Escrow Chapter 3, Escrow Chapter 2, Escrow Chapter 1, Escrow Chapter 12, Escrow Chapter 11, Escrow Chapter 10, Escrow Chapter 9, Escrow Chapter 8, Escrow Chapter 7, Escrow Chapter 6

A. January 1.

For escrow purposes, the second-half of the tax year begins: A. January 1. B. February 1. C. March 1. D. April 1

B. each deed is recorded.

In an exchange, consideration is not truly "delivered" until A. it is handed to each party. B. each deed is recorded. C. the bank cashes the check. D. none of the above.

B. a notary public.

In order to be recorded, all deeds must be acknowledged by: A. a jury. B. a notary public. C. a county judge. D. all of the above.

D. all of the above.

In regards to power of attorney transactions, you should be familiar with: A. basic law relating to these instruments. B. the authority they grant. C. their limitations. D. all of the above.

C. an easement in gross.

A public utility easement is: A. an easement appurtenant. B. illegal. C. an easement in gross. D. all of the above.

B. beneficiary.

A request for reconveyance is executed by the: A. trustee. B. beneficiary. C. both a and b. D. none of the above.

D. all of the above.

A seller's closing letter should include: A. a check for the proceeds of the sale. B. original policy for fire insurance. C. Seller's Statement. D. all of the above.

When the buyer attempts to assume an existing loan, the lender may choose to: A. any of these are possible B. release the previous trustor from all responsibility to pay. C. retain the former payor responsible. D. activate the acceleration clause in the deed of trust.

A. any of these are possible

Memoranda of Agreement: A. are a separate heading in the escrow instructions B. are included in title insurance C. none of these D. are the escrow holders notes

A. are a separate heading in the escrow instructions

D. All of these

Added details in this escrow NOT involved in previous sample escrows: A. Probate court decree of distribution B. Tax redemption of real property C. Two separate real properties D. All of these

pass with the title

An easement in gross must be described in the deed to: A. pass with the title. B. be liveable. C. be built upon. D. none of the above.

D. both approaches shown

An escrow officer must be: A. strictly impartial. B. neither of the approaches shown C. sensitive to clients' needs. D. both approaches shown

In an escrow, the escrow officer is: A. a stakeholder. B. the third person. C. all of these. D. a neutral party.

C. all of these.

An escrow officer is an agent to: A. the seller only. B. the buyer only. C. both the buyer and seller. D. neither the buyer nor seller.

C. both the buyer and seller.

Escrow General Provisions: A. are selected by lender beneficiaries B. are in the State escrow license requirements C. describe the escrow company's various policies & procedures D. none of these

C. describe the escrow company's various policies & procedures

The promissory note drawn up in Escrow Sample 3: A. is on behalf of the existing lender B. is an all inclusive deed of trust C. is adjusted based on the actual unpaid balance of the senior lien D. is fully amortizing

C. is adjusted based on the actual unpaid balance of the senior lien

You should refuse to accept any escrow that is: A. all of these. B. time consuming. C. obviously illegal. D. complicated.

C. obviously illegal.

In Escrow Sample 3 Final Settlement Statement: A. the seller is credited $747.90 for property taxes B. the seller's final cash proceeds are $22,612.09 C. the buyer is credited $747.90 for property taxes D. the buyer is debited $737.93 for property taxes

A. the seller is credited $747.90 for property taxes

A refrigerator is: A. all of these. B. transferred with a bill of sale. C. transferred by a deed D. real property.

B. transferred with a bill of sale.

B. anything received other than real property

Boot in an exchange refers to: A. rejection by the exchangers B. anything received other than real property C. existing encumbrances assumed D. the type of deed received by each party

A broker must maintain a property transaction file for at least: A. 1 year. B. 2 years. C. 3 years. D. 4 years.

C. 3 years.

Which of the following is true concerning the appropriate behavior of escrow officers? A. Their position is strictly neutral. B. They must serve the public. C. All of the these. D. Their information is strictly confidential.

