Real estate express - Colorado closings final exam with
complete solution
Which of the following is not permitted in a contract lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages
d. Punitive damages
A non-conforming loan fails to meet whose underwriting standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer
c. Fannie Mae
What is the major difference between a title commitment and a title abstract?
a. An abstract does not create an obligation to insure title.
b. An abstract is longer.
c. A title commitment is not reviewed as closely by an attorney.
d. A title searcher does not have to go as far back in time with a title commitment.
a. An abstract does not create an obligation to insure title.
Which of the following is not a consequence if less than 10% of the property under contract is
damaged by fire prior to closing?
a. The seller will use the insurance proceeds to repair the property before the closing date.
b. The buyer has the option of terminating the contract if the seller does not repair it.
,c. The buyer can waive the repair and close anyway and the seller is off the hook.
d. The seller must assign the insurance proceeds to the buyer even if the buyer elects to close.
c. The buyer can waive the repair and close anyway and the seller is off the hook.
Which of the following statements is untrue about VA loans?
a. The VA offers loan guarantees to qualified veterans.
b. The VA never lends money, only guarantees it.
c. The property must be appraised to establish a Certificate of reasonable value.
d. The VA requires no down payments.
b. The VA never lends money, only guarantees it.
Bill Buyer elects to close without a survey. Following closing, he discovers his neighbor's fence is on
his property. What is Bill's best option to remedy the situation?
a. Filing a claim against the title company for failing to list the fence as an exception.
b. Suing the neighbor.
c. Sam Seller had no knowledge of the encroachment, but he signed an affidavit at closing saying
there were no encroachments. Bill should sue Sam.
d. Bill waived his right to sue by not getting a survey.
d. Bill waived his right to sue by not getting a survey.
What is the difference between a title commitment and a title abstract?
a. The title commitment will not include the recorded instruments as part of the report.
b. The search on a title commitment is not conducted by a title examiner.
c. The title abstract does nothing more than to create a complete history of title from beginning of
recorded history through the current date.
d. The title abstract takes much longer to complete.
c. The title abstract does nothing more than to create a complete history of title from beginning of
recorded history through the current date.
,Which of the following is not a pre-printed requirement for the title company to insure title?
a. Payment of consideration
b. Recording of the deed
c. Payment of taxes due
d. Payment of mechanic's liens
a. Payment of consideration
What is the limitation of liability for a title insurance company on a policy issued for $600,000? The
premium was $2000.
a. If there is a title claim, the company must pay the insured the value of the policy--$600,000.
b. If there is a claim, the title company will pay all costs and fees to defend the title but damage
reimbursement is limited to the amount of the premium.
c. If there is a claim, the company will only pay the amount of damages incurred by the insured.
d. If there is a claim that causes the insured to lose title, the title company will pay the value of the
land and the improvements.
c. If there is a claim, the company will only pay the amount of damages incurred by the insured.
Which of the standard exceptions may the title company remove solely by getting an owner to sign
an affidavit addressing the exceptions at closing?
a. All of them
b. None of them
c. Mechanic's lien, parties in possession, unrecorded easements
d. Survey
c. Mechanic's lien, parties in possession, unrecorded easements
All of the following are requirement for a contingency EXCEPT
a. specific date or number of days for completion.
, b. the cost of the item.
c. the result if the condition is not met.
d. the specific condition to which the contract is subject.
d. the specific condition to which the contract is subject.
What is the difference between an ALTA title policy and a non-ALTA title policy?
a. The ALTA policy has higher insurance limits.
b. The ALTA policy has extended coverage.
c. The ALTA commitment is good for 12 months.
d. The ALTA policy is only available to lenders.
d. The ALTA policy is only available to lenders.
Which of the following is not a true statement with regard to the standard exceptions on a title
commitment?
a. The buyer or seller will have to pay an extra premium to have them removed.
b. They appear on every commitment issued by the title company.
c. They will remain on the policy unless special steps are taken to remove them.
d. They cannot be removed.
d. They cannot be removed.
