ESCROW CHAPTER 10 EXAM QUESTIONS AND
ANSWERS
In Chapter 10 Sample Escrow Three
A. There is no down payment
B. A loan is being taken over and seller is carrying back financing
C. The buyer is obtaining new loan from a bank
D. Mineral rights will transfer to the buyer - Correct Answers -B. A loan is being taken
over and seller is carrying back financing
When the buyer attempts to assume an existing loan, the lender may choose to:
A. any of these are possible
B. release the previous trustor from all responsibility to pay.
C. retain the former payor responsible.
D. activate the acceleration clause in the deed of trust. - Correct Answers -A. any of
these are possible
Escrow Instructions, Amendments and Supplements:
A. Modify and take precedence over the agreement of the parties
B. Are usually derived from a sales agreement and the parties
C. Both statements are true
D. Neither statement is true - Correct Answers -B. Are usually derived from a sales
agreement and the parties
The phrase "taking title subject to" refers to:
A. The existing loan is not paid off through escrow
B. The seller must carry back financing
C. The buyer assumes the existing loan
D. Title insurance is not obtained - Correct Answers -A. The existing loan is not paid off
through escrow
Memoranda of Agreement:
A. are a separate heading in the escrow instructions
B. are included in title insurance
C. none of these
D. are the escrow holders notes - Correct Answers -A. are a separate heading in the
escrow instructions
Save
Which of the following is true concerning all inclusive deeds of trust?
A. The buyer is the beneficiary.
B. They wrap around existing loans.
ANSWERS
In Chapter 10 Sample Escrow Three
A. There is no down payment
B. A loan is being taken over and seller is carrying back financing
C. The buyer is obtaining new loan from a bank
D. Mineral rights will transfer to the buyer - Correct Answers -B. A loan is being taken
over and seller is carrying back financing
When the buyer attempts to assume an existing loan, the lender may choose to:
A. any of these are possible
B. release the previous trustor from all responsibility to pay.
C. retain the former payor responsible.
D. activate the acceleration clause in the deed of trust. - Correct Answers -A. any of
these are possible
Escrow Instructions, Amendments and Supplements:
A. Modify and take precedence over the agreement of the parties
B. Are usually derived from a sales agreement and the parties
C. Both statements are true
D. Neither statement is true - Correct Answers -B. Are usually derived from a sales
agreement and the parties
The phrase "taking title subject to" refers to:
A. The existing loan is not paid off through escrow
B. The seller must carry back financing
C. The buyer assumes the existing loan
D. Title insurance is not obtained - Correct Answers -A. The existing loan is not paid off
through escrow
Memoranda of Agreement:
A. are a separate heading in the escrow instructions
B. are included in title insurance
C. none of these
D. are the escrow holders notes - Correct Answers -A. are a separate heading in the
escrow instructions
Save
Which of the following is true concerning all inclusive deeds of trust?
A. The buyer is the beneficiary.
B. They wrap around existing loans.
