Opening Escrow Flashcards
The escrow holder’s agency to the principals
(a) Includes the same full disclosure requirements of a general agent
(b) Is limited in scope
(c) Includes responsibility for carrying out the duties as specified by the real estate agents
(d) None of the above
(b) Is limited in scope
If a buyer has signed and returned escrow instructions but the seller has not
(a) Escrow is considered open
(b) Escrow is considered cancelled
(c) Technically no escrow exists
(d) It is up to the escrow holder to determine the status whether escrow is open or not
(c) Technically no escrow exists
During the borrower’s signing of loan documents, the escrow officer may
(a) Answer all borrower’s questions regarding any of the terms of the loan
(b) Answer only answer procedural questions regarding the escrow such as fees
(c) Interpret the meaning of any information in the loan documents
(d) Not interrupt the signing to contact the loan officer for assistance
(b) Answer only answer procedural questions regarding the escrow such as fees
In the loan documents the lender
(a) Explicitly expresses the value of the property
(b) Implies the value of the property
(c) Makes no representation or warranty regarding the condition of the property
(d) None of the above
(c) Makes no representation or warranty regarding the condition of the property
Neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property.
The greatest percentage of all types of loan fraud committed by borrowers is
(a) Occupancy fraud
(b) Income fraud
(c) Employment fraud
(d) Asset fraud
(a) Occupancy fraud
Personal checks delivered to escrow that are local must be held and funds not disbursed for
(a) Five business days
(b) Five calendar days
(c) Three business days
(d) Three calendars
(c) Three business days
If the CAR purchase agreement is used for a transaction, the escrow holder prepares
(a) Joint escrow instructions
(b) Supplemental escrow instructions
(c) Addenda to Instructions
(d) No escrow instructions
(b) Supplemental escrow instructions
The CAR purchase agreement includes joint escrow instructions, which eliminate the need for the escrow holder to prepare instructions specifying the terms of the contract, using instead the purchase agreement as the fundamental basic escrow instruction. The escrow officer then prepares and issues supplemental escrow instructions.
The only transaction for which escrow is legally required is for
(a) The transfer of on-sale liquor licenses
(b) The transfer of off-sale liquor license
(c )Both a and b
(d) Neither a nor b
(c )Both a and b
The statement of identity or information form gives escrow important information about the buyer including all the following except
(a) Tax liens
(b) Judgments
(c) Guardianship proceedings
(d) Any matter not of record that would not affect title
(d)Any matter not of record that would not affect title
Information required for the escrow officer to adequately prepare a complete and accurate escrow instruction includes all the following except
(a) The sales price
(b) Loans, trust deeds in place that will remain (those being assumed by a buyer)
(c) Loans of the seller already paid off and not recorded against the property
(d) New loans to be obtained by the
(c) Loans of the seller already paid off and not recorded against the property
The contingency removal period indicated in the CAR purchase agreement, unless otherwise agreed upon, is usually
(a) 7 days
(b) 17 days
(c) 21 days
(d) 30 days
(b) 17 days
The contingency removal procedure allows a principal a certain number of days to perform, such as obtain a loan approval or inspections. This time is certainly an important consideration, usually restricted to only 17 days as specified in the CAR purchase agreement unless otherwise agreed upon.
Changes to escrow are seldom required typically in
(a) Northern California because escrow is prepared near closing
(b) Southern California because escrow is prepared near closing
(c) Northern California because it is not allowed
(d) Southern California because it is not allowed
(a) Northern California because escrow is prepared near closing
If the escrow holder is using the CAR Purchase Agreement and Joint Escrow Instructions for the escrow’s opening information,
(a) the escrow officer must still prepare a new and complete instruction.
(b) the escrow officer usually prepares only a supplemental instruction to begin with.
(c) the escrow officer is prohibited from using the CAR form as the instruction.
(d) the boilerplate language is contained in the CAR form so no additional instructions need to be prepared.
(b) the escrow officer usually prepares only a supplemental instruction to begin with.
A For-Sale-By-Owner escrow in which the principals do not have a contract
(a) requires escrow to indicate that the escrow instruction is the contract.
(b) requires escrow to inform the parties to have a contract prepared.
(c) requires the escrow officer to prepare a contract for the parties.
(d) both b and c.
(b) requires escrow to inform the parties to have a contract prepared.
The Statement of Information or Statement of Identity
(a) is a statement of the buyers’ personal information for the lender.
(b) is a statement provided to the buyer from escrow regarding fees.
(c) is a statement in which the buyer provides information necessary for the title company to adequately search public records in order to issue a policy.
(d) none of these.
(c) is a statement in which the buyer provides information necessary for the title company to adequately search public records in order to issue a policy.
