Real estate Chapter 11

Sales price $295,000, buyer puts on new 80% loan, and pays 1% loan fee, $45 tax service fee, $400 tax prorations, $175 structural pest control inspection fee, $20 credit report, $20 recording fee, $910 hazard insurance fee, $600 escrow fee. How much will the buyer need to close escrow?

$63,530

Sales price is $800,000. Buyer is to put $200,000 down and obtain new first loan for $500,000, and seller to carry back second loan for $100,000. Documentary transfer tax is

$880

Which insurance policy requires the title company to make a physical inspection of the property?

ALTA (American Land Title Association) (extended coverage policy)

Most homeowners in Cali have which type of title insurance policy

CTLA owner's (Cali Land Title Association)

Which law requires the escrow officer to prepare HUD-1 closing statements

RESPA

On behalf of the buyer and seller, the escrow officer acts as

agent

There are certain requirements that must be met before a transaction can be placed in escrow. They are: binding contract between buyer and seller, neutral 3rd party is employed, conditional delivery of all documents related to sale, all above

all above

With the approval of all parties, real estate brokers can acts as escrow holders in transactions in which they have the: listing, buyer, ownership, all above

all above

A joint protection title policy insures

buyer and lender

Escrow is a process whereby a neutral third party acts on behalf of the

buyer and seller only

A history of title transfers for a particular parcel of land is

chain of title

For an escrow to be valid, there must be a

conditional delivery of transfer documents to a 3rd party

Prepaid property taxes would appear as prorated

debit to buyer

The payment of closing cost is negotiated between the buyer and seller but the seller frequently pays for the

documentary transfer tax

Which of the following is not exempt from the escrow licensing law: trust companies, escrow companies, title insurance, real estate brokers

escrow companies

Which of the following is recurring closing cost

fire insurance

Title insurance covers recorded "deeds and patents". A patent is a

government conveyance

Standard title insurance policy insures against

incompetent parties on record

Which of the following must be licensed to be an escrow holder

independent corporation

Extended coverage title polices are usually requested by

institutional lenders

The most extensive title coverage would be

insurance of title

In a real estate transaction, who decides which escrow company to use

it is negotiated between the buyer and seller

Termination of escrow can occur: when escrow officer completes the paperwork, when listing agent says it is ok, upon completion of sale, none of above

none of above

Which of the following is normally paid by the seller? prepayment penalty, credit report fee, recording fee for trust deed, loan origination fee

prepayment penalty

The buyer's closing costs are divided into categories. They are: recurring and seller's costs, buyer's costs and sellers costs, recurring and nonrecurring costs, nonrecurring costs only because buyer does not pay recurring costs

recurring and nonrecurring costs

Tax service fee is usually paid by

seller

Who decides what title company to use

this is negotiable between buyer and seller

In N Cali, most escrows are handled by

title companies

Title insurance rates are set by

title companies

Title insurance does not cover publicly disclosed

zoning ordinaces