Học Thi Real Estate License ở California: The role of Escrow and Title Insurance Companies 1. Which of the following will not terminate an escrow? agreement of the principals none of these the broker's order to terminate inability to meet a contingency None Hint 2. A broker gets a deal into escrow. After all papers are signed, both the buyer and the seller die. The escrow agent should: continue with escrow await the decision of the broker await the instructions of the heirs return all monies and cancel escrow None Hint 3. The exact history of vonveyances and encumbrances affecting title to a property is called: an abstract ownership a chain of title a title report None Hint 4. An escrow officer alters a deed after it has been signed to convey property other than agreed. the title remains with the grantor none of these is true the deed conveys the property originally described, not the later modification the grantee gets title, but escrow is liable to grantor for damages None Hint 5. A title insurance company is least likely to physically inspect property for: a standard policy an extended-coverage policy an ALTA policy none of these None Hint 6. Escrow would be automatically canceled by: the death of the seller the death of the buyer none of these the request of the broker None 7. A title company holding papers for an escrow is a(n): broker none of these agent subagent None Hint 8. On a closing statement, an existing mortgage that is to be assumed by the buyer would be shown as: a credit to the buyer a debit to the buyer a debit to the seller both b and c None 9. The files of a title company of recorded documents on microfilms are known as: none of these a grantor/grantee index a title plant the Torrents title system None 10. An escrow prorates based on ___ days in a year. 365 370 300 360 None Hint 11. On an escrow the daily prorated charge for a three-year insurance policy costing $97.20 would be: none of these 11 cents 20 cents 9 cents None Hint 12. Which of the following may not engage in the escrow business? a foreign corporation a domestic corporation an individual who is not a real estate broker or attorney a bank None Hint 13. In the absence of a closing date, the escrow should close: escrow cannot close until a date is agreed upon within 60 days within 30 days within a reasonable period of time None 14. A buyer's escrow statement would not show: points to be paid by the seller unpaid taxes the value of unused insurance the amount in the seller's impound account None Hint 15. The signed escrow instructions disagree with the prior purchase contract. As to the disagreement, which of the following is true? the escrow instructions prevail the purchase contract prevails parol evidence is admissible to discover true intent the courts would have to decide what the agreement is None Hint 16. On a real estate closing statement, prepaid rent is always a: debit to the seller credit to the seller none of these debit to the buyer None Hint 17. A seller delivers a grant deed to escrow after escrow instructions have been signed. He asks that it be returned to him so that he can have an attorney check it. the return of the deed constitutes rescission by the seller the request, to be honored, must be written the escrow holder must return the deed if so instructed the escrow holder cannot return the deed based on the seller's request None Hint 18. An extended-coverage policy of title insurance does not cover: incorrect survey encroachment easements zoning None Hint 19. A sale takes place on January 1. There is $1,800 in the impound account. Proration would be: all to the buyer haft to the buyer, half to the seller none of these half to the buyer after expenses None Hint 20. An escrow company may: give rebates to brokers for sending business disregard instructions received from a broker after the escrow instructions are signed fill in blanks in the escrow instructions none of these None Hint 21. The broker's commission is normally paid: when escrow closes none of these when the broker obtains a buyer ready, willing, and able to buy when funds are deposited in escrow None Hint 22. The Rebate Law: prohibits brokers from rebating commissions to nonlicensees requires escrows to treat brokers like everyone else all of these prohibits all finder's fees None Hint 23. A buyer would get the least protection from: a guarantee of title a certificate of title an abstract a standard policy of title insurance None Hint 24. Which of the following, prorated, would be a credit on the seller's closing statement? both a and b neither a nor b prepaid rents of tenants prepaid insurance None Hint 25. On aclosing statement, due and unpaid taxes would be: both a and b a debit to the seller a credit to the buyer neither a nor b None Hint 26. A fire insurance policy cost $360 for three years. Six-and-a-half months after the insurance policy is taken out, the building is sold, and the policy is assumed. On a closing statement. the seller would be credited $295 and the buyer debited this amount the insurance will be split using a short rate the seller would be debited $65 the buyer would be credited $65 None Hint 27. A standard policy of title insurance covers: incompetence