In a standard California residential transaction, who typically selects the title insurance company?
Correct Answer
A) The party who pays for the title insurance policy, which varies by local custom in different California counties
In California, the selection of the title insurance company typically follows local custom and is generally made by the party who pays for the policy. In Southern California counties, the seller customarily selects and pays for the title company. In Northern California counties, the buyer often selects the title company. These are customs, not legal requirements, and are negotiable in the purchase agreement.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Transfer Of Property Question
Background Knowledge for Transfer Of Property
Real World Application in Transfer Of Property
Common Mistakes to Avoid on Transfer Of Property Questions
Related Topics & Key Terms
Key Terms:
More Transfer Of Property Questions
Determining who pays what at closing involves:
Closing is always the _____ step in real estate transactions.
Depreciation on rental property for federal tax purposes is calculated over:
A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A property owner in Ventura County, California, signs a grant deed transferring his home to his friend but places the deed in his safe deposit box with instructions to deliver it upon his death. The owner dies two years later, and the deed is found. Under California law, is this a valid transfer?
Next Question
A California buyer purchased property via grant deed from a seller who had acquired title through a tax sale. The buyer obtained a CLTA standard title insurance policy at closing. Five years later, the original owner challenges the tax sale, alleging defective proceedings that are evidenced by irregularities in the recorded tax sale documents. Under a CLTA standard policy, what is the title insurer's obligation?