Title Escrow Exam Study Guide Utah Questions and Answers Already Passed

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Title Escrow Exam Study Guide Utah Questions and Answers Already Passed How much can you spend on a special event for a client? ✔✔$75 Encumbrances ✔✔A claim, lien, charge, or liability atta ... ched to and binding real property Solvency ✔✔the possession of assets in excess of liabilities; ability to pay one's debts. Escrow ✔✔is the process of holding monetary funds by a title agency or bank for the purpose of offering or purchasing real property. Title Insurance ✔✔is the product that is purchased to protect the rights of the owner, purchaser or lien-holder in the event that that there is a defect, loss or damage, unmarketability of the title, or invalidity or unenforceability of any liens or encumbrances on the property. Who in Utah is the title and escrow industry regulated by? ✔✔The Insurance Department How often in Utah do you need to renew your license? ✔✔Every two years If there is a change of address or telephone number who needs to be notified? ✔✔The insurance commissioner How and when do we notify the insurance commissioner of change? ✔✔30 days of change and in writing The___________________________ has all the powers reasonable and necessary to enable him to reform the duties imposed by hid title. ✔✔Commissioner How many years must an escrow officer keep recorded documents? ✔✔3 years Searches must be maintained for ____ years. ✔✔15 An annual report which contains a statement of financial condition must be filed with the ________________ _______________. ✔✔Insurance Department What are the three types of agent authority? ✔✔express, implied, apparent Express Authority ✔✔the authority of an agent, stated in the document or agreement creating the agency Implied Authority ✔✔Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. Apparent Authority ✔✔The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. Conveyances ✔✔A transfer of title to, or an interest in land, from one person to another encumbrance ✔✔A claim, charge, or liability that attaches to and is binding on real estate. Definition of Real Property ✔✔land and anything attached to it Types of Joint Ownership ✔✔Tenants in common and Joint tenancy Intestate ✔✔When a person dies without a will and their property is distributed to their heirs as determined by he statute Testate ✔✔When a person dies with a will which enumerates how the estate is to be distributed Tenants in Common ✔✔joint ownership which is equal between the owners unless otherwise stated. Upon death, an owners ____________ passes to their heirs. ✔✔Interest Heir ✔✔a person legally entitled to the property or rank of another on that person's death. Joint Tenancy ✔✔The joint ownership of property by two or more co-owners in which each coowner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenants. Rod ✔✔16.5 feet or 5.5 yards Chain ✔✔66 feet, 4 rods, 100 links Acre ✔✔43,560 square feet Degrees in a circle ✔✔A circle has a total of 360 degrees Minutes in a degree ✔✔60 minutes Seconds to minutes ✔✔60 seconds = 1 minute Legal description of property ✔✔appears on the deed lists only the boundary lines (no structures or physical features) Monuments ✔✔A fixed natural or artificial object used to establish real estate boundaries for a metes-and-bounds description. Title Searching Techniques ✔✔Hard copy index, computer index, and chain sheet Leasehold ✔✔Property acquired under a lease How many types of agent authority are there? ✔✔3 Free Hold ✔✔Freehold estates of property are those in which the owner has immediate rights to the property for an undefined amount of time. (owns and can will) Fee Simple Estate ✔✔Absolute ownership with all the rights associated with ownership of real property For a party secured in 1st position to lower their priority they would file a? ✔✔Subordination Subordination ✔✔Second position A commercial entity having Real Property rights get title insurance to protect against? ✔✔Unknown heirs A standard owners policy insures against? ✔✔The Lack of Access A Mortgage policy insures the lender against? ✔✔Lack of priority over mechanic's liens Who owns a Navigable Water? ✔✔State Government The row of 6 townships lying N&S is called a? ✔✔Range In a deed that grants two unmarried people the property and says nothing about how title is to be held, title will be as? ✔✔Tenants in common Ownership where a person owns a unit of property and a fractional interest in a common area is called a? ✔✔Condominium A _________ is a not an insurable interest ✔✔co-op Insurable Interest ✔✔An interest in the subject of an insurance policy that is not unduly remote and that would cause the interested party to suffer financial loss if an insured event occurred. How much can you spend on non edible gift? ✔✔$10 RESPA (Real Estate Settlement Procedures Act) ✔✔is a consumer protection statute Purpose for RESPA ✔✔is to help consumers become better shoppers for settlement services and eliminate kickbacks and referral fees that are unnecessarily increase the cost of certain settlement services. Section 8 of RESPA prohibits: ✔✔a person from giving or accepting anything of value for referrals of settlement service business related to a federally related mortgage loan. Also prohibits a person from giving or accepting any part Section 9 of RESPA prohibits: ✔✔Sellers from requiring buyers to purchase title insurance from a participating company At the time of loan application when borrower applies for a mortgage loan, mortgage broker and/or lender must give the borrowers: ✔✔A special information booklet, a good faith estimate (GFE) and a mortgage serving disclosure statement A special information booklet: ✔✔Contains consumer information regarding various real estate settlement service or closing services for which the borrower may be charged at closing. ( Required for purchase transactions only) Good-Faith Estimate of Settlement Costs ✔✔which list the charges the buyer is likely to pay at settlement. A Mortgage Servicing Disclosure Statement ✔✔a statement that tells the borrower whether the lender intends to service the loan or to transfer it to another lender. An Escrow officer acts as: ✔✔Fiduciary to the insured A foreclosure is: ✔✔Involuntary Alienation Involuntary Alienation ✔✔A transfer of title to real property without the owner's consent . Voluntary Alienation ✔✔the legal term for the voluntary transfer of title A Recission ✔✔the cancellation of a contract; goes back to policy inception with all premiums paid minus and payments; usually do to fraud, concealment or material misrepresentation How many acres are in a section? ✔✔640 For a residence, the mechanic's lien statute provides that a notice of lien must be filed by a subcontractor with in how long? ✔✔90 days of completion of the work Abstract of Title ✔✔A history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities. A Commercial Entities having real property rights gets title insurance to protect against: ✔✔Unknown heirs Schedule A of the title policy lists: ✔✔Coverage Subordination ✔✔ranking in terms of importance The County recorders index alphabetically listed the person executing the document is called: ✔✔Grantors Index If bank A sells a mortgage to bank B, they would file a(n): ✔✔Assignment The property line that adjoins the public street is called: ✔✔Frontage Standard Policy of Title Insurance ✔✔Standard Coverage includes: - Defects that are found in public records, - Forged Documents, - Incompetent grantors, - Incorrect marital statements, - Improper Delivery of Deeds Extended Policy ✔✔A title insurance policy that may cover more things than a standard policy, such as unrecorded liens, etc. [Show More]

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