Tennessee Real Estate License Exam Practice Question
Standard title insurance would protect a buyer
Correct Answer: A
Rationale: Standard title insurance protects buyers from defects in the title that may affect ownership rights.
Option A is valid as it covers situations where a seller forges a signature, which creates a significant title defect that insurance would address.
Option B is incorrect because standard title insurance typically does not cover liens placed after the sale, particularly those related to the previous owner's debts.
Option C is wrong since knowledge of a property issue, like a shed violating setback requirements, can void coverage as buyers are expected to conduct due diligence.
Option D is misleading; while discovering a tenant may be problematic, it does not relate to title defects and thus would not be covered by title insurance.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now