Chapter 7 - Escrows and Title Insurance Flashcards
If a dispute arose during escrow regarding the distribution of funds, a broker might file an ________ ______.
interpleader action (court action)
Is Southern California unilateral/bilateral?
Bilateral: escrow instructions are signed by both the buyer and sell rust after the start of escrow.
Is Southern California unilateral/bilateral?
Unilateral: escrow instructions are given to the escrow officer just because the close of escrow.
Escrow services in _______ California are traditionally performed by independent escrow companies (corporations) or financial institutions.
Southern California
Escrow services in ________ California are traditionally performed by title insurance companies.
Northern California
Escrow service fees in __________ California are usually split 50-50 between the buyer and the seller.
Southern California
Escrow service fees in ___________ California are usually paid for by the buyer.
Northern California
In __________ California, the seller pays for the California Land title Association (CLTA) policy (standard policy).
Southern California
In ___________ California, the buyer pays for the California Land Title Association (CLTA) policy (standard policy).
Northern California
In _________ California, the buyer pays for anything above the CLTA.
North and South
________ is the process of proportionately dividing expenses or income to the precise date that escrow closes, or any other date previously agreed upon.
Proration; as with property taxes, fire insurance, interest and rent.
If there is a Section I infestation damage (required work), it is usually paid for by the ________.
seller
If there is only Section II potential for infestation damage (recommended work), the extent of repairs is up to ______.
both parties
Every ___ and _____ loan application requires an inspection report.
VA and FHA loan application
FHA and VA termite certificates and repairs are always paid for by _______.
The seller.
The _____ Code requires that the broker shall deliver a copy of the Structural Pest Control Certification Report and Notice of Work Completed to the buyer, seller, and lender, if such a report is a condition of the purchase agreement or is a requirement imposed as a condition of financing.
Civil Code
All information such as those in the recorder’s office, various tax agencies, federal court clerk and the Secretary of State concerning people and their real property is stored in computers (within a grantor-grantee index) and is referred to as a ______ ______.
Title Plant
Title insurance is paid once and includes:
- a search of records
- examines “off” record risks
- interprets legality of records
- insures against economic loss
Easements, encumbrances and liens that are not shown by public record are also not included in the _____’s standard policy.
CLTA, California Land Title Association
The ALTA stands for
American Land Title Association
The ______ standard title insurance policy does NOT require an on-site inspection, but an ____ extended policy does.
CLTA; ALTA
ALTA-R Policy _____ include a survey because the property lines are already established by a recorded subdivision map.
Does not
In _______ California, it is customary for the seller to pay the title fees, whereas in _______ California it is usually the buyer who assumes the cost. This is just for the standard CLTA policy.
Southern; Northern
RESPA stands for _____________ and is enforced by the HUD.
Real Estate Settlement Procedures Act
Under RESPA, a lender has _____ business days from the date the lender receives the borrower’s loan application to provide a booklet entitled “Settlement Costs and You.”
three business days
The seller may request a specific title insurer, but only the _____ can require a specific insurance company.
buyer
Escrows are required for….
- Liquor License Transfers
- Security Sales (Impound Accounts)
- Court-Ordered transfers (Probate Sales)
