Podcast
Questions and Answers
In a closing statement, what occurs when certain conditions are satisfied?
In a closing statement, what occurs when certain conditions are satisfied?
- Due diligence transfer tax
- Unpaid property taxes
- Interest on an assumed loan
- Purchase price (correct)
When an escrow agent is handling a closing statement for a buyer, she is acting as an:
When an escrow agent is handling a closing statement for a buyer, she is acting as an:
- Employee
- Independent contractor
- Agent (correct)
- Advocate
Which of the following is not prohibited by the term 'beneficiary statement'?
Which of the following is not prohibited by the term 'beneficiary statement'?
- Escrow instructions written after a party dies
- An assignment of a purchase contract
- A loan request from the holder of a life estate (correct)
- Documentation related to a deceased borrower
What is the primary role of a buyer's escrow agent during a closing transaction?
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?
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 reason for using an escrow in a real property sale?
What is the primary purpose of RESPA?
What is the primary purpose of RESPA?
Under RESPA, who is permitted to pay the broker their referral fee?
Under RESPA, who is permitted to pay the broker their referral fee?
In real estate transactions, what do the terms 'impounds' refer to?
In real estate transactions, what do the terms 'impounds' refer to?
How must the lender provide the borrower with the balance due at closing?
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 these options represents an unearned fee in real estate transactions?
Which of the following is true regarding the closing statement?
Which of the following is true regarding the closing statement?
What does it mean when a closing is 'delayed'?
What does it mean when a closing is 'delayed'?
What is the role of a third party in a real estate transaction closing?
What is the role of a third party in a real estate transaction closing?
Flashcards
Closing Costs: Buyer vs Seller
Closing Costs: Buyer vs Seller
The buyer's closing costs and the seller's closing costs must be the same in a real estate transaction.
What is an Escrow Account?
What is an Escrow Account?
An escrow account is a neutral third party who holds funds and documents during a real estate transaction, ensuring a smooth closing.
When is a Purchase Offer Accepted?
When is a Purchase Offer Accepted?
A purchase offer is accepted when both buyer and seller agree to the terms, including price and closing date. This is a legally-binding agreement.
What are Buyer Closing Costs?
What are Buyer Closing Costs?
Signup and view all the flashcards
What are Seller Closing Costs?
What are Seller Closing Costs?
Signup and view all the flashcards
Unearned Fee
Unearned Fee
Signup and view all the flashcards
Who designates the title insurance company?
Who designates the title insurance company?
Signup and view all the flashcards
When must a lender provide the Closing Disclosure?
When must a lender provide the Closing Disclosure?
Signup and view all the flashcards
What needs to be met before a closing is complete?
What needs to be met before a closing is complete?
Signup and view all the flashcards
What is a seller credit?
What is a seller credit?
Signup and view all the flashcards
What kind of security interest does a lender have in a property with a loan?
What kind of security interest does a lender have in a property with a loan?
Signup and view all the flashcards
Why are interest rates on short-term loans higher?
Why are interest rates on short-term loans higher?
Signup and view all the flashcards
What is the role of the escrow holder?
What is the role of the escrow holder?
Signup and view all the flashcards
What is a closing statement?
What is a closing statement?
Signup and view all the flashcards
What are closing costs?
What are closing costs?
Signup and view all the flashcards
What are settlement services?
What are settlement services?
Signup and view all the flashcards
When does a real estate transaction 'close'?
When does a real estate transaction 'close'?
Signup and view all the flashcards
When is a purchase offer considered 'accepted'?
When is a purchase offer considered 'accepted'?
Signup and view all the flashcards
Study Notes
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
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!