CHAPTER13 QUIZ MODULE 2

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

A/ ALTA

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

A/ Bilateral Escrow Instructions

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

A/ Broker commissions

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

A/ Credit

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...?

A/ Escrow

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

A/ Escrow agent

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...?

A/ Lien

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

A/ Proration of taxes

An escrow officer serves as a third neutral party in a transaction...?

A/ T (True)

Both parties must sign-off on any amendments to the escrow instructions...?

A/ T (True)

Escrow fees are typically split between the buyer and seller...?

A/ T (True)

Escrow is a limited agency relationship...?

A/ T (True)

Pre-liens are not covered under a standard title policy...?

A/ T (True)

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

ALoan origination fees BTitle insurance policy CAppraisal fees D/ All of the above

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

AOrder the title report BFacilitate the signing of all documents CDisbursement of all funds D/ All of the above

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

ATaxes BInsurance CRents D/ All of the above

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

B/ Abstract of title

Escrow agents act as a...?

B/ Dual agent

A real estate broker is not allowed to act as escrow to a real estate transaction...?

B/ F (False)

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

B/ RESPA

What typically serves as the escrow instructions...?

B/ The purchase contract

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

B/ The seller

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

B/ Unilateral Escrow Instructions

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...?

C./ Marketable title

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

C/ Proration

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

C/ Title

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

D/ CLTA

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

D/ Clouded title

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

D/ Debit

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

D/ Title insurance