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Pass California

Transfer of Property, 8% of the examination

Title insurance

An indemnity policy protecting against loss from defects in title.

A standard CLTA policy covers matters of record and certain off-record risks such as forgery and lack of capacity. An ALTA extended policy adds coverage for matters an inspection or a correct survey would disclose, including unrecorded easements, encroachments and rights of parties in possession. That difference is the most tested point about title insurance.

See also

RecordingEntering a document in the county public record, giving constructive notice and establishing priority.Preliminary reportAn offer to issue a title policy on stated terms. It is expressly not an abstract of title.

See it in a question

One question from Transfer of Property, so the term lands in the context the exam uses it in.

Transfer of Property ยท 8%Escrow

What is the essential function of an escrow in a California transaction?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Transfer of PropertyThe smallest area. Title insurance, deeds, escrow, tax aspects, and transfer under court supervision.8%Practise Transfer of Property16 questions on this area, every option explained.Practice

Other terms in this area