Escrow Chapters 1-15 Study
When is a binder policy issued? At a later date After the destruction of the property Immediately Along with the closing
At a later date
An escrow company will usually include in the actual escrow instructions: Physical property conditions General provisions The memo sheet The specific MLS system
General provisions
Regarding Structural Pest Control: All of these It is required when selling residential real estate It is always paid for by the seller It is not required by law
It is not required by law
Regarding a reconveyance deed, the following are true: It is sent to the new buyer It is recorded after the close of escrow All of these It is issued by the trustor
It is recorded after the close of escrow
For escrow purposes, the second-half of the tax year begins: January 1. March 1. April 1. February 1.
January 1.
An escrow settlement sheet or estimated charges sheet shows: prorations and adjustments payoff figures total consideration to be paid all of these
all of these
To avoid foregoing warranties, the endorser would have to add the words: "without warranties." all of the these. "ignore warranties." "warranties implied."
"without warranties."
The cost of a Binder Policy is usually: 1% of the Basic Title rate 20 % of the Basic Title rate 5% of the Basic Title rate 10% of the Basic Title rate
10% of the Basic Title rate
A broker must maintain a property transaction file for at least: 2 years. 3 years. 1 year. 4 years.
3 years.
When prorating charges in escrow between buyer & seller, property taxes are adjusted on the basis of: Number of days in that month Actual number of days in month and 365 days per year 52 weeks 30 day month and 360 day year
30 day month and 360 day year
If a Note with a $37500 balance is sold with a 20% discount, the amount paid for the Note is $ (Fill in the answer with numbers only, Please Do not include extra spaces, words, letters, symbols, commas, decimal points, cents or dollar signs or it will be marked incorrect. Type in a number such as: 98765)
30000
What values have been placed on the properties for the purposes of the sample exchange? 60,000 & $55,000 60,000 & 76,000 55,000 & 136,000 76,000 & 136,000
55,000 & 136,000
A new loan is shown on the Buyer's escrow closing statement as: A Credit Debt A Charge none of these.
A Credit
Among the Preliminary Title Report common exceptions to the title insurance coverage proposed for escrow Sample Two is a unique exception for this specific property. What is it? A Judgement against the seller General Property Taxes Covenants, Conditins & Restrictions A Mechanics Lien
A Judgement against the seller
Among the Preliminary Title Report common exceptions to the title insurance coverage proposed for escrow Sample Two is a unique exception for this specific property. What is it? Covenants, Conditins & Restrictions A Mechanics Lien General Property Taxes A Judgement against the seller
A Judgement against the seller
What kind of title policy is requested by the "lender" in Escrow Sample TWO? CLTA PRELIM BINDER ALTA
ALTA
With a new loan for a borrower, the lender often requires an extended title policy called: ALTA CLTA TRID RESPA
ALTA
Which of the following is selected and appointed by the probate court? Executrix Administrator Executor all of these.
Administrator
A seller's closing letter should include: All of these Seller's Statement. a check for the proceeds of the sale. original policy for fire insurance.
All of these
A seller's closing letter should include: Seller's Statement. a check for the proceeds of the sale. original policy for fire insurance. All of these
All of these
Added details in this escrow NOT involved in previous sample escrows: Two separate real properties All of these Tax redemption of real property Probate court decree of distribution
All of these
In regards to power of attorney transactions, you should be familiar with: their limitations. All of these basic law relating to these instruments. the authority they grant.
