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