If licensee A representing a party cannot attend a closing and the employing broker B sends another
licensee C in his place, which party or parties is responsible for the accuracy of the closing
statement?
a. B & C
b. A & C
c. A & B
d. C only
b. A & C
complete solution
Which of the following is not permitted in a contract lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages
d. Punitive damages
A non-conforming loan fails to meet whose underwriting standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer
c. Fannie Mae
What is the major difference between a title commitment and a title abstract?
a. An abstract does not create an obligation to insure title.
b. An abstract is longer.
c. A title commitment is not reviewed as closely by an attorney.
d. A title searcher does not have to go as far back in time with a title commitment.
a. An abstract does not create an obligation to insure title.
Which of the following is not a consequence if less than 10% of the property under contract is
damaged by fire prior to closing?
a. The seller will use the insurance proceeds to repair the property before the closing date.
b. The buyer has the option of terminating the contract if the seller does not repair it.
,c. The buyer can waive the repair and close anyway and the seller is off the hook.
d. The seller must assign the insurance proceeds to the buyer even if the buyer elects to close.
c. The buyer can waive the repair and close anyway and the seller is off the hook.
Which of the following statements is untrue about VA loans?
a. The VA offers loan guarantees to qualified veterans.
b. The VA never lends money, only guarantees it.
c. The property must be appraised to establish a Certificate of reasonable value.
d. The VA requires no down payments.
b. The VA never lends money, only guarantees it.
Bill Buyer elects to close without a survey. Following closing, he discovers his neighbor's fence is on
his property. What is Bill's best option to remedy the situation?
a. Filing a claim against the title company for failing to list the fence as an exception.
b. Suing the neighbor.
c. Sam Seller had no knowledge of the encroachment, but he signed an affidavit at closing saying
there were no encroachments. Bill should sue Sam.
d. Bill waived his right to sue by not getting a survey.
d. Bill waived his right to sue by not getting a survey.
What is the difference between a title commitment and a title abstract?
a. The title commitment will not include the recorded instruments as part of the report.
b. The search on a title commitment is not conducted by a title examiner.
c. The title abstract does nothing more than to create a complete history of title from beginning of
recorded history through the current date.
d. The title abstract takes much longer to complete.
c. The title abstract does nothing more than to create a complete history of title from beginning of
recorded history through the current date.
,Which of the following is not a pre-printed requirement for the title company to insure title?
a. Payment of consideration
b. Recording of the deed
c. Payment of taxes due
d. Payment of mechanic's liens
a. Payment of consideration
What is the limitation of liability for a title insurance company on a policy issued for $600,000? The
premium was $2000.
a. If there is a title claim, the company must pay the insured the value of the policy--$600,000.
b. If there is a claim, the title company will pay all costs and fees to defend the title but damage
reimbursement is limited to the amount of the premium.
c. If there is a claim, the company will only pay the amount of damages incurred by the insured.
d. If there is a claim that causes the insured to lose title, the title company will pay the value of the
land and the improvements.
c. If there is a claim, the company will only pay the amount of damages incurred by the insured.
Which of the standard exceptions may the title company remove solely by getting an owner to sign
an affidavit addressing the exceptions at closing?
a. All of them
b. None of them
c. Mechanic's lien, parties in possession, unrecorded easements
d. Survey
c. Mechanic's lien, parties in possession, unrecorded easements
All of the following are requirement for a contingency EXCEPT
a. specific date or number of days for completion.
, b. the cost of the item.
c. the result if the condition is not met.
d. the specific condition to which the contract is subject.
d. the specific condition to which the contract is subject.
What is the difference between an ALTA title policy and a non-ALTA title policy?
a. The ALTA policy has higher insurance limits.
b. The ALTA policy has extended coverage.
c. The ALTA commitment is good for 12 months.
d. The ALTA policy is only available to lenders.
d. The ALTA policy is only available to lenders.
Which of the following is not a true statement with regard to the standard exceptions on a title
commitment?
a. The buyer or seller will have to pay an extra premium to have them removed.
b. They appear on every commitment issued by the title company.
c. They will remain on the policy unless special steps are taken to remove them.
d. They cannot be removed.
d. They cannot be removed.
If licensee A representing a party cannot attend a closing and the employing broker B sends another
licensee C in his place, which party or parties is responsible for the accuracy of the closing
statement?
a. B & C
b. A & C
c. A & B
d. C only
b. A & C
