front 1 Can the buyer's deed be recorded? | back 1 yes |
front 2 Has Jason committed fraud? | back 2 no |
front 3 Will the buyer be responsible for the debt represented by the lien on the buyer's house? | back 3 no |
front 4 Affidavit of title | back 4 A sworn statement in which the seller assures the title company and buyer that no other defects in the title have occurred since the date of the title examination |
front 5 Walk-through | back 5 Buyer verifies that required repairs have been made, the property has been well maintained, and no removal of improvements has taken place |
front 6 Survey | back 6 Provides information about the exact location and size of the property |
front 7 Mortgage reduction certificate | back 7 Certifies the amount owed on the mortgage loan, the interest rate, and the date and amount of the last interest payment |
front 8 Bring down | back 8 Search of the public record made after closing |
front 9 Abstract of title | back 9 Requires an attorney’s opinion of the quality of the seller’s title |
front 10 As part of the title company's preclosing title search, the sellers may be required to execute an affidavit of title. | back 10 true |
front 11 Lenders generally require that a buyer obtain a mortgagee's title insurance policy to ensure that the buyer takes good and marketable title at closing. | back 11 true |
front 12 Face-to-face | back 12 Face-to-face-May raise privacy concerns Face-to-face-Not best approach if friction between parties Face-to-face-Buyer and seller meet for the first time Face-to-face-Buyer and seller attend |
front 13 Escrow | back 13 Escrow-Documents provided to escrow agent before closing Escrow-Buyer and seller execute escrow instructions Escrow-Third party acts on behalf of buyer and seller |
front 14 In all closings in any state, the buyer and seller meet face to face. | back 14 False |
front 15 The person who coordinates the activities in an escrow closing is a disinterested third party. | back 15 true |
front 16 Prohibited | back 16 Prohibited-Unearned fees for services Prohibited-Fee-splitting Prohibited-Kickbacks |
front 17 Permitted- | back 17 Reasonable escrow deposits |
front 18 RESPA regulations apply to any residential mortgage loan made to finance the purchase of a one- to four-family home or to refinance an existing mortgage. | back 18 False |
front 19 The only fee that the lender may collect before the applicant receives the Loan Estimate is for a credit report. | back 19 true |
front 20 Buyer | back 20 Recording deed to convey title Loan fees Private mortgage insurance Tax reserves Buyer’s attorney fees Insurance reserves |
front 21 Seller | back 21 Recording of quitclaim deed Recording of release deed Seller’s attorney fees Seller’s broker commission |
front 22 RESPA requires lenders to maintain a cushion in a borrower's escrow account equal to one-sixth of the total estimated amount of annual taxes and insurance. | back 22 false |
front 23 A debit on a closing statement is an amount entered in a person's favor—an amount that has already been paid, an amount being reimbursed, or an amount the buyer promises to pay in the form of a loan. | back 23 false |
front 24 Prepaid items are expenses to be prorated (such as fuel oil in a tank) that have been prepaid by the seller but NOT fully used up and are credits to the buyer. | back 24 false |
front 25 Accrued items are expenses to be prorated (such as water and other utility bills) that are owed by the seller but will be paid later by the buyer. | back 25 true |
front 26 Certain real estate closings must be reported to the Internal Revenue Service (IRS) on Form 1099-S. The affected properties include sales or exchanges of | back 26 land, residential or commercial structures, condominiums, and shares in a cooperative housing corporation. |
front 27 Which item would a lender generally require at the closing? | back 27 Title insurance commitment |
front 28 The Real Estate Settlement Procedures Act prohibits | back 28 lenders from requiring excessive escrow account deposits. |
front 29 The principal balance on an assumed mortgage loan is entered on the closing statement as | back 29 a debit to the seller and a credit to the buyer. |
front 30 A buyer purchases a home in an area where closings are traditionally conducted in escrow. Which item would a buyer deposit with the escrow agent before the closing date? | back 30 Cash needed to complete the purchase |
front 31 All of the following items are usually prorated between the buyer and the seller at closing EXCEPT | back 31 recording charges. |
front 32 Section 8 of RESPA prohibits which of the following actions? | back 32 Kickbacks |
front 33 To which of the following do RESPA regulations apply? | back 33 One-to-four-family residential unit purchases |
front 34 RESPA prohibits certain practices that increase the cost of settlement services, including all of the following EXCEPT | back 34 spousal survivor benefits. |
front 35 What information is included in the Loan Estimate form? | back 35 Monthly payment amountB)All of theseC)Total closing costsD)Interest rate |
front 36 Violations under the Real Estate Settlement Procedures Act (RESPA) for kickbacks or fee-splitting are subject to | back 36 criminal and civil penalties, including a fine up to $10,000 and/or imprisonment up to one year. |
front 37 The "bring down" is the second title search and is made | back 37 after the closing and before any new documents are filed |
front 38 A security deposit made by a tenant to cover the last month's rent of the lease or the cost of repairing damage caused by the tenant is generally | back 38 transferred by the seller to the buyer. |
front 39 The sale price of a property is $230,000. Transfer tax to be paid by the seller at closing, based on $0.50 per $500, will be | back 39 $230.00. |
front 40 The annual real estate taxes on a property amount to $18,000. The seller has paid the taxes in advance for the calendar year. If the closing is set for June 15, which statement is TRUE? | back 40 Credit the seller $9,750; debit the buyer $9,750. |
front 41 Real estate property taxes will be prorated at closing and are $6,450 annually. If escrow closes June 15 and taxes for the year have not yet been paid, | back 41 the buyer receives a credit of $2,956.30. |
front 42 To verify property boundaries and location of improvements before real estate is sold, | back 42 a current survey should be made to confirm that no encroachments have arisen since the last transfer of title. |
front 43 The first title search shows the status of the seller's title on that date. The second search is made after closing and is called | back 43 a bring down. |
front 44 At closing, the earnest money left on deposit with a real estate broker is | back 44 a credit to the buyer. |
front 45 In a face-to-face closing, who may be present? | back 45 Buyer and sellerB)All of theseC)Representative for the title insurance companyD)Representative for the lending institution |
front 46 Information about the exact location and size of the property is obtained through | back 46 a survey |
front 47 MOST closings involve the division of financial responsibility between the buyer and the seller for such items as taxes, rents, and other items. These divisions are called | back 47 prorations. |
front 48 In some parts of the country, the buyer and the seller never meet at closing; the paperwork is handled by an escrow agent in a process called | back 48 closing escrow. |
front 49 In some parts of the country, closing is called | back 49 settlement and transfer. |
front 50 Expenses to be prorated (such as water bills and unpaid property taxes) that are owed by the seller but will be paid late by the buyer are called | back 50 accrued items. |
front 51 A real estate transaction may be completed by using an escrow agent or escrow holder who acts as | back 51 a disinterested third party to make sure required documents and funding are in place before the transaction is completed. |
front 52 The process by which expenses are divided at settlement of a real estate transaction so that both the buyer and the seller pay their respective portions of property charges is called | back 52 proration |
front 53 In some parts of the country, the closing process involves the parties in the transaction sitting around a table and exchanging copies of documents, a process called | back 53 passing papers. |
front 54 Expenses to be prorated (such as lawn care services) that have been paid by the seller but not fully used up are called | back 54 prepaid items. |