Escrow 1:Introducing Transaction Coordinators

a sellers closing letter should include

-a check for the proceeds of the sale -sellers final closing statement

the buyers closing letter should include

-a chick for any refund for over charges -buyers final closing statement

in an escrow the escrow holder is

-a neutral party -a stakeholder -the third person

which of the following are involved in determining and showing how the various charges are distributed in escrow

-adjustments -prorations -the estimated and final settlement statement

which of the following are "benchmark" documents included in the C.A.R. transaction checklist

-agency disclosure -transfer disclosure statements -foreign investment in real property tax act (FIRPTA)

in the event of litigation, the negotiability of the note would not be affected by clauses that add

-attorneys fees -court costs

in regards to power of attorney transactions, you should be familiar with

-basic law relating to these instruments -the authority they grant -their limitations

as an escrow holder, the escrow instructions you receive

-can be in the form of a formal business letter from the principals to you -spell out exactly what you are to do and only what you are to do in order to conclude the escrow transaction

real defenses include such matters as

-forgery -alteration

a TC can help an agent

-free up time for prospecting and making appointments -maintain a transaction file -remember important details of a specific transaction

its proper for a broker to be paid by both principals to a transaction

-if the escrow instructions signed by the buyer and seller reflect the payment -if the estimated statement signed by the buyer and seller reflect the payment

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 broker shows justifiable financial hardship -if the escrow takes longer than 30 days NONE OF THE ABOVE

which of the following is a general kind of note

-installment not-interest included -straight note -installment note-interes extra

which of the following is true concerning the note

-it is a negotiable instrument -it is extremely valuable to its holder

an attorney-in-fact is prohibited from

-making a deed or mortgage without valuable consideration -dealing with a principals property for his or her own benefit

the relationship of an escrow agent with the parties to an escrow

-means the escrow holder has a duty to act in the highest good faith -requires the escrow holder to protect the trust and confidence of the principals -is a fiduciary relationship

which of the following is an option you can take rather than obtain a lost instrument bond

-obtain an affidavit and indemnity -go through a quite title action

a preliminary title report contains details about a piece of real estate, including

-ownership -liens and encumbrances -easements

a refrigerator is

-personal property -transferred with a bill of sale

prorations apply to charges incurred by either party

-prior to the transfer of property

when the buyer assumes an existing loan, the lender may choose to

-release the previous trustor from all responsibility to pay -retain the former payor responsible -activate the acceleration clause in the deed of trust

in an assumption transaction, any variation in any of the facts presented by the beneficiary will

-require an immediate call to the broker to clear up discrepancies -usually require the signatures of approval from buyer and seller

which of the following is a recorded instrument that must be acknowldeged

-satisfactions of judgement -partial releases

an escrow officer must be

-sensitive to clients needs -strictly impartial

documents usually needed in dealing with a termite inspection include the

-structural pest control inspection report -notice of work complete and not completed

the most common types of wood damaging pests are

-subterranean termites -dry wood termites -dry rot/fungus

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 bills match the amount paid to the remitting party -the file has been perfected

which of the following is considered one of the most important documents in the sale of property

-the note -the deed of trust -the grant deed

the most commonly used type of deed of trust is

-the short form deed of trust -the assignment of rents

which of the following parties are involved in the reconveyance of a loan

-the trustor -the trustee -the beneficiary

which of the following is true concerning the appropriate behavior of escrow holders

-they follow the written instructions from the principals -their information is strictly confidential -their position is strictly neutral

title company charges will differ depending on

-type of title search -the extent of coverages requested

a grant deed

-uses the word "grant" in the title -conveys freehold estate

a note may be transferred

-with recourse -without recourse

all of the information necessary to begin an escrow is contained in a printed form, which may be referred to as

a term or memo sheet

if a lease has not been recorded in the county records it is

an unrecorded lease

an escrow holder is an agent, limited by the escrow instructions to

both the buyer and seller

who receives a final escrow settlement statement

both the seller and buyer

A transaction management program for all real estate licensees and unlicensed transaction coordinators who want to build and establish a successful transaction coordinator business is the

certified transaction coordinator

which of the following creates security for the performance of an obligation

collateral assignment

the final accounting report for an escrow can be referred to as a

final settlement statement

preventing sudden changes such as an unexpected large loan payment totally outside escrow can be accomplished by

freezing the loan

in probate, one of the . main functions of escrow is determining who is the

heir

putting up a property as collateral for a loan without giving up possession of it is called

hypothecation

the federal estate tax becomes a lien on real property

immediately upon death

the full reconveyance must be recorded

in the county records

title insurance has a one-time premium or policy fee, paid

in the escrow, at close of escrow

a person who is not of sound mind or legally insane is considered

incompetent

the actual processing of the escrow file

need not proceed upon the opening of the escrow

a written promise or order to pay money defines a

negotiable instrument

which of the following is true concerning a homestead

it is not an encumbrance

in the event of a completely even exchange

it makes no difference which instructions come first

for escrow purposes, the second-half of the tax year begins

january 1

an abstract of judgement is an order from a

judge

the market value of a second deed of trust is usually

less than its face value

in the title insurance industry, the word encumbrance means more than loans against the property. it includes

liens such as taxes, deeds of trust, and involuntary liens

one of the loan costs is known as the

loan origination fee

for all monies received, you must

make receipts

the responsibility for insuring the marketability of the title is assumed by

the title company

which of the following is true concerning all inclusive deeds of trust

they wrap around existing loans

when it comes to filing and indexing, a review system is often referred to as a

tickler system

whether a deed of trust is considered first, second, or third is determined by

time of recording

if you send a grant deed to a TO, you are sending it to a

title officer

A real estate professional who assists the agent and broker in the processing of the legally compliant real estate property transaction file is known as a

transaction coordinator

the C.A.R. app that helps track and manage transactions from listing to closing is the

transaction management system

closing escrow based on conflicting instructions is

unacceptable

deeds that spell out in specific wording exactly what they warrant are called

warranty deeds

in an escrow the single status is reserved for those persons

who have never been married

the beneficial interest of a note tells

who owns the note

a seller is relieved from being held accountable for nonpayment when a transfer is

without recourse

which of the following is a type of endorsement

-blank -special -restrictive

which of the following are noted on the final settlement statement

-commissions -expenses -prorations

when taking an escrow you have to make the personal decision on your term or memo sheet as to which items are

