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Flashcards in Settlement / Escrow Deck (15)
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1

Title insurance companies/agencies in Florida are authorized to prepare
- sales contracts and leases
- legal documents incident to the issuance of title insurance
- any legal documents incident to the marketing of services
- loan estimates and truth in lending documents

Legal documents incident to the issuance of title insurance

2

Title agents who prepare documents or conduct closings NOT incident to the issuance of title insurance may be guitly of the unauthorized practice of
- real estate
- law
- title insurance
- RESPA

Anything not pertaining to the issuance of title insurance can be unauthorized practice of law

3

In Florida, who may NOT prepare real estate contracts
- real estate brokers and agents
- attorneys
- buyers and sellers
- title agents

Title agents may not prepare contracts in Florida

4

The title insurer issues a _____ to lenders to induce the lenders to do business with the insurer's agents/agencies
- title commitment
- title policy
- closing protection letter
- notice of purchaser/mortgager

Closing Protection Letter

5

A title agency acting in the capacity of escrow agent is responsible for
- preparing documents incident to the issuance of the closing disclosure
- rendering judgement and giving advice
- remanding custody of wills and probate documents
- retaining documents and funds until all conditions are met

Retaining documents and funds until all conditions are met

6

Which is NOT a component of a simple escrow
- written agreement
- no independent judgement
- preparation of deed and mortgage
- no doc prep

preparation of deed and mortgage

7

The minimum number of people required to establish a simple escrow is
- 2
- 3
- 4
- 5

It takes at least 3 people to establish simple escrow
buyer/seller/escrow agent

8

For purposes of licensure and appointment, florida title agencies must maintain all of the following EXCEPT
- E&O Coverage $250/$10
- Surety bond minimum coverage $35k
- Owners title insurance coverage in $250k/$5k
- Fidelity bond in the minimum of $50k

No such thing as "owners title insurance coverage"

9

On purchase/sale/finance transactions, the settlement agent must comply with all of the following EXCEPT
- real estate contract
- loan closing instructions
- title insurance commitment
- prior owners title insurance policy

prior owners title insurance policy

10

By statute, if at closing the seller signs an affidavit swearing that there is no person in possession of the property or with a claim of possession to the property except the seller, the title policy _____ rights or claims of parties in possession not shown by the public records
- may exclude from coverage
- may show as a policy condition
- may not exclude from coverage
- may remove as a covered risk

May not exclude from coverage

11

By statute, if at closing the seller signs an affidavit swearing that no improvements have been made to the property within the past 90 days for which payment has not been made in full the title policy _______ any lien or right to a lien for services, labor, or material furnished which is imposed by law and not shown by the public record
- may except from coverage
- may show as a policy condition
- may not except from coverage
- may remove as a covered risk

May not except from coverage

12

Where a title commitment or policy is issued, the ______ should be deleted at the time of closing funds are disbursed. Title insurers are required to insure against the possible existence of adverse matters or defects in the title which are recorded between the effective date of commitment and the date of recording of the vesting instrument, except as to matters of which the insured has knowledge.
- survey exception
- gap exception
- effective date
- policy exclusions

gap exception

13

The simple interest rate of a mortgage loan is reflected on the
- deed
- note
- truth in lending statement
- prior owners title policy

Note

14

On a mortgage finance transaction under the TRID Rule, what is the first document that must be reviewed at closing with the borrower
- note
- closing disclosure
- mortgage/deed of trust
- loan estimate

Closing disclosure must be reviewed first when there is financing involved under TRID Rule

15

What documents are required for use on TRID transactions
- GFE and HUD 1
- Loan Estimate and HUD 1
- GFE and closing disclosure
- Loan Estimate and Closing Disclosure

The loan estimate and closing disclosure are required on TRID transactions