Escrow Quiz
Which of the following is NOT a way to cancel or end an escrow?
Divorce
Which of the following is FALSE concerning transactions involving an attorney in fact?
Documents using a power of attorney must show that the principal is conveying or receiving title, not the attorney in fact
Which of the following is a confidential method of assurance against mistaken title reports?
Escrow instructions
Which type of deed conveys full ownership (freehold estate)?
Grant Deed
a supplement to escrow instructions is
A. 10 extra pages B. Five extra pages C. one extra page D. none of the above *
subdivision and subsequent sale of real property are governed by the
A. A subdivision map act B. subdivided lands act C. both a and b are correct * D. none of the above
The effective date for the insurance must be
A. After the date the new loan will fund B. On the date the new loan will fund C. Before the date the new loan will fund D. both b and c are correct *
which form is designed use with standard coverage policies when the beneficial interest in the insured deed or trust as been assigned?
A. CLTA form 104A B. CLTA form 10044 C. CLTA form 4000 D. all of the above *
on any note or other instrument, what should you do if a printed statement conflicts with the instructions to parties of escrow
A. Cross out any conflicting printed statements B. Ignore any conflicting printed statements C. White out any conflicting statements D. none of the above *
upon the death of a joint tenant, the tenancy can be terminated by a
A. Decree of Death issued by the court B. Affidavit - Death of joint tenant C. Both a and b D. none of the above *
Which of the following is TRUE concerning the note
A. It is a negotiable instrument B. It is extremely valuable to its holder C. both a and b are correct * D. None of the above are correct
the right to use water is considered of such primary importance that
A. It is considered real property in itself B. it is able to be transferred deed separately from the land through which it flows C. Always mentioned in the deed of real property D. both a and b are correct *
if no defects are found in the tax sale proceedings, most title insurance companies will insure a property from a tax sale after
A. One week B. One month C. One year D. none of the above *
Escrows are highly recommended and nearly always used in the
A. Sale of personal property B. Rental of real and personal property C. Sale or transfer of land and businesses D. NONE OF THE ABOVE *
Which of the following is a reference point in California
A. San Bernardino B. Mt Diablo C. Humbolt D. all of the above *
Any discrepancy of facts presented by the beneficiary are usually cleared up by obtaining a signature of approval from
A. The buyer B. The Seller C. both a and b * D. none of the above
which of the following is a general kind of note with its own preprinted form
A. The installment note-interest included B. The straight note C. The installment note-interest extra D. all of the above *
Which of the following is TRUE concerning full re conveyance?
A. The trustee relinquishes his/her interest in the property B. it must be kept as proof that money is no longer owed to the beneficiary C. It must be recorded in the county records D. All of the above *
Which of the following is TRUE concerning mutual water companies?
A. They are organized by or for water users in a given district. B. Their purpose is to secure an ample water supply at a reasonable rate. C. They issue stock to users D. All of the above are true *
When a buyer assumes an existing loan, he or she signs
A. an assumption agreement with the seller B. an assumption agreement with the lender C. an assumption agreement with the broker D. all of the above *
it is entirely proper for a broker to be paid by both parties whether it be an exchange or even a simple sale provided
A. both parties are informed B. both parties express approval of the arrangement C. both a and b are correct * D. none of the above
a syndicate may be a
A. corporation B. partnership C. trust D. all of the above *
The main purpose of probate is
A. gather the assets of a decedent B. pay any debts which may be due on an estate C. appropriately distribute whatever is left paying debts. D. all of the above *
a policy of life insurance issued in favor of the assignee is the only option when the trust deed
A. has been insured B. has not been insured C. both a and b are correct D. none of the above
which of the following types of property a re typically exchanged
A. income B. Commercial C. Residential D. all of the above *
Encumbrances include:
A. liens B. CC&R's C. Easements D. All of the above *
A written contract is not necessary for enforcement in a court of law for transfers of personal property where the amount paid is:
A. over $500 B. under $500 C. under $5000 D. all of the above *
which of the following would be considered an encumbrancer?
