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

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
The standard title insurance policy in California is the:
A.   ALTA-R.
B.   ALTA.
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.   Both buyer and seller
B.   There are no escrow fees in Southern California
C.   Buyer
D.   Seller
Question #3
Proration of expenses and income is based on a month with:
A.   28 days.
B.   30 days.
C.   29 days.
D.   31 days.
Question #4
RESPA requires that the buyer be notified of closing costs:
A.   within 3 business days after escrow closes.
B.   one business day before closing (upon buyer’s request).
C.   only if requested.
D.   none of the answers are correct
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.   Purchase of a shopping center
B.   A property on which a mobile home sits
C.   A condominium unit of one-to-four families
D.   A house to be built
Question #8
Which of the following is NOT a requirement of a valid escrow?
A.   Signed instructions
B.   Confirmation of citizenship
C.   Neutral party acting as a dual agent
D.   Conditional delivery of funds and documents
Question #9
From what document are escrow instructions usually drawn?
A.   The listing agreement
B.   The agency relationship form
C.   The transfer disclosure statement
D.   The purchase agreement
Question #10
Which of the following is NOT normally prorated?
A.   Broker’s commission
B.   Fire insurance
C.   Interest
D.   Property taxes
Question #11
A recorded history of a specific property is called a:
A.   title plant.
B.   chain of title.
C.   all answers are correct.
D.   title record.
Question #12
If the time of closing is not specified, escrow will close:
A.   on the date the documents are recorded.
B.   in 30 days.
C.   in 90 days.
D.   in 60 days.
Question #13
Which of the following uses of an escrow are highly recommended?
A.   Loans
B.   Exchanges
C.   All answers are correct
D.   Sales of real property
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.   Escrow agent
C.   All answers are correct
D.   Escrow officer
Question #16
Any escrow amendment must be signed by the:
A.   brokers, seller and buyer.
B.   escrow agent, seller and buyer.
C.   escrow agent and brokers involved.
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.   CLTA policy.
B.   none of the answers are correct.
C.   ALTA policy.
D.   RESPA 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.   must balance.
C.   can be different.
D.   are negotiable.
Question #19
Items that are NOT included in the standard title insurance policy (CLTA) include:
A.   undisclosed grants or liens.
B.   mining claims.
C.   nonpublic record liens.
D.   all answers are correct.
Question #20
Proration of prepaid taxes is:
A.   a credit to the seller.
B.   negotiable between buyer and seller.
C.   a credit to the buyer.
D.   a debit to the seller.

Need help with your exam preparation?

Existing Quiz Clients Login here