What is the exam-ready answer?
| Roadmap lesson | 107 of 500 |
|---|---|
| Official syllabus topic | Title Searches, Title Insurance, and Title Problems |
| Official PSI area | Transfer of Title |
| Published area weight | 6% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Search and chain
Searchers trace deeds, liens, judgments, probate, marital interests, taxes, easements, restrictions, and other indexed matters to identify the chain and unresolved claims.
Clouds and cures
Errors, unreleased liens, inconsistent names, missing heirs, forged instruments, boundary claims, or recording gaps may require a release, corrective deed, affidavit, probate action, quiet-title case, or other legal cure.
Owner and lender policies
An owner's policy protects the insured owner's covered interest, while a lender's policy protects the insured lender's security interest. A lender policy does not substitute for owner coverage.
Coverage limits
A commitment states proposed coverage requirements and exceptions; it is not the final policy. Survey matters, known defects, governmental rules, and post-policy events may be excepted or excluded depending on terms and endorsements.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A lender requires a lender's title policy, and the buyer assumes that policy protects the buyer's equity.
Reason it through. The required policy insures the lender's security interest, not automatically the owner's separate loss.
Answer. The buyer should evaluate a separate owner's policy and its terms.
Common exam traps
- Calling a title search insurance
- Assuming lender coverage protects owner equity
- Treating a commitment as the final policy
- Assuming title insurance covers building defects
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1What is a cloud on title?
- A. An apparent claim or defect impairing title
- B. A weather event
- C. A home defect
- D. An appraisal adjustment
Show answer and explanation →
Answer: A. An apparent claim or defect impairing title
A cloud creates doubt about ownership, encumbrance, or marketability.
Question 2Who is insured by a lender's title policy?
- A. Insured lender
- B. Buyer automatically
- C. Seller automatically
- D. Broker
Show answer and explanation →
Answer: A. Insured lender
It protects the lender's covered security interest up to policy terms and limits.
Question 3Does title insurance cover every future event?
- A. Yes
- B. No
- C. Only if cash
- D. Only after renewal
Show answer and explanation →
Answer: B. No
Coverage is defined by the policy, date, exclusions, exceptions, conditions, and endorsements.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Marketable Title Versus Insurable Title. Continue to roadmap lesson 108 and build on this decision rule.
Return to the Transfer of Title hub to see every official branch and the complete lesson sequence for this content area.