1 of 10 - Which item is not covered by CLTA, ALTA or ALTA-R insurance policies?
Acts of minors
Mining claims
Forgeries
Federal estate tax liens
You answered correctly
2 of 10 - Who is responsible for ordering the preliminary title report?
Buyer
Escrow officer
Seller
Real estate salesperson
You answered correctly
3 of 10 - Which of the following statements is NOT true regarding a broker acting as an escrow agent?
A broker may advertise that he or she is an escrow agent.
A broker cannot use the word "escrow" in a fictitious name.
The broker must conduct the escrow personally and not delegate any escrow activities.
Written escrow instructions must include a statement with the broker's name, indicating he or she is a licensed real estate agent.
You answered incorrectly
Brokers cannot advertise that they conduct escrows unless the ad specifies that the escrows are in connection with the brokerage business. The broker also may not use fictitious names that use the word escrow, may not delegate any escrow duties, must include a statement within escrow instructions with the broker's name and that he or she is a licensed real estate agent.
4 of 10 - RESPA applies to all of the following EXCEPT which?
Condominium purchase
Seller-financed loan
Loan involving a second mortgage
Federally-insured loan
You answered incorrectly
RESPA applies to purchases of residential property of one-to-four dwellings, first or second mortgages, and loans that are federally insured. RESPA does not apply to seller-financed loans or loan assumptions.
5 of 10 - Accepting referral fees:
Is common business practice.
Could be a violation of state licensing laws.
Is permissible if being accepted on behalf of a third party
Is permissible in amounts under $50.
You answered incorrectly
6 of 10 - Which of these individuals could not act as an escrow agent without an escrow license?
Attorney
Banker
Broker
Real estate salesperson
You answered correctly
7 of 10 - Which statement is not true about opening escrows?
The escrow holder will need information about the broker's commission.
The escrow holder will use the purchase agreement as the basis for writing the escrow instructions.
The buyer's and seller's agents will sign the escrow instructions.
Once escrow instructions are signed, changes can only be made with the written agreement of all parties.
You answered incorrectly
Opening escrows includes obtaining information including the broker's commission, using the purchase agreement to compile escrow instructions, obtaining the buyer and seller's signatures, and making no changes without written agreement of all parties.
8 of 10 - Which of the following is not an item that a buyer usually pays at closing?
Fee for clearing the title
Mortgage recording fee
Homeowner's insurance
ALTA policy
You answered incorrectly
Buyer closing expenses typically include mortgage recording fees, title insurance, appraisal fees, credit fees, surveys, loan origination fees, homeowner's insurance, and PMI; but sellers pay the broker commission, title clearing fees, and deed preparation fees.
9 of 10 - RESPA gives the buyer the right to review the completed closing disclosure how long before closing?
Two calendar days
One business week
One calendar week
Three days
You answered incorrectly
RESPA requires a loan estimate of settlement costs be given to a borrower at the time of loan application or within 3 business days of application. Further, RESPA requires that a closing disclosure form that details all financial particulars of the transaction be delivered to the borrower at least 3 days before closing.
10 of 10 - Proof of ownership of a property is called:
Marketable title
Abstract of title
Evidence of title
Title commitment
You answered incorrectly
The seller must deliver a marketable title at closing, one that is so free of defects that the buyer is certain he will not have to defend the title; however, the seller must first have proof of ownership of the property, or evidence of title.
