NJ Title Insurance Producer Final Exam Set with Q&A

NJ Title Insurance Producer Final Exam Set with Q&A "A" and "B" bought a house as tenants in common. If "A" dies which of the following statements about ownership of the house is correct? A) It automatically becomes tenancy in severalty. B) It is divided, with B retaining their original interest and the balance going to A's estate. C) B holds fee simple ownership to A's share of the property D) B holds a life estate ownership to A's share of the property - CORRECT ANSWER-B) It is divided, with B retaining their original interest and the balance going to A's estate. The difference between the value of a property and the total amount of liens against it is known as: A) A down payment B) Equity C) Actual cash value D)Collateral - CORRECT ANSWER-B) Equity If a husband and wife take title to a property as tenants in common, they may also have elected to have: A) Title in severalty B) Separate life estates C) The right of survivorship D) Unequal shares of ownership - CORRECT ANSWER-D) Unequal shares of ownership A person who openly, continuously and hostilely occupies another's land for a period set by a statute may gain title by means of: A) Voluntary alienation B) Accretion C) Prescription D) Adverse possession - CORRECT ANSWER-D) Adverse possession Truth-In-Lending Act requires the lender to furnish an applicant for a real estate loan with a copy of an: A) Amorization schedule B) Disclosure statement C) Deed D) Financial statement - CORRECT ANSWER-B) Disclosure statement The seller is responsible for which of the following costs at closing: A) The realty transfer tax B) The title search C) The Deed recording fee D) Title insurance - CORRECT ANSWER-A) The realty transfer tax When private property is abandoned the state may acquire title to that property under the right of : A) Escheat B) Eminent domain C) Police power D) Taxation - CORRECT ANSWER-A) Escheat