All of these
The loan in escrow Sample Two: It is an installment loan with a balloon payment All of these Payments are based 30 year amortization Loan is fully payable in 15 years
All of these
The loan in escrow Sample Two: Loan is fully payable in 15 years All of these It is an installment loan with a balloon payment Payments are based 30 year amortization
All of these
The loan in escrow Sample Two: Payments are based 30 year amortization All of these It is an installment loan with a balloon payment Loan is fully payable in 15 years
All of these
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 Transfer Disclosure Statement (TDS) All of these
All of these
Which of the following are involved in determining and showing how the various charges are distributed in escrow? All of these Prorations Adjustments The estimated and final settlement statement
All of these
Which of the following are noted on the final settlement sheet? Expenses Commissions Prorations All of these
All of these
Which of the following is a type of endorsement? Special Blank Restrictive All of these
All of these
Which of the following is important when taking an escrow? Verification of figures Correct name spelling Accuracy All of these
All of these
Which of the following may be considered one of the most important documents in the sale of property? All of these The note The grant deed The deed of trust
All of these
Which of the following may be considered one of the most important documents in the sale of property? The deed of trust The note All of these The grant deed
All of these
Which of the following parties are involved in the reconveyance of a loan? All of these The beneficiary The trustee The trustor
All of these
If agreed upon pest control work is not completed before escrow closes: Delay the closing Debit seller & credit buyer funds to pay for the pest control Any of these Hold funds and pay pest control after closing and pay
Any of these
Prior to issuing insurance for the transaction in escrow Sample TWO, the title company is requiring which of following? Any of these Certificate of Compliance with the Subdivision Map Act A Recorded Parcel Map A Final Recorded Tract Map
Any of these
The primary escrow instructions for a residential purchase transaction: Are part of the purchase agreement are created by the escrow company all of these are generated by the buyer's lender
Are part of the purchase agreement
An agreement in the deed of trust that grants the right to the lender to collect rents even though title is held by the trustor is called: Rent Collection Provision Forfeit of Rental Income Assignment of Rents Rental Compliance
Assignment of Rents
Which of the following is a single escrow instruction signed by both the buyers and sellers? Bilateral instructions Universal instructions Limited instructions Unilateral instructions
Bilateral instructions
Which of the following is a recorded instrument that must be acknowledged? neither choice Partial releases Both choices Satisfactions of judgment
Both choices
Which of the following is an option you can take rather than obtain a lost instrument bond? Go through a quiet title action Neither choice Both choices are correct. Obtain an affidavit and indemnity
Both choices are correct.
Which of the following is an option you can take rather than obtain a lost instrument bond? Neither choice Both choices are correct. Obtain an affidavit and indemnity Go through a quiet title action
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. Both statements are correct Escrow holders set their fees in accordance with local practice. Neither statement is correct
Both statements are correct
Who receives a final escrow settlement statement? The seller The buyer Both the seller and buyer None of these
Both the seller and buyer
CLTA stands for: California Land Title Application California Land Title Association Common Land Title Association none of these.
California Land Title Association
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: none of these Certified Transaction Expert. Certified Transaction Coordinator. Certified Transaction Specialist.
Certified Transaction Coordinator.
Which of the following creates security for the performance of an obligation? Collateral assignment None of these Collateral damage Collective assignment
Collateral assignment
Which of the following creates security for the performance of an obligation? Collateral damage None of these Collateral assignment Collective assignment
Collateral assignment
Which of the following is a simple printed form that gives escrow permission to pay the broker his or her commission? Statement of Information Wrap-Up Instructions Commission Instructions Broker Demand form
Commission Instructions
Since the seller last paid their existing loan payment on the first of the month and escrow closes on the last day of the same month, interest will be settled: Debit buyer Credit seller one month interest None of these No interest will be due for the month of escrow Credit buyer Debit Seller one month interest
Credit buyer Debit Seller one month interest
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: Unknown Prorated Debit Credit
Debit
An Escrow Settlement Sheet will include: Buyer's Adjusted Gross Income Federal Income taxes owed by buyer Debits & Credits for Buyer & Seller Seller's Origninal Purchase Price
Debits & Credits for Buyer & Seller
The HUD Statement refers to the: Department of Housing and Urban Development. Department of Housing and Unconditional Development. all of these Human Urban Documentation Department.
Department of Housing and Urban Development.
