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100+ Free TLTA CESP Practice Questions

Pass your TLTA Certified Escrow Settlement Professional exam on the first try — instant access, no signup required.

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Key Facts: TLTA CESP Exam

~150 Q

CESP Exam Questions

TLTA

3 Hours

Exam Time

TLTA

$280

Combined App + Exam Fee

TLTA

T-1, T-2, T-7

Promulgated Owner/Loan/Commitment

TDI

January 1

Texas Ad Valorem Tax Lien Attaches

Tax Code 32.01

100

Practice Questions

OpenExamPrep

TLTA's CESP designation recognizes mastery of Texas escrow/settlement practices. The exam covers TDI procedural rules and promulgated forms (T-1, T-2, T-7, T-19/T-30 endorsements, GF series), Texas Insurance Code Section 2651.202 good funds (wires/cashier's checks required), Texas Constitution Article XVI Section 50 homestead protection, Section 50(a)(6) home equity loan strict compliance, community property joinder requirements, ad valorem tax proration (in arrears), RESPA Section 8 anti-kickback, TRID's 3-business-day Closing Disclosure rule, ALTA Best Practices Pillars (especially #2 trust accounting and #3 info security), wire-fraud prevention, and TLTA Code of Ethics.

Sample TLTA CESP Practice Questions

Try these sample questions to test your TLTA CESP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Title insurance in Texas is regulated primarily by:
A.The Texas Real Estate Commission (TREC)
B.The Texas Department of Insurance (TDI) under the Texas Title Insurance Act
C.The U.S. Treasury
D.Each county clerk
Explanation: The Texas Department of Insurance regulates title insurance under the Texas Title Insurance Act (Title 11 of the Insurance Code). TDI promulgates rates, forms, and procedural rules — Texas is a rate-promulgated state where premiums are set by TDI rather than competitive market pricing.
2Texas uses 'promulgated forms' for title insurance — this means:
A.Forms are negotiable
B.TDI specifies the exact form language for policies, endorsements, and certain closing documents (e.g., T-1 owner's policy, T-2 loan policy)
C.Each underwriter has its own forms
D.Forms vary by county
Explanation: Texas is a 'promulgated' state — TDI prescribes the exact form language used by all title insurers in the state. T-1 is the Owner's Policy, T-2 is the Loan Policy, T-3 series and others are endorsements. The escrow officer must use the correct promulgated form.
3Texas 'good funds' under Texas Insurance Code Section 2651.202 generally require disbursement only from:
A.Personal checks
B.Wired funds, cashier's checks, certified funds, or other specifically permitted items
C.Bank drafts only
D.Crypto
Explanation: Texas good funds law restricts disbursement from escrow to wires, cashier's checks, certified checks, or specifically permitted items. Personal checks may not exceed limited thresholds (e.g., small fee amounts). Disbursement against uncollected funds violates the statute and exposes the agent to liability.
4Texas is a community property state. Real property acquired during marriage with community funds is generally:
A.Husband's separate property
B.Owned by the marital community with both spouses required to sign for conveyance
C.Wife's separate property
D.Held by whoever's name is on the deed alone
Explanation: Under Texas Family Code, real property acquired during marriage with community funds is community property. Both spouses must execute deeds and most mortgages to convey or encumber community property, even if title is in one spouse's name alone. The homestead protection further requires joinder.
5Texas homestead protection requires that a homestead may be encumbered by:
A.Any lien
B.Only specific liens enumerated in Article XVI, Section 50 of the Texas Constitution (purchase money, taxes, owelty, home equity, home improvement, refinance, etc.)
C.Only mortgages
D.No liens at all
Explanation: Texas Constitution Article XVI, Section 50 strictly limits liens that may be enforced against a homestead: purchase money, ad valorem taxes, owelty (partition), home equity (with strict compliance), home improvement, refinance of permitted liens, reverse mortgage, and others. All others are unenforceable.
6The Texas 'GF' series of forms refer to:
A.General Fund forms
B.Guaranty Fund forms — promulgated supplemental forms used in Texas title transactions
C.Generic Federal forms
D.Government forms
Explanation: TDI's GF series (e.g., GF-1, GF-2, etc.) are 'Guaranty Fund' procedural forms — specific promulgated forms required for various Texas title and escrow transactions. They support the GF (Guaranty Fund) assessment system funding insolvency claims.
7Texas escrow officers must:
A.Be licensed by TREC
B.Be licensed by TDI as escrow officers, with required training, background check, and continuing education
C.Have only a notary
D.Have a real estate license
Explanation: Texas escrow officers must be licensed by TDI under the Texas Title Insurance Act. Requirements include character/fitness review, fingerprinting, sponsorship by a licensed title agent or direct operation, continuing education, and renewal.
8In Texas, a 'T-1' refers to:
A.The promulgated Texas Owner's Policy form
B.A tax document
C.A title agent license
D.A trust form
Explanation: T-1 is the promulgated Texas Owner's Policy of Title Insurance form. It is the standard form issued in Texas; T-2 is the loan policy; T-3 series are endorsements (T-3, T-19, T-30, etc.); T-7 is the commitment.
9The promulgated Texas Loan Policy is the:
A.T-1
B.T-2
C.T-3
D.T-7
Explanation: T-2 is the Texas Loan Policy of Title Insurance (lender's policy). T-1 is the Owner's Policy, T-3 series are endorsements (e.g., T-30 cluster), and T-7 is the Commitment.
10The Texas Title Insurance Commitment form is the:
A.T-7
B.T-1
C.T-2
D.T-3
Explanation: T-7 is the promulgated Texas Title Insurance Commitment. Schedule A shows the insured, amount, and legal; Schedule B shows exceptions; Schedule C shows requirements; Schedule D shows underwriter and agent.

