ACP Title Search & Real Estate Closings 2

Question 1

What is a 'chain of title' in real estate?

Accepted Answer

The chronological sequence of ownership transfers for a property

Answer

The chain of title is the historical sequence of all recorded ownership transfers from the original grant to the current owner.

Question 2

Which document is recorded to release a satisfied mortgage lien from the public record?

Accepted Answer

Deed of reconveyance or satisfaction of mortgage

Answer

A satisfaction of mortgage (or deed of reconveyance in deed-of-trust states) is recorded to show the lien has been paid and released.

Question 3

A 'cloud on title' refers to:

Accepted Answer

Any outstanding claim or encumbrance that impairs the marketability of title

Answer

A cloud on title is any recorded or unresolved interest that casts doubt on the owner's clear ownership.

Question 4

At closing, the HUD-1 Settlement Statement was replaced by which form under TRID rules?

Accepted Answer

Closing Disclosure (CD)

Answer

TRID (TILA-RESPA Integrated Disclosure) replaced the HUD-1 with the Closing Disclosure for most residential mortgage transactions.

Question 5

Which type of deed provides the MOST protection to a buyer because the grantor warrants title against all prior claims?

Accepted Answer

General warranty deed

Answer

A general warranty deed includes covenants that the grantor will defend the buyer's title against any and all claims, even those arising before the grantor's ownership.

(ACP) Advanced Certified Paralegal Practice Test

(ACP) Advanced Certified Paralegal Practice Test

ACP Title Search & Real Estate Closings 2