Chapter 10

Question 1

the processing, by a neutral party, of the paperwork and money involved in a sale or other real estate transaction

Answer 1

escrow

Question 2

an escrow business conducted by a licensed escrow holder who accepts documents and funds while representing each party equally

Answer 2

neutral depository

Question 3

an employee of a licensed Escrow Company who acts as the agent

Answer 3

escrow officer

Question 4

a formal demand statement from the lender that details the amount owed, as calculated by the lender, for the purpose of paying off the loan in full

Answer 4

payoff demand statement

Question 5

the date the documents are recorded

Answer 5

closing date

Question 6

formal instructions drawn from the information contained in the original agreement, usually the signed purchase contract

Answer 6

escrow instructions

Question 7

the process of proportionately dividing expenses or income to the precise date that escrow closes, or any other date previously agreed-upon

Answer 7

proration

Question 8

a written report given by a licensed pest control company, identifying any wood destroying pests or conditions likely to cause pest infestation

Answer 8

structural pest control certification report

Question 9

a recorded public history of a specific property

Answer 9

chain of title

Question 10

this policy ensures A lender and / or property owner against losses that result from imperfections in title

Answer 10

title insurance

Question 11

a report showing the conditions of the title before a sale or loan transaction

Answer 11

preliminary title report

Question 12

the basic title insurance policy

Answer 12

clta

Question 13

this federal law covers first loans on 1-4 unit residential dwellings and allows borrowers to shop for Settlement Services

Answer 13

respa

Question 14

a statement by a lender, under a deed of trust, that provides information, such as the unpaid balance, monthly payment, and interest rate, necessary if the loan is to be assumed

Answer 14

beneficiaries statement

Question 15

at the close of escrow, if a seller decides not to pay the commission, the broker / agent can file this in court

Answer 15

civil action

Question 16

for proration, all escrow companies use this number of days as a base month

Answer 16

30 days

Question 17

to begin a title search, the borrower first complete this form

Answer 17

statement of information

Question 18

when one company agrees to indemnify another for loss in return for periodic premium payments, it is called this

Answer 18

insurance

Question 19

an extended coverage policy that ensures against many exclusions in one standard coverage policy

Answer 19

ALTA

Question 20

a person who helps agents and Brokers keep track of and complete the transaction through closing of escrow

Answer 20

transaction coordinator