ACP Title Search & Real Estate Closings 3

Question 1

In a deed of trust arrangement, who holds legal title during the loan repayment period?

Accepted Answer

The trustee

Answer

In a deed of trust, the trustee holds bare legal title as security until the loan is paid; the borrower holds equitable title and possession.

Question 2

What does a paralegal typically verify when reviewing a survey at a real estate closing?

Accepted Answer

Boundary lines, encroachments, easements, and the legal description match the deed

Answer

The survey is reviewed to confirm the property's boundaries, identify encroachments onto or from adjacent parcels, and verify easements shown match the title commitment.

Question 3

Which closing cost is typically prorated between buyer and seller at closing?

Accepted Answer

Real property taxes

Answer

Real property taxes are prorated so the seller pays for the portion of the tax year they owned the property and the buyer pays for their portion.

Question 4

A lis pendens recorded against a property notifies potential purchasers that:

Accepted Answer

Litigation is pending that may affect title to the property

Answer

Lis pendens (Latin: 'suit pending') is a recorded notice that a lawsuit has been filed that could affect ownership of the described real property.

Question 5

What is an 'abstract of title'?

Accepted Answer

A condensed history of all recorded instruments and encumbrances affecting a parcel of land

Answer

An abstract of title is a chronological summary prepared by an abstractor that compiles all relevant recorded documents affecting the property's title.

(ACP) Advanced Certified Paralegal Practice Test

(ACP) Advanced Certified Paralegal Practice Test

ACP Title Search & Real Estate Closings 3