Chapter 10 - Real Estate Closings

Question 1

What are the sellers requirements at closing?

Answer 1

That the buyer has obtained necessary financing and has sufficient funds to complete the sale.

Question 2

Closing in escrow

Answer 2

Not face to face (aka dry closing)

Question 3

RESPA (Closings)

Answer 3

Real Estate Settlement Procedures Act

Question 4

How long is the waiting period after a Good Faith Estimate of lending costs (GFE) has been issued?

Answer 4

3 days

Question 5

wrt closing statements, who is mortgage money a “credit” to?

Answer 5

The buyer.

Question 6

At closing, who is responsible for crediting who on accrued items (paid in arrears)?

Answer 6

Seller credits the buyer. Because seller will later pay these fees.

Question 7

At closing, who credits who for prepaid items?

Answer 7

Buyer credits the seller. Because the seller has already paid but hasn’t used the stuff up.

Question 8

When are accrued items paid?

Answer 8

In arrears. (credit to buyer)