About the TLTA CESP Exam

The Certified Escrow Settlement Professional (CESP) is TLTA's certification for Texas title insurance professionals working in escrow/settlement. The exam (~150 questions, 3 hours, $280 combined fee, ExamRoom online proctored) covers Texas escrow/closing practices, TDI procedural rules, promulgated T-series and GF-series forms, Texas good funds law (Insurance Code Section 2651.202), Texas marital property (community property and homestead), federal regulation (RESPA, TRID), wire fraud prevention, and ethics.

Questions

150 scored questions

Time Limit

3 hours

Passing Score

Set by TLTA

Exam Fee

$280 (combined application + exam) (Texas Land Title Association (TLTA))

TLTA CESP Exam Content Outline

20%

Texas Escrow & Closing

Neutral fiduciary, escrow instructions, ID verification, prorations, recording, closing protocols

15%

TDI Forms & Procedural Rules

T-1/T-2/T-7/T-19/T-30 and GF series promulgated forms; TDI procedural rules; market conduct exams

12%

Texas Good Funds & Trust Accounting

Insurance Code 2651.202 good funds; three-way reconciliation; dual authorization; defalcation prevention

12%

Marital Property & Homestead

Community property joinder; homestead Article XVI Sec 50; Sec 50(a)(6) home equity loans; Sec 50(f)(2) refinance; non-homestead affidavits

10%

RESPA/TRID Federal

Section 8 anti-kickback, AfBA disclosure, CD 3-day waiting, tolerances, MSA scrutiny

8%

Texas Tax Issues

Ad valorem tax (Jan 1 attachment), arrears prorations, tax certificates, MUD/PID, rollback tax on ag conversion

8%

Texas Contracts (TREC)

One-to-Four Family Residential Contract, effective date, option period, contingencies, addenda

5%

Wire Fraud Prevention

BEC, verification, ALTA Pillar #3, FTC Safeguards Rule, ALTA Rapid Response/IC3

5%

Texas Entities & RON

Texas LLC/corp authority, Estates Code 751 POAs, Government Code 406 RON, identity verification

5%

Ethics & UPL

TLTA Code of Ethics, neutral fiduciary, UPL boundaries (cannot give legal advice)

How to Pass the TLTA CESP Exam

What You Need to Know

  • Passing score: Set by TLTA
  • Exam length: 150 questions
  • Time limit: 3 hours
  • Exam fee: $280 (combined application + exam)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

TLTA CESP Study Tips from Top Performers

1Memorize the Texas T-series promulgated forms: T-1 owner's, T-2 loan, T-7 commitment, T-3/T-19/T-30 endorsements — this is core CESP content
2Master Texas Insurance Code Section 2651.202 good funds rules: wires and cashier's checks are good funds; personal checks generally are NOT
3Know Texas community property requirement: both spouses must join in conveyances of community property and mortgages of homestead, regardless of name on title
4Study Texas Section 50(a)(6) home equity loan strict compliance: 12-day notice, 80% LTV, no closing at home, 3-day rescission, 2% fee cap
5Understand Texas ad valorem tax super-lien attaches January 1 with priority over essentially all other liens — affects exam, prorations, and tax foreclosure

Frequently Asked Questions

What is the TLTA CESP designation?

The Certified Escrow Settlement Professional (CESP) is the Texas Land Title Association's certification for title insurance professionals working in escrow/settlement. The exam is ~150 questions over 3 hours via ExamRoom online proctor. Combined application+exam fee is $280. Designees demonstrate mastery of Texas escrow practices, TDI rules, and ethics.

What are Texas 'promulgated forms' (T-series)?

TDI specifies the exact form language for Texas title insurance documents. T-1 is the Owner's Policy; T-2 is the Loan Policy; T-7 is the Commitment; T-3 is endorsement; T-19/T-19.1/T-19.2 are comprehensive endorsements (similar to ALTA 9); T-30 is variable rate. GF-series forms cover Guaranty Fund procedural matters. Texas escrow officers must use the correct promulgated form for each transaction.

What is Texas 'good funds' under Insurance Code Section 2651.202?

Texas good funds law restricts escrow disbursement to wires, cashier's checks, certified funds, or other specifically permitted items. Personal checks are restricted (limited to small fee amounts). The escrow officer must verify funds are collected and immediately available before disbursing. Violations expose the agent to liability.

What is Texas Constitution Article XVI Section 50?

Section 50 of the Texas Constitution strictly limits which liens may be enforced against a Texas homestead: purchase money, ad valorem taxes, owelty (partition), home equity (Section 50(a)(6) with strict compliance), home improvement, refinance of permitted liens, reverse mortgage. All other liens against homestead are constitutionally unenforceable.

What are Section 50(a)(6) home equity loan requirements?

Texas Section 50(a)(6) home equity loans require strict compliance: 12-day waiting period after application; 80% LTV cap (combined with all other liens); closing at attorney/lender/title office (NOT at the home); specific 12-day notice; 3-day right of rescission; total fees within 2%; written fair-market-value acknowledgment. Section 50(f)(2) (2017) permits one-time rate-and-term refinance into a regular mortgage under defined conditions.