(Practice) Ch. 14 - Escrow and Title Insurance

Which of the following statements is NOT true regarding a broker acting as an escrow agent? A. A broker may advertise that he or she is an escrow agent. B. A broker cannot use the word "escrow" in a fictitious name. C. The broker must conduct the escrow personally and not delegate any escrow activities. D. Written escrow instructions must include a statement with the broker's name, indicating he or she is a licensed real estate agent.

A. A broker may advertise that he or she is an escrow agent.

Which of the following is not an item that a buyer usually pays at closing? A. Fee for clearing the title B. Mortgage recording fee C. Homeowner's insurance D. ALTA policy

A. Fee for clearing the title

Accepting referral fees: A. Is common business practice. B. Could be a violation of state licensing laws. C. Is permissible if being accepted on behalf of a third party D. Is permissible in amounts under $50.

B. Could be a violation of state licensing laws.

Who is responsible for ordering the preliminary title report? A. Buyer B. Escrow officer C. Seller D. Real estate salesperson

B. Escrow officer

Which item is not covered by CLTA, ALTA or ALTA-R insurance policies? A. Acts of minors B. Mining claims C. Forgeries D. Federal estate tax liens

B. Mining claims

RESPA applies to all of the following EXCEPT which? A. Condominium purchase B. Seller-financed loan C. Loan involving a second mortgage D. Federally-insured loan

B. Seller-financed loan

Proof of ownership of a property is called: A. Marketable title B. Abstract of title C. Evidence of title D. Title commitment

C. Evidence of title

Which statement is not true about opening escrows? A. The escrow holder will need information about the broker's commission. B. The escrow holder will use the purchase agreement as the basis for writing the escrow instructions. C. The buyer's and seller's agents will sign the escrow instructions. D. Once escrow instructions are signed, changes can only be made with the written agreement of all parties.

C. The buyer's and seller's agents will sign the escrow instructions.

Which of these individuals could not act as an escrow agent without an escrow license? A. Attorney B. Banker C. Broker D. Real estate salesperson

D. Real estate salesperson

RESPA gives the buyer the right to review the completed closing disclosure how long before closing? A. Two calendar days B. One business week C. One calendar week D. Three days

D. Three days