Escrow Sample Test Questions and Answers Rated A A GUARANTEED

Escrow Sample Examination Test Questions | Expert-Verified Solutions Usually the first step in the closing process is: a. completing the settlement sheet. b. collecting a commission. c. checking title. d. none of the above - answer - a. completing the settlement sheet. The oldest of "uniform laws" is: a. the negotiable instruments law. b. the commercial law. c. the escrow law. d. the title instruments law. - answer - a. the negotiable instruments law. A written promise or order to pay money defines a: a. non-negotiable instrument. b. negotiable instrument. c. negligible instrument. d. a legible instrument - answer - b. negotiable instrument. Negotiability is the capacity to transfer ownership of an instrument free of certain "Personal Defenses" of the maker of the instrument. These personal defenses can include such matters as: a. failure of consideration. b. misrepresentation as to the area of the property. c. both a or b. d. none of the above. - answer - c. both a or b. Which of the following creates security for the performance of an obligation? a. Security assignment b. Collateral damage c. Collective assignment d. Collateral assignment - answer - d. Collateral assignment The standard items in an escrow are called General Provisions and include such items as: a. deposits and prorations. b. recording fees. c. taxes. d. all of the above. - answer - d. all of the above. Real defenses include such matters as: a. forgery. b. alteration. c. both a and b. d. none of the above. - answer - c. both a and b. Which of the following is a type of endorsement? a. Blank b. Special c. Restrictive or Qualified d. All of the above - answer - d. All of the above To avoid foregoing warranties, the endorser would have to add the words: a. "warranties implied" b. "without warranties" c. "ignore warranties" d. none of the above. - answer - b. "without warranties" Many escrow offices follow the practice of using one general computer printed form of escrow instructions for all types of escrows. The office procedures will determine the form of the instructions an escrow officer will use. A. True B. False - answer - A. True Often sellers will take back a second deed of trust and a promissory note as part of the negotiated sale of their property. A. True B. False - answer - A. True The financial objectives of investors shift constantly. When cash is needed the sale of trust deeds and notes is NEVER a viable option. A. True B. False - answer - B. False The market value of a second deed of trust is usually: a. more than its face value. b. less than its face value. c. equal to its face value. d. none of the above. - answer - b. less than its face value. The time limit for the close of escrow is decided upon by the escrow officer. A. True B. False - answer - B. False Who makes the decision as to the type and form of title insurance to obtain? A. the courts. B. the parties. C. the broker. D. all of the above - answer - B. the parties. Title company charges will differ depending on: a. the type of title search. b. the extent of coverages requested. c. both a and b are correct. d. none of the above. - answer - c. both a and b are correct. A note may be transferred: a. with recourse. b. without recourse. c. both a and b. d. a note cannot be transferred. - answer - c. both a and b. The information required to complete the Assignment of Deed of Trust form is taken from the: a. deed of reconveyance. b. trust deed. c. statement of information. a. deed of reconveyance. - answer - b. trust deed. In a dispute about the amount or terms of an obligation, "offset" refers to a counterclaim against: a. the beneficiary. b. the seller. c. the buyer. d. all of the above. - answer - a. the beneficiary. A seller is relieved from being held accountable for nonpayment when a transfer is: a. with recourse. b. without recourse. c. both a and b are correct. d. none of the above. - answer - b. without recourse. Which of the following are noted on the final se