American Land Title Association (ALTA) Practice Exam 2025 – Your Comprehensive All-in-One Guide to Success!

Question: 1 / 400

What is a primary function of a title company?

To facilitate mortgage loans

To oversee property inspections

To handle the issuance of title insurance and conduct title searches

A primary function of a title company is to handle the issuance of title insurance and conduct title searches. This involves researching public records to determine the legal ownership of a property and uncovering any potential issues that may affect the title, such as liens, easements, or other encumbrances. By ensuring that the title is clear, title companies protect buyers and lenders from future disputes over ownership and claims against the property.

Issuing title insurance is a crucial step in real estate transactions as it provides financial protection for homeowners and lenders in case any title issues arise after the purchase. This aspect of title work is fundamental to ensuring that real estate transactions proceed smoothly and that all parties involved have the necessary confidence in the property's ownership history.

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To provide real estate listing services

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