C2U13 Escrow and Title Insurance

Question 1

A broker can act as an escrow when the broker:

a. represents the buyer in the transaction
b. represents the seller in the transaction
c. is a principal in the transaction
d. is any of these

Answer 1

d. is any of these

Question 2

An escrow company is prohibited from:

a. paying referral fees to anyone other than an employee of the escrow company
b. bonding employees
c. both of these
d. neither of these

Answer 2

a. paying referral fees to anyone other than an employee of the escrow company

Question 3

To determine the balance due on a loan, escrow requests:

a. a closing statement
b. a beneficiary statement
c. a reconveyance
d. an impound statement

Answer 3

b. a beneficiary statement

Question 4

Which is a debit to the seller on a seller’s closing statement?

a. Selling price
b. Prepaid taxes
c. First trust deed to be assumed by the buyer
d. All of these

Answer 4

c. First trust deed to be assumed by the buyer

Question 5

Which is a credit to the buyer on the buyer’s closing statement?

a. Purchase price
b. Escrow costs
c. Title insurance
d. First trust deed assumed

Answer 5

d. First trust deed assumed

Question 6

An escrow company has a duty to:

a. warn parties if the escrow knows of possible fraud
b. suggest changes when one party is not being adequately protected
c. do both of these
d. do neither of these

Answer 6

d. do neither of these

Question 7

A standard policy of title insurance is used to show:

a. that there are no encumbrances against a property
b. that the seller has a marketable title
c. both of these
d. neither of these

Answer 7

b. that the seller has a marketable title

Question 8

Which of the following is covered by the CLTA standard policy of title insurance?

a. Easements not a matter of public record
b. Rights of a party in possession
c. Unknown spousal interests
d. Encroachment

Answer 8

c. Unknown spousal interests

Question 9

Which is NOT covered by an ALTA extended coverage policy of title insurance?

a. Mining claims
b. Liens placed by the insured
c. Water rights
d. Off-record easement

Answer 9

b. Liens placed by the insured

Question 10

Title insurance companies may:

a. give rebates to brokers for referrals
b. give brokers preferential rates on their own purchases
c. charge brokers the same as others but make no effort to collect
d. do none of these

Answer 10

d. do none of these