Escrow 1:Introducing Transaction Coordinators
a sellers closing letter should include
-a check for the proceeds of the sale -sellers final closing statement
the buyers closing letter should include
-a chick for any refund for over charges -buyers final closing statement
in an escrow the escrow holder is
-a neutral party -a stakeholder -the third person
which of the following are involved in determining and showing how the various charges are distributed in escrow
-adjustments -prorations -the estimated and final settlement statement
which of the following are "benchmark" documents included in the C.A.R. transaction checklist
-agency disclosure -transfer disclosure statements -foreign investment in real property tax act (FIRPTA)
in the event of litigation, the negotiability of the note would not be affected by clauses that add
-attorneys fees -court costs
in regards to power of attorney transactions, you should be familiar with
-basic law relating to these instruments -the authority they grant -their limitations
as an escrow holder, the escrow instructions you receive
-can be in the form of a formal business letter from the principals to you -spell out exactly what you are to do and only what you are to do in order to conclude the escrow transaction
real defenses include such matters as
-forgery -alteration
a TC can help an agent
-free up time for prospecting and making appointments -maintain a transaction file -remember important details of a specific transaction
its proper for a broker to be paid by both principals to a transaction
-if the escrow instructions signed by the buyer and seller reflect the payment -if the estimated statement signed by the buyer and seller reflect the payment
it is acceptable to pay the broker commission or any part of it before the closing of escrow under which of the following conditions
-if the escrow officer trusts the parties -if the broker shows justifiable financial hardship -if the escrow takes longer than 30 days NONE OF THE ABOVE
which of the following is a general kind of note
-installment not-interest included -straight note -installment note-interes extra
which of the following is true concerning the note
-it is a negotiable instrument -it is extremely valuable to its holder
an attorney-in-fact is prohibited from
-making a deed or mortgage without valuable consideration -dealing with a principals property for his or her own benefit
the relationship of an escrow agent with the parties to an escrow
-means the escrow holder has a duty to act in the highest good faith -requires the escrow holder to protect the trust and confidence of the principals -is a fiduciary relationship
which of the following is an option you can take rather than obtain a lost instrument bond
-obtain an affidavit and indemnity -go through a quite title action
a preliminary title report contains details about a piece of real estate, including
-ownership -liens and encumbrances -easements
a refrigerator is
-personal property -transferred with a bill of sale
prorations apply to charges incurred by either party
-prior to the transfer of property
when the buyer assumes an existing loan, the lender may choose to
-release the previous trustor from all responsibility to pay -retain the former payor responsible -activate the acceleration clause in the deed of trust
in an assumption transaction, any variation in any of the facts presented by the beneficiary will
-require an immediate call to the broker to clear up discrepancies -usually require the signatures of approval from buyer and seller
which of the following is a recorded instrument that must be acknowldeged
-satisfactions of judgement -partial releases
an escrow officer must be
-sensitive to clients needs -strictly impartial
documents usually needed in dealing with a termite inspection include the
-structural pest control inspection report -notice of work complete and not completed
the most common types of wood damaging pests are
-subterranean termites -dry wood termites -dry rot/fungus
the escrow holder should audit the file before close of escrow to confirm that
-the escrow funds will balance with all funds received and no funds are due -the bills match the amount paid to the remitting party -the file has been perfected
which of the following is considered one of the most important documents in the sale of property
-the note -the deed of trust -the grant deed
the most commonly used type of deed of trust is
-the short form deed of trust -the assignment of rents
which of the following parties are involved in the reconveyance of a loan
-the trustor -the trustee -the beneficiary
which of the following is true concerning the appropriate behavior of escrow holders
-they follow the written instructions from the principals -their information is strictly confidential -their position is strictly neutral
title company charges will differ depending on
-type of title search -the extent of coverages requested
a grant deed
-uses the word "grant" in the title -conveys freehold estate
a note may be transferred
-with recourse -without recourse
all of the information necessary to begin an escrow is contained in a printed form, which may be referred to as
a term or memo sheet
if a lease has not been recorded in the county records it is
