Session 5 Quiz Questions

A homeowner who resides on the banks of the Apache Wash Basin in North Phoenix suffers catastrophic damage to their home due to flooding from the 100 year floods in 2018. They would be covered if they had flood insurance which is backed by which government agency?

FEMA

How can a buyer of real property ensure the validity or quality of a sellers title?

Preview the title report looking for defects

The CLUE Report provided by the seller would identify what type of defects:

Previous Claims made to Insurance

Private Mortgage Insurance:

Protects the lender against borrower default

What is not a sellers duty in escrow?

Provide financing options to the buyer

When the IRS is owed money and takes it from personal property, this is referred to as a:

levy

An Escrow Agents duties include all of the following except?

Negotiating closing costs

Which document would be used to assist the county assessor in determining property values?

Affidavit of Value

Different lenders may require different Title Policy Endorsements. In addition, sometimes builders or even communities may want or need a title endorsement. Which of the following would best describe what endorsements would commonly do?

Be tailored to fit the specific needs of the seller or lender

A seller paid her property taxes upfront for the year. In late September of that same year she sold her property. The seller is entitled to a _________ for roughly _______ months?

Credit, 3 months

Which party would be responsible for handling of all monies in a real estate conveyance?

Escrow Agency

Earnest money is held in what type of account?

Escrow account

Which party in a transaction can claim a loss as a result in a title defect?

Grantee

A seller would want to be able to prove that they have Marketable Title in order to show what?

The ability of the escrow company to provide a title insurance policy

During a closing, which party would pay for the escrow fees due to the statutes?

There are no statutes that state who would pay for escrow

Which of the following would most likely not be considered a cloud in a property's title?

Title transfer from an LLC to an individual

What is the purpose of an Impound Account?

To collect upfront money used to pay buyers taxes and insurance

During Escrow, the buyers main obligation is:

To provide funds to purchase

To further protect against large losses, a lessor might want to obtain what type of insurance policy that would cover them once their primary insurance is exhausted or runs out?

Umbrella Policy

When in Arizona does the ownership transfer to the new buyer?

When deed is delivered to the buyer