Escrow Sample Test Exam Questions With Verified Answers

Escrow Sample Test Exam Questions With Verified Answers An escrow is an arrangement that: a) Holds documents, b) Holds funds, c) Creates documents to affect a transfer of interest in property, d) is responsible for guaranteeing funds. - answerA, B, C, E When is it necessary to have closing documents recorded prior to 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. - answerB Usury Law is defines 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. - answerC What characteristics should an escrow officer maintain? a) abstractor, b) competent, c) legal advisor, d) impartial, e) has the right to foreclose, f) follows instructions. - answerB, D, F What is the minimum number of parties to an escrow? - answer3 An Earnest Money Agreement usually does not reveal the following: a) property address, b) buyers' and sellers' name, c) title exceptions, d) improvements to the subject property, e) personal property to be included in the sale. - answerC An escrow agent has the responsibility to review the following, with the parties involved in a real estate transaction: a) the Title Report, b) the Earnest Money Agreement, c) the Owners' Policy, d) Certificate of Apportionment, e) Letters of Testamentary. - answerA 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. - answerC On an assumption, the following information should be obtained from the lender: 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) marital status. - answerB, C, D 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. - answerC A Title Report or Commitment contains the following information, necessary for the closing: a) property address, b) zoning, c) encumbrances, d) fire insurance information, e) tax information, f) vested owners. - answerC, E, F 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. - answerB An escrow agent can determine liens against personal property by a) obtaining a UCC II, b) searching the personal property index, c) checking with the county treasurer, d) calling the state auditor. - answerA 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. - answerB 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, e) Schedule A of the lenders title policy. - answerC It is the escrow agent's job to determine: a) liability in the event damage or destruction of the property which is the subject of the escrow, b) any claim on the title policy, c) the validity of all documents, d) when possession is scheduled. - answerD Loan closings differ from regular sale closings by reason of the fact that loan closings contain the following: a) discount points, b) interest rate adjustments, c) origination rate adjustments, d) warehousing fees. - answerA, D Private Mortgage Insurance premiums are: a) prepaid, b) paid in arrears, c) paid to FmHA, d) never prorated. - answerA FHA premiums are: a) included in the origination fee, b) handled outside of escrow, c) paid by the selling agent, d) none of the above. - answerD The information from a lender on the assumption of a mortgage should be compared with: a) the Earnest Money Agreement, b) Warranty Deed, c) the Bill of Sale, d) the Restrictive Covenants. - answerA If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase: a) it is necessary to have a new Earnest Money Agreement prepared, b) it must be signed by both buyer and seller, c) it is only approved by the sales agent, d) it may be verbal, e) must be in writing. - answerB, E A Bill of Sale is used when: a) the property is being sold under a Uniform Real Estate Contract, b) when the buyer requests a UCC I search, c) when personal property is involved in the transaction, d) an All Inclusive Deed of Trust is prepared. - answerC