-conditions of escrow -not the concern of escrow

when a deposit check is made by a broker or someone other than the buyer, you should

-consult your company manual -consult your superiors for directions

which of the following is important when taking an escrow

-correct lien contact information -correct name spelling -correct property address or description

which of the following is true regarding escrow

-escrow holders can only act on written instructions -every aspect of an escrow must be initiated by written, signed instructions -written escrow instructions constitute a contract

which of the following is true concerning escrow fees

-escrow holders set their fees in accordance with local practice -the fee is usually a small percentage of the property's selling price, plus a set figure

personal defenses can include such matters as

-failure of consideration -misrepresentation as to the area of the property

townships are how many square miles

36

each township measures approximately

6 miles on a side

CLTA stands for

California Land Title Association

the CalBRE self-evaluation checklist is

Form RE 540

when conveying an easement, as with other interests in real property, which of the following is essential

a clear and precise description

in order to be recorded, all deeds must be acknowledged by

a notary public

general provisions are

a part of the escrow instructions

unilateral escrow instructions

are two complete sets of escrow instructions

the escrow instructions should be

as concise as possible

when is a binder policy issued

at a later date

concurrent recording means the recordings must be done

at the same time

a deed of trust must be surrendered

at the time of reconveyance

the buyers request for reconveyance is executed by the

beneficiary

which of the following is a single escrow instruction signed by both the buyers and sellers

bilateral instructions

CC&R's refer to

covenants, conditions, and restrictions

on any note the information that conflicts with the instructions of the principals should be

crossed out

a homestead can be removed from a property with

declaration of abandonment

the transfer of assets is evidenced by a probate court called a

decree of distribution

of all the documents prepared in escrow, the instrument that will be recorded and seen most often in the future is the

deed

the information required to complete the assignment of deed of trust form is taken from the

deed of trust

throughout the world, the most common method of acquiring ownership (title) to real property is by

deed transfer

the HUD statement refers to the

department of housing and urban development

the owner of the land that gains the benefit in easements appurtenant is the

dominant tenement

the app allows clients, lenders, inspectors, brokers and agents to work together in one place and guides users through the transaction "loop" sequentially is

dotloop

in an exchange, consideration is not truly "delivered" until

each deed is recorded

the responsibility for handling all funds and documents in an escrow lies with the

escrow holder

if you want to create your own checklist, which of the following would probably be the best application to use

excel

as it pertains to escrow clauses, "we don't intend to assume any blame or guilt if the matters set out here are not resolved as written" defines the word

exculpatory

some title companies request a statement of information

from both principals

which of the following is true concerning escrows

no two escrows are alike

you should refuse to accept any escrow that is

obviously illegal

the location of the property in relation to neighboring properties can be found

on a plat map

you should notify the title company that you are ready to record

once escrow has received "good funds" from the lender and principals

a deed of trust is a junior lien to

other liens recorded earlier

an extra page in the escrow instructions is a

page that should be incorporated into the escrow instructions by reference

an easement in gross must be described in the deed to

pass with the title

usually the first step in the closing processis

printing the final settlement statement

when the holder adds the words "without recourse" to an endorsement it is referred to as

qualified

a court action to prove title is a

quiet title

a riparian right is considered

real property

escrow involves the sale, exchange, or loan transaction of

real property

marketable title is established once the decree of distribution is

recorded

a promissory note represents an unconditional promise to

repay a debt

in the final settlement statement, if the credits column is less than the debits total you face the possibility of closing escrow

short of funds

your job as an escrow holder is to follow the lenders instructions

so long as they don't conflict with those received from your principals

a note specifically endorsed in a buyers favor is known as a

special endorsement

a strictly confidential method of assurance against mistaken title reports is the

statement of information

the cost of the binder policy is usually

ten percent of the basic title insurance rate

who signs the assumption agreement with the lender

the buyer

a riparian right involves

water

to avoid foregoing warranties, the endorser would have to add the words

without warranties

a broker must maintain a property transaction file for at least

3 years

which of the following is appointed by the court

administrator

escrow holders should never

advise clients about legal matters

a last will and testament allows people to pass on property

after death

the notice of completion will be given by the pest control operator

after the work ordered by the customer has been done

a public utility easement is

an easement in gross

which of the following is a simple printed form that gives escrow permission to pay the broker his or her commission

commission instructions

the rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called

easements

which of the following is representative named in a will

executor

who makes the determination of the type of title insurance will be ordrered

the principals to the escrow

a lien is a financial obligation against

the property

when a deed of trust has not been insured, the only option is to issue a policy of title insurance issued in favor of

the assignee

in a dispute about the amount or terms of an obligation, "offset" refers to a counterclaim against

the beneficiary

which of the following verifies the current status of the loan on the second property

the beneficiary's statement

real property transfers must be recorded in

the county where the property is located

the effective date for the insurance must be on or before

the date the new loan will fund

the original typing of instructions so that the transaction can proceed is

the escrow instructions

a life estate is a title given for

the lifetime of the grantee

the oldest of "uniform laws" is

the negotiable instruments law

an attorney-in-fact acts for

the principal

who makes the decision as to the type and form of title insurance to obtain

the principals