12 - Closing a Sales Transaction (1/1)

Question 1

Know Before You Owe

Answer 1

Buyer must receive Closing Disclosure 3 business days prior to closing

Question 2

Personal Property Taxes

Answer 2

Typically not included on a HUD-1 Settlemnet Statement; if they have been paid by seller, no entry to make

Question 3

Attorney in Fact

Answer 3

Not a lawyer; a person who holds a power of attorney

Question 4

Closing Disclosure Statements

Answer 4

Regulates and controls the charges and fees from the lender

If dual agent, licensee should keep CD statements separate and confidential

Required in settlement of 1-4 unit resi transactions when borrower is obtaining a mortgage. Does not apply to cash transactions or sale of land

Question 5

Good Funds Act

Answer 5

requires money be transferred from escrow to closing agent no sooner than 10 days prior to closing

Question 6

TRID

Answer 6

Tila and Respa Integrate Disclosures

The disclosures combine provisions of the Real Estate Settlement Procedures Act and the Truth in Lending Act