ALTA Title Commitment 3

Question 1

Which of the following is typically listed as a standard exception in Schedule B-II of a title commitment?

Accepted Answer

Rights or claims of parties in physical possession not shown by the public records

Answer

Rights of parties in possession are a standard exception because tenants, adverse possessors, or others in possession may have claims that do not appear in recorded public records.

Question 2

Unrecorded mechanic's liens are listed as a standard exception in a title commitment because:

Accepted Answer

Potential lien claims for recent work may not yet be reflected in the public records

Answer

Unrecorded mechanic's liens are a standard exception because contractors or suppliers may have lien rights for work performed before closing that have not yet been recorded.

Question 3

The standard exception for 'easements or claims of easements not shown by the public records' is intended to protect the insurer against:

Accepted Answer

Claims of easement rights based on prescriptive use, implication, or other non-recorded means

Answer

This exception protects the insurer against claims of easements arising from prescriptive use, necessity, or implication that would not appear in any recorded instrument.

Question 4

In a title commitment, taxes that have been assessed but are not yet due and payable are typically:

Accepted Answer

Listed as a Schedule B-II exception that remains in the final policy

Answer

Taxes assessed but not yet due are typically listed as a Schedule B-II exception because they represent a future obligation affecting title that cannot be 'cleared' before they become due.

Question 5

The standard exception for 'any facts, rights, interests, or claims that could be ascertained by an inspection of the land' is designed to:

Accepted Answer

Exclude matters that a physical survey or on-site inspection might reveal but public records do not show

Answer

This exception excludes matters visible from a physical inspection—such as adverse possession, encroachments, or boundary disputes—that would not appear in a search of public records.

ALTA - American Land Title Association Practice Test

ALTA - American Land Title Association Practice Test

ALTA Title Commitment 3