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.   BLTA.
C.   CLTA.
D.   ALTA-R.
Question #2
In Northern California the buyer usually pays for escrow fees. Who usually pays for them in Southern California?
A.   Buyer
B.   Both buyer and seller
C.   There are no escrow fees in Southern California
D.   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.   only if requested.
C.   within 3 business days after escrow closes.
D.   one business day before closing (upon buyer’s request).
Question #5
The standard fire insurance policy insures against which perils?
A.   Fire and smoke
B.   Fire only
C.   Fire and lightning
D.   Lightning, fire, and smoke
Question #6
A title company could make a title search by searching the records of the:
A.   all answers are correct.
B.   county clerk’s office.
C.   federal lands office.
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.   Purchase of a shopping center
D.   A property on which a mobile home sits
Question #8
Which of the following is NOT a requirement of a valid escrow?
A.   Confirmation of citizenship
B.   Neutral party acting as a dual agent
C.   Conditional delivery of funds and documents
D.   Signed instructions
Question #9
From what document are escrow instructions usually drawn?
A.   The transfer disclosure statement
B.   The purchase agreement
C.   The listing agreement
D.   The agency relationship form
Question #10
Which of the following is NOT normally prorated?
A.   Interest
B.   Fire insurance
C.   Property taxes
D.   Broker’s commission
Question #11
A recorded history of a specific property is called a:
A.   title plant.
B.   all answers are correct.
C.   chain of title.
D.   title record.
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.   All answers are correct
B.   Loans
C.   Sales of real property
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 officer
B.   Escrow holder
C.   Escrow agent
D.   All answers are correct
Question #16
Any escrow amendment must be signed by the:
A.   escrow agent and brokers involved.
B.   brokers, seller and buyer.
C.   both parties (seller and buyer).
D.   escrow agent, 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.   ALTA policy.
D.   CLTA 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.   undisclosed grants or liens.
B.   nonpublic record liens.
C.   mining claims.
D.   all answers are correct.
Question #20
Proration of prepaid taxes is:
A.   negotiable between buyer and seller.
B.   a credit to the seller.
C.   a debit to the seller.
D.   a credit to the buyer.

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