Principles, Property, and Land Use Practice Question

Question

A closing coordinator flags an issue before settlement for the Indiana Real Estate Broker Exam involving title insurance and broker affiliation and supervision. Which statement is most accurate for exam purposes? (Item 40)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. The client’s preference eliminates the need to disclose known material facts.
3. C. The party who complains first automatically receives the remedy requested.
4. D. Recognize protection against covered title defects in a way that fits Indiana exam practice.

Correct Answer

D. Recognize protection against covered title defects in a way that fits Indiana exam practice.

Explanation

The correct answer is D because title insurance requires candidates to recognize protection against covered title defects. The Indiana reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.

Question details

• Difficulty: hard
• Domain: Principles, Property, and Land Use
• Objective: title insurance

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