Escrow Sample Test – Utah| 100 QUESTIONS| WITH COMPLETE SOLUTIONS.

Escrow Sample Test – Utah| 100 QUESTIONS| WITH COMPLETE SOLUTIONS An Escow is an arrangement that: (Select all that apply) (A) holds documents (B) holds funds (C) creates documents to affect a transfer of interest in a property (D) acts as an attorney (E) is responsible for guaranteeing funds correct answer: (A) holds documents (B) holds funds (C) creates documents to affect a transfer of interest in a property (E) is responsible for guaranteeing funds When is it necessary to have closing documents recorded prior to the 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 answer: (B) in almost all situations Usury Law is defined 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 answer: C) the maximum amount of interest which can be charged on a security instrument What characteristics should an escrow officer maintain? (Select all that apply) (A) abstractor (B) competent (C) legal advisor (D) impartial (E) has the right to foreclose (F) follows instructions correct answer: (B) competent (D) impartial (F) follows instructions What is the minimum number of parties to an escrow? (A) two (B) three (C) four (D) five correct answer: (B) three An Earnest Money Agreement (REPC) usually does not reveal the following: (A) property address (B) buyers' and seller's name (C) title exceptions (D) improvements to the subject property (E) personal property to be included in the sale correct answer: (C) title exceptions An escrow agent has the responsibility to review the following, with parties involved in a real estate transaction: (A) the Title Report (B) The Earnest Money Agreement (REPC) (C) The Owner's Policy (D) Certificate of Apportionment (E) Letters of Testamentary correct answer: (A) the Title Report 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 answer: (C) used to convey personal property On an assumption, the following should be obtained from the lender: (Select all that apply) (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) martial status correct answer: (C) fire insurance information (D) reserve (impound) balance (E) certificate of approval on buyer 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 answer: (C) the date used for prorations A Title Report or Commitment contains the following information, necessary for the closing: (Select all that apply) (A) property address (B) zoning (C) encumbrances (D) fire insurance information (E) tax information (F) vested owners correct answer: (C) encumbrances (E) tax information (F) vested owners 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 answer: (B) Insurance Act An escrow agent can determine liens against personal property by: (A) obtaining a UCC I (B) searching the personal property index (C) checking with the county treasurer (D) calling the state auditor correct answer: (A) obtaining a UCC II In an exchange escrow, an escrow agent: (A) certifies that the escrow qualifies for a 1031 tax free exchange (B) closes on more than one transaction simultaneously (C) deals with foreign currency (D) prepares duplicate settlement statements correct answer: (B) closes on more than one transaction simultaneously Any reservations pertaining to the surface of real property should appear on: (A) the promissory note (B) the bill of sale (C) the face of the Warranty Deed (D) the UCC 3