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-R.
B.   ALTA.
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.   Both buyer and seller
C.   There are no escrow fees in Southern California
D.   Buyer
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.   within 3 business days after escrow closes.
C.   one business day before closing (upon buyer’s request).
D.   only if requested.
Question #5
The standard fire insurance policy insures against which perils?
A.   Fire only
B.   Fire and lightning
C.   Fire and smoke
D.   Lightning, 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 recorder’s office.
C.   county clerk’s office.
D.   all answers are correct.
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.   Confirmation of citizenship
B.   Signed instructions
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 purchase agreement
B.   The agency relationship form
C.   The listing agreement
D.   The transfer disclosure statement
Question #10
Which of the following is NOT normally prorated?
A.   Property taxes
B.   Interest
C.   Fire insurance
D.   Broker’s commission
Question #11
A recorded history of a specific property is called a:
A.   all answers are correct.
B.   chain of title.
C.   title plant.
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 90 days.
C.   in 30 days.
D.   in 60 days.
Question #13
Which of the following uses of an escrow are highly recommended?
A.   Sales of real property
B.   All answers are correct
C.   Exchanges
D.   Loans
Question #14
The best time for a seller to have a termite report issued is:
A.   before the sale of the property.
B.   during the escrow period.
C.   after the sale of the property.
D.   none of the answers are correct.
Question #15
Which of the following is considered an employee of an escrow company?
A.   Escrow officer
B.   Escrow holder
C.   All answers are correct
D.   Escrow agent
Question #16
Any escrow amendment must be signed by the:
A.   escrow agent and brokers involved.
B.   escrow agent, seller and buyer.
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.   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.   are negotiable.
B.   none of the answers are correct.
C.   must balance.
D.   can be different.
Question #19
Items that are NOT included in the standard title insurance policy (CLTA) include:
A.   all answers are correct.
B.   mining claims.
C.   undisclosed grants or liens.
D.   nonpublic record liens.
Question #20
Proration of prepaid taxes is:
A.   negotiable between buyer and seller.
B.   a credit to the buyer.
C.   a debit to the seller.
D.   a credit to the seller.

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