an unrecorded lease
an escrow holder is an agent, limited by the escrow instructions to
both the buyer and seller
who receives a final escrow settlement statement
both the seller and buyer
A transaction management program for all real estate licensees and unlicensed transaction coordinators who want to build and establish a successful transaction coordinator business is the
certified transaction coordinator
which of the following creates security for the performance of an obligation
collateral assignment
the final accounting report for an escrow can be referred to as a
final settlement statement
preventing sudden changes such as an unexpected large loan payment totally outside escrow can be accomplished by
freezing the loan
in probate, one of the . main functions of escrow is determining who is the
heir
putting up a property as collateral for a loan without giving up possession of it is called
hypothecation
the federal estate tax becomes a lien on real property
immediately upon death
the full reconveyance must be recorded
in the county records
title insurance has a one-time premium or policy fee, paid
in the escrow, at close of escrow
a person who is not of sound mind or legally insane is considered
incompetent
the actual processing of the escrow file
need not proceed upon the opening of the escrow
a written promise or order to pay money defines a
negotiable instrument
which of the following is true concerning a homestead
it is not an encumbrance
in the event of a completely even exchange
it makes no difference which instructions come first
for escrow purposes, the second-half of the tax year begins
january 1
an abstract of judgement is an order from a
judge
the market value of a second deed of trust is usually
less than its face value
in the title insurance industry, the word encumbrance means more than loans against the property. it includes
liens such as taxes, deeds of trust, and involuntary liens
one of the loan costs is known as the
loan origination fee
for all monies received, you must
make receipts
the responsibility for insuring the marketability of the title is assumed by
the title company
which of the following is true concerning all inclusive deeds of trust
they wrap around existing loans
when it comes to filing and indexing, a review system is often referred to as a
tickler system
whether a deed of trust is considered first, second, or third is determined by
time of recording
if you send a grant deed to a TO, you are sending it to a
title officer
A real estate professional who assists the agent and broker in the processing of the legally compliant real estate property transaction file is known as a
transaction coordinator
the C.A.R. app that helps track and manage transactions from listing to closing is the
transaction management system
closing escrow based on conflicting instructions is
unacceptable
deeds that spell out in specific wording exactly what they warrant are called
warranty deeds
in an escrow the single status is reserved for those persons
who have never been married
the beneficial interest of a note tells
who owns the note
a seller is relieved from being held accountable for nonpayment when a transfer is
without recourse
which of the following is a type of endorsement
-blank -special -restrictive
which of the following are noted on the final settlement statement
-commissions -expenses -prorations
when taking an escrow you have to make the personal decision on your term or memo sheet as to which items are
-conditions of escrow -not the concern of escrow
when a deposit check is made by a broker or someone other than the buyer, you should
-consult your company manual -consult your superiors for directions
which of the following is important when taking an escrow
-correct lien contact information -correct name spelling -correct property address or description
which of the following is true regarding escrow
-escrow holders can only act on written instructions -every aspect of an escrow must be initiated by written, signed instructions -written escrow instructions constitute a contract
which of the following is true concerning escrow fees
-escrow holders set their fees in accordance with local practice -the fee is usually a small percentage of the property's selling price, plus a set figure
personal defenses can include such matters as
-failure of consideration -misrepresentation as to the area of the property
townships are how many square miles
36
each township measures approximately
6 miles on a side
CLTA stands for
California Land Title Association
the CalBRE self-evaluation checklist is
Form RE 540
when conveying an easement, as with other interests in real property, which of the following is essential
a clear and precise description
in order to be recorded, all deeds must be acknowledged by
a notary public
general provisions are
a part of the escrow instructions
unilateral escrow instructions
are two complete sets of escrow instructions
the escrow instructions should be
as concise as possible
when is a binder policy issued
at a later date
concurrent recording means the recordings must be done
at the same time
a deed of trust must be surrendered
at the time of reconveyance
the buyers request for reconveyance is executed by the
beneficiary
