Chapter 8 Flashcards
For an escrow to be valid, there must be a:
conditional delivery of transfer documents to a third party
Which of the following is a recurring closing cost?
hazard insurance
Which of the following is not exempt from the escrow licensing law?
escrow companies’
A history of title transfers for a particular parcel of land is a/an:
chain of title
Most home owners in California have which type of title insurance policy?
CLTA owners’
The payment of closing costs is negotiated between the buyer and seller, but the seller frequently pays for the:
documentary transfer tax
Which insurance policy requires the title company to make a physical inspection of the property?
ALTA
Sales price $295,000, buyer puts on new 80% loan and pays 1% loan fee, $45 tax service fee, $400 tax prorations, $175 structural pest control inspection fee, $20 credit report, $20 recording fees, $910 hazard insurance fee, and a $600 escrow fee. How much will the buyer need to close escrow?
$63,530
A title company’s in house records used to conduct a title search is called:
title plant
There are certain requirements that must be met before a transaction can be placed in escrow. They are:
a neutral third party is employed
a binding contract between buyer and seller
conditional delivery of all documents related to sale
all of the above
all of the above
Which of the following is normally paid by the seller?
prepayment penalty
When an escrow officer receives conflicting instruction that cannot be resolved by the parties, the escrow officer can file a legal action in court called:
interpleader
A standard title insurance policy insures against:
incompetent parties on record
After escrow closes, if the escrow officer steals the money and there is no bonding company, the loss rests primarily on the:
seller
The closing costs paid in escrow are often negotiable between the buyer and seller; however, the buyer usually pays for the:
appraisal report for the lender
Which law prohibits a real estate agent from receiving a referral fee from an escrow or title company?
RESPA
Title insurance does not cover publicly disclosed:
zoning ordinances
Extended coverage title policies are usually requested by:
institutional lenders’
Title insurance rates are set by:
title companies
Prepaid property taxes would appear as a prorated:
debit to buyer
The most extensive title coverage would be:
insurance of title
On behalf of the buyer and seller, the escrow officer acts as:
an agent
Title insurance covers recorded “deeds and patents”. A patent is a:
government conveyance
With the approval of all parties, real estate brokers can act as escrow holders in transactions in which they have the: all are correct ownership listing buyer
all are correct
Which law requires the escrow officer to prepare HUD-1 closing statements?
RESPA
Which of the following must be licensed to be an escrow holder?
an independent corporation
Which of the following is a one-time closing cost?
title insurance
A joint protection title policy insures:
buyer and lender
The tax service fee is usually paid by the:
buyer
The sales price is $800,000. The buyer is to put $200,000 down and to obtain a new first loan for $500,000, and the seller is to carry back a second loan for $100,000. The documentary transfer tax is:
$880
