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.   Survey
B.   Audit
C.   Home inspection
D.   Appraisal
Question #2
Which of the following assumptions does the Torrens system make?
A.   That any issues that arose in the previous title search remain active
B.   That any issues that arose in the previous title search have been resolved
C.   That the previous search was not performed accurately
D.   That the previous search wasn't performed legally
Question #3
Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion?
A.   Survey
B.   Title insurance policy
C.   Chain of title
D.   Deed
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.   Susan
B.   Margot
C.   The Bransons
D.   The agent
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 seller
B.   The state
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.   It will come to a halt until the cloud is cleared.
B.   Sally will need to make a more significant down payment on the Sandersons' property.
C.   It will proceed as usual.
D.   The Sandersons will insist that Sally find a new lender.
Question #7
Which of the following best describes a marketable title?
A.   Protects the buyer from defects in the title.
B.   Provides a title commitment or abstract of title via a search of public records.
C.   Conveys ownership of the property.
D.   Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.
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 title insurance policy
B.   An appraisal
C.   A deed
D.   A chain of events

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