894. In California, one would look in which of the following documents to find the Escrow Law: A.The Civil Code; B.The Real Estate Law; C.The Business.

894. In California, one would look in which of the following documents to find the Escrow Law:A. The Civil Code;

B. The Real Estate Law;

C. The Business and Professions Code;

D. The California Financial Code.

894. In California, one would look in which of the following documents to find the Escrow Law:A. The Civil Code;

B. The Real Estate Law;

C. The Business and Professions Code;

D. The California Financial Code.

Escrow – Financial Code

812. Escrow instructions can be executed by:

A. The buyers;

B. Sellers;

C. Third parties;

D. All of the above.

812. Escrow instructions can be executed by:

A. The buyers;

B. Sellers;

C. Third parties;

D. All of the above.

Escrow instructions executed by – Buyers, sellers, third parties

815. When a trust deed is sold, the parties often use an escrow in order to:

A. Obey the civil code;

B. Be a witness for the transaction;

C. Make sure that the conditions and terms are met prior to the closing of the transaction;

D. Provide a legal recourse against the escrow company for the two parties involved.

815. When a trust deed is sold, the parties often use an escrow in order to:

A. Obey the civil code;

B. Be a witness for the transaction;

C. Make sure that the conditions and terms are met prior to the closing of the transaction;

D. Provide a legal recourse against the escrow company for the two parties involved.

(Escrow) purpose – Terms are met

238. The item that would appear on the debit side of a buyer’s closing statement would be:A. Purchase price;

B. Prepaid rents;

C. Interest owed on trust deeds;

D. Unpaid real property taxes.

238. The item that would appear on the debit side of a buyer’s closing statement would be:A. Purchase price;

B. Prepaid rents;

C. Interest owed on trust deeds;

D. Unpaid real property taxes.

Closing statement – Buyer’s debit – Purchase price

888. On the seller’s closing escrow statement, which of the following is usually a credit to the seller;

A. The proration of prepaid taxes;

B. The pay-off of an existing loan;

C. The payment of a commission to the listing broker;

D. The proration of prepaid rent received from tenants.

888. On the seller’s closing escrow statement, which of the following is usually a credit to the seller;

A. The proration of prepaid taxes;

B. The pay-off of an existing loan;

C. The payment of a commission to the listing broker;

D. The proration of prepaid rent received from tenants.

Closing statement – Credit seller – Prepaid taxes

241. When an escrow is closed on the purchase of a home the closing statements usually reveal that the seller has paid certain items in arrears or in advance as they relate to ownership of that home. These items are usually prorated or adjusted. All of the following would be included in these prorated items except:

A. Interest and fire insurance premiums;

B. Property taxes and assessments;

C. Interest and impounds;

D. Delinquent interest and principal applying to an unsecured home improvement loan.

241. When an escrow is closed on the purchase of a home the closing statements usually reveal that the seller has paid certain items in arrears or in advance as they relate to ownership of that home. These items are usually prorated or adjusted. All of the following would be included in these prorated items except:

A. Interest and fire insurance premiums;

B. Property taxes and assessments;

C. Interest and impounds;

D. Delinquent interest and principal applying to an unsecured home improvement loan.

Prorations – Not unsecured loans

511. Which of the following closing costs would be classified as a recurring cost:

A. Recording fees;

B. Title insurance premiums;

C. Escrow fees;

D. Impound account items.

511. Which of the following closing costs would be classified as a recurring cost:

A. Recording fees;

B. Title insurance premiums;

C. Escrow fees;

D. Impound account items.

Impounds – recurring costs

651. During a sales escrow, the escrow officer receives two structural pest control reports. The escrow officer should:A. Contact the inspection companies to determine

which one is most recent and use that one;B. Send the report that requires the most work to the

buyer and obtain his approval;C. Notify the broker and obtain written instructions

from buyer and seller concerning the reports;D. Request the broker to find out from the seller

which report to use.

651. During a sales escrow, the escrow officer receives two structural pest control reports. The escrow officer should:A. Contact the inspection companies to determine

which one is most recent and use that one;B. Send the report that requires the most work to the

buyer and obtain his approval;C. Notify the broker and obtain written instructions

from buyer and seller concerning the reports;D. Request the broker to find out from the seller

which report to use.

