All of the following may be impound requirements for a borrower, except:

During a sales escrow, the escrow officer receives two structural pest control reports. The escrow officer is to ____

notify the buyer and seller of the discrepancy and obtain written instructions as to which report to use.

Remember, only the principals can make decisions about transaction terms to escrow.

The California Land Title Association (CLTA) standard policy and the American Land Title Association (ALTA) policy does not protect the insured against ____

encumbrances which are created or become encumbrances after issuance of the policy.

Both the California Land Title Association (CLTA) standard and American Land Title Association (ALTA) policies provide coverage for all answer selections except encumbrances which are created or become encumbrances after issuance of the policy.

A writ of execution is issued for a (n) ____

sheriff’s sale.

A sheriff’s sale will cause a writ of execution to be drawn and recorded.

Escrow closes on the 16th day of February (28 days). The seller receives $500 in rent for the month of February. The seller ____

owes the buyer $250.

Remember, escrow calculates a month as 30 days, as stated in Question 2 so disregard the reference to the literal number of days in the month. The 16th day of the month is first day of the second half of the month and thus the seller owes the buyer precisely half of $500.

The words “time, title, interest and possession” are most closely related to which of the following concepts ____

joint tenancy.

Time, title, interest and possession (TTIP) relate to joint tenancy only.

An offer based on a $300,000 loan assumption was made and accepted. During escrow, it was discovered the loan was for $290,000, not $300,000. What is the most probable outcome?

The buyer can void the contract.

This is an example of a contingency in an escrow. This contingency favored the buyer and allowed them to void the sale since the loan balance was not as previously stated.

Sara and Marshal are joint tenants. Marshal obtains a loan from a lender secured by his interest in the property. When Marshal dies ____

Sara owns the property free and clear of the encumbrance.

Joint tenants receive title clean of any obligations made by the deceased partner. Further, joint tenants do not need to be married and joint tenancy is not limited to only two people.

To establish title by adverse possession, an occupant must show ____

they have paid all taxes assessed against the property during their occupancy.

Only this answer choice fits the requirements for adverse possession. The period of possession must be at least five years, not two. This is why answer choice ”they have been in possession…” is incorrect.

The annual property taxes an owner of a home needs to pay are determined by ____

assessing the land and improvements separately, then multiplying the total by one tax rate.

The land and improvements are valued separately though the tax rate is the same.

All of the following may be added to the original cost basis of real property to arrive at an adjusted basis for federal income tax purposes, except: