Escrow Sample Test questions with |\ |\ |\ |\ |\
answers
An escrow is an arrangement that: a) Holds documents,
|\ |\ |\ |\ |\ |\ |\ |\ |\
b) Holds funds, c) Creates documents to affect a transfer
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of interest in property, d) is responsible for guaranteeing
|\ |\ |\ |\ |\ |\ |\ |\ |\
funds. - CORRECT ANSWERS ✔✔A, B, C, E
|\ |\ |\ |\ |\ |\ |\
When is it necessary to have closing documents recorded
|\ |\ |\ |\ |\ |\ |\ |\ |\
prior to disbursement of escrow funds? a) it is not
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
necessary, b) in almost all situations, c) when instructed |\ |\ |\ |\ |\ |\ |\ |\ |\
by one of the parties to the escrow, d) only when the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
written instructions require recording. - CORRECT
|\ |\ |\ |\ |\ |\
ANSWERS ✔✔B |\
Usury Law is defines as: a) the right to use the surface of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
real property, b) is applicable to the prescriptive
|\ |\ |\ |\ |\ |\ |\ |\
easement of ingress and egress, c) the maximum amount |\ |\ |\ |\ |\ |\ |\ |\
of interest which can be charged on a security
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
instrument, d) the appurtenant right to use a right of way |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for ingress and egress. - CORRECT ANSWERS ✔✔C
|\ |\ |\ |\ |\ |\ |\
What characteristics should an escrow officer maintain?
|\ |\ |\ |\ |\ |\ |\
a) abstractor, b) competent, c) legal advisor, d) impartial,
|\ |\ |\ |\ |\ |\ |\ |\ |\
e) has the right to foreclose, f) follows instructions. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔B, D, F |\ |\ |\ |\
,What is the minimum number of parties to an escrow? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔3 |\ |\
An Earnest Money Agreement usually does not reveal the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following: a) property address, b) buyers' and sellers'
|\ |\ |\ |\ |\ |\ |\ |\
name, c) title exceptions, d) improvements to the subject
|\ |\ |\ |\ |\ |\ |\ |\ |\
property, e) personal property to be included in the sale. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔C
|\ |\ |\
An escrow agent has the responsibility to review the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following, with the parties involved in a real estate
|\ |\ |\ |\ |\ |\ |\ |\ |\
transaction: a) the Title Report, b) the Earnest Money |\ |\ |\ |\ |\ |\ |\ |\ |\
Agreement, c) the Owners' Policy, d) Certificate of |\ |\ |\ |\ |\ |\ |\ |\
Apportionment, e) Letters of Testamentary. - CORRECT |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔A |\
What is a Bill of Sale? a) same as a warranty deed, b)
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
instrument to transfer mineral rights, c) used to convey
|\ |\ |\ |\ |\ |\ |\ |\ |\
personal property, d) a certificate concerning well rights,
|\ |\ |\ |\ |\ |\ |\ |\
e) instrument to convey a title policy. - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔C |\
On an assumption, the following information should be
|\ |\ |\ |\ |\ |\ |\ |\
obtained from the lender: a) payment history, b) FHA
|\ |\ |\ |\ |\ |\ |\ |\ |\
premium information, c) fire insurance information, d)
|\ |\ |\ |\ |\ |\ |\
reserve (impound) balance, e) certificate of approval on
|\ |\ |\ |\ |\ |\ |\ |\
, buyer, f) delinquent payment and late fees paid, g)
|\ |\ |\ |\ |\ |\ |\ |\ |\
marital status. - CORRECT ANSWERS ✔✔B, C, D
|\ |\ |\ |\ |\ |\ |\
Date of possession is used in the closing to determine: a)
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the date of the closing, b) the date to be placed on the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
documents, c) the date used for prorations, d) the date of|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recording. - CORRECT ANSWERS ✔✔C |\ |\ |\ |\
A Title Report or Commitment contains the following
|\ |\ |\ |\ |\ |\ |\ |\
information, necessary for the closing: a) property |\ |\ |\ |\ |\ |\ |\
address, b) zoning, c) encumbrances, d) fire insurance
|\ |\ |\ |\ |\ |\ |\ |\
information, e) tax information, f) vested owners. - |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔C, E, F |\ |\ |\ |\
A licensed escrow agent has the authority to draw up the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
necessary documents to the escrow by reason of: a) the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
d) the Utah Escrow Act. - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\ |\ |\ |\ |\
An escrow agent can determine liens against personal
|\ |\ |\ |\ |\ |\ |\ |\
property by a) obtaining a UCC II, b) searching the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
personal property index, c) checking with the county
|\ |\ |\ |\ |\ |\ |\ |\
treasurer, d) calling the state auditor. - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔A |\
answers
An escrow is an arrangement that: a) Holds documents,
|\ |\ |\ |\ |\ |\ |\ |\ |\
b) Holds funds, c) Creates documents to affect a transfer
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of interest in property, d) is responsible for guaranteeing
|\ |\ |\ |\ |\ |\ |\ |\ |\
funds. - CORRECT ANSWERS ✔✔A, B, C, E
|\ |\ |\ |\ |\ |\ |\
When is it necessary to have closing documents recorded
|\ |\ |\ |\ |\ |\ |\ |\ |\
prior to disbursement of escrow funds? a) it is not
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
necessary, b) in almost all situations, c) when instructed |\ |\ |\ |\ |\ |\ |\ |\ |\
by one of the parties to the escrow, d) only when the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
written instructions require recording. - CORRECT
|\ |\ |\ |\ |\ |\
ANSWERS ✔✔B |\
Usury Law is defines as: a) the right to use the surface of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
real property, b) is applicable to the prescriptive
|\ |\ |\ |\ |\ |\ |\ |\
easement of ingress and egress, c) the maximum amount |\ |\ |\ |\ |\ |\ |\ |\
of interest which can be charged on a security
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
instrument, d) the appurtenant right to use a right of way |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for ingress and egress. - CORRECT ANSWERS ✔✔C
|\ |\ |\ |\ |\ |\ |\
What characteristics should an escrow officer maintain?