C. All of the these.

Which of the following are involved in determining and showing how the various charges are distributed in escrow? A. Prorations B. The estimated and final settlement statement C. All of these D. Adjustments

C. All of these

The C.A.R.® app that helps track and manage transactions from listing to closing is the: A. Transaction Warning System. B. Transaction Flagging System. C. Transaction Management System. D. None of these

C. Transaction Management System.

In Escrow Sample 3 A. all of these are true B. the seller's final cash proceeds are $32,500 C. the buyer owes the seller $43,500 D. there are new loan funds deposited into escrow

C. the buyer owes the seller $43,500

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.

Which of the following are "benchmark" documents included in the C.A.R.® transaction checklist? A. Agency Disclosure B. Transfer Disclosure Statement (TDS) C. Foreign Investment in Real Property Tax Act (FIRPTA) D. All of these

D. All of these

The original typing of instructions so that the transaction can proceed is actually: A. a codification. B. a demand. C. the escrow instructions. D. a supplement.

D. a supplement.

A TC can help an agent: A. free up time for prospecting and making appointments. B. maintain a transaction file. C. remember important details of a specific transaction. D. all of these

D. all of these

A preliminary title report contains details about a piece of real estate, including: A. ownership. B. liens and encumbrances. C. easements. D. all of these

D. all of these

In a loan take over transaction, any variation in any of the facts presented by the beneficiary will: A. usually require the signatures of approval from buyer and seller. B. neither statement is true C. require an immediate call to the broker to clear up discrepancies. D. both statements are true

D. both statements are true

On any note the information that conflicts with the instructions of the principals should be: A. none of these B. underlined. C. ingnored D. crossed out.

D. crossed out.

The responsibility for handling all funds and documents in an escrow lies with the: A. buyer and seller. B. broker. C. none of the these. D. escrow holder.

D. escrow holder.

Escrow involves the sale, exchange, or loan transaction of: A. personal property. B. all of these. C. publishing rights. D. real property.

D. real property.

A riparian right involves _____ and is considered _______ A. oil and export B. all of these C. minerals and market value D. water and real property

D. water and real property

A. warranty deeds.

Deeds that spell out in specific wording exactly what they warrant are called: A. warranty deeds. B. all of these C. limited deeds. D. guarantee deeds.

C. transfer tax is owed on the total value minus the unpaid trust deed balance

When calculating transfer tax for the $136,000 property in this exchange: A. transfer tax is owed on $76,000 B. transfer tax is owed on $136,000 C. transfer tax is owed on the total value minus the unpaid trust deed balance D. transfer tax is not owed on this property in the exchange

A. a clear and precise description.

When conveying an easement, as with other interests in real property, which of the following is essential? A. a clear and precise description. B. a relatively accurate description. C. a totally vague description. D. none of the above.

C. Apply for the owner's primary residence property

IRS "1031 Tax Deferred" Exchange rules do NOT: A. Require "like kind" property usage B. Require exchange for equal or higher value property C. Apply for the owner's primary residence property D. Require close of replacement property within specific time frame

B. an unrecorded lease.

If a lease has not been recorded in the county records it is: A. an unofficially recorded. B. an unrecorded lease. C. an imaginary lease. D. none of the above.

A. title officer.

If you send a grant deed to a "T.O." you are sending it to a: A. title officer. B. transaction originator C. title offsetter. D. none of the above.

A. who have never been married.

In an escrow, the single status is reserved for those persons: A. who have never been married. B. who are divorced. C. who are widowed. D. who are under age.

D. it makes no difference which instructions come first.

In the event of a completely even exchange: A. the seller's instructions must come first. B. the buyer's instructions must come first. C. both parties' instructions must be presented at the same time. D. it makes no difference which instructions come first.

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.

D. all of these are relevant

It's proper for a broker to be paid by both principals to a transaction: A. if the escrow instructions signed by the buyer and seller reflect the payment. B. if the estimated statement signed by the buyer and seller reflect the payment. C. provided both are informed and express approval of such D. all of these are relevant

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.

A. prior to the transfer of property.

Prorations apply to charges incurred by either party: A. prior to the transfer of property. B. none of these C. following the transfer of property. D. at any time before, during or after the transfer of property.

hypothecation.

Putting up a property as collateral for a loan without giving up possession of it is called: A. hypothecation. B. qualification. C. title insurance. D. title protection.

D. the county where the property is located

Real property transfers must be recorded in: A. federal court. B. both English and Spanish. C. all of these D. the county where the property is located.

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.

A. decree of distribution.

The transfer of assets is evidenced by a probate court order called a: A. decree of distribution. B. degree of distribution. C. decree of redemption. D. none of these

B. deed transfer.

Throughout the world, the most common method of acquiring ownership (title) to real property is by: A. fraud. B. deed transfer. C. none of these D. a bill of sale.

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

C. instead of escrow instructions

Use of the Valuation or Consideration form is NOT : A. for determining values placed on the properties. B. for balancing the equities C. instead of escrow instructions D. any of these

C. either a or b.

When a deposit check is made by a broker or someone other than the buyer, you should: A. consult your company manual. B. consult your superiors for directions. C. either a or b. D. none of the above.

B. At a later date

When is a binder policy issued? A. Immediately B. At a later date C. After the destruction of the property D. None of the above.

D. All of the above

Which of the following is a general kind of note? A. Installment not-interest included B. Straight note C. Installment note-interest extra D. All of the above

C. Both a and b

Which of the following is a recorded instrument that must be acknowledged? A. Satisfactions of judgment B. Partial releases C. Both a and b D. None of the above

C. Bilateral instructions

Which of the following is a single escrow instruction signed by both the buyers and sellers? A. Unilateral instructions B. Universal instructions C. Bilateral instructions D. Limited instructions

C. Both a and b are correct.

Which of the following is an option you can take rather than obtain a lost instrument bond? A. Obtain an affidavit and indemnity B. Go through a quiet title action C. Both a and b are correct. D. Neither a nor b.

D. All of the above

Which of the following is considered one of the most important documents in the sale of property? A. The note B. The deed of trust C. The grant deed D. All of the above

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

D. Both a and c are correct.

Which of the following is true concerning the note? A. It is a negotiable instrument. B. It is a non-negotiable instrument. C. It is extremely valuable to its holder. D. Both a and c are correct

C. All of these

Which of the following is true regarding escrow? A. Every aspect of an escrow must be initiated by written, signed instructions. B. Written escrow instructions constitute a contract. C. All of these D. Escrow holders can only act on written instructions.

. The principal parties to the escrow

Who makes the final determination of the type of title insurance will be ordered? A. The escrow holder B. The broker C. The principal parties to the escrow D. All of the above

A. quiet title.

A court action to prove title is a: A. quiet title. B. verified title. C. court title. D. substitute title.

A. at the time of reconveyance

A deed of trust must be surrendered: A. at the time of reconveyance. B. before escrow opens. C. both a and b are correct. D. none of the above.

A. both statements are true

A grant deed: A. both statements are true B. uses the word "grant" in the title. C. neither statement is true D. conveys freehold estate.

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.

C. the lifetime of the grantee.

A life estate is a title given for: A. the lifetime of the broker. B. the lifetime of the grantor. C. the lifetime of the grantee. D. the lifetime of the escrow officer.

Who receives a final escrow settlement statement? A. Both the seller and buyer B. None of these C. The buyer D. The seller

A. 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: A. Certified Transaction Coordinator. B. Certified Transaction Specialist. C. Certified Transaction Expert. D. none of these

A. Certified Transaction Coordinator.

If you want to create your own checklist, which of the following would probably be the best application to use? A. Excel B. InDesign C. Word D. None of these

A. Excel

The phrase "taking title subject to" refers to: A. The existing loan is not paid off through escrow B. The seller must carry back financing C. The buyer assumes the existing loan D. Title insurance is not obtained

A. The existing loan is not paid off through escrow

Escrow officers should never: A. advise clients about legal matters. B. all of these. C. keep up with changes in real estate law. D. become familiar with the legal aspects of real estate.

A. advise clients about legal matters.

The relationship of an escrow agent with the parties to an escrow: A. all of the these. B. means the agent has a duty to act in the highest good faith. C. requires the agent to protect the trust and confidence of his/her principals. D. is a fiduciary relationship.

