Iowa Real Estate Practice Exam

What is the Iowa replacement for title insurance?

1. Title Insurance Agreement

2. Title Guaranty

3. Property Protection Plan

4. Real Estate Assurance

The correct answer is: Title Guaranty

The Iowa replacement for title insurance is known as the Title Guaranty. This program serves a similar purpose as traditional title insurance but is uniquely configured to meet the needs of the property market in Iowa. Title Guaranty provides a guarantee of title to property owners, ensuring that they have the rightful ownership and that the property is free from undisclosed claims or liens. This system is endorsed by the Iowa Finance Authority and helps facilitate real estate transactions by providing assurance to buyers and lenders that the title is secure. It typically involves a thorough examination of public records, similar to the process involved in title insurance policies, ensuring that potential issues are identified prior to the closing of a sale. The other options, although they may sound plausible, do not represent identifiable products or services provided in Iowa that fulfill the function of title insurance. For example, while a "Title Insurance Agreement" might imply a contract related to title insurance, it does not replace the role of title insurance in Iowa. Similarly, "Property Protection Plan" and "Real Estate Assurance" do not specifically correspond to recognized mechanisms in Iowa's property transactions. Thus, Title Guaranty stands out as the definitive solution utilized within the state for the replacement of title insurance.