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

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