Closing the Transaction: Chapter 11 Quiz
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Questions and Answers

What is the typical range a borrower should have set aside for closing costs?

  • Between 1.5% and 3% of the purchase price (correct)
  • Between 4% and 6% of the purchase price
  • Between 0.5% and 1% of the purchase price
  • Between 3% and 5% of the purchase price

    • When is PST included in closing costs?

  • When there is a mortgage default insurance premium (correct)
  • When there is a mortgage application fee
  • When there is a title search fee
  • When there is a land transfer tax

    • What type of properties are subject to HST in the purchase?

  • New homes and substantially renovated homes (correct)
  • Only new homes
  • Only resale homes
  • Only mobile homes

    • Who remits the insurance premium to the title insurer in a title-insured transaction?

    <p>The lawyer</p> Signup and view all the answers

    What does an interest adjustment refer to?

    <p>The amount of interest accumulated from mortgage advance to first payment date</p> Signup and view all the answers

    What purpose does the DRA serve in the closing process?

    <p>Handles client's documents and funds</p> Signup and view all the answers

    What is the interest adjustment payment?

    <p>The payment to pay accumulated interest</p> Signup and view all the answers

    When is the interest adjustment payment due?

    <p>On the interest adjustment date</p> Signup and view all the answers

    What is a subsearch in real estate transactions?

    <p>An update of a full search prior to specific registrations</p> Signup and view all the answers

    What triggers the closing process to begin?

    <p>The satisfaction of all conditions by the purchaser's lender</p> Signup and view all the answers

    Who has the authority to choose the lawyer for closing a real estate transaction?

    <p>Either the borrower or the lender, subject to lender approval</p> Signup and view all the answers

    What does a lender's instructions to solicitor package typically include?

    <p>Acknowledgement and Direction Instructions</p> Signup and view all the answers

    Who is responsible for informing the lender about any secondary financing in a real estate transaction?

    <p>Vendor's lawyer</p> Signup and view all the answers

    In a real estate transaction, who registers the discharge/cessation of mortgage?

    <p>Vendor's lawyer</p> Signup and view all the answers

    Which lawyer is responsible for sending money to discharge the current mortgage in a purchase transaction?

    <p>Vendor's lawyer</p> Signup and view all the answers

    What is the purpose of Form 9D in a real estate transaction?

    <p>To provide written instructions from the lender</p> Signup and view all the answers

    For what purpose is Form 9E used in a real estate transaction?

    <p>To prepare a report on the investment for the lender</p> Signup and view all the answers

    In which circumstances are two lawyers required in a private mortgage transaction?

    <p>$75,000 or higher mortgage amount</p> Signup and view all the answers

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