What unusual item was revealed in the Preliminary Title report: Deed of Trust none of these. Property Tax Easment for water rights
Easment for water rights
If you want to create your own checklist, which of the following would probably be the best application to use? InDesign Excel Word None of these
Excel
Interest on a note carried by the seller begins to accrue on the actual close of escrow date which may differ from the originally scheduled closing date. Escrows are usually instructed to: Hold funds until after closing Disregard any closing date change Fill in the date as part of closing Pay the interest due
Fill in the date as part of closing
Interest on a note carried by the seller begins to accrue on the actual close of escrow date which may differ from the originally scheduled closing date. Escrows are usually instructed to: Pay the interest due Fill in the date as part of closing Hold funds until after closing Disregard any closing date change
Fill in the date as part of closing
A Homestead Exemption on the property: Defeats/supercedes any prior existing liens Does not protect against unsecured liens Ends when the property title passes to a new owner Is filed by the lender to protect their lien
IS NOT (Does not protect against unsecured liens)
A written agreement by the title insurance company to issue a policy at a later date: Any of these Option Addendum Indorsement Interim Binder
Interim Binder
The property tax proration for Escrow Sample One Is a credit to the seller Is a debit to the seller Is a debit to the buyer Is not required for this transaction
Is a debit to the seller
A Preliminary Title Report: Is an early search for matters of record and an offer by the title company to issue insurance Is a legal requirement for purchase transactions Is a good alternative for Title Insurance 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
Which of the following is true concerning the note? It cannot be bought or sold. It is a negotiable instrument. It is recorded with the close of escrow It is the collateral
It is a negotiable instrument.
Which of the following is true concerning the note? It is recorded with the close of escrow It is a negotiable instrument. It cannot be bought or sold. It is the collateral
It is a negotiable instrument.
Regarding the seller's loan payoff, for what period is interest owed at close of escrow? All Interest has already been paid by seller August 1 - September 1 July 1 - August 1 No interest is due when closing on a first of the month
July 1 - August 1
A transaction coordinator may perform: All of these Loan Origination Client real estate advice Maintaining transaction deadlines
Maintaining transaction deadlines
A transaction coordinator: May have a real estate license Needs a real estate license Works for one agent Works only for escrow companies
May have a real estate license
A transaction coordinator: Works for one agent Needs a real estate license Works only for escrow companies May have a real estate license
May have a real estate license
The document in this exchange escrow called, "Modification of Trust Deed and Promissory Note and Assumption Agreement: All of these Retains Gonzales as responsible for the loan Is not required when assuming this loan Must be approved and signed by both exchange parties
Must be approved and signed by both exchange parties
The original typing of instructions so that the transaction can proceed is actually: a codification. a demand. the escrow instructions. a supplement.
NOT (a supplement) -->> the escrow instructions.
In probate, one of the primary functions of escrow is verifying who is the: bank judge. heir. broker.
NOT (judge.) probably: heir
The Beneficiary's Statement sent for completion and return to escrow: indicates the loan is being assumed indicates title is being taken subject to the loan Indicates the property is being sold None of these
NOT (none of these) NOT (indicates the loan is being assumed)
When the escrow is ready to close the officer: Sends deeds with an order for title insurance all of these. Has received necessary clear funds Notifies title company to record
NOT just (Has received necessary clear funds) & (Notifies title company to record)
Who is the beneficiary of the note & 2nd Deed of Trust? the trustee the escrow company the sellers the buyers
NOT just (the trustee)
What is the name of the new loan lender in Sample Two None of these Glendale Federal Safeco Mutual
None of these
A document signed by a landlord and tenant to show the status of payments and agreements between them is: Lease Assignment Tenants Rights Verification Offset Statement Rental Account Log
Offset Statement
Escrow Sample Two will require: Request for Reconveyance Loan Demand Statement Power of Attorney an RPA-CA form
Power of Attorney
Most residential sale/purchase transactions in Southern California are written using the C.A.R agreement form with the initials: R.I.C.A. P. A. C.A. R.P.A. - C.A. R.C.R.O.
R.P.A. - C.A.
