What is the exam-ready answer?
| Roadmap lesson | 164 of 500 |
|---|---|
| Official syllabus topic | Finance and Closing: Closing Procedures |
| Official PSI group | Finance and Closing |
| Published group count | 15 of the 52 Georgia questions |
| Exam portion | Georgia salesperson supplement |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Law checked through | August 2, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes 16, 21, and 15 items for the three Georgia groups. It does not publish a guaranteed subtopic count. The statute, current GREC rule, contract, or other cited primary authority controls each lesson.
Complete lesson
Read these concepts as one Georgia decision system. A plausible national rule can still be the wrong answer when the stem supplies a Georgia statute, instrument, role, or procedure.
Title examination
The closing lawyer examines the chain and relevant records, identifies exceptions, and determines what releases, affidavits, probate steps, or other cures are needed.
Marketable title
A contract may require title free from reasonable doubt and unacceptable encumbrances, not absolute proof that no conceivable claim exists.
Lender policy
The lender's policy insures the lender's security interest up to policy terms. It does not protect the buyer's equity merely because the buyer paid a premium at closing.
Owner policy
The owner's policy covers the owner's insured interest against covered pre-policy defects, subject to exclusions, exceptions, conditions, and policy amount.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A buyer assumes the lender's title policy also protects the buyer from an undisclosed pre-closing lien.
Reason it through. The lender policy protects the lender's insured mortgage interest. The buyer needs an owner's policy for the owner's separate insured interest, subject to its terms.
Answer. The lender's policy alone does not provide the buyer with owner coverage.
Common exam traps
- Treating insurance as a cure
- Confusing lender and owner policies
- Promising absolute title
- Ignoring policy exceptions
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or a live examination. Choose an answer before opening the explanation.
Question 1Which statement best states the Georgia rule for Title Searches, Title Insurance, and Marketable Title in Georgia?
- A. Identify the defect, whether it appears in the search, the policy insured, coverage date and exceptions, and the cure required before closing.
- B. A lender's title policy automatically protects the buyer's equity.
- C. Title insurance removes every recorded lien from the record.
- D. Marketable title means no imaginable claim can ever be asserted.
Show answer and explanation →
Answer: A. Identify the defect, whether it appears in the search, the policy insured, coverage date and exceptions, and the cure required before closing.
The correct choice states the controlling rule. The other choices either remove a required element, replace Georgia authority with a generic assumption, or expand an exception beyond the cited source.
Question 2A buyer assumes the lender's title policy also protects the buyer from an undisclosed pre-closing lien.
- A. Ignore the Georgia-specific fact because good intentions control.
- B. The lender's policy alone does not provide the buyer with owner coverage.
- C. Apply the nearest national rule without checking Georgia authority.
- D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →
Answer: B. The lender's policy alone does not provide the buyer with owner coverage.
The lender policy protects the lender's insured mortgage interest. The buyer needs an owner's policy for the owner's separate insured interest, subject to its terms. The correct option follows that reasoning. The distractors ignore the controlling Georgia source, substitute intent for procedure, or give decision-making authority to the wrong person.
Question 3When solving Title Searches, Title Insurance, and Marketable Title in Georgia, what should a candidate identify first?
- A. The answer choice that sounds most ethical, without classifying the actor or document.
- B. One familiar deadline, applied to every Georgia transaction regardless of the source.
- C. Do not ask only whether insurance exists. Ask whose interest is insured, against which defect, from what date, and with what exception.
- D. A national default, even when the stem identifies a Georgia statute or GREC rule.
Show answer and explanation →
Answer: C. Do not ask only whether insurance exists. Ask whose interest is insured, against which defect, from what date, and with what exception.
The decision rule identifies the facts that control this topic. The other choices reward tone, a memorized number, or a national default while skipping the Georgia actor, document, authority, or procedure.
Mastery tracking
Mark this Georgia lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain all four concepts and identify the controlling Georgia source.
- Solve the worked example after changing one important fact.
- Reject every listed trap and explain what makes it tempting.
- Answer all three original questions correctly and explain every distractor.
- Repeat this topic in mixed Georgia practice on a later day.
Recommended next lesson
Continue with Promissory Note, Security Deed, Satisfaction, and Cancellation. Continue through the roadmap from lesson 164.
Return to the Finance and Closing hub for the complete official branch and every canonical lesson in this Georgia group.