Fundamentals of Surveying (FS) Practice Exam

What type of title insurance is often used to guarantee clear title?

1. Possession insurance

2. Title abstract

3. Warranty deed

4. Title guarantee

The correct answer is: Title guarantee

Title guarantee is a type of title insurance that provides protection for the buyer against potential defects in the title of the property they are purchasing. This insurance assures the buyer that the title is clear of any liens, encumbrances, or claims that could adversely affect their ownership and right to the property. It serves as a safeguard, recognizing that issues may arise that were not uncovered during the initial title search but could impact the buyer's interest in the property. In real estate transactions, guaranteeing a clear title is crucial because it protects the financial investment of the buyer and assures them of legal ownership without the risk of future disputes over title issues. Title guarantee typically involves a thorough examination of public records and other relevant documents that affirm the legitimacy of the property’s title. Other options, such as possession insurance, title abstract, and warranty deed, do not provide the same level of financial protection for title defects. Possession insurance does not focus on the title itself but rather on the physical occupation of the property. A title abstract is a summary of the title history but does not provide insurance coverage against defects. A warranty deed guarantees that the seller holds clear title and conveys it to the buyer; however, it does not protect the buyer after the sale from undiscovered defects that