Oregon 30-Hour Real Estate Law Practice Test

Which of the following could be a title issue in a real estate-owned transaction?

1. Title insurance costs

2. Internal audit delays

3. Disclosure statements

4. Property tax assessments

The correct answer is: Internal audit delays

In the context of real estate transactions, title issues generally refer to concerns related to the legal ownership of a property and any claims against that property that could affect the buyer's rights. Internal audit delays may lead to or highlight potential problems involving the title that could necessitate review before a transaction can be finalized. This could include discrepancies in ownership records, liens, or other encumbrances that an audit might bring to light. While title insurance costs, disclosure statements, and property tax assessments are all relevant to a real estate transaction, they do not directly constitute issues related to the title itself in the same way that audit delays could indicate underlying problems with the title that need to be resolved before closing. Thus, internal audit delays represent a legitimate concern that can impact the legitimacy and security of the property’s title.