Unit 13

An escrow company is prohibited from a.) paying referral fees to anyone other than an employee of the escrow company b.) bonding employees c.) both of these d.) neither of these

A. paying referral fees to anyone other than an employee of the escrow company

To determine the balance due on a loan, escrow requests a.) a closing statement b.) a beneficiary statement c.) a reconveyance d.) an impound statement

B. a beneficiary statement A beneficiary statement is a written disclosure from a lender regarding the condition of a loan or other debt secured by real estate

Which is NOT covered by an ALTA extended coverage policy of title insurance? a.) mining claims b.) liens placed by the insured c.) water rights d.) off-record easement

B. liens placed by the insured

A standard policy of title insurance is used to show a.) that there are no encumbrances on the property b.) that the seller has a marketable title c.) both of these d.) neither of these

B. that the seller has a marketable title

Which is a debit to the seller on a sellers closing statement? a.) selling price b.) prepaid taxes c.) first trust deeds to be assumed by buyer d.) all of these

C. first trust deeds to be assumed by buyer A debit is money you owe, and a credit is money coming to you.

Which of the following is covered by the CLTA standard policy of title insurance a.) easements not a matter of public record b.) rights of a party in possession c.) unknown spousal interests d.) encroachment

C. unknown spousal interests The CLTA (California Land Title Association) policy insures the property owner and the ALTA (American Land Title Association) is an extended coverage policy that insures the lender against possible unrecorded risks excluded in the CLTA policy.

An escrow company has a duty to a.) warn parties if the escrow knows of possible fraud b.) suggest changes when one party is not being adequately protected c.) do both of these d.) do neither of these

D. do neither of these

Title insurance companies may a.) give rebates to brokers for referrals b.) give brokers preferential rates on their own purchases c.) charge brokers the same as others but make no effort to collect d.) do none of these

D. do none of these

Which is a credit to the buyer on the buyers closing statement? a.) purchase price b.) escrow costs c.) title insurance d.) first trust deed assumed

D. first trust deed assumed

A broker can act as an escrow when the broker a.) represents the buyer in the transaction b.) represents the seller in the transaction c.) is a principal in the transaction d.) in any of these

D. in any of these