ESCROW FINAL REVIEW QUESTIONS AND ANSWERS 100% PASS

ESCROW FINAL REVIEW QUESTIONS AND ANSWERS 100% PASS 50 When a buyer assumes an existing loan, he or she signs: B. an assumption agreement with the lender. 51 If the buyer fails to perform in meeting the obligations under the loan the lender will probably file a: Notice of Default 52 A resident can be protected from judgment that become liens by the acknowledgment recording Declaration of homestead 53 Which of the following is a reference point in CA All of the above. 54 The right of a landowner to use the water on, under, and adjacent to his or her land is known as a Riparian rights 55 The rights to use water is considered of such primary importance that D. Both A & B 56 The determining factor in preparing a second deed of trust is the B. Time of Recording. 57 On any note D. All of The Above 58 The effective date for the insurance must be D. Both B & C are correct. 59 On the settlement sheet, the cash deposited in escrow is A. Credited to the buyer. 60 Most commonly, the motivating reason for real property exchange is C. Tax consideration 61 Which of the following types of property are typically exchange D. All of the above 62 An even exchange can be effected B. Both A & B are correct 63 The money or other (not like-kind) property that is given to make up any difference in value or equity between exchanged properties is called B. Boot. 64 The broker will formalize the exchange with a type of deposit receipt A. Exchange agreement 65 When an adjustment is listed to take effect called a (N) B. Close of escrow: 66 If no defect are found in the tax sale proceeding, most title insurance companies will insure a property from a tax sale after C. One year 67 The main purpose of probate is to D. All of the above 68 In the event of an absolutely even exchange which party's instructions should come first C. It makes no different which party's instructions come first. 69 It is entirely proper for a broker to be paid by both parties whether it be an exchange or even a simple sale, provided C. Both A & B 70 A review system that reminds you to check each periodically is called A. A tickler file 71 If no defects are found in the tax sale proceedings, must title insurance companies will insure a property from a tax sale after C. One year 72 The main purpose of probate is to D. All of the above (Gather the assets of a decedent Pay any debts which may be due on an estate Appropriately distribute whatever is left after paying debts.) 73 In the event of an absolutely even exchange which principal's instructions should come first: It makes no difference which party's instructions come first. 74 It is entirely proper for a broker to be paid by both principals whether it be an exchange or even simple sale provided: C. Both principals sign written instructions 75 A review system that reminds you to check each file periodically is called: A. A tickler file 76 Upon the death of a joint tenant, the tenancy can be terminated by a (N): Both A & B (Decree of Death issued by the court & Affidavit death of joint tenants 77 The federal estate tax becomes a lien on real property: A. Immediately upon death 78 The federal estate tax lien continues for how many years after the death of the property owner? B. Five years 79 Which of the following allows people to pass on property after death? B. A will 80 During probate, public notice is published in a newspaper of general circulation: A. To notify creditors that the decedent's estate is being distributed. 81 A representative named in a will is the: B. Executor 82 An administrator is appointed by the court if the property owner? C. Dies without a will 83 Marketable title is established for the distributees once the decree of distribution is: A. Recorded 84 A property owner that dies without a will is said to be: B. Intestate 85 The market value of a second deed of trust is usually: A. Less than its face value 86 The time limit for the close of escrow is decided:, C By agreement of both principals 87 A policy of title insurance issued in favor of the assignee is the only option when the trust deed: B. Has not been insured. 88 Which form is designed for use with standard coverage policies when the beneficial (lenders) interest in the insured deed of trust has been assigned? A. CLTA form 104.1 89 A note that is specially endorsed in a buyer favor is called a(N): A. Special Endorsement 90 What type of note transfer guarantees that a seller will make payments on the note should the payer fail to do so? A. A with recourse transfer 91 The information required to complete the assigned of deed of trust form is taken from the: C. Trust deed 92 A counter claim against the beneficiary based on a dispute about the amount or terms of the obligation is called a(N): B. Owner's offset statement 93 By recording the request for notice as an accommodation the title company will: B. Have no ability for its validity or sufficiency 94 As a general rule its best to make your instructions: Brief and to the point. 95 When endorsing an assignment form, the signatures should be: A. Exactly as their names appear on the trust deed. 96 Completing the final settlement statement is usually the: A. First step in the closing process 97 Promissory notes secured by deeds of trust are customarily in the form of: B. Negotiable Instrument 98 A written promise or order to pay money is called a: A. Negotiable Instrument 99 The means by which a note made payable to bearable is transferred is called: B. Delivery 100 Which of the following creates security for the performance of an obligation? C. Collateral Assignment