Chapter 12 Quiz PDF
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San José City College
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Summary
This quiz covers questions about real estate transactions, including aspects like closing statements, escrow, and loan documents relating to assumed loans, interest, and prorated taxes.
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Chapter 12: Closing Real Estate Transactions Chapter 12 Quiz 2QWKHVHWWOHPHQWVWDWHPHQWWKHEX\HU¶VDQG )RUZKLFKRIWKHIROORZLQJORDQVDUHLPSRXQG VHOOHU¶VWRWDOV DFFRXQWVUHTXLUHG" A. must be the sam...
Chapter 12: Closing Real Estate Transactions Chapter 12 Quiz 2QWKHVHWWOHPHQWVWDWHPHQWWKHEX\HU¶VDQG )RUZKLFKRIWKHIROORZLQJORDQVDUHLPSRXQG VHOOHU¶VWRWDOV DFFRXQWVUHTXLUHG" A. must be the same A. VA B. must not be the same B. FHA & PXVWEHGL൵HUHQW C. Cal-Vet ' PLJKWEHGL൵HUHQW D. All of the above $GHHGQRWHERQGRUPRQH\KHOGE\DWKLUG 2QDEX\HU¶VFORVLQJVWDWHPHQWZKLFKRIWKH SDUW\ XQWLO FHUWDLQ FRQGLWLRQV DUH VDWLV¿HG LV IROORZLQJZRXOGDSSHDUDVDGHELW" NQRZQDV $ ,QWHUHVWRZHGRQDQDVVXPHGORDQ $ HVFURZ % 8QSDLGSURSHUW\WD[HV % VXUHW\ & 'RFXPHQWDU\WUDQVIHUWD[ & VHFXULW\ D. Purchase price D. bailment :KHQDQHVFURZDJHQWLVKDQGOLQJDQHVFURZ 2IWKHIROORZLQJLWHPVZKLFKZRXOGEHOHDVW for both parties in a transaction, she is acting OLNHO\WRDSSHDURQDFORVLQJVWDWHPHQWDVDGHELW as an: IRUWKHEX\HU" A. advocate A. Interest on an assumed loan B. independent contractor % 3URUDWHGWD[HV & HPSOR\HH & 3URUDWHGKRPHRZQHUVDVVRFLDWLRQGXHV D. agent D. FHA discount points ,Q UHDO HVWDWH ¿QDQFH WKH WHUP ³EHQH¿FLDU\ :KLFK RI WKH IROORZLQJ LV QRW SURKLELWHG E\ VWDWHPHQW´UHIHUVWR 5(63$" $ HVFURZLQVWUXFWLRQVZULWWHQDIWHUDSDUW\KDV $ $EX\HUGHVLJQDWLQJWKHOHQGHU died or become incapacitated %.LFNEDFNV B. a loan request from the holder of a life estate C. Unearned fees & WKHDPRXQWQHHGHGWRSD\R൵DORDQ D. A seller designating the title insurance D. the interest paid on a short-term loan FRPSDQ\ 10. The TRID rule requires that a lender provide 8QGHU5(63$DOHQGHULVSHUPLWWHGWRFKDUJH WKHERUURZHUZLWKDFORVLQJGLVFORVXUHIRUPQR IRUDOOEXWZKLFKRIWKHIROORZLQJVHUYLFHV" later than: A. Loan documents $ WKHGD\EHIRUHFORVLQJ B. Required disclosure statements % RQRUEHIRUHWKHGD\RIFORVLQJ C. Credit reports & WKUHHGD\VEHIRUHFORVLQJ D. Appraisals ' WHQGD\VEHIRUHFORVLQJ 13 Principles of California Real Estate Instructor Materials ,QDVDOHRIUHDOSURSHUW\WKHSULPDU\UHDVRQ IRUXVLQJDQHVFURZLVWR $ HQVXUHWKDWWKHVDOH¶VFRQGLWLRQVDQGWHUPV are met before the transaction is closed % SURYLGHDZLWQHVVWRWKHWUDQVDFWLRQ & NHHSSURSHUUHFRUGVRIWKHWUDQVDFWLRQ ' VHWWOHDQ\GLVSXWHVWKDWPLJKWDULVHEHWZHHQ the parties %URNHU%HWW\UHIHUVDOORIKHUFOLHQWVWRDSDU- WLFXODU WLWOH LQVXUDQFH FRPSDQ\ ZKR LQ WXUQ SD\VKHUSHUUHIHUUDO8QGHU5(63$WKLV is permitted: A. as a matter of practice % DVORQJDVWKHEURNHUGLVFORVHVWKLVIDFWWR ERWKEX\HUDQGVHOOHU & DVORQJDVWKHEX\HUDQGVHOOHUFRQVHQW D. under no circumstances 2QHRIWKHSULPDU\SXUSRVHVRI5(63$LVWR $ JLYHEX\HUVWKHFKDQFHWRVKRSDURXQGIRU settlement services % JLYHEX\HUVWKHFKDQFHWRVKRSDURXQGIRU EURNHUDJHVHUYLFHV & VWDQGDUGL]HVHWWOHPHQWSURFHGXUHV ' VWDQGDUGL]HVHWWOHPHQWFRVWV ,I D UHDO HVWDWH EURNHU LV QRW OLFHQVHG DV DQ HVFURZDJHQWKHPD\ $ QHYHUDFWDVDQHVFURZDJHQW % KDQGOHHVFURZVRQO\IRUSURSHUWLHVLQZKLFK he has a personal interest & KDQGOHHVFURZVIRUWUDQVDFWLRQVLQZKLFK KHLVDFWLQJDVWKHEURNHU ' DFWDVDQHVFURZDJHQWLQDQ\UHDOSURSHUW\ transaction ,Q UHDO HVWDWH ¿QDQFH WKH WHUP ³LPSRXQGV´ refers to: A. penalties B. attachments & HVFURZIHHV D. reserves 14 Chapter 12: Closing Real Estate Transactions Answer Key 1. D. On the closing statement, the balance & 7KHOHQGHUPXVWSURYLGHWKHERUURZHU GXHIURPEX\HUDQGWKHEDODQFHGXH ZLWKDFORVLQJGLVFORVXUHIRUPDWOHDVW to seller need not be the same and are WKUHHGD\VEHIRUHFORVLQJ XVXDOO\GL൵HUHQW $ 7KHSXUSRVHRIHVFURZLVWRHQVXUH $ (VFURZLVDQDUUDQJHPHQWZKHUHWKH that all the details and conditions of parties to a transaction have a third the sale agreement are met before the SDUW\KROGIXQGVDQGGRFXPHQWVXQWLO transaction closes. certain conditions in the transaction DUHVDWLV¿HG ' 5(63$IRUELGVNLFNEDFNVDQGUHIHUUDO fees. 3. A. Because loan interest is paid in arrears, DQ\LQWHUHVWGXHRQDQDVVXPHGORDQ $ 5(63$ DQGWKH75,'UXOH UHTXLUHV LVWKHVHOOHU¶VUHVSRQVLELOLW\,QWHUHVW lenders to provide certain information ZRXOGWKHUHIRUHEHOLVWHGDVDFUHGLWIRU WRSURVSHFWLYHEX\HUVLQFOXGLQJDORDQ WKHEX\HU estimate disclosing the estimated costs RIVHWWOHPHQWVHUYLFHV7KHEX\HUVFDQ $ %X\HUVDUHSHUPLWWHGWRGHVLJQDWHWKH use the estimates to shop around for OHQGHUVRIWKHLUFKRLFH+RZHYHUD services. VHOOHUPD\QRWGHVLJQDWHWKHWLWOHLQ- VXUDQFHFRPSDQ\XVHG.LFNEDFNDQG & $UHDOHVWDWHEURNHULVH[HPSWIURPWKH unearned fees are prohibited. HVFURZDJHQWOLFHQVLQJUHTXLUHPHQW ZKHQKDQGOLQJHVFURZIRUDWUDQVDF- % $OHQGHUPD\QRWFKDUJHDIHHIRUDQ\ WLRQLQZKLFKKHLVDOVRDFWLQJDVWKH service related to required disclosures. EURNHU 6. D. All of these loans require impound ac- 15. D. Impounds, or reserves, are funds col- counts. OHFWHGE\WKHOHQGHUIRUWKHSXUSRVHRI SD\LQJUHFXUULQJFRVWVVXFKDVWD[HV ' 7KHSXUFKDVHSULFHZLOODOZD\VEHHQ- and insurance. WHUHGDVDGHELWIRUWKHEX\HU ' 7KHHVFURZR൶FHULVDGXDODJHQWDQG RZHVGXWLHVWRERWKWKHEX\HUDQGWKH seller. & $EHQH¿FLDU\VWDWHPHQWLVDVWDWHPHQW IURPWKHOHQGHUZLWKLQIRUPDWLRQDVWR DORDQ¶VUHPDLQLQJSULQFLSDOEDODQFH 15