A. all of the these.

Interest on a loan being taken over is prorated in escrow: A. based on a 30 day month B. by the title company C. none of these D. for tax purposes

A. based on a 30 day month

The app allows clients, lenders, inspectors, brokers and agents to work together in one place and guides users through the transaction "loop" sequentially is: A. dotloop. B. Quicken. C. Settlement Room. D. REVA Network.

A. dotloop.

The effective date for a new insurance policy must be on or before: A. the date the new loan will fund. B. all of these C. the first of a month D. the date the property taxes are assessed

A. the date the new loan will fund.

B. judge.

An abstract of judgment is an order from a: A. doctor. B. judge. C. governor. D. mayor.

C. the principal.

An attorney-in-fact acts for: A. himself/herself. B. the community at large. C. the principal. D. none of the above.

C. both a and b are correct.

An attorney-in-fact is prohibited from: A. making a deed or mortgage without valuable consideration. B. dealing with a principal's property for his or her own benefit. C. both a and b are correct. D. none of the above.

In Chapter 10 Sample Escrow Three A. There is no down payment B. A loan is being taken over and seller is carrying back financing C. The buyer is obtaining new loan from a bank D. Mineral rights will transfer to the buyer

B. A loan is being taken over and seller is carrying back financing

Escrow Instructions, Amendments and Supplements: A. Modify and take precedence over the agreement of the parties B. Are usually derived from a sales agreement and the parties C. Both statements are true D. Neither statement is true

B. Are usually derived from a sales agreement and the parties

The CalBRE self-evaluation checklist is: A. Form RE 450. B. Form RE 540. C. Form RE 640. D. none of these

B. Form RE 540.

Save Which of the following is true concerning all inclusive deeds of trust? A. The buyer is the beneficiary. B. They wrap around existing loans. C. All of these are true D. They are not connected to existing loans.

B. They wrap around existing loans.

A person who is not of sound mind or legally insane is considered: A. competent. B. incompetent. C. capable of entering legal contracts. D. an easy mark.

B. incompetent.

You should notify the title company that you are ready to record: A. once you receive the funds from the seller and they clear the bank. B. once escrow has received "good funds" from the lender and all principals. C. when the pest control completion is received D. as soon as the seller signs the deed

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

An extra page in the escrow instructions is a(n): A. inconvenience. B. page that should be incorporated into the escrow instructions by reference. C. codicil. D. amendment.

B. page that should be incorporated into the escrow instructions by reference.

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: A. transition coordinator. B. transaction coordinator. C. art of the deal coordinator. D. none of these

B. transaction coordinator.

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. need not proceed upon the opening of the escrow.

The actual processing of the escrow file: A. needs to proceed immediately from the signing of the escrow instructions. B. need not proceed upon the opening of the escrow. C. needs to proceed immediately after the death of one of the brokers. D. none of these

A. who owns the note.

The beneficial interest of a note tells: A. who owns the note. B. how much the note is worth. C. how old the note is. D. all of the above.

C. both a and b.

The buyers closing letter should include: A. a check for any refund or over charges B. a Buyer's Final Closing Statement. C. both a and b. D. neither a nor b.

A. ten percent of the basic title insurance rate.

The cost of the binder policy is usually: A. ten percent of the basic title insurance rate. B. twenty percent of the basic title insurance rate. C. thirty percent of the basic title insurance rate. D. fifty percent of the basic title insurance rate.

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

A. use a form specifically designed for exhanges

The escrow instructions for our sample exchange: A. use a form specifically designed for exhanges B. are drawn as two separate sale instructions C. do not include escrow general provisions D. none of these

B. a plat map.

The location of the property in relation to neighboring properties is shown on: A. plant map. B. a plat map. C. a plank map. D. none of the above.

C. both a and b.

The most commonly used type of deed of trust is: A. the short form deed of trust. B. the assignment of rents. C. both a and b. D. none of the above.

B. income tax considerations

The most likely reason for an exchange instead of a sale: A. lack of financing available B. income tax considerations C. parties are relatives D. none of these

A. dominant tenement

The owner of the land that gains the benefit in easements appurtenant is the: A. dominant tenement B. servient tenement. C. wimpy tenement. D. mega tenement.