Escrow Chapter 6

C. the property.

A lien is a financial obligation against: A. none of the above. B. the property owner. C. the property. D. the escrow holder.

A. covenants, conditions, and restrictions.

CC&Rs refer to: A. covenants, conditions, and restrictions. B. contracts, conditions and references. C. covenants, conditions and recordings. D. none of these.

B. freezing the loan.

Preventing sudden changes such as an unexpected large loan payment totally outside escrow can be accomplished by: A. paralyzing the loan. B. freezing the loan. C. hiding the loan. D. all of the above.

C. Department of Housing and Urban Development.

The HUD Statement refers to the: A. Department of Housing and Unconditional Development. B. all of these C. Department of Housing and Urban Development. D. Human Urban Documentation Department

B. all of these

The escrow holder should audit the file before close of escrow to confirm that A. the file has been perfected B. all of these C. the bills match the amount paid to the remitting party D. the escrow funds will balance with all funds received and no funds are due

B. easements.

The rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called: A. embellishments. B. easements. C. executions. D. exceptions.

B. in the escrow, at closing of escrow

Title insurance has a one-time premium or policy fee, paid: A. 30 days before the policy is issued. B. in the escrow, at closing of escrow C. 30 days after the policy is issued. D. none of these

A. short of funds.

In the final settlement sheet, if the credits column is less than the debits total you face the possibility of closing escrow: A. short of funds. B. with balanced funds. C. with excessive funds. D. none of these

A. all of these.

In the title insurance industry, the word encumbrance means more than loans against the property. It includes: A. all of these. B. covenants, conditions, and restrictions (CC&Rs). C. easements. D. liens such as taxes, trust deeds, and involuntary liens.

A. Both statements are correct

Which of the following is true concerning escrow fees? A. Both statements are correct B. Escrow holders set their fees in accordance with local practice. C. The fee is usually a small percentage of the property's selling price, plus a set figure. D. Neither statement is correct