Oregon 30-Hour Real Estate Law Practice Test

Which of the following will NOT be addressed in the schedule of exceptions on Marsha’s title insurance policy?

1. Marsha's first mortgage on the property

2. Existing recorded liens

3. Marsha's second mortgage on the property, which she plans to get next January

4. Any outstanding tax assessments

The correct answer is: Marsha's second mortgage on the property, which she plans to get next January

The correct answer highlights that Marsha's second mortgage, which she plans to obtain next January, will not be included in the schedule of exceptions on her title insurance policy. The schedule of exceptions typically lists items that are not covered by the insurance policy, and it is important to note that these exceptions are based on existing conditions at the time the policy is issued. Since the second mortgage is a future event and has not been recorded or established at the time of the title search, it would not be reflected in the title insurance policy's schedule of exceptions. Title insurance policies only address issues that are already on the public record or relate to the property's title proactively. In contrast, the other items mentioned—Marsha's first mortgage, existing recorded liens, and any outstanding tax assessments—are all existing obligations or claims associated with the property that would need to be addressed. These items are already part of the public record at the time of the title search and would therefore be included in the schedule of exceptions, as they pose potential risks or liabilities to the property title that the title insurance policy does not cover.