Real Property Flashcards
Question #9 (AICPA.111179REG)
A purchaser who obtains real estate title insurance will
A. Have coverage for the title exceptions listed in the policy.
B. Be insured against all defects of record other than those excepted in the policy.
C. Have coverage for title defects that result from events that happen after the effective date of policy.
Title insurers only cover up to the time of transfer and not for things that the parties do to the title after closing.
D. Be entitled to transfer the policy to subsequent owners.
B. Be insured against all defects of record other than those excepted in the policy.
The title policy protects against these types of defects unless specifically excluded.
Wron answer
C. Have coverage for title defects that result from events that happen after the effective date of policy.
Title insurers only cover up to the time of transfer and not for things that the parties do to the title after closing.
Rich purchased property from Sklar for $200,000. Rich obtained a $150,000 loan from Marsh Bank to finance the purchase, executing a promissory note and a mortgage. By recording the mortgage, Marsh protects its
A. Rights against Rich under the promissory note.
Recording is not needed to protect the rights of the immediate parties.
B. Rights against the claims of subsequent bona fide purchasers for value.
C. Priority against a previously filed real estate tax lien on the property.
D. Priority against all parties having earlier claims to the property.
B. Rights against the claims of subsequent bona fide purchasers for value.
The purpose of recording is to keep the rights of the original parties intact and protect against future transfers or recorded rights.
A. Rights against Rich under the promissory note.
Recording is not needed to protect the rights of the immediate parties.
