Ch. 12 - Escrow and Closings
a cloud.
A quiet title suit is also called a suit to remove -an assignment. -a defect. -a cloud. -a contingency.
recorded.
Escrow doesn't officially close until the deed has been -signed. -recorded. -transferred. -conveyed.
Either party
In a real estate transaction what party chooses the escrow holder? -The seller -Either party -The buyer -The lender
in arrears.
Interest is always paid -in advance. -by the lender. -in arrears. -before closing.
prepaid expenses.
Items that are paid in advance such as property taxes are called -credits. -prepaid expenses. -prorations. -advancements.
365 day method.
The two methods that are typically used when closing agents and lenders calculate items that need to be prorated are the 12-month/360 day method and the -365 day method. -half year method. -prorated calculation method. -6-month/180 day method.
Accrued expenses
What describes expenses that the seller incurred but have not yet been billed for at the time of closing? -Settlement expenses -Mortgage expenses -Accrued expenses -Estimated expenses
Escrow instructions
What describes written authorization and instructions for how an escrow agent will perform in a transaction? -Escrow analysis -Performance instructions -Agent authorization -Escrow instructions
A title insurance policy
What is a contract of indemnity where an insurance company agrees to compensate the insured, either a homeowner or a lender, for financial losses that the insured has incurred because of defects to the title of the property? -A transfer of ownership -A title insurance policy -A title report -Hazard insurance
The American Land Title Association (ALTA)
What is an extended title coverage policy that insures against many of the items excluded in the CLTA standard policy? -The Mortgage Title Insurance Policy -The American Land Title Association (ALTA) -The Real Property Title Association (RPTA) -The California Title Association
The California Land Title Association (CLTA)
What is the standard title policy in California? -The California Home Title Policy -The First American Land Title Policy (FALTP) -The American Title Association -The California Land Title Association (CLTA)
A debit
What refers to money that the buyer or seller needs to pay at closing? -A fee -A credit -A settlement -A debit
Chain of title
What refers to the succession of property owners of record dating back to the original grant of title from the state to a private party? -Deed-in-lieu -Clouded title -Eminent domain -Chain of title
Closing
What settlement process refers to signing and transferring all documents and distributing funds? -Commitment -Conveyance -Servicing -Closing
Escrow
What term describes the process in which a disinterested third party holds all money and documents relating to a transaction until all terms and conditions have been satisfied? -Transference -Recording -Escrow -Modification
A grant deed
What type of deed transfers title from the seller to the buyer? -A deed of reconveyance -A deed of trust -A grant deed -A specific deed
A vendee policy
What type of special title insurance policy is used when a property is being purchased through a land sales contract, purchase money mortgage, or purchase money trust deed? -A leaseholder policy -An early issue endorsement -A vendee policy -An oil and gas interest policy
The Real Estate Settlement and Procedures Act (RESPA)
What was created in 1974 to ensure that a buyer and seller in a residential real estate transaction have knowledge of all settlement costs? -The Real Estate Acquisition Act (REAA) -The Residential Real Estate Act -The Real Estate Settlement and Procedures Act (RESPA) -The Settlement and Real Estate Transaction Act
Never
When can licensees recommend specific individuals or companies to their clients and accept a referral fee? -When there is a dual agency created -Never -When the licensee is also acting as an escrow agent -When the licensee is acting as a transaction broker
Assumption
Which part of a Loan Disclosure indicates whether or not the lender will allow a loan assumption on a future sale or transfer? -Demand feature -Assumption -Escrow Account -Other disclosures
The transaction information
Which section of a Closing Disclosure includes names and addresses for both the borrowers and sellers and the lender's name? -The closing information -The loan information -The summary information -The transaction information
Projected payments
Which section of a Closing Disclosure shows the actual payments the borrower will make for principal and interest and mortgage insurance, an estimated amount for the escrow payment, and the total estimated monthly mortgage payment? -Loan terms -Calculations -Projected payments -Descriptions
The Consumer Financial Protection Bureau (CFPB)
Who is RESPA administered by? -The Office of Fair Housing (OFH) -The Consumer Financial Protection Bureau (CFPB) -The Office of Equal Opportunity (OEO) -The Department of Housing and Urban Development (HUD)
The seller and buyer
Who must sign and acknowledge escrow instructions? -The buyer -The broker -The seller and buyer -The seller
3 business days
Within how many days is a creditor generally required to provide the Loan Estimate of the receipt of the consumer's loan application? -10 business days -30 business days -7 business days -3 business days
