Specialty Escrow Transactions Flashcards
Specialty escrow transactions which require considerably more experience and knowledge in working with them include
(a) Transfer of liquor license
(b) Bulk sale transfers
(c) Both a and b
(d) Neither a nor b
(c) Both a and b
A bulk sale subject to the requirements of state law is defined as any sale outside the ordinary course of the seller’s business
(a) Priced at more than 25% of the fair market value of the seller’s inventory and equipment
(b) Priced at more than 50% of the fair market value of the seller’s inventory and equipment
(c) Valued over $5 million
(d) Valued over $5 million
(b) Priced at more than 50% of the fair market value of the seller’s inventory and equipment
Bulk sale laws require a buyer to record and publish a notice of the sale
(a) No less than 12 business days before the date of the sale
(b) No more than 12 business days after the date of the sale
(c) Both a and b
(d) Neither a nor b
(a) No less than 12 business days before the date of the sale
In financing business opportunities, the instrument to be recorded with the buyer’s security agreement is
(a) Deed of trust
(b) Mortgage
(c) UCC-1 financing statement
(d) Promissory note
(c) UCC-1 financing statement
The financing statement is
(a) Publicly filed with the county clerk
(b) Recorded with the California secretary of state
(c) Both a and b
(d) Neither a nor b
(d) Neither a nor b
The UCC-1 financing statement is publicly filed with the California secretary of state and recorded with the clerk of the county in which the business is located.
An agreement between a buyer and seller which provides for the seller not to compete against the buyer with reopening the business or opening a new but similar business is called
(a) Condition Not to Complete
(b) Covenants, Conditions and Restrictions
(c) Covenant Not to Compete
(d) None of the above
(c) Covenant Not to Compete
Off-sale liquor licenses include
(a) Beer only
(b) Wine only
(c) Beer, wine and spirits
(d) All the above
(c) Beer, wine and spirits
There are only two off-sale licenses (beer and wine and a general license that includes beer, wine, and spirits).
In the sale of a liquor license, the escrow officer may not release any funds to the seller until the transfer has been approved by
(a) The secretary of state
(b) The ABC
(c) The IRS
(d) The buyer has authorized the release in writing
(b) The ABC
Violations of the manufactured housing law and regulations may subject an HCD licensee to discipline including
(a) A monetary fine or suspension or revocation of the HCD license
(b) Prosecution as a misdemeanor by the District Attorney or State Attorney General
(c) Prosecution as a felony for embezzlement or fraud, or unfair business practices
(d) All the above
(d) All the above
A mobile home not placed on a permanent foundation is
(a) Personal property
(b) Either real or personal property
(c) Recording with the county recorder office
(d) None of the above
(a) Personal property
Prior to construction in a new development, to ascertain no work has commenced which could result in a mechanic’s lien, the land is inspected by the
(a) Appraiser
(b) Property inspector
(c) City or county building department
(d) Title company
(d) Title company
Interested buyers may be taken on a subdivision project yet to receive the “white paper”
(a) May make reservations through the escrow holder
(b) May buy properties in advance of the white paper’s receipt
(c) Both a and b
(d) Neither a nor b
(a) May make reservations through the escrow holder
Bulk sales laws are designed to prevent
(a) sellers from defrauding their buyers.
(b) sellers from defrauding the State of California.
(c) sellers from defrauding their creditors.
(d) creditors from defrauding their debtors.
(c) sellers from defrauding their creditors.
Bulk sales laws require that an escrow be opened
(a) for all sales involving personal property.
(b) for all sales involving a business in which a real estate is not a part.
(c) for all sales involving a liquor license.
(d) only voluntarily.
(c) for all sales involving a liquor license.
The purpose of notifying the state Board of Equalization of the bulk sale is to
(a) obtain a certificate of sales tax clearance and a seller’s permit.
(b) impound and control the distribution of proceeds.
(c) both a and b.
(d) neither a nor b.
(a) obtain a certificate of sales tax clearance and a seller’s permit.
If a buyer fails to comply with the bulk sale notice requirements, the buyer is
(a) liable for damages in the amount of any claims against the seller.
(b) liable for double damages in the amount of any claims against the seller.
(c) not liable for damages against the seller.
(d) not liable if a good-faith effort was made to comply.
(a) liable for damages in the amount of any claims against the seller.
The bulk sales law requires that for any claim to be valid, it must be filed within
(a) one year of the date of the sale.
(b) two years of the date of the sale.
(c) 180 days of the date of the sale.
(d) 45 days of the date of the sale.
(a) one year of the date of the sale.
The document to be recorded as constructive notice for the security instrument for personal property involved in a bulk sales transaction is the
(a) deed of trust.
(b) financial statement.
(c) California UCC-1.
(d) security statement.
(c) California UCC-1.
The two basic CATEGORIES of liquor licenses are
(a) off-sale and on-sale.
(b) new and previously issued.
(c) “beer and wine” and “general”.
(d) all of these.
(b) new and previously issued.
The two basic GROUPS of liquor licenses are
(a) off-sale and on-sale.
(b) new and previously issued.
(c) “beer and wine” and “general”.
(d) all of these.
(a) off-sale and on-sale.
If the buyer of a liquor license is liable for taxes to the Franchise Tax Board, the Board of Equalization, or the Employment Development Department, the escrow holder must
(a) obtain a written release from the department to whom the taxes are due prior to allowing escrow to close.
(b) hold back the amount of the taxes due at the close of escrow.
(c) withhold the monies due from the buyer’s funds and forward to the appropriate agency.
(d) obtain a written release from the Department of Alcoholic Beverage Control before allowing escrow to close.
(a) obtain a written release from the department to whom the taxes are due prior to allowing escrow to close.
