Real Estate 101 - Real Estate Principles » Fall 2021 » Chapter 8 Quiz

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Question #1
The standard title insurance policy in California is the:
A.   ALTA.
B.   ALTA-R.
C.   BLTA.
D.   CLTA.
Question #2
In Northern California the buyer usually pays for escrow fees. Who usually pays for them in Southern California?
A.   Seller
B.   There are no escrow fees in Southern California
C.   Buyer
D.   Both buyer and seller
Question #3
Proration of expenses and income is based on a month with:
A.   29 days.
B.   28 days.
C.   30 days.
D.   31 days.
Question #4
RESPA requires that the buyer be notified of closing costs:
A.   one business day before closing (upon buyer’s request).
B.   only if requested.
C.   within 3 business days after escrow closes.
D.   none of the answers are correct
Question #5
The standard fire insurance policy insures against which perils?
A.   Fire and smoke
B.   Lightning, fire, and smoke
C.   Fire and lightning
D.   Fire only
Question #6
A title company could make a title search by searching the records of the:
A.   federal lands office.
B.   county clerk’s office.
C.   all answers are correct.
D.   county recorder’s office.
Question #7
Which of the following would NOT be applicable to RESPA requirements?
A.   A house to be built
B.   A property on which a mobile home sits
C.   Purchase of a shopping center
D.   A condominium unit of one-to-four families
Question #8
Which of the following is NOT a requirement of a valid escrow?
A.   Conditional delivery of funds and documents
B.   Neutral party acting as a dual agent
C.   Signed instructions
D.   Confirmation of citizenship
Question #9
From what document are escrow instructions usually drawn?
A.   The transfer disclosure statement
B.   The purchase agreement
C.   The agency relationship form
D.   The listing agreement
Question #10
Which of the following is NOT normally prorated?
A.   Interest
B.   Fire insurance
C.   Broker’s commission
D.   Property taxes
Question #11
A recorded history of a specific property is called a:
A.   chain of title.
B.   title plant.
C.   title record.
D.   all answers are correct.
Question #12
If the time of closing is not specified, escrow will close:
A.   in 30 days.
B.   on the date the documents are recorded.
C.   in 90 days.
D.   in 60 days.
Question #13
Which of the following uses of an escrow are highly recommended?
A.   Sales of real property
B.   Exchanges
C.   All answers are correct
D.   Loans
Question #14
The best time for a seller to have a termite report issued is:
A.   after the sale of the property.
B.   none of the answers are correct.
C.   before the sale of the property.
D.   during the escrow period.
Question #15
Which of the following is considered an employee of an escrow company?
A.   Escrow officer
B.   Escrow agent
C.   Escrow holder
D.   All answers are correct
Question #16
Any escrow amendment must be signed by the:
A.   escrow agent, seller and buyer.
B.   both parties (seller and buyer).
C.   brokers, seller and buyer.
D.   escrow agent and brokers involved.
Question #17
Most lenders require buyers (owners) to obtain an extended title insurance policy, known as a(n):
A.   none of the answers are correct.
B.   ALTA policy.
C.   CLTA policy.
D.   RESPA policy.
Question #18
With regards to the closing escrow statement, the seller’s and buyer’s respective totals:
A.   can be different.
B.   none of the answers are correct.
C.   must balance.
D.   are negotiable.
Question #19
Items that are NOT included in the standard title insurance policy (CLTA) include:
A.   nonpublic record liens.
B.   mining claims.
C.   undisclosed grants or liens.
D.   all answers are correct.
Question #20
Proration of prepaid taxes is:
A.   a credit to the buyer.
B.   a credit to the seller.
C.   negotiable between buyer and seller.
D.   a debit to the seller.

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