In escrow Sample One a change of interest rate charged by the lender and their required title insurance coverage: Requires an amendment to the escrow instructions none of these. Is a communication between lender and escrow Is handled by the broker
Requires an amendment to the escrow instructions
Most residential sale/purchase transactions in Southern California are written using the C.A.R agreement form titled: Escrow Instructions - California Southern California Residential Offer Residential Purchase Agreement - California Residential Purchase Agreement & Joint Escrow Instructions
Residential Purchase Agreement & Joint Escrow Instructions
The Abstract of Judgment found in the Pre-Lim indicates a need for: Escrow Waiver Posting a Bond An Exception Indorsement Satisfaction of Judgment
Satisfaction of Judgment
In order for escrow to pay commissions due to any broker, escrow will need: The MLS compensation statement Separate instructions authorizing payment All of these A copy of the listing agreement
Separate instructions authorizing payment
n order for escrow to pay commissions due to any broker, escrow will need: A copy of the listing agreement All of these Separate instructions authorizing payment The MLS compensation statement
Separate instructions authorizing payment
In order to facilitate the agreement of the parties about payment for Structural Pest Control work, escrow will need: The parties to settle this matter outside of escrow Authorization from the Structural Pest Control Board Supplemental escrow instructions A new title report
Supplemental escrow instructions
The Structural Pest Control Report is called by a common nickname: Termite Report Infestation Report Bug Statement Wood Condition Report
Termite Report
Who makes the decision as to the type and form of title insurance to obtain? The broker The parties Escrow holder The title company
The parties
Who makes the final determination of the type of title insurance will be ordered? The escrow holder The broker title company The principal parties to the escrow
The principal parties to the escrow
Which of the following is true concerning the appropriate behavior of escrow officers? Their position is strictly neutral. They follow the written instructions from the principles All of the these. Their information is strictly confidential.
Their position is strictly neutral. They follow the written instructions from the principles Their information is strictly confidential.
Which of the following is true concerning all inclusive deeds of trust? The buyer is the beneficiary. They are not connected to existing loans. All of these are true They wrap around existing loans.
They wrap around existing loans.
What type of escrow company is handling sample escrow two? Bank Attorney in Fact Independent Corporation Title Company
Title Company
A Request for Notice of Default is recorded: When a trustor pays the loan in full If there are no senior liens To help protect the owner of a subordinate or junior trust deed To notify a senior or First Trust Deed owner
To help protect the owner of a subordinate or junior trust deed
The C.A.R.® app that helps track and manage transactions from listing to closing is the: Transaction Flagging System. None of these Transaction Management System. Transaction Warning System.
Transaction Management System.
Which of the following is true regarding escrow? Written escrow instructions constitute a contract. All of these Every aspect of an escrow must be initiated by written, signed instructions. Escrow holders can only act on written instructions.
Written escrow instructions constitute a contract. Every aspect of an escrow must be initiated by written, signed instructions. Escrow holders can only act on written instructions.
When conveying an easement, as with other interests in real property, which of the following is essential? a relatively accurate description. the owner's desription a clear and precise description. all of these.
a clear and precise description.
The location of the property in relation to neighboring properties is shown on: a street map. none of these mobile GPS app a plat map.
a plat map.
Escrow officers should never: advise clients about legal matters. become familiar with the legal aspects of real estate. keep up with changes in real estate law. all of these.
advise clients about legal matters.
A last will and testament allows people to pass on property: tax free. before death. all of the above. after death.
after death.
The Notice of Completion will be given by the pest control operator: only after being paid by the customer. none of the above. after the work ordered by the customer has been done. before the work ordered by the customer has been done.
after the work ordered by the customer has been done.
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.
The current CAR form RPA: is the agreement between the buyer and seller details the closing time table is the primary escrow instruction from the parties all of these
all of these
The escrow holder should audit the file before close of escrow to confirm that: 1. the bills match the amount paid to the remitting party 2. all of these 3. the escrow funds will balance with all funds received and no funds are due 4. the file has been perfected
all of these
Which of the following may conduct escrows in California? banks all of these lawyers title insurance companies
all of these
It's proper for a broker to be paid by both principals to a transaction: if the estimated statement signed by the buyer and seller reflect the payment. all of these are relevant if the escrow instructions signed by the buyer and seller reflect the payment. provided both are informed and express approval of such
all of these are relevant
A Beneficiary Demand statement must include: Fees due all of these. Unpaid Principal Balance Interest amount per day for proration
all of these.
All of the information necessary to begin an escrow is contained in a printed form, which may be referred to as: a memo sheet. an escrow work sheet. an escrow order sheet. all of these.
all of these.
In the title insurance industry, the word encumbrance against the property includes: easements. all of these. covenants, conditions, and restrictions (CC&Rs). liens such as taxes, trust deeds, and involuntary liens.
all of these.
When taking title subject to seller's existing loan, the balance: Is a credit to the buyer Is a debit to seller's proceeds all of these. Is part of the purchase price
all of these.
