LTGC Colorado Title Practice Test

A title search and examination focuses on identifying defects and encumbrances that could affect ownership and then deciding whether the title is insurable. The standard used is a reasonable examination of title, not an exhaustive audit, because the goal is to assess risk and determine insurability for a title insurance policy. The underwriter evaluates whether the title can be insured against covered risks and issues a commitment if it is insurable. Options that mention market value, quick reviews, premium estimates, or a guaranteed title don’t fit this purpose: market value isn’t part of the title search, premium estimates aren’t determined during the title examination, a quick review may miss defects, and a title cannot be guaranteed as perfect. So the two elements are a reasonable examination of title and determination of insurability.