CHCP Post-Closing Procedures & Recording 5

Question 1

A buyer discovers six months after closing that a recorded easement was not disclosed during the transaction. Which remedy is most appropriate?

Accepted Answer

File a claim under the owner's title insurance policy

Answer

Owner's title insurance covers losses from recorded easements that were not discovered or disclosed prior to closing.

Question 2

Which of the following statements is TRUE about a 'chain of title'?

Accepted Answer

It is a chronological history of all recorded instruments affecting a property

Answer

The chain of title is the complete chronological sequence of all recorded transfers and encumbrances affecting a parcel from its original grant to the present.

Question 3

When wiring seller proceeds after closing, what is the MOST critical verification step to prevent fraud?

Accepted Answer

Verify wire instructions verbally with the seller using a known phone number on file

Answer

Wire fraud is a major risk; closing agents should always verify wire instructions by calling the seller at a previously verified number, not relying solely on emailed instructions.

Question 4

What document formally transfers the seller's existing title insurance policy coverage to a new buyer?

Accepted Answer

A new owner's policy issued in the buyer's name

Answer

Owner's title insurance policies are not transferable; the new buyer must obtain a new policy issued in their name to have coverage.

Question 5

A closing agent receives loan funds from the lender before the loan documents are signed. The proper action is to:

Accepted Answer

Hold funds in a segregated trust account until all documents are properly executed

Answer

Loan funds must be held in a segregated trust or escrow account and may not be disbursed until all closing conditions, including document execution, are met.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP Post-Closing Procedures & Recording 5