✅B. Exceptions
This party is required to prepare the title commitment.
A. Title Insurer
B. Title Underwriter
C. Title Agent/Producer
D. Title Searcher - Answer:✅✅C. Title Agent/Producer
This entity carries the risk of title insurance.
A. Title insurance producer
B. Title insurer (underwriter)
C. Title abstractor
D. Title searcher - Answer:✅✅B. Title insurer (underwriter)
A title insurance producer can act as this type of entity EXCEPT as this:
A. Attorney
B. Individual
C. Company
D. Controlled Business Association - Answer:✅✅D. Controlled Business Association
An attorney can establish this type of escrow account.
A. IOLTA
B. MAHT
C. Sweep
D. COMAR - Answer:✅✅A. IOLTA
A title search should always contain this type of date.
A. Effective date
B. Thru date
C. Closing date
D. Disbursement date - Answer:✅✅B. Thru date
A title insurance policy will always cover the period between closing and
A. Disbursement
B. Recording
C. Commitment
D. Policy - Answer:✅✅B. Recording
Proof of death or death certificate will be listed as this on the title commitment
A. Exception
B. Requirement
C. Endorsement
All of the following appear in a title insurance commitment EXCEPT
A. Requirements
B. Exceptions
C. Amount of coverage
D. Income or ability to pay - Answer:✅✅D. Income or ability to pay
All of the following are necessary for a complete title search EXCEPT
A.Search of property history
B.Search person(s)/judgment history
C.Search of grantor/grantee index
D.Search of employment history - Answer:✅✅D. Search of employment history
All of the following are exceptions in a policy EXCEPT
A.Easement
B.Deed restriction
C.Right of way
D.Interest rate - Answer:✅✅D. Interest rate
The effective date on a title commitment is
A. The date of the last deed transfer
B. The date of the last refinance
C. The date of the title search
D. The last date records are made available at the court house - Answer:✅✅D. The last date records are made available at the court house
All of the following are true EXCEPT
A. Loan policies insure the mortgage or note holder
B. Owner policies insure the owner
C. Construction loan policies are obsolete
D. Leasehold policies are for ground rent properties - Answer:✅✅C. Construction loan policies are obsolete
When a ground rent is redeemed with SDAT, the ground rent lease is
A. Cancelled and the property becomes fee simple
B. Extinguished and the property becomes fee simple
C. Waived and the property becomes fee simple
D. NOTA - Answer:✅✅B. Extinguished and the property becomes fee simple
All of the following are examples of endorsements EXCEPT
A. Environmental protection endorsement
B. Planned unit development endorsement
C. FHA mortgage endorsement
D. Condominium endorsement - Answer:✅✅C. FHA mortgage endorsement
MAHT was created to
A. To assist victims who suffer because of errors and omissions of title insurers
B. To assist with mortgage payment for low income homeowners
C. To assist with the purchase of property for low income individuals
D. To assist victims of fraud - Answer:✅✅C. To assist with the purchase of property for low income individuals
The concept that deeds and real estate contracts must be in writing is based on the
A. Statute of seisin
D. It protects against embezzlement, larceny and gross negligence - Answer:✅✅D. It protects against embezzlement, larceny and gross negligence
Which of the following is most unlikely to be a monument in a metes and bounds description?
A. Pipe in the ground
B. Jones Street
C. Oak Tree
D. Hay stack - Answer:✅✅D. Hay stack
Giving something of value in exchange to an insured to induce the purchase of an insurance policy is
A. Fraud
B. Negligence
C. Rebating
D. Commingling - Answer:✅✅C. Rebating
Who may prosecute an title agent for criminal violations
A. The Commissioner
B. The underwriter
C. The attorney general on behalf of the Commissioner
D. The clerk of the court - Answer:✅✅C. The attorney general on behalf of the Commissioner
The effective date of a Short Form Title Insurance Policy is
A. The recording date
B. The date documents are executed
C. The date the policy is submitted to the underwriter
D. The date the policy is submitted to the lender - Answer:✅✅B. The date documents are executed
Which schedules are contained in a title commitment?
