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.   Appraisal
B.   Audit
C.   Survey
D.   Home inspection
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 wasn't performed legally
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.   Chain of title
B.   Title insurance policy
C.   Deed
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.   Susan
C.   The agent
D.   The Bransons
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.   Title insurance company
C.   The state
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 proceed as usual.
B.   Sally will need to make a more significant down payment on the Sandersons' property.
C.   The Sandersons will insist that Sally find a new lender.
D.   It will come to a halt until the cloud is cleared.
Question #7
Which of the following best describes a marketable title?
A.   Conveys ownership of the property.
B.   Protects the buyer from defects in the title.
C.   Provides a title commitment or abstract of title via a search of public records.
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 chain of events
B.   A deed
C.   An appraisal
D.   A title insurance policy

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