Which of the following is a general kind of note? all of these. Installment note-interest extra Straight note Installment note - interest included
all of these.
A public utility easement is usually: all of these an easement appurtenant. uncommon an easement in gross.
an easement in gross.
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.
When the buyer attempts to assume an existing loan, the lender may choose to: activate the acceleration clause in the deed of trust. any of these are possible release the previous trustor from all responsibility to pay. retain the former payor responsible.
any of these are possible
Boot in an exchange refers to: rejection by the exchangers existing encumbrances assumed the type of deed received by each party anything received other than real property
anything received other than real property
Independent escrow corporations: none of these Secretary of State Corporations are licensed by the California Department of Corporations are licensed by the Department of Real Estate
are licensed by the California Department of Corporations
Unilateral Escrow Instructions: 1. none of the these 2. are used legally acceptable in every English-speaking country in the world. 3. is one set of instructions for all parties. 4. are two complete sets of escrow instructions.
are two complete sets of escrow instructions.
A deed of trust must be surrendered: at the time of reconveyance. both are correct. before escrow opens. none of these
at the time of reconveyance.
A deed of trust must be surrendered: before escrow opens. both are correct. none of these at the time of reconveyance.
at the time of reconveyance.
Interest on a loan being taken over is prorated in escrow: none of these by the title company for tax purposes based on a 30 day month
based on a 30 day month
A request for reconveyance is executed by the: trustor buyer trustee. beneficiary.
beneficiary
A request for reconveyance is executed by the: buyer trustee. beneficiary. trustor
beneficiary.
In the event of litigation, the negotiability of the note would not be affected by clauses that add: none of the these. court costs. attorney's fees. both a and b.
both a and b.
Personal defenses can include such matters as: failure of consideration. both a and b. none of the these. misrepresentation as to the area of the property.
both a and b.
Real defenses include such matters as: forgery. alteration. none of these both a and b.
both a and b.
An Assignment must be handled in Sample Two escrow for: Neither choice The water stock both choices The existing lease
both choices
As an escrow officer, the Escrow Instructions you receive: 1. take the form of a formal business letter from the principals to you. 2. spell out exactly what you are to do and ONLY what you are to do in order to conclude the escrow transaction. 3. both choices 4. none of these.
both choices
Title company charges will differ depending on: the extent of coverages requested. both choices are correct the type of title search. none of these.
both choices are correct
Documents usually needed in dealing with a termite inspection include the: Structural Pest Control Inspection Report. both choices. Notice of Work Complete and Not Completed. neither choice
both choices.
A note may be transferred: with recourse. without recourse. both of these are correct none of these
both of these are correct
When taking an escrow you have to make the personal decision on your memo sheet as to which items are: memoranda. conditions of escrow. neither of these choices both of these choices
both of these choices
An escrow officer is an agent to: the seller only. both the buyer and seller. the buyer only. neither the buyer nor seller.
both the buyer and seller.
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: buyer credits Any of these refunded to tenant seller credits
buyer credits
Usually the first step in the closing process is: checking citizenship. completing the settlement sheet. collecting a commission. none of these.
completing the settlement sheet.
CC&Rs refer to: covenants, conditions and recordings. none of these. contracts, conditions and references. covenants, conditions, and restrictions.
covenants, conditions, and restrictions.
The transfer of assets is evidenced by a probate court order called a: decree of distribution. degree of distribution. decree of redemption. none of these
decree of distribution.
Throughout the world, the most common method of acquiring ownership (title) to real property is by: fraud. deed transfer. possession claim a bill of sale.
deed transfer.
Of all the documents prepared in escrow, the instrument that will be recorded and seen most often in the future is the: title insurance report. none of these. deed. pest control report.
deed.
The owner of the land that gains the benefit in easements appurtenant is the: mega tenement. prevailing tenement. dominant tenement servient tenement.
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. Quicken. Settlement Room. REVA Network.
dotloop.
When it's time to ask the buyer for funds, be prepared to: draw the estimated settlement statement for the principals to sign none of these request cash only
draw the estimated settlement statement for the principals to sign
In an exchange, consideration is not truly "delivered" until each deed is recorded. it is handed to each party. the bank cashes the check. none of the above.
each deed is recorded.