Two termite reports – get instructions from buyer and seller

798. According to generally accepted practices, an escrow is authorized to:A. Give buyers advice about the best

financing which is available;

B. Change the escrow instructions when asked to by the listing broker;

C. Call for funding of buyer's loan;

D. Authorize a pest control company to make corrective repairs.

798. According to generally accepted practices, an escrow is authorized to:A. Give buyers advice about the best

financing which is available;

B. Change the escrow instructions when asked to by the listing broker;

C. Call for funding of buyer's loan;

D. Authorize a pest control company to make corrective repairs.

Escrow can – Call for funding of loan

758. Whenever there is a real estate sales transaction, it must be reported to the Internal Revenue Service by the:

A. Lender;

B. Broker;

C. Escrow;

D. City.

758. Whenever there is a real estate sales transaction, it must be reported to the Internal Revenue Service by the:

A. Lender;

B. Broker;

C. Escrow;

D. City.

Report to IRS – Escrow

307. A man is buying a residence. After signing a valid agreement for sale, he asks the broker for permission to move into the property before the sale closes. The broker should:A. Deny the buyer permission;

B. Give the buyer oral permission;

C. Have the buyer sign a temporary lease on the property;

D. Obtain written consent from the owner.

307. A man is buying a residence. After signing a valid agreement for sale, he asks the broker for permission to move into the property before the sale closes. The broker should:A. Deny the buyer permission;

B. Give the buyer oral permission;

C. Have the buyer sign a temporary lease on the property;

D. Obtain written consent from the owner.

Move in early – Seller’s written permission

845. When an escrow agent holds the buyer's deposit money because of a dispute between buyer and seller, the escrow agent can release the funds in which of the following circumstances:A. Upon receipt of written instructions signed

by both buyer and seller;

B. Upon receipt of an arbitrator's award;

C. Upon receipt of a court ruling;

D. In any of the above circumstances.

845. When an escrow agent holds the buyer's deposit money because of a dispute between buyer and seller, the escrow agent can release the funds in which of the following circumstances:A. Upon receipt of written instructions signed

by both buyer and seller;

B. Upon receipt of an arbitrator's award;

C. Upon receipt of a court ruling;

D. In any of the above circumstances.

Release disputed funds – Instructions from all parties or court order

248. The Real Estate Settlement Procedures Act (RESPA) would apply to which of the following:

A. Homes and residential dwellings only;

B. Commercial real estate only;

C. Common interest subdivisions, such as condominiums;

D. One-to-four family residential dwellings.

248. The Real Estate Settlement Procedures Act (RESPA) would apply to which of the following:

A. Homes and residential dwellings only;

B. Commercial real estate only;

C. Common interest subdivisions, such as condominiums;

D. One-to-four family residential dwellings.

1-to-4-Family Residential Dwellings – Required (RESPA applies)

251. In selling a house, certain charges are prohibited by the Real Estate Settlement Procedures Act. As appropriate, buyer or seller may legally be charged for all of the following except:A. Credit reports;

B. The preparation of loan documents;

C. Appraisals necessary to make the loan;

D. Disclosure settlement statements.

251. In selling a house, certain charges are prohibited by the Real Estate Settlement Procedures Act. As appropriate, buyer or seller may legally be charged for all of the following except:A. Credit reports;

B. The preparation of loan documents;

C. Appraisals necessary to make the loan;

D. Disclosure settlement statements.

Uniform Settlement Statement – No charge

613. RESPA (Real Estate Settlement Procedures Act) provides for specific legal penalties concerning all of the following activities, except:

A. Unearned fees;

B. Kickbacks;

C. Seller requiring a specific title insurer;

D. Buyer requiring a specific loan provider.

613. RESPA (Real Estate Settlement Procedures Act) provides for specific legal penalties concerning all of the following activities, except:

A. Unearned fees;

B. Kickbacks;

C. Seller requiring a specific title insurer;

D. Buyer requiring a specific loan provider.

(RESPA) – Buyer can require– Specific lender

614. When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant must be provided with which of the following:

A. A bill of sale;

B. A good faith estimate;

C. Forms for applying for the homeowner's exemption;

D. An application for private mortgage insurance.

614. When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant must be provided with which of the following:

A. A bill of sale;

B. A good faith estimate;

C. Forms for applying for the homeowner's exemption;

D. An application for private mortgage insurance.

Good faith estimate – must be furnished

708. Part of the California Civil Code requires that a disclosure statement be delivered by which of the following when transferring title to certain real property:

A. The probate court, as a part of a probate sale;

B. A trustee, when conducting a trustee's sale;C. The transferor;D. A husband, to his wife as part of a divorce

property settlement.

708. Part of the California Civil Code requires that a disclosure statement be delivered by which of the following when transferring title to certain real property:

A. The probate court, as a part of a probate sale;

B. A trustee, when conducting a trustee's sale;C. The transferor;D. A husband, to his wife as part of a divorce

property settlement.

