Mortgage Loan Originator (MLO) Licensing Practice Test

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What is detailed in a title abstract?

A summary of property inspection results
The chain of title on a specific piece of property
The list of liens against the property
The appraisal value of the property

The correct answer is: The chain of title on a specific piece of property

A title abstract is a comprehensive document that provides a summary of the legal and ownership history of a specific piece of property. It includes the chain of title, which traces the ownership of the property back through all of its previous owners. This information is crucial during real estate transactions, as it helps determine if there are any claims against the property or if the current owner has the legal right to sell it. Additionally, the title abstract acts as a brief report of any title defects, encumbrances, or claims, making it a necessary tool in ensuring that the buyer receives clear and marketable title to the property. It is distinct from the other options, as those pertain to different aspects of property evaluation or assessment, rather than the historical ownership details specifically addressed in a title abstract.