Michigan License Law Practice Test

Who has the authority to prepare documents to correct title defects?

1. Licensed real estate brokers

2. Real estate agents

3. Licensed attorneys

4. Title companies

The correct answer is: Licensed attorneys

Licensed attorneys have the authority to prepare documents to correct title defects due to their formal legal training and qualifications. They possess a comprehensive understanding of property law and the complexities involved in resolving title issues, such as liens, easements, and claims of ownership. This expertise enables them to draft and execute the necessary legal documents accurately and efficiently to rectify any title defects that may arise during property transactions. While licensed real estate brokers and real estate agents play critical roles in the real estate industry by facilitating transactions and advising clients, their primary function does not include the preparation of legal documents pertaining to title defects. Title companies may handle certain aspects of title insurance and issue title policies, but they typically do not have the same level of authority to create legal documents aimed at resolving title issues, as this function generally falls under the purview of attorneys. Therefore, the authority to correct title defects is specifically granted to licensed attorneys, who are equipped to manage the legal implications associated with property titles effectively.