Contracts, Transfer, and Escrow Practice Question

Question

A salesperson is explaining a concept to a client involving title insurance. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 117)

Answer choices

1. A. Distinguish owner and lender title policy protection.
2. B. It is primarily a tax rule with no effect on brokerage practice.
3. C. It removes the need for written disclosure if the licensee believes the client already knows.
4. D. It can be ignored if the transaction is expected to close quickly.

Correct Answer

A. Distinguish owner and lender title policy protection.

Explanation

The correct answer is A because title insurance requires candidates to distinguish owner and lender title policy protection. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.

Question details

• Difficulty: medium
• Domain: Contracts, Transfer, and Escrow
• Objective: title insurance

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