Disclosure statement – Given by transferor …

731. When the deposit receipt on the sale of a house states that the property is being sold “as is,” it:

A. Also requires a real estate transfer disclosure statement;

B. Provides that the buyer should beware;

C. Means that nothing is warranted;

D. Does not require a real estate transfer disclosure statement.

731. When the deposit receipt on the sale of a house states that the property is being sold “as is,” it:

A. Also requires a real estate transfer disclosure statement;

B. Provides that the buyer should beware;

C. Means that nothing is warranted;

D. Does not require a real estate transfer disclosure statement.

Disclosure statement – … even if sold “as is”

842. The Easton v. Strassbgerger case helped define a broker’s duty to disclose material facts to a potential buyer. Which of the following best describes the disclosures required:

A. A list of obvious property defects and any functional obsolescence;

B. A statement that the property is being sold "as is";

C. An advisement to obtain a professional property inspection;

D. A list of property defects that are known or should be known.

842. The Easton v. Strassbgerger case helped define a broker’s duty to disclose material facts to a potential buyer. Which of the following best describes the disclosures required:

A. A list of obvious property defects and any functional obsolescence;

B. A statement that the property is being sold "as is";

C. An advisement to obtain a professional property inspection;

D. A list of property defects that are known or should be known.

Must reveal – All known defects

881. Which of the following does not need to be disclosed on the Real Property Transfer Disclosure form:

A. Fences shared with a neighbor;

B. Recorded easements;

C. C. C. & R.’s;

D. Repairs that comply with the building code.

881. Which of the following does not need to be disclosed on the Real Property Transfer Disclosure form:

A. Fences shared with a neighbor;

B. Recorded easements;

C. C. C. & R.’s;

D. Repairs that comply with the building code.

Must reveal – Not repairs

843. When a buyer in a residential property transaction receives an amended Transfer Disclosure Statement from the seller's agent, he is legally entitled to:A. Sue for an award of damages;

B. Rescind the purchase contract;

C. Rescind the contract and sue for an award of damages;

D. None of the above.

843. When a buyer in a residential property transaction receives an amended Transfer Disclosure Statement from the seller's agent, he is legally entitled to:A. Sue for an award of damages;

B. Rescind the purchase contract;

C. Rescind the contract and sue for an award of damages;

D. None of the above.

Amended disclosure – Buyer can rescind

844. When is it permissible for a licensee to fill out the seller’s portion of the Transfer Disclosure Statement on his own, without the seller's involvement:A. Never;B. When he has the seller's written

permission; C. When the seller has never visited the

property; D. When the buyer signs a waiver.

844. When is it permissible for a licensee to fill out the seller’s portion of the Transfer Disclosure Statement on his own, without the seller's involvement:A. Never;B. When he has the seller's written

permission; C. When the seller has never visited the

property; D. When the buyer signs a waiver.

Licensee can never – Fill out seller’s portion

887. When the buyer is given a defective Transfer Disclosure Statement which contains obvious omissions about the condition of the property, the buyer can bring legal action against the seller and real estate licensee within;

A. One year;

B. Two years;

C. Five years;

D. Seven years.

887. When the buyer is given a defective Transfer Disclosure Statement which contains obvious omissions about the condition of the property, the buyer can bring legal action against the seller and real estate licensee within;

A. One year;

B. Two years;

C. Five years;

D. Seven years.

Defective statement – Buyer can sue within two years

868. Under the Alquist-Priolo Special Studies Act, a subdivider would be required to disclose to potential purchasers:

A. Toxic waste sites;

B. Earthquake fault lines;

C. Flood Hazard zones;

D. Water quality reports.

868. Under the Alquist-Priolo Special Studies Act, a subdivider would be required to disclose to potential purchasers:

A. Toxic waste sites;

B. Earthquake fault lines;

C. Flood Hazard zones;

D. Water quality reports.

Alquist-Priolo Act – Requires disclosure– Nearby earthquake fault lines

828. The Alquist-Priolo Special Studies Zone earthquake disclosure requirement applies to:

A. Every structure in California;

B. Every county in California;

C. All unimproved properties in California;

D. Specific types of structures located in known earthquake fault zones.

828. The Alquist-Priolo Special Studies Zone earthquake disclosure requirement applies to:

A. Every structure in California;

B. Every county in California;

C. All unimproved properties in California;

D. Specific types of structures located in known earthquake fault zones.

Alquist-Priolo Act – Requires disclosure– Nearby earthquake fault lines

829. Fault zones around known earthquake fault lines must be disclosed to prospective buyers of certain properties in California. Typically, these zones are:A. ¼ mile wide;

B. ½ mile wide;

C. ¾ mile wide;

D. 1 mile wide.

829. Fault zones around known earthquake fault lines must be disclosed to prospective buyers of certain properties in California. Typically, these zones are:A. ¼ mile wide;

B. ½ mile wide;

C. ¾ mile wide;

D. 1 mile wide.

Zone extends – ¼ milewide along fault lines

End of session