Real estate Practice
The CalBRE self-evaluation checklist is: none of these Form RE 540. Form RE 640. Form RE 450.
Form RE 540.
An escrow company will usually include in the actual escrow instructions: The memo sheet Physical property conditions General provisions The specific MLS system
General provisions
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. R.C.R.O. P. A. C.A. R.I.C.A.
R.P.A. - C.A.
Throughout the world, the most common method of acquiring ownership (title) to real property is by: deed transfer. possession claim a bill of sale. fraud.
deed transfer
Using Escrows in California are: required for all transactions seldom recommended for sale transactions only hightly recommended
hightly recommended
The beneficial interest of a note tells: All of these how much the note is worth. who owns the note. how old the note is.
who owns the note.
With a new loan for a borrower, the lender often requires an extended title policy called: TRID RESPA CLTA ALTA
ALTA
In regards to power of attorney transactions, you should be familiar with: All of these the authority they grant. basic law relating to these instruments. their limitations.
All of these
When prorating, adjustments are made based on the actual number of days in the month for property taxes fire insurance all of these Answer loan interest
Answer loan interest
When is a binder policy issued? After the destruction of the property At a later date Along with the closing Immediately
At a later date
Which of the following is a single escrow instruction signed by both the buyers and sellers? Limited instructions Bilateral instructions Unilateral instructions Universal instructions
Bilateral instructions
The buyers closing letter should include: a check for any refund or over charges Both choices are correct. Neither choice a Buyer's Final Closing Statement.
Both choices are correct.
Which of the following is true concerning escrow fees? The fee is usually a small percentage of the property's selling price, plus a set base charge. Escrow holders set their fees in accordance with local practice. Neither statement is correct Both statements are correct
Both statements are correct
The property tax proration for Escrow Sample One Is a debit to the buyer Is a debit to the seller Is not required for this transaction Is a credit to the seller
Is a debit to the seller
A new loan is shown on the Buyer's escrow closing statement as: none of these. A Credit Debt A Charge
a Credit
CC&Rs refer to: contracts, conditions and references. none of these. covenants, conditions and recordings. covenants, conditions, and restrictions.
covenants, conditions, and restrictions.
The rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called: encroachments permissions easements. incursions
easements.
An attorney-in-fact is prohibited from: None of these choices dealing with a principal's property for his or her own benefit. making a deed or mortgage without valuable consideration. either choice
either choice
When a deposit check is made by a broker or someone other than the buyer, you should: none of these. consult your superiors for directions. consult your company manual. either of these
either of these
Prorations apply to charges incurred by either party: prior to the transfer of property. none of these at any time before, during or after the transfer of property. following the transfer of property.
prior to the transfer of property.
Prorations apply to charges incurred by either party: following the transfer of property. none of these prior to the transfer of property. at any time before, during or after the transfer of property.
prior to the transfer of property.
Which of the following are usually prorated in an escrow? title insurance premiums property taxes and loan interest all of these broker and escrow fees
property taxes and loan interest
A court action to prove title is a: quit claim title substitute title. quiet title. court title.
quiet title.
The most commonly used type of deed of trust is: A Quit Claim deed with no warranty all of these. The Grant Deed with warranty the short form and assignment of rents.
the short form and assignment of rents.
A strictly confidential method of assurance against mistaken title reports is the: sales escrow memo sheet. statement of information. none of these. grant deed.
statement of information
Deeds that spell out in specific wording exactly what they warrant are called: all of these limited deeds. guarantee deeds. warranty deeds.
warranty deeds.
The property tax proration for Escrow Sample One Is not required for this transaction Is a debit to the buyer Is a debit to the seller Is a credit to the seller
Is a debit to the seller
A Preliminary Title Report: Is a good alternative for Title Insurance Is a legal requirement for purchase transactions Accompanies the federally required Regulation 'Z' statement Is an early search for matters of record and an offer by the title company to issue insurance
Is an early search for matters of record and an offer by the title company to issue insurance
In the title insurance industry, the word encumbrance against the property includes: Answer all of these. easements. covenants, conditions, and restrictions (CC&Rs). liens such as taxes, trust deeds, and involuntary liens.
Answer all of these.
Independent escrow corporations: Secretary of State Corporations are licensed by the Department of Real Estate Answer are licensed by the California Department of Corporations none of these
Answer are licensed by the California Department of Corporations
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: seller credits Answer buyer credits Any of these refunded to tenant
Answer buyer credits
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 file has been perfected the bills match the amount paid to the remitting party all of these
all of these
A Beneficiary Demand statement must include: Interest amount per day for proration all of these. Fees due Unpaid Principal Balance
all of these.
In the title insurance industry, the word encumbrance against the property includes: liens such as taxes, trust deeds, and involuntary liens. covenants, conditions, and restrictions (CC&Rs). easements. all of these.
all of these.
Which of the following is a general kind of note? all of these. Straight note Installment note-interest extra Installment note - interest included
all of these.
If a lease has not been recorded in the county records it is: invalid an unofficially recorded. an imaginary lease. an unrecorded lease.
an unrecorded lease.
The primary escrow instructions for a residential purchase transaction: are created by the escrow company are generated by the buyer's lender all of these Are part of the purchase agreement
are part of the purchase agreement
Unilateral Escrow Instructions: are used legally acceptable in every English-speaking country in the world. none of the these is one set of instructions for all parties. are two complete sets of escrow instructions.
are two complete sets of escrow instructions
A deed of trust must be surrendered: before escrow opens. at the time of reconveyance. none of these both are correct.
at the time of reconveyance.
A deed of trust must be surrendered: before escrow opens. none of these at the time of reconveyance. both are correct.
at the time of reconveyance.
