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.   BLTA.
B.   CLTA.
C.   ALTA.
D.   ALTA-R.
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.   Both buyer and seller
D.   Buyer
Question #3
Proration of expenses and income is based on a month with:
A.   28 days.
B.   30 days.
C.   31 days.
D.   29 days.
Question #4
RESPA requires that the buyer be notified of closing costs:
A.   only if requested.
B.   none of the answers are correct
C.   one business day before closing (upon buyer’s request).
D.   within 3 business days after escrow closes.
Question #5
The standard fire insurance policy insures against which perils?
A.   Fire and lightning
B.   Lightning, fire, and smoke
C.   Fire only
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.   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 condominium unit of one-to-four families
C.   A property on which a mobile home sits
D.   Purchase of a shopping center
Question #8
Which of the following is NOT a requirement of a valid escrow?
A.   Confirmation of citizenship
B.   Conditional delivery of funds and documents
C.   Signed instructions
D.   Neutral party acting as a dual agent
Question #9
From what document are escrow instructions usually drawn?
A.   The agency relationship form
B.   The purchase agreement
C.   The transfer disclosure statement
D.   The listing agreement
Question #10
Which of the following is NOT normally prorated?
A.   Broker’s commission
B.   Interest
C.   Property taxes
D.   Fire insurance
Question #11
A recorded history of a specific property is called a:
A.   all answers are correct.
B.   chain of title.
C.   title record.
D.   title plant.
Question #12
If the time of closing is not specified, escrow will close:
A.   in 30 days.
B.   in 90 days.
C.   in 60 days.
D.   on the date the documents are recorded.
Question #13
Which of the following uses of an escrow are highly recommended?
A.   Sales of real property
B.   All answers are correct
C.   Loans
D.   Exchanges
Question #14
The best time for a seller to have a termite report issued is:
A.   after the sale of the property.
B.   before the sale of the property.
C.   none of the answers are correct.
D.   during the escrow period.
Question #15
Which of the following is considered an employee of an escrow company?
A.   Escrow holder
B.   All answers are correct
C.   Escrow officer
D.   Escrow agent
Question #16
Any escrow amendment must be signed by the:
A.   escrow agent, seller and buyer.
B.   escrow agent and brokers involved.
C.   brokers, seller and buyer.
D.   both parties (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.   RESPA policy.
C.   CLTA policy.
D.   ALTA policy.
Question #18
With regards to the closing escrow statement, the seller’s and buyer’s respective totals:
A.   are negotiable.
B.   can be different.
C.   must balance.
D.   none of the answers are correct.
Question #19
Items that are NOT included in the standard title insurance policy (CLTA) include:
A.   nonpublic record liens.
B.   undisclosed grants or liens.
C.   mining claims.
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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