Transfer of Property

Mr. and Mrs. Homeowner realized a $600,000 profit by selling the home they had lived in for three years. What amount is subject to taxes?

$100,000 (exemption of $500k for married couple living there at least 2 years)

What is required for the existence of a valid escrow?

A binding contract and conditional delivery

The seller's existing mortgage is to be assumed by the buyer. How is that shown on the escrow closing statement?

A credit to buyer AND a debit to seller

As a title officer at a title insurance company, Anna is familiar with an "Abstract of Title" and would know that it is:

A written summary of the various recorded documents relating to the title of the subject property

In order to attract more tenants, the property owner builds a swimming pool at his apartment building. For tax purposes, he can:

Add the cost of the pool to his book value and depreciate it

A "perfect escrow" can be described as:

All documents, funds, and instructions needed too close the transaction are in the hands of the escrow agent

A recorded deed:

All of above (gives constructive notice, creates a presumption of delivery, must have been acknowledged)

What is the agreement known as when the first party agrees to pay for a financial loss arising from a specific event, and the second party agrees to make periodic payments to the first party?

An insurance policy

How often are property taxes assessed?

Annually

How is a deed recorded and indexed?

By grantor and grantee names alphabetically

What is an exact history of conveyances and encumbrances affecting the title of property called?

Chain of title

What type of notice does recording an instrument give?

Constructive notice

Shortly after a valid escrow is established, both the buyer and seller die. What should the escrow agent do?

Continue with the escrow

What must be done in order to alienate a property?

Convey the property

Title records to properties housed in a title plant are records for a:

County

"Boot" refers to

Exchanges

A grant deed contains an exception. This:

Excludes part of the property from the grant

Of the following, which would protect a buyer against a right of a party in possession?

Extended coverage policy

During escrow,a seller and butter are unable to resolve a dispute. This prevents closing of escrow. What action should the escrow holder take in this situation?

File an Interpleader action in court

Once a property has been declared in default for unpaid taxes, from what date does the owner have five years to pay off the unpaid real property taxes?

Five years from date of default

"Short rate" refers to what?

Homeowner's insurance

There is a substantial discrepancy between the dates for close of escrow and the new owners occupying the property. What must the agent prepare?

Interim occupancy agreement

In a deed, a reservation:

Is a retention of an interest

ALTA offers title insurance policies. Who does it protect?

Lender

After the offer has been made an accepted by the seller, the buyer has:

No title

After the offer has been made and accepted by the seller, the buyer has:

No title

A trust fund account should be reconciled:

Once a month

Mr. Johnson deeds a parcel of land to Mr. Smith, but the deed is never recorded. Now Mr. Smith wants to transfer title back to Mr. Johnson. What should he do?

Once there is a valid delivery and acceptance, the act of the grantee in surrendering the property or destroying the deed will not put title back to the original grantor. To accomplish this, the grantee must execute a new deed back to the original grantor.

According to law, when a deed is recorded:

Presumption of delivery arises

To clear minor imperfections in the title of real estate property, what kind of deed is needed?

Quitclaim deed

What does the term impounds refers to?

Reserves

David pays the delinquent taxes on a property owned by Allen. David receives a document as a receipt. What is the name of this document?

Tax certificate

The sales tax in California is a(n):

Tax paid on tangible personal property

Which of the following is not necessary for a grant deed to be valid?

The grantee's signature

With respect to reserves in an escrow, what statement is true?

They benefit both the trust or and beneficiary

The seller must give the termite report:

To the buyer or lender, when part of contract

Who does the money belong to that is kept in an impound account?

Trustor (buyer)

When an individuals income rises so does the marginal tax rate. The marginal tax rate is the amount of tax:

Which is used for the last dollar of taxable income earned

The seller is carrying back a second trust deed in the sale of his property. His broker, must cause the deed of trust to be recorded or he should advise the seller to record the trust deed:

Within one week after close of escrow

Susie accepts a check as the trust funds from her client in connection with the purchase of real property. How quickly must she place the check in one of the three authorized places?

Within three business days following receipt

To qualify for the "Universal Exclusion" from capital gains when selling a primary home, what is required?

Your home must be your primary residence for at least 24 of the months you owned the home during the 5 years leading up to the date of sale

A standard policy of title insurance does not cover:

Zoning laws