A. Schedule A
B. Schedule BI
C. Schedule BII
D. AOTA - Answer:✅✅D. AOTA
If a grantor warrants a property against claims forever, he has executed a
A.Lease hold deed
B.Special warranty deed
C.General warranty deed
D.Quit claim deed - Answer:✅✅C. General warranty deed
A deed of trust must be executed by
A.Only the person executing the note
B.All parties that are on the deed to the subject property
C.AOTA
D.NOTA - Answer:✅✅B. All parties that are on the deed to the subject property
To show that a mortgage or deed of trust has been paid off, a title company may file with the court a copy of a payoff check and an affidavit as a release
A.True
B.False - Answer:✅✅A. True
All of the following items are generally prorated on a hud-1 settlement EXCEPT
A.Real estate taxes
Individual sellers who reside out of state are required to have taxes withheld when selling property. The amount of tax withheld is based on 7.5% of the total payment.
A. True
B. False - Answer:✅✅A. True
In a purchase transaction, a hud-1 settlement statement must be executed by
A. Buyer, seller and title company representative
B. Buyer and title company representative
C. Lender and title company representative
D. Buyer and lender - Answer:✅✅A. Buyer, seller and title company representative
Foreclosure property may be transferred
A. Immediatelyaftertheforeclosuresaletakesplace
B. Once all creditors receive notice
C. After the sale has been ratified by the Circuit Court
D. One year after the foreclosure sale takes place - Answer:✅✅C. After the sale has been ratified by the Circuit Court
What is the standard title search in Maryland?
A. 20 years
B. 30 years
C. 50 years
D. 60 years - Answer:✅✅D. 60 years
Which of the following is necessary to create an enforceable restriction on the use of land?
A. A personal agreement between the parties
B. A recorded covenant which touches and concerns land
C. An intention that the covenant run with the land
D. Language binding the successors and assigns of the parties - Answer:✅✅B. A recorded covenant which touches and concerns land
Which of the following title deeds pass no title to the buyer and are considered void?
A. Quit claim deed
B. Bargain and sale deed
C. Forged deed
D. Trustee deed - Answer:✅✅C. Forged deed
Title companies, which are not law firms, may prepare deeds and deeds of trust under the supervision of an attorney only if required by:
A. Customer
B. Title commitment
C. Realtor
D. Lender - Answer:✅✅B. Title commitment
A lender is permitted to fund money loan proceeds by:
A. Assignment of funds
B. Promissory note
C. Cashier check
D. Letter of debt - Answer:✅✅C. Cashier check
Which of the following is generally not recorded in the Land Records office?
A. Deed of conveyance
B. Restriction conveyance
A deed conveying real property by a debtor in Chapter 13 bankruptcy must be signed by:
A. Creditors of the debtor(s) after court approval
B. United States Bankruptcy judge
C. Chapter 13 trustee after approval by bankruptcy court
D. Record owner(s) as debtor in possession after approval by bankruptcy court - Answer:✅✅C. Chapter 13 trustee after approval by bankruptcy court
When the record owner of land deeds it to a revocable trust, a title is vested in whom?
A. The owner who created the trust
B. Personal representative of the owner
C. The trustee(s) of the trust
D. All beneficiaries of the trust - Answer:✅✅C. The trustee(s) of the trust
The requirements to obtain a release and satisfaction of an unreleased Deed of Trust is reflected in which of the following Schedule of a Title Insurance Commitment?
A. Schedule A
B. Schedule B-I
C. Schedule B-II
D. Schedule C - Answer:✅✅B. Schedule B-I
The primary purpose of requiring identification of a buyer and seller at settlement is to:
A. Comply with RESPA requirements
B. Check marital status
C. Verify the spelling of the name
D. Prevent fraud - Answer:✅✅D. Prevent fraud
The statutory period in Maryland to establish title to real property by adverse possession is:
A. 10 years
B. 12 years
C. 15 years
D. 20 years - Answer:✅✅D. 20 years
Who may handle escrow funds maintained in the title agency escrow account?
A. Attorney
B. Loan Officer
C. Licensed real estate agent
D. Title Producer - Answer:✅✅D. Title Producer
Which of the following is not considered when determining the redemption price of a redeemable ground rent?
A. Date the lease was created
B. A sum specified in the lease
C. A sum agreed to by the parties of the time of redemption
D. County where the property is located - Answer:✅✅D. County where the property is located
- Which of the following forms modify the terms of a title insurance policy?
A. Exhibit
B. Codicil
C. Endorsement
D. Addendum - Answer:✅✅C. Endorsement
What is the meaning of Metes and Bounds?
A. Insuring provisions
B. Legal description by lot and block
C. Legal square footage of a house