A. someone who has placed a lien on a property B. someone who has acquired an easement against the property C. Someone who has imposed restrictions against the property D. all of the above *
during probate, public notice is published in a newspaper of general circulation
A. to notify creditors that the decedents estate is being distributed B. to notify anyone owing the decedent money that all debts are forgiven C. to ratify the original publishing an obiturary D. none of the above *
A residence can be protected from judgments that become liens by the acknowledgement and recording of
a declaration of home base
The means by which a note is payable to bearable is transferred is called
a delivery
Before being accepted by the office of the recorder, all deeds, deeds of trust, or any other documents to be recorded must be acknowledged by
a notary public
The document that authorizes an attorney in fact to act as agent for the principal is called
a power of attorney
A review system that reminds you to check each file periodically is called
a tickler file
which of the following allows people to pass on property after death
a will
what type of note transfer guarantees that a seller will make payments on the note should the payor fail to do so
a with recourse transfer
an order from a judge to place a lien on a property is called an
abstract of judgement
on the settlement sheet, the case deposited in escrow is
credited to the seller
The most common method of acquiring ownership (title) to real property is by:
deed transfer
an administrator is appointed by the court if the property owner
dies without a will
With an easement appurtenant, the land and its owner that gains the benefit is called the
dominant tenement
The most common kind of easement is the public utility easement, which is an
easement in gross
when endorsing an assignment form, the signatures should be
exactly as their names appear on the trust deed
the broker will formalize the exchange with a type of deposit receipt called a
exchange agreement
a representative named in a will is the:
executor
A standard form fir insurance policy covers damage from
fire and lightening
An escrow officer may not
give legal advice (practice law)
By recording the request for notice as an accommodation, the title company will
have no liability for its validity or sufficiency
When completed, all of the information necessary to being an escrow transaction is contained in the
preliminary sheet
The right of a landowner to use the water on, under, and adjacent to his or her land is known as a
riparian right
A note that is specifically endorsed in a buyers favor is called a
special endorsement
the short form deed of trust and assignment of rents is
the most commonly used deed of trust
who determines what type of title insurance will be ordered
the parties to the escrow
An escrow officer is also known as a
stakeholder
whenever a merchant engages in a retail sales businesses he must get a sellers permit from the
state board of equalization
most commonly, the motivating reason for real property exchange is
tax considerations
The federal estate tax lien continues for hoe many years after the death fo the property owner?
ten years
Which of the following is NOT considered one of the three most important documents in any sale of property
the MLS agreement
A preprinted sheet used for keeping track of escrows progress is called
the escrow checklist and the escrow requirements sheet
In the event of an absolutely even exchange, which party's instructions should come first
the first party's
Once the title insurance is issued, the responsibility for insuring the marketability of the title assumed by:
the title company
the determining factor in preparing a second deed of trust is the
time of recording
The first step in the basic escrow procedure is
to prepare the settlement
Separate escrow instructions for buyers and sellers are known as
unilateral instructions
The cost of a binder policy is
10% of the basic title insurance rate
Property taxes are adjusted on the basis of the
30-day month, 360-day year
When finishing the settlement sheet, which of the following is NOT required by the Regulation Z?
Kickback fees
Which of the following is TRUE concerning escrow instructions?
They are in the form of a business letter They may be be bilateral They may be unilateral All of the above are TRUE*
Frequently used in the escrow and title insurance industry, the term "T.O." refers to a
Title Officer
the body of lay adopted throughout the US that standardizes
Uniform Commercial code
The escrow settlement sheet or estimated changes sheet is the
accounting report for escrow
the original typing of instructions is modified by a(n)
amendment
Personal property is
anything that can be owned or possessed that is not real property
Which of the following is NOT required for a valid contract?
attorney approval
A written agreement by the title insurance company to issue a policy, but at a later date is called a(n):
binder, or interim binder
the money or other property that is given to make up any difference in value or equity between exchanged properties is called
boot
as a general rule, its best to make your instructions
brief and to the point
the time limit for the close of escrow is decided
by agreement of both parties
when an adjustment is listed to take effect, COE that refers to
close of escrow
which of the following creates security for the performance of an obligation
collateral assignment
The printed form that fives escrow permission to pay the broker a commission is called
commission instructions
The only manner of vesting that depends exclusively upon marital status is
community property
If a note is lost, an insurance bond may be used to indemnify against a claim. This bond is called a
compliance bond
CC&R's refer to
covenants, conditions, and restrictions
An even exchange can be affected
if the actual market values are the same
A title insurance policy insures against
imperfection on title
satisfactions of judgments and partial releases of judgments should be recorded
in the county where the property is located
A property owner that ides without a will is said to be
intestate
completing the settlement sheet is usually the
last step in the closing process
the market value of a second trust deed is usually
less than its face value
For all monies received by escrow, such as deposits, you must:
make receipts
the information required to complete the assignment of trust deed form is take from the
memo sheet
With a a mortgage, the lender is the
mortgagee
a written promise or order to pay money is called a
negotiable instrument
promissory notes secured by deeds of trust are customarily in the form of
negotiable instruments
If the buyer fails to perform in meeting the obligations under the loan the lender will probably file a
notice of default
the federal estate tax becomes a lien on real property
once the lien has been recorded
a counterclaim against the beneficiary based on a dispute about the amount or terms of the obligation is called
owners offset statement
In the escrow instructions, the single status applies to:
persons who have been divorced or widowed