Practice: Chapter 13 • The Life Of An Escrow

Front 1

The broker can hold a check if 1 ) its not valid, or 2) the buyer is informed its being held until the offer is __.

Back 1

accepted

Front 2

By offering 3 different escrow companies, you let the client choose and they can't mad at you later when escrow screws up.

Back 2

yeah

Front 3

prepossession agreement if the buyer needs to
occupy (rent) the property before close of __.

Back 3

escrow

Front 4

postpossession agreement if the
seller needs to __ the property back after close of escrow.

Back 4

rent

Front 5

Holdbacks are monies deducted from the seller’s
proceeds and held in escrow, pending the completion of any
negotiated __.

Back 5

repairs

Front 6

Always recommend that the buyer
get as many inspections as soon as escrow opens as she wishes; to do less is to put you,
the buyer, and your broker at __.

Back 6

risk

Front 7

Pest inspections are always advisable. They look for termites, Wood-boring beetle infestation, and wood (dry) __.

Back 7

rot

Front 8

Roof defects must be pointed out to the buyer verbally and in
your part of the Transfer __ Statement (TDS).

Back 8

Disclosure

Front 9

Geologic Special Study Zones. Any home within a one-mile __ of a known active earthquake fault must be disclosed to a
potential buyer.

Back 9

radius

Front 10

Transfer Disclosure Statement (TDS). For every seller of a one to
four owner-occupied home unit. Seller discloses flaws, licencee does a red flag walk through, then the buyer's __ also inspects.

Back 10

licencee

Front 11

Weird things to check, exterior:
barking dogs, hairline cracks in the paint/stucco, dry landscape areas, missing screens, A garage door with a gap at one side of the bottom which may indicate the foundation is __.

Back 11

settling

Front 12

Weird things to check, interior:
Burns or dark, smoky smudges on electric wall plates, Black “sticky stuff” behind the refrigerator that may require a
mold inspection. Note: The purchase
contract states that you may not bring building inspectors or
other government officials onto the property without the seller’s __ permission.

Back 12

written

Front 13

Lead based paint, and asbestos must both be disclosed on houses built before 1978. The paint disclosure __ be signed before the purchase agreement.

Back 13

MUST

Front 14

After the loan committee approves your buyer, their documents will be sent to the escrow or __ company.

Back 14

title

Front 15

you are the originator
of the disclosures and reports and not the interpreter of them. Don't give your __ about disclosures, just recommend an inspector!

Back 15

opinions

Front 16

Within five days after the sale is made, as the buyer’s licensee,
you will receive the __.

Back 16

TDS

Front 17

Compare the names shown in the prelim (title report) to
the names on the purchase agreement to see that they __.

Back 17

match

Front 18

Schedule B of the preliminary title report shows
the exceptions to title, or what the title insurer will not insure
against, including things such as the current property taxes, easements of record, recorded __.

Back 18

liens

Front 19

HOA docs include: Articles of incorporation (filed with the state), Bylaws, Rules and regulations, Current budget, Any pending or current __.

Back 19

litigation

Front 20

If youre selling a subdivision that has five or more units you must give the potential buyer a
copy of the Final Public __.

Back 20

Report

Front 21

Lenders that allow holdbacks
often require one-and-one-half times the amount of the repairs
held in escrow until the __ are made.

Back 21

repairs

Front 22

Always take the conservative approach and recommend the use of a licensed __ for most repairs.

Back 22

contractor

Front 23

They should contact their insurance broker within a day or two after __ is opened and request insurance on the home that they are buying. The insurance broker will obtain a Comprehensive Loss
Underwriting Exchange (CLUE) report.

Back 23

escrow

Front 24

Buyers who have
made two or more inquiries or claims during the previous three
years may not be insurable with any of the major insurance companies
and will have to go to a smaller company and pay a much
higher premium—if they can get insurance at all. All because of the __ database of insurance claims.

Back 24

CLUE

Front 25

The final walk-through inspection is conducted for two reasons:
1) to see the property hasnt declined since listed
2) to see that __ have been completed

Back 25

repairs

Front 26

If your client agrees to pay for needed repairs, be sure the agreement
is limited only to the agreed-upon repairs and not a general
release of __ property condition issues.

Back 26

all

Front 27

Your repeat and referral business will grow as a direct
result of how effectively you __ with your client and everyone
else during the course of an escrow.

Back 27

communicate

Front 28

You should be there to sign loan docs at close of escrow. Get there early, go over their papers ahead of time. When they have finished, __ them and if they have any friends or
family whose real estate needs you can help with.

Back 28

congratulate

Front 29

7. What additional documentation
must the buyers have if they are selfemployed?
A. Title report on the home they are
selling.
B. A current financial statement on
their business.
C. Federal income tax returns from
the previous two years and a
P&L statement on their business.
D. Both b and c.

Back 29

D. Both b and c.

Front 30

8. In reviewing inspection reports with
your buyers, you should
A. tell them which items require
repairs.
B. review all repair items and help
the buyers prioritize them based
on the market conditions.
C. suggest that they do not “rock
the boat” by making any repair
requests.
D. None of the above.

Back 30

B. review all repair items and help
the buyers prioritize them based
on the market conditions.

Front 31

9. A CLUE report discloses which of
the following?
A. The extent of any water damage
to a property.
B. The total dollar amount of all
claims paid against a property in
the past five years.
C. The total number of inquiries
and/or claims made on a property
in the past five years or the
total amount of time the sellers
have owned it, whichever is
shorter.
D. All of the above.

Back 31

C. The total number of inquiries
and/or claims made on a property
in the past five years or the
total amount of time the sellers
have owned it, whichever is
shorter.

Front 32

10. Which one of the following is the
most important thing you can do in
preparation for an escrow closing
appointment?
A. Call your clients to coordinate
the signing appointment.
B. Remind the buyers that their
closing funds must be in the
form of a certified check or
wire transfer.
C. Remind your clients to bring a
picture identification.
D. All of the above.

Back 32

D. All of the above.