Midterm RevU quiz
An escrow company will usually include in the actual escrow instructions
?
Among the Preliminary Title Report common exceptions to the title insurance coverage proposed for escrow Sample Two is a unique exception for this specific property. What is it?
A Judgement against the seller
The buyers closing letter should include:
a check for any refund or over charges a Buyer's Final Closing Statement.
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.
In an escrow, the escrow officer is:
a stakeholder. a neutral party. the third person.
If a lease has not been recorded in the county records it is:
an unrecorded lease
Real Estate broker licensees may conduct escrows:
if the broker represents a principal in the transaction
A person who is not of sound mind or legally insane is considered:
incompetent.
A good practice for escrow regarding the Preliminary Title Reports is:
obtain buyer's signature for receipt & approval
Prior to selling the property in Escrow Sample Two, the sellers:
listed the property with a broker
When prorating, adjustments are made based on the actual number of days in the month for
loan interest
A common loan cost is also known as the
loan origination fee
A common loan cost is also known as the:
loan origination fee.
A TC can help an agent:
maintain a transaction file. remember important details of a specific transaction. free up time for prospecting and making appointments.
For all monies received, you must:
make receipts.
The relationship of an escrow agent with the parties to an escrow:
means the agent has a duty to act in the highest good faith. requires the agent to protect the trust and confidence of his/her principals. is a fiduciary relationship.
A seller's closing letter should include:
original policy for fire insurance. a check for the proceeds of the sale. Seller's Statement.
The most commonly used type of deed of trust is:
the short form and assignment of rents.
The responsibility for insuring the marketability of the title is assumed by:
the title company
If you send a grant deed to a "T.O." you are sending it to a:
title officer.
An escrow officer must be:
trictly impartial. sensitive to clients' needs.
a grant deed
uses the word "grant" in the title. conveys freehold estate.
Deeds that spell out in specific wording exactly what they warrant are called:
warranty deeds
The beneficial interest of a note tells:
who owns the note.
Independent escrow corporations:
are licensed by the California Department of Corporations
A deed of trust must be surrendered:
at the time of reconveyance
Of all the documents prepared in escrow, the instrument that will be recorded and seen most often in the future is the:
deed
As it pertains to escrow, the clause stating, "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.
Escrow Instructions are like a formal business letter:
from the parties to the escrow company
Using Escrows in California are:
hightly recommended
A refrigerator is
transferred with a bill of sale
The Beneficial interest of a note tells:
who owns the note
The cost of a Binder Policy is usually:
10% of the Basic Title rate
A broker must maintain a property transaction file for at least:
3 years
Documents usually needed in dealing with a termite inspection include the:
Notice of Work Complete and Not Completed. Structural Pest Control Inspection Report.
A document signed by a landlord and tenant to show the status of payments and agreements between them is:
Offset statement
What kind of title policy is requested by the "lender" in Escrow Sample TWO?
ALTA
With a new loan for a borrower, the lender often requires an extended title policy called:
ALTA
When prorating charges in escrow between buyer & seller, property taxes are adjusted on the basis of:
Actual number of days in month and 365 days per year
The primary escrow instructions for a residential purchase transaction:
Are part of the purchase agreement
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.
A preprinted sheet used for keeping track of the escrow's progress is called:
Checklist or requirement sheet
Which of the following is a simple printed form that gives escrow permission to pay the broker his or her commission?
Commission Instructions
The HUD Statement refers to the:
Department of Housing and Urban Development
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 base charge
An escrow company will usually include in the actual escrow instructions:
General provisions
Which of the following is an option you can take rather than obtain a lost instrument bond?
Go through a quiet title action Obtain an affidavit and indemnity
The property tax proration for Escrow Sample One
Is a debit to the seller
A Preliminary Title Report:
Is an early search for matters of record and an offer by the title company to issue insurance
Which of the following is true concerning the note?
It is a negotiable instrument
Regarding a reconveyance deed, the following are true
It is issued by the trustor
Regarding Structural Pest Control:
It is not required by law
Regarding structural Pest Control:
It is not required by law
For escrow purposes, the second- half of the tax year begins:
January 1
Regarding the seller's loan payoff, for what period is interest owed at close of escrow?
July 1 - August 1
A transaction coordinator may perform:
Maintaining transaction deadlines
A transaction coordinator
May have a real estate license
What is the name of the new loan lender in Sample Two
Mutual Safeco Glendale Federal NONE OF THOSE
Escrow Sample Two will require:
Power of Attorney
Most residential sale/purchase transactions in Southern California are written using the C.A.R agreement form with the initials:
R.P.A. - C.A.