which of the following is a single escrow instruction signed by both the buyers and sellers
bilateral instructions
CC&R's refer to
covenants, conditions, and restrictions
on any note the information that conflicts with the instructions of the principals should be
crossed out
a homestead can be removed from a property with
declaration of abandonment
the transfer of assets is evidenced by a probate court called a
decree of distribution
of all the documents prepared in escrow, the instrument that will be recorded and seen most often in the future is the
deed
the information required to complete the assignment of deed of trust form is taken from the
deed of trust
throughout the world, the most common method of acquiring ownership (title) to real property is by
deed transfer
the HUD statement refers to the
department of housing and urban development
the owner of the land that gains the benefit in easements appurtenant is the
dominant tenement
the app allows clients, lenders, inspectors, brokers and agents to work together in one place and guides users through the transaction "loop" sequentially is
dotloop
in an exchange, consideration is not truly "delivered" until
each deed is recorded
the responsibility for handling all funds and documents in an escrow lies with the
escrow holder
if you want to create your own checklist, which of the following would probably be the best application to use
excel
as it pertains to escrow clauses, "we don't intend to assume any blame or guilt if the matters set out here are not resolved as written" defines the word
exculpatory
some title companies request a statement of information
from both principals
which of the following is true concerning escrows
no two escrows are alike
you should refuse to accept any escrow that is
obviously illegal
the location of the property in relation to neighboring properties can be found
on a plat map
you should notify the title company that you are ready to record
once escrow has received "good funds" from the lender and principals
a deed of trust is a junior lien to
other liens recorded earlier
an extra page in the escrow instructions is a
page that should be incorporated into the escrow instructions by reference
an easement in gross must be described in the deed to
pass with the title
usually the first step in the closing processis
printing the final settlement statement
when the holder adds the words "without recourse" to an endorsement it is referred to as
qualified
a court action to prove title is a
quiet title
a riparian right is considered
real property
escrow involves the sale, exchange, or loan transaction of
real property
marketable title is established once the decree of distribution is
recorded
a promissory note represents an unconditional promise to
repay a debt
in the final settlement statement, if the credits column is less than the debits total you face the possibility of closing escrow
short of funds
your job as an escrow holder is to follow the lenders instructions
so long as they don't conflict with those received from your principals
a note specifically endorsed in a buyers favor is known as a
special endorsement
a strictly confidential method of assurance against mistaken title reports is the
statement of information
the cost of the binder policy is usually
ten percent of the basic title insurance rate
who signs the assumption agreement with the lender
the buyer
a riparian right involves
water
to avoid foregoing warranties, the endorser would have to add the words
without warranties
a broker must maintain a property transaction file for at least
3 years
which of the following is appointed by the court
administrator
escrow holders should never
advise clients about legal matters
a last will and testament allows people to pass on property
after death
the notice of completion will be given by the pest control operator
after the work ordered by the customer has been done
a public utility easement is
an easement in gross
which of the following is a simple printed form that gives escrow permission to pay the broker his or her commission
commission instructions
the rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called
easements
which of the following is representative named in a will
executor
who makes the determination of the type of title insurance will be ordrered
the principals to the escrow
a lien is a financial obligation against
the property
when a deed of trust has not been insured, the only option is to issue a policy of title insurance issued in favor of
the assignee
in a dispute about the amount or terms of an obligation, "offset" refers to a counterclaim against
the beneficiary
which of the following verifies the current status of the loan on the second property
the beneficiary's statement
real property transfers must be recorded in
the county where the property is located
the effective date for the insurance must be on or before
the date the new loan will fund
the original typing of instructions so that the transaction can proceed is
the escrow instructions
a life estate is a title given for
the lifetime of the grantee
the oldest of "uniform laws" is
the negotiable instruments law
an attorney-in-fact acts for
the principal
who makes the decision as to the type and form of title insurance to obtain
the principals