Real Estate Closing Transactions Quiz

In a closing statement, what occurs when certain conditions are satisfied?

When an escrow agent is handling a closing statement for a buyer, she is acting as an:

Which of the following is not prohibited by the term 'beneficiary statement'?

What is the primary role of a buyer's escrow agent during a closing transaction?

Under the TRID rule, when must a lender provide the borrower with a closing disclosure form?

What is the primary reason for using an escrow in a real property sale?

What is the primary purpose of RESPA?

Under RESPA, who is permitted to pay the broker their referral fee?

In real estate transactions, what do the terms 'impounds' refer to?

How must the lender provide the borrower with the balance due at closing?

Which of these options represents an unearned fee in real estate transactions?

Which of the following is true regarding the closing statement?

What does it mean when a closing is 'delayed'?

What is the role of a third party in a real estate transaction closing?

Chapter 12 Quiz - Closing Real Estate Transactions

Settlement Statement: Buyer and seller totals might be different.
Third Party Holding: A deed, note, bond, or money held by a third party until conditions are met is called escrow.
Closing Statement Debits (for Buyer): Items like interest on an assumed loan, prorated taxes, prorated HOA dues, and FHA discount points are least likely to be a buyer's debit.
RESPA and Prohibitions: RESPA prohibits kickbacks, unearned fees, and seller designation of the title company. Buyers can designate their lender
RESPA and Lender Fees: Lenders cannot charge for loan documents, required disclosures, credit reports, or appraisals.
Impound Accounts: VA and FHA loans require impound accounts.
Buyer's Closing Statement Debits: Interest owed on an assumed loan, unpaid property taxes, and documentary transfer tax are buyer debits.
Escrow Agent Roles: An escrow agent acting as both parties (buyer and seller) is an independent contractor.
Beneficiary Statement: This refers to loan request information from the life estate holder.
TRID Rule and Closing Disclosures: The lender must provide the closing disclosure at least three days prior to closing.
Purpose of Escrow: Escrow ensures that the sale conditions and terms are met before closing a transaction.
Broker Referrals: Referrals are permitted if the broker discloses it to both buyer and seller.
RESPA Primary Purpose: RESPA standardizes settlement procedures and gives buyers a chance to shop for settlement services during purchases.
Licensed Escrow Agents: If a real estate broker isn't a licensed escrow agent, they cannot act as an escrow agent for a transaction they handle as a broker.
Impounds (Reserves): Impound accounts/reserves are funds collected and used to pay ongoing expenses like taxes and insurance.

Test your knowledge on the intricacies of closing real estate transactions with this Chapter 12 quiz. Explore topics such as the settlement statement, RESPA regulations, closing statement debits for buyers, and the role of escrow agents. Perfect for real estate students and professionals alike!