The rights of non-owners to use portions of property for their own (stated) purposes granted by recorded owners are called: incursions easements. encroachments permissions
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
The responsibility for handling all funds and documents in an escrow lies with the: buyer and seller. broker. escrow holder. none of the these.
escrow holder.
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: exceptional. exculpatory. liability inclusive
exculpatory.
Notice of default lets the holder of the second trust deed know if the borrower defaults on the: first trust deed escrow instructions grant deed title policy
first trust deed
Preventing sudden changes such as an unexpected large loan payment totally outside escrow can be accomplished by: hiding the loan. freezing the loan. all of the above. excepting the loan.
freezing the loan.
reventing sudden changes such as an unexpected large loan payment totally outside escrow can be accomplished by: hiding the loan. freezing the loan. excepting the loan. all of the above.
freezing the loan.
Escrow Instructions are like a formal business letter: from the escrow to the title company from the escrow company to the parties from the brokers to the parties from the parties to the escrow company
from the parties to the escrow company
Using Escrows in California are: required for all transactions seldom recommended hightly recommended for sale transactions only
hightly recommended
Putting up a property as collateral for a loan without giving up possession of it is called: title protection. qualification. novation hypothecation.
hypothecation.
Real Estate broker licensees may conduct escrows: if the broker represents a principal in the transaction for residential sales only if they have an escrow license only in Southern California
if the broker represents a principal in the transaction
The federal estate tax becomes a lien on real property: none of the above. 12 months after death. 6 months after death. immediately upon death.
immediately upon death.
The full reconveyance must be recorded: in the county records. with the Real Estate Commissioner. with the Secretary of State. all of these
in the county records.
Title insurance premium or policy fee, paid: 30 days after the policy is issued. 30 days before the policy is issued. in the escrow, at closing of escrow upon each aniversary of the closing
in the escrow, at closing of escrow
The most likely reason for an exchange instead of a sale: income tax considerations none of these parties are relatives lack of financing available
income tax considerations
A person who is not of sound mind or legally insane is considered: an easy mark. competent. capable of entering legal contracts. incompetent.
incompetent
Use of the Valuation or Consideration form is NOT : any of these for balancing the equities instead of escrow instructions for determining values placed on the properties.
instead of escrow instructions
The relationship of an escrow agent with the parties to an escrow: is a fiduciary relationship. requires the agent to protect the trust and confidence of his/her principals. means the agent has a duty to act in the highest good faith. all of the these.
is a fiduciary relationship. requires the agent to protect the trust and confidence of his/her principals. means the agent has a duty to act in the highest good faith.
The promissory note drawn up in Escrow Sample 3: is adjusted based on the actual unpaid balance of the senior lien is fully amortizing is an all inclusive deed of trust is on behalf of the existing lender
is adjusted based on the actual unpaid balance of the senior lien
For our sample Exchange Escrow, the formal agreements between the parties: is done with purchase agreements for each property is initated with the escrow instructions is verbally described by the broker to escrow is done with a single exchange agreement
is done with a single exchange agreement
In the event of a completely even exchange: the seller's instructions must come first. the buyer's instructions must come first. it makes no difference which instructions come first. both parties' instructions must be presented at the same time.
it makes no difference which instructions come first.
The market value of a second trust deed is usually: less than its face value. none of these. more than its face value. equal to its face value.
less than its face value.
When prorating, adjustments are made based on the actual number of days in the month for fire insurance all of these property taxes loan interest
loan interest
A common loan cost is also known as the: loan origination fee. reserve fee. cost of funds. miscellaneous cost.
loan origination fee.
A TC can help an agent: 1. maintain a transaction file. 2. remember important details of a specific transaction. 3. all of these 4. free up time for prospecting and making appointments.
maintain a transaction file. remember important details of a specific transaction. free up time for prospecting and making appointments.
For all monies received, you must: withhold 10% for service fees. both choices make receipts. neither choice
make receipts.
The actual processing of the escrow file: needs to proceed immediately from the signing of the escrow instructions. needs to proceed immediately after the death of one of the brokers. none of these need not proceed upon the opening of the escrow.
need not proceed upon the opening of the escrow.
A written promise or order to pay money defines a: negligible instrument. non-negotiable instrument. all of these negotiable instrument.
negotiable instrument.
