CA Real Estate Finance Course » 2021 » Sec 10 Unit 4 Exam

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Question #1
A lender wants to ensure that the legal description of a property is accurate, and determine whether any improvements, encroachments, or lot size changes have been made. What may the lender request to determine this?
A.   Home inspection
B.   Appraisal
C.   Audit
D.   Survey
Question #2
Which of the following assumptions does the Torrens system make?
A.   That the previous search wasn't performed legally
B.   That any issues that arose in the previous title search remain active
C.   That any issues that arose in the previous title search have been resolved
D.   That the previous search was not performed accurately
Question #3
Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion?
A.   Title insurance policy
B.   Deed
C.   Chain of title
D.   Survey
Question #4
Margot is hoping to buy the Bransons’ farm. However, lender Susan informs her that a cloud has been discovered on the Bransons’ title. Who is usually responsible for clearing the cloud?
A.   Margot
B.   The Bransons
C.   The agent
D.   Susan
Question #5
When the Torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?
A.   The state
B.   The seller
C.   Title insurance company
D.   Lender
Question #6
Buyer Sally is hoping to buy the Sandersons’ condo. During a title search, a cloud on the title is discovered. What might happen to the transaction?
A.   Sally will need to make a more significant down payment on the Sandersons' property.
B.   It will come to a halt until the cloud is cleared.
C.   The Sandersons will insist that Sally find a new lender.
D.   It will proceed as usual.
Question #7
Which of the following best describes a marketable title?
A.   Provides a title commitment or abstract of title via a search of public records.
B.   Protects the buyer from defects in the title.
C.   Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.
D.   Conveys ownership of the property.
Question #8
The title is acceptable, and Kathy’s attorney Amy has provided a certificate of title opinion. Which of the following will be issued?
A.   A deed
B.   A chain of events
C.   A title insurance policy
D.   An appraisal

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