12.4 Flashcards
_____reimburses the buyer for losses from certain types of title problems discovered after closing and anytime during the owner’s period of ownership
Title insurance
Does Title Insurance cover problems resulting from governmental action (like zoning changes or condemnation).
No - never
How is title insurance paid
paid at closing with one premium payment
T/F: An owner’s policy lasts as long as the policy holder or her heirs own the property.
True
T/F: Even without a third-party making a claim against the owner, if a covered defect is discovered, the title company may have to pay the owner compensation for the reduced value of the property.
True
Riders aka
Endorsements
CLTA
California Land Title Association
ALTA
American Land Title Association
Lenders policy aka ___ aka ____
Mortgagee’s policy
ALTA policy
Buyers policy aka
Homeowners policy
______ insurance: Escrow holder at Seller’s expense will purchase a CLTA/ALTA homeowner’s policy of title insurance for the benefit of Buyer
Buyers title insurance
T/F: If the buyer requests Any riders or additional coverage past the Buyer’s Title Insurance, they will be at Buyer’s expense.
True
____ policy benefits the lender;
____ policy benefits the buyer
Extended;
Homeowner
T/F: both extended policies and homeowners policies are based on a visual inspection of the property as well as a title search
True
T/F: Rebates, referral fees, and kickbacks are prohibited for title insurers
True
