Welcome to your Pango Way Training Assessment II Name Email Mark true or False for the following: Notice to creditors for a bulk sale requires buyer’s signature. True False None Quitclaim Deed: Used to convey a possible interest in real property by a party not on title. True False None Interspousal: Used by spouses involved in a settlement agreement and customarily drafted by an attorney. True False None Preliminary Change of Ownership Report: Notifies the Assessor of the transfer of title and instructs them how to reassess the tax bill. True False None FIRPTA Affidavit: Seller signs under penalty of perjury they are a US person. Seller’s inability to sign this form triggers the requirement of foreign withholding. True False None 1099 Information Form: Seller instructs escrow how the sale will be reported on their tax return True False None When a property is coming out of a Trust on a refinance, what documents are required? Deed Trust Cert, Deed Amendment, Trust Certification, Deed and PCOR None On a bulk sale the seller’s proceeds must be distributed in the following order: All obligations to the United States Government Secured Claims Broker and Escrow Fees Wage Claims All other Tax Claims All other unsecured claims prorate True False None What title policy is most commonly paid for by the Buyer? ALTA Loan Policy Homeowner's Policy Fire Insurance Policy None What title policy does the CAR RPA default to the seller providing to the buyer? Owner’s Policy Homeowner’s Policy Fire Insurance Policy None What are endorsements to the title policy? Signature lines by the title officer Additional insurance Easements None When checking in a seller’s opening package, what determines whether state withholding applies? 593, "no exemptions apply" box checked FIRPTA Affidavit, no signature or tax ID number 1099-S None What is the standard state withholding percent? 3% 3 1/3% 15% None If standard state withholding applies on a sale of 400,000.00, how much would we send to the Franchise Tax Board? $13,500 $13,320 $13,200 None For a foreign seller, what would the withholding amount be? 10% 15% 10% or 15% depending on buyer’s use of property and sales price 3 1/3% None Who issues the seller’s closing disclosure and when? Escrow issues it on or before the day loan documents are signed. Lender issues it 3 days before issuing loan documents. Escrow issues it before closing. None On a Bulk sale, when is an escrow required by law? Restaurant that sells beer and wine Liquor store Hotel that has a bar. All of the above None When the seller is paying off a PACE/HERO loan that is attached to the tax bill how would you prorate the property taxes? Segregate the loan from the taxes and prorate based on the property tax portion only. Prorate based on the entire assessment. Prorate the loan only. None When prorating taxes on a transaction closing November 3, which is correct? Charge seller for first half, debit buyer and credit seller from close to January 1. Charge seller for first half, debit buyer and credit seller from close to July 1. Charge buyer for both halves do not prorate. None We are not able to release any funds on a bulk sale transaction with a liquor license prior to receiving the authorization to close. True False None When a lender requires certain debts to paid as a closing condition, what would you do? Draw a pay bill amendment, collect statements and addresses and send all checks directly to payees. Draw a pay bill amendment and release checks to borrower at close. Give funds to borrower to pay the bills. None If the last payment on a mortgage was made July 5, from what date would we charge interest when estimating the payoff amount? July 1 August 1 June 1 None Who are the true parties to an escrow: Buyer & Seller Listing Agent & Selling Agent Lender Broker All of the above None According to the California Association of Realtors Residential Purchase Agreement, from whose proceeds is Buyer's Broker's commission paid? Seller's Proceeds Seller's Broker's Proceeds Buyer's Cash To Clsoe None If no boxes are checked in the initial deposit field of the California Association of Realtors Residential Purchase Agreement. The default answer is: Buyer shall deliver deposit via electronic funds transfer, which means escrow holder will need a wire. Buyer shall deliver a check, electronic funds transfer or cashier's check Buyer shall deliver a check None Time's up
