Principles book

Question 1

What is a transaction coordinator

Answer 1

a real estate professional who assist agents and brokers in the processing of a real estate transaction all the way through escrow

Question 2

when a transaction coordinator is paid an extra fee he or she may:

Answer 2

-Review the listing agreement
-Order and review the Natural Hazard Disclosure Report and Preliminary Title Report
-Prepare packet of Seller-Signed Disclosures, advisories, and reports for fast delivery to buyer when offer is accepted
- Enter listing into e-file system

Question 3

The transaction coordinator will normally do the following after receiving an executed purchase agreement and any counter offers:

Answer 3

1. Create a timeline of important dates
2. If instructed, open escrow
3. Review initial paperwork and request missing documents and disclosures from the cooperating agent
4. Use DocuSign to obtain signatures from his or her broker and their client.
5. Generate forms in zip forms as necessary
6. Remind his or her broker when deadlines are approaching
7. Promptly enter all completed documents in e-file system for broker review

Question 4

What are requirements for a valid escrow

Answer 4

1.Signed escrow instructions, forming a binding contract between two or more parties (usually a buyer and seller.
2. A neutral party, which is the escrow company, acting as a dual agent of the buyer and seller.
3. Conditional delivery of funds and documents when all the conditions in the escrow are met

Question 5

What are the three ways to terminate an escrow

Answer 5

Complete escrow, Mutual agreement, Court action “interpleader”

Question 6

If buyer and seller both want a different escrow company what is the solution?

Answer 6

The salesperson should work for a mutual agreement to who to use before there can be an offer and acceptance towards the sale

Question 7

What are escrow instructions

Answer 7

they are usually computer- generated forms that permit the listing of all the funds and documents that will move through escrow, and specify the conditions under which they may be transmitted.

Question 8

definition of proration

Answer 8

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

Question 9

Items that are commonly prorated

Answer 9

1. property taxes
2. fire insurance
3. interest
4. rents

Question 10

What is a structural pest control certification report?

Answer 10

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

Question 11

What does a “structural pest control certification report” report?

Answer 11

The report states the condition and correction cost of any pest, dry rot, excessive moisture, earth-wood contacts, or fungus damage in accessible areas of a structure

Question 12

when should a seller be issues a termite report

Answer 12

before the sale of the property

Question 13

what is a chain of title?

Answer 13

Every recorded change of ownership and/or claim of ownership on a property is in the abstract of title

Question 14

what does title insurance insure?

Answer 14

insures a lender (and property owner for an additional fee) against losses that result from imperfections in title.

Question 15

what are the four most important functions of title insurance?

Answer 15

1. A search of Title records
2. Examines “off” Record Risks
3. Interprets legality of Records
4. Insures against Economic loss

Question 16

what is a preliminary title report

Answer 16

it is a title report showing the condition of title before a sale or loan transaction