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Questions and Answers
Which of the following loan types must have different seller's total accounts?
Which of the following loan types must have different seller's total accounts?
What appears as a debit on a buyer's closing statement until certain conditions are satisfied?
What appears as a debit on a buyer's closing statement until certain conditions are satisfied?
What term refers to benefits received in real estate financing that is not prohibited by RESPA?
What term refers to benefits received in real estate financing that is not prohibited by RESPA?
What is the primary purpose of RESPA?
What is the primary purpose of RESPA?
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If a real estate broker is not licensed as an escrow agent, what action should they never take?
If a real estate broker is not licensed as an escrow agent, what action should they never take?
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In a real estate transaction, what does the term 'impounds' refer to?
In a real estate transaction, what does the term 'impounds' refer to?
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What must the lender provide to the borrower before closing a transaction?
What must the lender provide to the borrower before closing a transaction?
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What is a closing statement?
What is a closing statement?
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What happens if the borrower and the lender have differing balances due at closing?
What happens if the borrower and the lender have differing balances due at closing?
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What is the purpose of using an escrow in a real estate sale?
What is the purpose of using an escrow in a real estate sale?
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When does TRID require a lender to provide disclosures to the borrower?
When does TRID require a lender to provide disclosures to the borrower?
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What is the earliest time a lender can charge for services under RESPA?
What is the earliest time a lender can charge for services under RESPA?
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What is the primary reason for a lender to charge unearned fees?
What is the primary reason for a lender to charge unearned fees?
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Which of the following disclosures must be provided prior to closing under TRID?
Which of the following disclosures must be provided prior to closing under TRID?
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What is one of the main functions of a title insurance company?
What is one of the main functions of a title insurance company?
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Study Notes
Chapter 12 Quiz - Real Estate Transactions
- Settlement Statements: Buyer and seller totals on settlement statements might differ.
- Third-Party Holds: A deed, note, bond, or money held by a third party until conditions are met is called an escrow.
- Closing Statement Debits (for Buyer): Interest on an assumed loan, prorated taxes, and HOA dues are likely to be listed as debits on the buyer's closing statement.
- RESPA Restrictions: RESPA prohibits kickbacks, unearned fees, and sellers designating title insurance companies. Buyers can choose their lender.
- Lender Fees: Under RESPA, lenders cannot charge for loan documents, required disclosures, credit reports, or appraisals.
- Impound Accounts: VA and FHA loans typically require impound accounts.
- Buyer's Closing Statement Debits: Interest on assumed loans, unpaid property taxes, and documentary transfer tax appear as debits on the buyer's closing statement.
- Escrow Agent Roles: An escrow agent handling transactions for both parties acts as an agent/independent contractor.
- Beneficiary Statements: A beneficiary statement details remaining loan principal.
- Closing Disclosure Timing: Lenders must provide closing disclosures at least three days before closing.
- Escrow Purpose: Escrow ensures transaction conditions are met before closing.
- RESPA Goal: RESPA standardizes settlement procedures and provides buyers with loan estimate options.
- Real Estate Broker Escrow Role: A broker not licensed as an escrow agent cannot act as one, unless in a broker role in the transaction.
- Impound Funds: Funds collected for taxes and insurance payments.
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Description
Test your knowledge on key concepts related to real estate transactions, including settlement statements, RESPA restrictions, and lender fees. This quiz covers important aspects of the closing process and the roles of escrow agents. Perfect for students preparing for real estate exams.