of any of the parties zoning restrictions encroachment the rights of the party in possession None Hint 28. Who has primary responsibility for reporting sale information to the IRS? the seller the buyer the broker the escrow agent None Hint 29. Title plant refers to all records relative to real estate transactions in a: subdivision township county city None 30. Title insurance is not available if: the deed does not mention consideration the lender is not located within the state all of these the deed does not include a legal description None 31. A buyer assumes a trust deed. On the buyer's closing statement, it would be shown as a: balance factor none of these credit debit None Hint 32. An item such as "liens to be assumed by buyer" would be found in a seller's closing statement under: the credit column the debit column assumption costs none of these None Hint 33. An escrow agent is most likely to get into trouble if he or she: hold funds after close of escrow accepts escrow instructions containing blanks to be filled in by him or her after escrow instructions are signed represents both parties engages in a double escrow None Hint 34. Escrow closes on the 15th day of February (28 days). The seller receives $500 rent for the month of February. The seller: owes the buyer less than $250 owes the buyer more than $250 owes the buyer $250 keeps the entire $500 None Hint 35. A preliminary title report: can be used in lieu of an escrow describes the property and encumbrances provides interim insurance until a policy can be issued is issued to the buyer after close of escrow None Hint 36. A 30 day escrow cannot be completed during the set time. both the seller and buyer must agree to an amendment of the escrow instructions or the escrow is canceled it is a perfect escrow the broker can extend the escrow the escrow remains valid until completed None 37. The term binding contract and conditional delivery describes: a complete escrow none of these a valid escrow a perfect escrow None 38. Escrow companies are primarily under the jurisdiction of the: Corporations Commissioner Real Estate Commissioner none of these State Banking Commissioner None Hint 39. A home is sold on August 31, with taxes being prorated. the buyer owes the seller for two months' taxes the seller owes the buyer for two months' taxes the seller owes the buyer for three months' taxes the buyer owes the seller for three months' taxes None Hint 40. Which of the following is not covered by an extended-coverage policy of title insurance? a forged deed a mistake in property line defects known to the buyer a deed that was never delivered None 41. Recording costs on an escrow would be paid by: the county recorder's office the party drafting the instrument the party receiving the instrument the broker None Hint 42. In a buyer's closing statement, the selling price is: a credit to the buyer a debit to the buyer a debit to the seller none of these None Hint 43. Which of the following is not a credit in a seller's closing statement? none of these a standard policy of title insurance prepaid taxes prepaid insurance None Hint 44. A standard policy of title insurance does not cover: an incompetent grantor a forged document unrecorded liens incorrect marital status None Hint 45. The usual way for a buyer to ensure that he or she is getting marketable title is to obtain: a grant deed a policy of title insurance an abstract a warranty deed None 46. Closing is scheduled for May 20, 2012; the second property tax installment has been paid. On the buyer's closing statement, taxes are: a credit a debit a liability an asset None Hint 47. In an escrow statement, the term recurring costs pertains to: impound account items recording fees title insurance fees insurance prorations None Hint 48. Possesion in a real estate sale, in the absence of any aggreement, should be given: at close of escrow within 30 days of close of escrow prior to close of escrow within 30 days of close of escrow within a reasonable time None 49. An impound account would belong to: none of these a trustee a beneficiary a trustor None Hint 50. The closing statements the buyer and seller get from escrow: both a and b are acknowledged are identical are always different None Hint 51. Impounds refers to: indefeasible leases reserves fixed rates of interest all monies held in escrow None Hint 52. A buyer would be protected against a right of a party in possession by: an extended-coverage title insurance policy a standard title insurance policy neither a nor b either a or b None 53. To obtain marketable title, a person who is claiming his or her interest under adverse possession could: either b or c obtain a quitclaim deed from the record owner obtain a policy of title insurance start a quiet title action None 54. Which of the following is false? escrow companies are under the jurisdiction of the Coporations Commissioner a broker may have a financial interest in an escrow company a broker may sometimes act as an escrow none of these is false None Hint 55. A broker can, without being licensed as an escrow, handle the escrows on transactions where he or she: represents the buyer represents the seller acts as a principal any of these None