|\ |\ |\ |\ |\ |\ |\
a) abstractor, b) competent, c) legal advisor, d) impartial,
|\ |\ |\ |\ |\ |\ |\ |\ |\
e) has the right to foreclose, f) follows instructions. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔B, D, F |\ |\ |\ |\
,What is the minimum number of parties to an escrow? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔3 |\ |\
An Earnest Money Agreement usually does not reveal the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following: a) property address, b) buyers' and sellers'
|\ |\ |\ |\ |\ |\ |\ |\
name, c) title exceptions, d) improvements to the subject
|\ |\ |\ |\ |\ |\ |\ |\ |\
property, e) personal property to be included in the sale. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔C
|\ |\ |\
An escrow agent has the responsibility to review the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following, with the parties involved in a real estate
|\ |\ |\ |\ |\ |\ |\ |\ |\
transaction: a) the Title Report, b) the Earnest Money |\ |\ |\ |\ |\ |\ |\ |\ |\
Agreement, c) the Owners' Policy, d) Certificate of |\ |\ |\ |\ |\ |\ |\ |\
Apportionment, e) Letters of Testamentary. - CORRECT |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔A |\
What is a Bill of Sale? a) same as a warranty deed, b)
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
instrument to transfer mineral rights, c) used to convey
|\ |\ |\ |\ |\ |\ |\ |\ |\
personal property, d) a certificate concerning well rights,
|\ |\ |\ |\ |\ |\ |\ |\
e) instrument to convey a title policy. - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔C |\
On an assumption, the following information should be
|\ |\ |\ |\ |\ |\ |\ |\
obtained from the lender: a) payment history, b) FHA
|\ |\ |\ |\ |\ |\ |\ |\ |\
premium information, c) fire insurance information, d)
|\ |\ |\ |\ |\ |\ |\
reserve (impound) balance, e) certificate of approval on
|\ |\ |\ |\ |\ |\ |\ |\
, buyer, f) delinquent payment and late fees paid, g)
|\ |\ |\ |\ |\ |\ |\ |\ |\
marital status. - CORRECT ANSWERS ✔✔B, C, D
|\ |\ |\ |\ |\ |\ |\
Date of possession is used in the closing to determine: a)
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the date of the closing, b) the date to be placed on the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
documents, c) the date used for prorations, d) the date of|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recording. - CORRECT ANSWERS ✔✔C |\ |\ |\ |\
A Title Report or Commitment contains the following
|\ |\ |\ |\ |\ |\ |\ |\
information, necessary for the closing: a) property |\ |\ |\ |\ |\ |\ |\
address, b) zoning, c) encumbrances, d) fire insurance
|\ |\ |\ |\ |\ |\ |\ |\
information, e) tax information, f) vested owners. - |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔C, E, F |\ |\ |\ |\
A licensed escrow agent has the authority to draw up the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
necessary documents to the escrow by reason of: a) the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Utah Bulk Sales Act, b) Insurance Act, c) the Paralegal Act,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
d) the Utah Escrow Act. - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\ |\ |\ |\ |\
An escrow agent can determine liens against personal
|\ |\ |\ |\ |\ |\ |\ |\
property by a) obtaining a UCC II, b) searching the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
personal property index, c) checking with the county
|\ |\ |\ |\ |\ |\ |\ |\
treasurer, d) calling the state auditor. - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔A |\
