Ch11 Quiz: Real Estate 84 Sec ON1 (20349) Fall 2023

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Chabot College *

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84

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Chemistry

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Jan 9, 2024

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10

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Ch11 Quiz Due Nov 19 at 11:59pm Points 20 Questions 20 Time Limit None Allowed Attempts 2 Attempt History Attempt Time Score LATEST Attempt 1 7 minutes 19 out of 20 Score for this attempt: 19 out of 20 Submitted Nov 20 at 7:33pm This attempt took 7 minutes. Take the Quiz Again 1 / 1 pts Question 1 Which of the following persons or institutions is not exempt from escrow agent licensing requirements? Attorney Title company Broker performing escrow services for his or her own transaction Broker performing escrow services for someone else's transaction Correct! Correct! 1 / 1 pts Question 2
Which of the following is an advantage of the escrow process? Parties do not have to be present at same time for closing Parties are less able to back out of the transaction Parties are protected against title defects of record Both A and B Correct! Correct! 1 / 1 pts Question 3 Which of the following items is not a part of the escrow process? Ordering a preliminary title report Making a counteroffer Correct! Correct! Paying off the remainder of the seller's loan Recording mortgage documents 1 / 1 pts Question 4 The escrow agent will rely on what document when deciding how to disburse the funds? Escrow instructions Correct! Correct!
Promissory note Listing agreement Contingency addendum 1 / 1 pts Question 5 Which of the following types of inspections would look for indications of mold, asbestos, radon, and similar problems? Soil inspection Structural inspection Environmental inspection Correct! Correct! Pest inspection 1 / 1 pts Question 6 Which of the following is not an important component of an inspection report? Compare the house's condition against similar properties Project a future budget for repair or remodeling work Provide an estimated valuation for the property Correct! Correct!
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Summarize areas that need or will need repairs 1 / 1 pts Question 7 What service that a real estate agent might provide is similar in principle, but not as detailed, as an appraisal? Marketing plan Competitive market analysis Correct! Correct! Listing agreement Property management plan 1 / 1 pts Question 8 Which of the following is not covered by a standard homeowners' hazard insurance policy? Earthquake Correct! Correct! Fire Vandalism Freezing of plumbing
1 / 1 pts Question 9 Which of the following insurance policies will protect against defects that only an inspection would reveal, such as encroachments or adverse possession? Hazard insurance Extended policy of title insurance Correct! Correct! Standard policy of title insurance Seller's policy of title insurance 1 / 1 pts Question 10 An annual expense is $1,850. Using a 365-day year, what is the per diem rate? $5.07 Correct! Correct! $5.14 $6.75 $59.68 1 / 1 pts Question 11
The annual hazard insurance bill for a property is $700. The seller has already paid for insurance through December 31. The closing date of the sale of the property is August 15. Assuming there are 365 days in the year and the buyer is responsible for the day of closing, how much will the seller be refunded for his overpayment of the insurance bill? $264.96 $266.88 Correct! Correct! $270.28 $433.92 0 / 1 pts Question 12 Which of the following is not a cost to the buyer? Origination fee Purchase price Appraisal ou Answered ou Answered Documentary transfer tax orrect Answer orrect Answer 1 / 1 pts Question 13 The buyer's costs are a $360,000 purchase price, a $3,180 origination
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fee, $400 for a lender's policy of title insurance, $300 for an appraisal, $430 for property taxes in advance, and $555 for hazard insurance. She has put down a $12,000 earnest money deposit and is receiving a $318,000 loan. What is the cash balance required from the buyer at closing? $4,865 $30,000 $34,865 Correct! Correct! $46,865 1 / 1 pts Question 14 Which of the following typically would not be a cost to the seller? Commission Prepayment penalty Unpaid interest Seller's title insurance policy Correct! Correct! 1 / 1 pts Question 15 A seller's costs are a $23,400 commission, $396 in documentary transfer tax, $650 for a buyer's policy of title insurance, $250 in escrow
fees, and a $246,000 loan payoff. The seller will receive a $360,000 purchase price and a $350 refund on property taxes paid in advance. How much are the seller's proceeds? $88,954 $89,654 Correct! Correct! $90,600 $114.000 1 / 1 pts Question 16 Which of these closing expenses is customarily split evenly by the two parties? Escrow fee Correct! Correct! Recording fees Attorney's fees Appraisal fee 1 / 1 pts Question 17 Which of the following forms does an escrow agent use to report to the Internal Revenue service the gross proceeds of a sale of real property?
1099-S Correct! Correct! Good faith estimate Uniform settlement statement Truth in Lending disclosure 1 / 1 pts Question 18 Which law has the intent of providing borrowers with accurate information about their closing costs? Truth in Lending Act Real Estate Settlement Procedures Act Correct! Correct! Real Estate Brokerage Relationships Act Interstate Land Sales Full Disclosure Act 1 / 1 pts Question 19 What law requires 10% of the net proceeds to be withheld when property is sold by a nonresident alien? RESPA FCRA
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FIRPTA Correct! Correct! ERISA 1 / 1 pts Question 20 Which of the following is not a requirement of RESPA? All settlement charges must be itemized on a Closing Disclosure The lender must give applicants a booklet about settlement procedures within three days of receiving an application A buyer may not be required by the seller to use a particular title company Loan advertisements must include the annual percentage rate Correct! Correct! Quiz Score: 19 out of 20