MD Pre-Licensing Title Insurance Prep - Set 2
1. When an insurance company obtains the rights and claims of an insured, it
is called subrogation
A.True
B.False: A.True
2. In a foreclosure action, a buyer has a right to
A. Mediation
B. Redemption
C. AOTA
D. NOTA: C. AOTA
3. All of the following are legal descriptions EXCEPT
A. Metes and bounds
B. Lot and block/Plat
C. Rectangle/Government
D. Torrens Survey: D.Torrens Survey
4. A military power of attorney may be used in a real estate transaction
although it does not conform to the general requirements of powers of
attorneys in Maryland. They must conform to federal law.
A. True
B. False: A. True
5. A fixture is personal property attached to land or a building.
A. True
B. False: A. True
6. A person transferring title is the
A. Grantee
B. Grantor
C. Receiver
D. NOTA: B. Grantor
7. With an adjustable rate mortgage, the mortgage rate can increase or
decrease pursuant to the terms of a loan.
, MD Pre-Licensing Title Insurance Prep - Set 2
A. True
B. False: A. True
8. A borrower with a balloon note can expect to pay a large payment to the
lender as the last and final payment.
A. True
B. False: A.True
9. A conveyance deed returns title to a trustor and is usually executed by a
trustee
A. True
B. False: A. True
10. Involuntary Alienation is when property is transferred by operation of law
A. True
B. False: A. True
11. When a deed is executed before a notary, the declaration is called an
acknowledgement
A.True
B.False: A. True
12. Real estate liens and tax liens are public records
A.True
B.False: A.True
13. A marketable title
A. Does not have defects
B. Does not expose the buyer to litigation
C. Provide protection to the purchaser if they try to sell it later
D. AOTA: D. AOTA
14. The UCC (uniform commercial code) governs liens related to personal
property.
A. True
, MD Pre-Licensing Title Insurance Prep - Set 2
B. False: A. True
15. Priority is established by the date and time a deed of trust is recorded.
A. True
B. False: A. True
16. Priority of a mortgage or deed of trust may be changed by
A. An insurance contract
B. A Subordination agreement
C. A Satisfaction
D. NOTA: B. A Subordination agreement
17. An assumption occurs when a new owner (or new mortgagor) takes the
responsibility to pay the balance of a mortgage owed by a previous owner.
A. True
B. False: A. True
18. A title insurance producer can be
A. An individual that provides closing and settlement services
B. Title insurance insurer
C. A person that solicits title insurance
D. AOTA: D. AOTA
19. A title producer's license is issued by the
A. Attorney General's office
B. Maryland Insurance Commissioner
C. The state assessment office
D. The clerk of the court: B. Maryland Insurance Commissioner
20. To receive a title producer's license, an applicant must be at least
A. 21 years old
B. 18 years old
C. 16 years old with a parent's consent
D. 20 years old: B. 18 years old
21. All of the following information are reflected on a license EXCEPT
1. When an insurance company obtains the rights and claims of an insured, it
is called subrogation
A.True
B.False: A.True
2. In a foreclosure action, a buyer has a right to
A. Mediation
B. Redemption
C. AOTA
D. NOTA: C. AOTA
3. All of the following are legal descriptions EXCEPT
A. Metes and bounds
B. Lot and block/Plat
C. Rectangle/Government
D. Torrens Survey: D.Torrens Survey
4. A military power of attorney may be used in a real estate transaction
although it does not conform to the general requirements of powers of
attorneys in Maryland. They must conform to federal law.
A. True
B. False: A. True
5. A fixture is personal property attached to land or a building.
A. True
B. False: A. True
6. A person transferring title is the
A. Grantee
B. Grantor
C. Receiver
D. NOTA: B. Grantor
7. With an adjustable rate mortgage, the mortgage rate can increase or
decrease pursuant to the terms of a loan.
, MD Pre-Licensing Title Insurance Prep - Set 2
A. True
B. False: A. True
8. A borrower with a balloon note can expect to pay a large payment to the
lender as the last and final payment.
A. True
B. False: A.True
9. A conveyance deed returns title to a trustor and is usually executed by a
trustee
A. True
B. False: A. True
10. Involuntary Alienation is when property is transferred by operation of law
A. True
B. False: A. True
11. When a deed is executed before a notary, the declaration is called an
acknowledgement
A.True
B.False: A. True
12. Real estate liens and tax liens are public records
A.True
B.False: A.True
13. A marketable title
A. Does not have defects
B. Does not expose the buyer to litigation
C. Provide protection to the purchaser if they try to sell it later
D. AOTA: D. AOTA
14. The UCC (uniform commercial code) governs liens related to personal
property.
A. True
, MD Pre-Licensing Title Insurance Prep - Set 2
B. False: A. True
15. Priority is established by the date and time a deed of trust is recorded.
A. True
B. False: A. True
16. Priority of a mortgage or deed of trust may be changed by
A. An insurance contract
B. A Subordination agreement
C. A Satisfaction
D. NOTA: B. A Subordination agreement
17. An assumption occurs when a new owner (or new mortgagor) takes the
responsibility to pay the balance of a mortgage owed by a previous owner.
A. True
B. False: A. True
18. A title insurance producer can be
A. An individual that provides closing and settlement services
B. Title insurance insurer
C. A person that solicits title insurance
D. AOTA: D. AOTA
19. A title producer's license is issued by the
A. Attorney General's office
B. Maryland Insurance Commissioner
C. The state assessment office
D. The clerk of the court: B. Maryland Insurance Commissioner
20. To receive a title producer's license, an applicant must be at least
A. 21 years old
B. 18 years old
C. 16 years old with a parent's consent
D. 20 years old: B. 18 years old
21. All of the following information are reflected on a license EXCEPT
