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Real estate glossaryNational exam concept

Insurable title

Insurable title is title a title insurer is willing to cover under a policy, subject to the policy's terms, exclusions, exceptions, limits, and premium.

Exam area: Transfer of Title

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What does “insurable title” mean in real estate?

Insurable title is title a title insurer is willing to cover under a policy, subject to the policy's terms, exclusions, exceptions, limits, and premium.

How is “insurable title” different from the closest wrong answer?

Insurable asks whether an insurer will accept specified risk. Marketable asks whether title is reasonably free from serious doubt and litigation risk.

What is the Georgia-specific rule?

A Georgia closing may use title insurance to protect owner or lender interests, but the policy does not repair every defect or replace the deed's title covenants.

Worked exam example

Scenario

An insurer issues a policy while expressly excepting a recorded easement. The title is insurable on those terms even though the exception remains.

What is the most common exam trap?

Trap correction

Covered and clear are not synonyms. Read the policy exceptions.

Original exam check

Apply the definition

A title company will insure a lot but lists an exception for a recorded drainage easement across the back yard. The buyer says, "Great, so the title is clear." What is the most accurate response?

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Recommended next complete lesson

Continue with Transfer of Title complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.