Regarding legal descriptions of property: These are not included with the Preliminary Title report none of the these. Suspected inaccuracies should be reported to the Department of Real Estate Affirmation and interpretation are the escrow officer's responsibility
none of the these.
The California property tax payment is due:: in one lump sum second half year in Fall none of these first half year in Spring
none of these
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.
A good practice for escrow regarding the Preliminary Title Reports is: give legal advice about the report to recommend their favorite title company obtain buyer's signature for receipt & approval always choose the lowest price title company
obtain buyer's signature for receipt & approval
A good practice for escrow regarding the Preliminary Title Reports is: obtain buyer's signature for receipt & approval always choose the lowest price title company give legal advice about the report to recommend their favorite title company
obtain buyer's signature for receipt & approval
A good practice for escrow regarding the Preliminary Title Reports is: obtain buyer's signature for receipt & approval always choose the lowest price title company to recommend their favorite title company give legal advice about the report
obtain buyer's signature for receipt & approval
A good practice for escrow regarding the Preliminary Title Reports is: to recommend their favorite title company obtain buyer's signature for receipt & approval always choose the lowest price title company give legal advice about the report
obtain buyer's signature for receipt & approval
You should refuse to accept any escrow that is: time consuming. complicated. obviously illegal. all of these.
obviously illegal.
You should notify the title company that you are ready to record: once escrow has received "good funds" from the lender and all principals. when the pest control completion is received once you receive the funds from the seller and they clear the bank. as soon as the seller signs the deed
once escrow has received "good funds" from the lender and all principals.
A preliminary title report contains details about a piece of real estate, including: all of these ownership. liens and encumbrances. easements.
ownership. liens and encumbrances. easements.
An extra page in the escrow instructions is a(n): inconvenience. page that should be incorporated into the escrow instructions by reference. amendment. codicil.
page that should be incorporated into the escrow instructions by reference.
An easement in gross must be described in the deed to: be liveable. all of these. pass with the title. be built upon.
pass with the title.
An escrow may be ended by: broker cancels the sale none of these performance/completion unilateral cancellation by seller
performance/completion
Prorations apply to charges incurred by either party: following the transfer of property. at any time before, during or after the transfer of property. prior to the transfer of property. none of these
prior to the transfer of property.
Escrows are required by law: for home sale transactions loans all of these probate property
probate property
Which of the following are usually prorated in an escrow? property taxes and loan interest title insurance premiums broker and escrow fees all of these
property taxes and loan interest
When the holder adds the words "without recourse" to an endorsement it is referred to as: simplified. null and void. complicated. qualified.
qualified
A court action to prove title is a: quit claim title court title. substitute title. quiet title.
quiet title.
A court action to prove title is a: quit claim title quiet title. court title. substitute title.
quiet title.
Escrow involves the sale, exchange, or loan transaction of: real property. personal property. all of these. publishing rights.
real property.
In the final settlement sheet, if the credits column is less than the debits total you face the possibility of closing escrow: with excessive funds. short of funds. none of these with balanced funds.
short of funds.
Your job as an escrow officer is to follow the lender's instructions: so long as they don't conflict with those received from your principals. even if they do conflict with those received from your principals. none of the above. only if you have permission from a judge to ignore your principal's instructions.
so long as they don't conflict with those received from your principals.
A note specifically endorsed in a buyer's favor is known as a: all of these. blank endorsement. special endorsement. personal endorsement.
special endorsement.
Prior to selling the property in Escrow Sample Two, the sellers: refinanced the property listed the property with a broker All of these split their lot into 2 separate parcels
split their lot into 2 separate parcels
A strictly confidential method of assurance against mistaken title reports is the: grant deed. sales escrow memo sheet. statement of information. none of these.
statement of information.
An escrow officer must be: both approaches shown strictly impartial. neither of the approaches shown sensitive to clients' needs.
strictly impartial. sensitive to clients' needs.
The cost of the binder policy is usually: twenty percent of the basic title insurance rate. fifty percent of the basic title insurance rate. thirty percent of the basic title insurance rate. ten percent of the basic title insurance rate.
ten percent of the basic title insurance rate.
