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Technical Rescue I Rope Rescue exa2
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Technical Rescue I Rope Rescue exa2
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Technical Rescue I Rope Rescue examWhich of the following is not permitted in a contract lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages - ANSWER d. Punitive damages
A non-conforming loan fails to meet whose underwriting standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer - ANSWER c. Fannie Mae
What is the major difference between a title commitment and a title abstract?
a. An abstract does not create an obligation to insure title.
b. An abstract is longer.
c. A title commitment is not reviewed as closely by an attorney.
d. A title searcher does not have to go as far back in time with a title commitment. -
ANSWER a. An abstract does not create an obligation to insure title.
At closing Bill Buyer brings a certified check, but he made a mistake on the amount,
not realizing he owes $36 for recording the deed. He writes a personal check to the
closing agent. The agent calls Bill's bank to verify he has the funds to cover the
check. Can the closing agent accept it?
a. No, because the Good Funds Rule only b. allows disbursement from funds wired
in.
b. Yes, because the agent checked with the bank.
c. No, because checking with the bank does not satisfy the Good Funds Rule.
d. Yes, the Good Funds Rule would allow it because of the size of the check. -
ANSWER d. Yes, the Good Funds Rule would allow it because of the size of the
check.
What is the difference in the proration amount for a $1000 item if closing is on June 6
using the 365 day vs. the 12 mo/30 method of calculation? There are 156 days
between January 1 and June 6, including June 6.
a. $3.21
b. $3.18
c. $3.25
d. None of the above - ANSWER d. None of the above
Which of the following is not required with regard to transferring property owned by a
corporation?
a. The corporation must always file a certificate of incorporation in each county
where it holds real property.
b. The deed must be signed by an officer with the power to convey property.
c. The corporation must always file the articles of incorporation in the county where it
holds property.
,d. None of the answers are required. - ANSWER a. The corporation must always
file a certificate of incorporation in each county where it holds real property.
For an item a buyer pays in arrears, which of the following is true?
a. The buyer receives a credit and the broker receives a debit.
b. The buyer receives a credit and the seller receives a debit.
c. The buyer receives a debit and the seller receives a credit.
d. The seller receives a credit and the broker receives a debit. - ANSWER b. The
buyer receives a credit and the seller receives a debit.
What are the advantages of a conventional loan?
a. The risk is less than for other kinds of loans.
b. The interest rates are usually lower than on other loans.
c. The loans are easier to obtain than other loans.
d. The terms and rates are more flexible than other loans. - ANSWER b. The
interest rates are usually lower than on other loans.
What are the documentary fees in a transaction where the purchase price is
$100,000 and the mortgage amount is $50,000, assuming no local transfer fees?
a. None, since the fees would be less than $500
b. $10.00
c. $100.00
d. $5.00 - ANSWER b. $10.00
In the case where there is a title abstract instead of a commitment, how would the
abstract update required by the lender be shown on the Worksheet?
a. It will not be shown if the lender pays the abstract fee out of the loan proceeds.
b. It will show as a credit to the buyer and a debit to the broker.
c. It will show as a credit to the buyer but no credit to anyone since it is being paid
out of loan proceeds.
d. It will be shown as a credit to the buyer and a debit to the lender. - ANSWER c. It
will show as a credit to the buyer but no credit to anyone since it is being paid out of
loan proceeds.
What is the cost of documentary fees on a transaction whose purchase price is
$350,000 with a $200,000 mortgage?
a. $35.00
b. $350.00
c. $55.00
d. $15.00 - ANSWER a. $35.00
When would a Closing Disclosure be required?
a. It is always an optional form.
b. Whenever there is a loan on the property.
c. Whenever the seller requires it.
d. Whenever the lender is subject to RESPA. - ANSWER d. Whenever the lender is
subject to RESPA.
Sam and Bill get together over a cup of coffee and draw up an agreement on a
napkin that says, "Sam agrees to sell Bill the two-story green brick house on Colfax
, Avenue for a price of $200. Bill's buying the coffee and pancakes." Sam and Bill both
sign and date the napkin. Does this agreement satisfy the Statute of Frauds?
a. No, because the State of Frauds does not apply to real estate.
b. No, because the price of the property is clearly not enough.
c. No, because it isn't written on the approved Commission mandatory form.
d. Yes, provided Bill buys the coffee and pancakes. - ANSWER d. Yes, provided
Bill buys the coffee and pancakes.
Which of the following is not an option for the escrow agent in the event of a dispute
about releasing the earnest money?
a. Release the funds to the party signing the release instructions.
b. Interplead the funds into the registry of the court.
c. Wait for legal proceedings to conclude.
d. Return the funds to the buyer after notifying the parties and failing to receive a
complaint and case number within 120 days. - ANSWER a. Release the funds to
the party signing the release instructions.
On the Worksheet, how is the borrower's assumed loan amount shown?
a. As a debit to the borrower and a credit to the seller.
b. As a debit to the borrower and a credit to the broker.
c. It is not shown because it is a transaction between the borrower and the bank.
d. As a credit to the borrower and a debit to the seller. - ANSWER d. As a credit to
the borrower and a debit to the seller.
Which of the following is not true about an FHA loan?
a. It will probably have a higher loan to value ratio than a conventional loan.
b. The borrower will have to pay mortgage insurance.
c. The down payment the borrower must make will be higher than a conventional
loan.
d. The lender must be approved by the FHA. - ANSWER c. The down payment the
borrower must make will be higher than a conventional loan.
Payments on a loan are applied to the account by the lender in which order of
priority?
a. Prepayment charges, escrow, interest, principal
b. principal, interest, escrow, prepayment charges
c. escrow, prepayment charges, interest, principal
d. escrow, interest, principal, prepayment charges - ANSWER b. principal, interest,
escrow, prepayment charges
Bill Buyer defaults on the contract and Sam Seller elects to retain the deposit as
liquidated damages. What other remedies does Sam also have?
a. Criminal damages
b. Punitive damages
c. None
d. A suit for fraud - ANSWER c. None
Which of the following is not a permitted remedy against a buyer?
a. Forfeiture of earnest money + action for damages.
b. Forfeiture of earnest money + termination of contract.
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