Contracts, Transfer, and Escrow Practice Question

Question

An investor is comparing two properties involving title insurance. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 157)

Answer choices

1. A. Distinguish owner and lender title policy protection.
2. B. It allows a salesperson to act independently of the responsible broker.
3. C. It shifts all responsibility to escrow and eliminates the broker’s duties.
4. D. It makes oral promises enforceable in every real estate transaction.

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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