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-R.
D.   ALTA.
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.   Seller
D.   Buyer
Question #3
Proration of expenses and income is based on a month with:
A.   30 days.
B.   28 days.
C.   31 days.
D.   29 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 only
B.   Fire and smoke
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.   county recorder’s office.
B.   county clerk’s office.
C.   federal lands office.
D.   all answers are correct.
Question #7
Which of the following would NOT be applicable to RESPA requirements?
A.   A property on which a mobile home sits
B.   Purchase of a shopping center
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.   Neutral party acting as a dual agent
B.   Confirmation of citizenship
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 listing agreement
C.   The purchase agreement
D.   The agency relationship form
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 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 60 days.
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.   All answers are correct
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.   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.   All answers are correct
B.   Escrow agent
C.   Escrow officer
D.   Escrow holder
Question #16
Any escrow amendment must be signed by the:
A.   escrow agent, seller and buyer.
B.   both parties (seller and buyer).
C.   brokers, seller and buyer.
D.   escrow agent and brokers involved.
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.   must balance.
C.   are negotiable.
D.   can be different.
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.   all answers are correct.
D.   mining claims.
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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