A request for reconveyance is executed by the: buyer trustor trustee. beneficiary.
beneficiary.
Throughout the world, the most common method of acquiring ownership (title) to real property is by: a bill of sale. fraud. possession claim deed transfer.
deed transfer.
When buyer and seller in escrow cannot resolve a disagreement: escrow may file an interpleader action with the court escrow acts as an arbitrator escrow must remain open until the parties agree escrow returns all funds and documents to the parties
escrow may file an interpleader action with the court
The accounting report for escrow is called the: escrow settlement sheet. escrow estimate sheet. none of these cummulative cost ledger.
escrow settlement sheet
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: liability exculpatory. inclusive exceptional.
exculpatory
Escrow Instructions are like a formal business letter: from the brokers to the parties from the escrow company to the parties from the parties to the escrow company from the escrow to the title company
from the parties to the escrow company
Escrow Instructions are like a formal business letter: from the parties to the escrow company from the escrow company to the parties from the brokers to the parties from the escrow to the title company
from the parties to the escrow 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: Credit Prorated Debit Unknown
Debit
An Escrow Settlement Sheet will include: Federal Income taxes owed by buyer Debits & Credits for Buyer & Seller Seller's Origninal Purchase Price Buyer's Adjusted Gross Income
Debits & Credits for Buyer & Seller
In the final settlement sheet, if the credits column is less than the debits total you face the possibility of closing escrow: with balanced funds. short of funds. none of these with excessive funds.
short of funds
Prior to selling the property in Escrow Sample Two, the sellers: refinanced the property split their lot into 2 separate parcels listed the property with a broker All of these
split their lot into 2 separate parcels
A life estate is a title given for: the lifetime of the grantor. the lifetime of the broker. the lifetime of the grantee. the lifetime of the escrow officer.
the lifetime of the grantee.
Which of the following are "benchmark" documents included in the C.A.R.® transaction checklist? Foreign Investment in Real Property Tax Act (FIRPTA) Agency Disclosure All of these Transfer Disclosure Statement (TDS)
All of these
Which of the following is important when taking an escrow? Accuracy All of these Correct name spelling Verification of figures
All of these
Which of the following is true regarding escrow? Escrow holders can only act on written instructions. All of these Written escrow instructions constitute a contract. Every aspect of an escrow must be initiated by written, signed instructions.
All of these
Which of the following parties are involved in the reconveyance of a loan? The trustor All of these The trustee The beneficiary
All of these
The current CAR form RPA: all of these is the primary escrow instruction from the parties is the agreement between the buyer and seller details the closing time table
all of these
An escrow officer must be: both approaches shown neither of the approaches shown sensitive to clients' needs. strictly impartial.
both approaches shown
When taking an escrow you have to make the personal decision on your memo sheet as to which items are: conditions of escrow. neither of these choices memoranda. both of these choices
both of these choices
A grant deed: neither statement is true uses the word "grant" in the title. both statements are true conveys freehold estate.
both statements are true
A common loan cost is also known as the: reserve fee. cost of funds. loan origination fee. miscellaneous cost.
loan origination fee
When prorating charges in escrow between buyer & seller, property taxes are adjusted on the basis of: 30 day month and 360 day year Actual number of days in month and 365 days per year Number of days in that month 52 weeks
30 day month and 360 day year
Which of the following is true concerning the note? It is a negotiable instrument. It cannot be bought or sold. It is recorded with the close of escrow It is the collateral
It is a negotiable instrument.
For escrow purposes, the second-half of the tax year begins: January 1. February 1. March 1. April 1.
January 1.
A document signed by a landlord and tenant to show the status of payments and agreements between them is: Offset Statement Lease Assignment Rental Account Log Tenants Rights Verification
Offset Statement
In escrow Sample One a change of interest rate charged by the lender and their required title insurance coverage: none of these. Requires an amendment to the escrow instructions Is handled by the broker Is a communication between lender and escrow
Requires an amendment to the escrow instructions
In order for escrow to pay commissions due to any broker, escrow will need: Separate instructions authorizing payment All of these A copy of the listing agreement The MLS compensation statement
Separate instructions authorizing payment
The Structural Pest Control Report is called by a common nickname: Infestation Report Termite Report Bug Statement Wood Condition Report
Termite Report
The C.A.R.® app that helps track and manage transactions from listing to closing is the: Transaction Flagging System. None of these Transaction Warning System. Transaction Management System.
Transaction Management System
The Notice of Completion will be given by the pest control operator: only after being paid by the customer. after the work ordered by the customer has been done. before the work ordered by the customer has been done. none of the above.
after the work ordered by the customer has been done
Putting up a property as collateral for a loan without giving up possession of it is called: novation title protection. qualification. hypothecation.
hypothecation
Real Estate broker licensees may conduct escrows: if they have an escrow license only in Southern California if the broker represents a principal in the transaction for residential sales only
if the broker represents a principal in the transaction
It is acceptable to pay the broker commission or any part of it before the closing of escrow under which of the following conditions? If the escrow officer trusts the parties If the escrow exceeds the scheduled closing date none of these. If the broker shows a listing agreement
none of these
The California property tax payment is due: first half year in Spring second half year in Fall none of these in one lump sum
none of these
In order to be recorded, all deeds must be acknowledged by: a bondsman. the county clerk a county judge. a notary public.
a notary public.
The most common types of wood damaging pests are: dry wood termites. subterranean termites. dry rot/fungus. all of the above.
all of the above.
In the title insurance industry, the word encumbrance against the property includes: covenants, conditions, and restrictions (CC&Rs). all of these. liens such as taxes, trust deeds, and involuntary liens. easements.
all of these