When a trust deed has not been insured, the only option is to issue a policy of title insurance issued in favor of: the assignor. the assignee. none of these. both of these are correct
the assignee.
In a dispute about the amount or terms of an obligation, "offset" refers to a counterclaim against: the beneficiary. the seller. all of these. the buyer.
the beneficiary.
In Escrow Sample 3 all of these are true the seller's final cash proceeds are $32,500 there are new loan funds deposited into escrow the buyer owes the seller $43,500
the buyer owes the seller $43,500
Real property transfers must be recorded in: the county where the property is located. all of these federal court. both English and Spanish.
the county where the property is located.
A life estate is a title given for: the lifetime of the grantor. the lifetime of the escrow officer. the lifetime of the grantee. the lifetime of the broker.
the lifetime of the grantee.
The oldest of "uniform laws" is: the negotiable instruments law. the private school uniform law. the dress code law. the police power law.
the negotiable instruments law.
A lien is a financial obligation against: the escrow holder. the property. any lenders. the property owner.
the property.
In Escrow Sample 3 Final Settlement Statement: the buyer is debited $737.93 for property taxes the seller is credited $747.90 for property taxes the seller's final cash proceeds are $22,612.09 the buyer is credited $747.90 for property taxes
the seller is credited $747.90 for property taxes
Upon tabulating the charges & credits for each party to the exchange escrow, which is true? The buyer's credits exceed his debits the seller must add funds to close The seller will recieve proceeds in excess of charges The buyer will receive a refund
the seller must add funds to close
The most commonly used type of deed of trust is: The Grant Deed with warranty all of these. A Quit Claim deed with no warranty the short form and assignment of rents.
the short form and assignment of rents.
The most commonly used type of deed of trust is: all of these. The Grant Deed with warranty A Quit Claim deed with no warranty the short form and assignment of rents.
the short form and assignment of rents.
Exceptions in the First property Preliminary Report are pretty standard except: the tax sale all of these the general tax lien the public utilities easement
the tax sale
In an escrow, the escrow officer is: the third person. a neutral party. all of these. a stakeholder.
the third person. a neutral party. a stakeholder.
The responsibility for insuring the marketability of the title is assumed by: all of the above. the title company. the buyer. the seller.
the title company.
An attorney-in-fact acts for: himself/herself. the community at large. their principal. the escrow's lawyer
their principal.
When it comes to filing and indexing, a review system is often referred to as a: tickler system. taunter system. teaser system. none of these
tickler system.
If you send a grant deed to a "T.O." you are sending it to a: transaction originator title offsetter. none of these. title officer.
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. none of these file closer escrow assistant
transaction coordinator.
A refrigerator is: all of these. real property. transferred by a deed transferred with a bill of sale.
transferred with a bill of sale.
A refrigerator is: transferred by a deed real property. transferred with a bill of sale. all of these.
transferred with a bill of sale.
The information required to complete the Assignment of Trust Deed form is taken from the: trust deed. birth certificate. title policy. all of these.
trust deed.
Deeds that spell out in specific wording exactly what they warrant are called: all of these limited deeds. guarantee deeds. warranty deeds.
warranty deeds.
A riparian right involves _____ and is considered _______
water and real property
A distinct difference between the Sample Three Southland Escrow company's instructions format verbage and the Glendale Federal Escrow instructions from Sample One: The length of the instructions where escrow fees & who pays is referenced Buyer vesting recommendations The name of the escrow company
where escrow fees & who pays is referenced
In an escrow, the single status is reserved for those persons: who are under age. who are widowed. who have never been married. who are divorced.
who have never been married.
The beneficial interest of a note tells: how much the note is worth. how old the note is. who owns the note. All of these
who owns the note.
A seller of a note is relieved from being held accountable for nonpayment when a transfer is: without recourse. both of these are correct none of the these. with recourse.
without recourse.
The transaction coordinator may: work "in house" for a brokerage work for an escrow company work for many agents or brokers All of these
work "in house" for a brokerage work for an escrow company work for many agents or brokers
The CalBRE self-evaluation checklist is: Form RE 450. none of these Form RE 640. Form RE 540.
Form RE 540.
Conflicting instructions in your escrow are: nonacceptable. acceptable. unavoidable. common.
nonacceptable.