Escrow Exam Questions And Answers (Verified And Updated)

Escrow Exam Questions And Answers (Verified And Updated) Principle meridian - answerThe north-south lines separating townships 5 ways to acquire property - answerOccupancy Accession Transfer Will Succession Escrow agent - answerany person engaged in the business of receiving escrows for deposit or delivery Metes and bounds - answerA method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land. Occupancy - answerOpenly and hostile for more than 5 years to acquire title of property Fidelity bond - answerAn insurance policy that pays the employer money in the case of theft by employees Government lots - answerLots of land considerably larger or smaller than the normal 40 acres in a quarter-quarter section of land, usually caused by an error in a survey or prevention of normal designation and staking by a bordering waterway. Accession - answerIncrease in land size through nature forces Minimum financial requirements - answerLiquid assets $25,000 and tangible assets of $50,000 Surety bonding - answerEscrow agent file surety bond of at least $25,000 with commissioner intended to be used to pay to the state or any person any amount due to the state or such person under the provisions of the Escrow Law. Transfer - answerTransfer title through various deeds Estate - answerThe degree or extent of one's interest in land. Freehold estate - answerAn estate in land in which ownership is for an indeterminate length of time Will - answerTransferring title upon death Probate not required if <$150,000 and 40 days had elapsed since death Background checks - answerAll stockholders, officers, directors, managers, and employees must have background checks performed by the department Fee simple absolute - answerAn estate in land that provides the owner with a complete set of legal rights, limited only by the powers of government Succession - answerTransfer property if intestate Trust - answerThe right of property, real or personal, held by one party for the benefit of another Fee Simple Defeasible - answerSpecific conditions or restrictions are placed on the transferability of the property Constructive notice - answerThe world at large may learn that the agreement exists because it is available for any person to see Abstract of title - answerA history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities. Responsibilities of escrow holder - answer- Are limited and restricted as to what they may do - Are not arbitrators to resolve disputes and must remain neutral - Receive instructions from principals to perform specific duties - Ensure all documents required are present - Must account for all required monies Requirements for deed to be valid? - answerWritten Conveyance Property description Competent grantor Grantee Life estate - answerAn estate in which ownership exists only during the term of the life of a named person Estate in Reversion - answerAn estate that comes back to the original grantor after a person dies Joint tenancy grant deed - answerConveys title to those who are acquiring title to property and who desire a surviving spouse upon the death of the other to receive the interest of the decedent (and without the need for a full probate) The character of property interests and private property rights in California can be traced back to - answerthe Spanish Interspousal deed - answerUsed for the transfer of an interest in real property from one spouse to another California's property ownership concepts have their roots in - answerEnglish common law Community property with right of survivorship deed - answerUsed when tax considerations of the surviving spouse are important to the parties Quitclaim deed - answerTransfers only whatever interest the grantor has in the property Warranty deed - answerA deed in which the grantor makes formal assurance as to quality of title Trust deed - answerUsed by a lender to identify and secure the collateral (real property) being pledged by a borrower for obtaining a loan. Signed, notarized, and noted Impound account - answerThe lender requires the borrower to make regular deposits, and pays the expenses out of the account Beneficiary statement - answerA statement of the unpaid balance of a loan and the condition of the debt Taking title subject to - answerBuyer and the seller agree that the buyer can assume the seller's existing loan without the buyer actually applying to or being approved by the seller's lender Right to reinstate the loan - answerBorrower's rights and the procedures required to bring the loan current in the event of a default All Inclusive deed of trust - answerA wraparound loan arrangement whereby a Deed of Trust is used in place of a mortgage. Probate is NOT required if title was held as - answerjoint tenants An all-inclusive deed of trust is - answertypically acceptable to existing lenders In order to be valid, deeds must be in writing, include the property description, contain conveying language, identify a grantee, and - answerbe signed by a competent grantor