Chapter 13

Which of the following is considered an extended title policy...?

ALTA

Which of the following is considered a standard title policy...?

CLTA

The neutral third party holding funds or something of value in trust for another or others is referred to as a...?

ESCROW agent

The buyer's closing costs include which of the following...?

Loan origination fees Title insurance policy Appraisal fees

Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept, is known as...?

Marketable title

The escrow is typically responsible for which of the following...?

Order the title report Facilitate the signing of all documents Disbursement of all funds

Which of the following prohibits kickbacks between lenders and real estate professionals...?

RESPA

Which of the following may be prorated between buyers and sellers at closing...?

Taxes Insurance Rents

A condensed history, or summary of all transactions affecting a particular tract of land is known as...?

abstract of title

In Southern California, escrow and title insurance are handled as...?

bilateral escrow instructions

What is the main closing cost for a seller...?

broker commissions

Title that is encumbered or burdened with defects is known as...?

clouded title

In a closing statement, money to be received, or credit given for money is referred to as a...?

credit

In a closing statement, an expense or money received against a credit is referred to as a...?

debit

Escrow agents act as a...?

dual agent

Any transaction wherein one person delivers any written instruments, money, or evidence of title to real property, or other things of value to a third person, to be held by such third person until the happening of a specified event is known as...?

escrow

A real estate broker is not allowed to act as escrow to a real estate transaction...? (t/f)

false

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation is known as a/an...?

lien

The division of certain settlement costs between a buyer and seller is known as...?

proration

To divide the taxes equally or proportionately to time of use, usually between seller and buyer is known as...?

proration of taxes

What typically serves as the escrow instructions...?

the purchase contract

Who typically pays for the documentary transfer tax...?

the seller

Evidence of the right to possess property is known as...?

title

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss is known as...?

title insurance

An escrow officer serves as a third neutral party in a transaction...? (t/f)

true

Both parties must sign-off on any amendments to the escrow instructions...? (t/f)

true

Escrow fees are typically split between the buyer and seller...? (t/f)

true

Escrow is a limited agency relationship...? (t/f)

true

Pre-liens are not covered under a standard title policy...? (t/f)

true

In Northern California, escrow and title insurance are handled as...?

unilateral escrow instructions