In escrow Sample One a change of interest rate charged by the lender and their required title insurance coverage:
Requires an amendment to the escrow instructions
Most residential sale/purchase transactions in Southern California are written using the C.A.R agreement form titled:
Residential Purchase Agreement & Joint Escrow Instructions
The Abstract of Judgment found in the Pre-Lim indicates a need for:
Satisfaction of Judgment
Which of the following is a recorded instrument that must be acknowledged?
Satisfactions of judgment Partial releases
Which of the following is a general kind of note?
Straight note Installment note - interest included Installment note-interest extra
The Structural Pest Control Report is called by a common nickname:
Termite Report
The structural pest control report is called by a common nickname:
Termite report
Which of the following parties are involved in the reconveyance of a loan?
The trustor The beneficiary The trustee
Which of the following is true concerning the appropriate behavior of escrow officers?
They follow the written instructions from the principles Their information is strictly confidential. Their position is strictly neutral.
When taking an escrow you have to make the personal decision on your memo sheet as to which items are:
conditions of escrow. memoranda
What type of escrow company is handling sample escrow two?
Title Company
Funds paid to the seller directly outside of escrow as part of the total purchase price are shown on the seller's escrow closing statement as:
Unknown
Which of the following is true regarding escrow?
Written escrow instructions constitute a contract. Escrow holders can only act on written instructions. Every aspect of an escrow must be initiated by written, signed instructions.
As an escrow officer, the Escrow Instructions you receive:
an escrow work sheet. a memo sheet. an escrow order sheet
A request for reconveyance is executed by the:
beneficiary.
An escrow officer is an agent to:
both the buyer and seller
An abstract of judgment is an order from a:
judge.
Which of the following may conduct escrows in California?
lawyers banks title insurance companies
The East 15 feet of the South 140 feet of Lot "A" has to do with
An Easement Ingress & Egress Parcel 2
The East 15 feet of the South 140 feet of Lot "A" has to do with:
An Easement Ingress & Egress Parcel 2
An agreement in the deed of trust that grants the right to the lender to collect rents even though title is held by the trustor is called:
Assignment of rents
Escrow officers should never:
advise clients about legal matters
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 usually
an easement in gross.
A public utility easement is usually:
an easement in gross.
All of the information necessary to begin an escrow is contained in a printed form, which may be referred to as:
an escrow order sheet. a memo sheet. an escrow work sheet
CC&Rs refer to:
covenants, conditions, and restrictions.
A new loan is shown on the Buyer's escrow closing statement as:
credit
Throughout the world, the most common method of acquiring ownership (title) to real property is by:
deed transfer.
The current CAR form RPA:
details the closing time table is the primary escrow instruction from the parties is the agreement between the buyer and seller
The most common types of wood damaging pests are
dry wood termites. dry rot/fungus. subterranean termites.
The rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called:
easements
In the title insurance industry, the word encumbrance against the property includes:
easements. liens such as taxes, trust deeds, and involuntary liens. covenants, conditions, and restrictions (CC&Rs).
A preliminary title report contains details about a piece of real estate, including:
easements. ownership. liens and encumbrances.
The accounting report for escrow is called the:
escrow settlement sheet.
An easement in gross must be described in the deed to:
pass with the title.
An escrow may be ended by:
performance/completion
Prorations apply to charges incurred by either party:
prior to the transfer of property.
Escrows are required by law:
probate property
Which of the following are usually prorated in an escrow?
property taxes and loan interest
An escrow settlement sheet or estimated charges sheet shows:
prorations and adjustments payoff figures total consideration to be paid
A court action to prove title is a:
quiet title.
Escrow involves the sale, exchange, or loan transaction of
real property.
Escrow involves the sale, exchange, or loan transaction of:
real property.
For a rental property escrow, rent already paid beyond the close of escrow date and any security deposit are shown in the settlement sheet as:
refunded to tenant
The California property tax payment is due:
second half year in Fall first half year in Spring in one lump sum NONE
In the final settlement sheet, if the credits column is less than the debits total you face the possibility of closing escrow:
short of funds
A strictly confidential method of assurance against mistaken title reports is the:
statement of information.
The most common types of wood damaging pests are:
subterranean termites. dry rot/fungus. dry wood termites.
The cost of the binder policy is usually:
ten percent of the basic title insurance rate
In regards to power of attorney transactions, you should be familiar with:
the authority they grant. their limitations. basic law relating to these instruments.
Real property transfers must be recorded in:
the county where the property is located
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
A life estate is a title given for
the lifetime of the grantee.
A life estate is a title given for:
the lifetime of the grantee.