Chapter 22 - Closing The Real Estate Transaction Flashcards
(29 cards)
Which of the following is TRUE of real estate closings in Pennsylvania?
-Closings are generally conducted by real estate salespersons.
-The seller pays the broker fees.
-The buyer usually receives the rents for the day of closing.
-The buyer pays for title evidence
The buyer pays for title evidence
Real estate firms are often affiliated with title insurance companies or mortgage brokers. These business arrangements are permitted by the RESPA as long as
the companies make a written disclosure of their relationship with one another
Which property does the Consumer Financial Protection Bureau require that the Closing Disclosure be used?
Federally related loan for a single-family home
Which of the following would a lender generally require to be produced at the closing?
-Market Value Appraisal
-Credit Report
-Application
-Title Insurance Policy
-Title Insurance Policy
The earnest money on deposit with the broker is
credit to the buyer
The Loan Estimate and Closing Disclosure must be used to illustrate all settlement charges for …
residential transactions financed by federally related mortgage loans.
The process by which expenses are handled at the settlement of a real estate transaction so that both the buyer and the seller pay their respective portions of the debts is called?
-proration
Security deposits should be listed on a closing statement as a credit to the …
buyer
At the closing, the seller’s attorney gave credit to the buyer for certain accrued items. These items were …
-bills relating to the property that will have to be paid by the buyer
An item prepaid by the seller is …
credited to the seller
Under the new rules, if the annual percentage rate (APR) has increased prior to closing, for how many days, if any, is settlement delayed?
-Three Business Days
At closing, the listings broker’s commission is usually shown as …
debit to seller
The TILA RESPA Integrated Disclosure requires that, within three days of loan application, lenders …
-provide loan estimate
The condition of the seller’s title is generally determined from a …
title commitment or title insurance policy
A mortgage reduction certificate is executed by …
a lending institution
A debit is a …
an expense
The details of a sales transaction are ALWAYS governed by the …
-terms of the properly executed purchase contract
At the closing, the real estate broker’s commission generally appears as a …
-debit to the seller
The condition of the seller’s title is generally determined from a …
-title commitment or title insurance policy
The Real Estate Settlement Procedures Act (RESPA) provides that …
-the residential borrower has a right to receive an estimate of available closing costs before the closing.
The Real Estate Settlement Procedures Act (RESPA) applies to to the activities of …
lenders financing the purchase of a borrowers residence
As provided in a valid purchase contract, the real estate transaction must be closed. This means all of the following EXCEPT
-The seller must clear the title so that the condition of the title complies with the terms of the contract
-the purchaser must pay the balance of the purchase price to the seller
-the broker must attend the closing to receive any commission
-the seller must deliver the deed to the purchaser.
-the broker must attend the closing to receive any commission
The Real Estate Settlement Procedures Act (RESPA) is administered by the …
Department of Housing and Urban Development
Which item is NOT usually prorated between the buyer and the seller at closing?
-Recording Charges
-Real Estate Taxes
-Rents
-Utility Bills
-recording charges
