Chapter 22 Quiz

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  1. At the closing, the seller's attorney informed him that he would be giving credit to the buyer for certain accrued items.  These items represent
    Bills related to the real estate that have not been
  2. The Real Estate Settlement Procedures Act (RESPA)
    applies to the activities of
    Lenders financing the purchase of the borrower's residence
  3. The details of a sales transaction are ALWAYS governed by the
    terms of the properly executed purchase contract
  4. At the closing, the real estate broker's commission generally appears as a
    A debit to the seller
  5. The consdition of the seller's title is generally determined from a
    Title commitment or title insurance policy
  6. RESPA provides that
    The residential borrow has a right to receive an estimate of available closing costs before the closing.
  7. The accrued interest on an assumed morgage loan is entered on the closing statement as a
    Debit to the seller and credit to the buyer
  8. As provided in a valid purchase contract, the real estate transaction must be closed.  The means all of the following:
    • 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 purchase price to the seller
    • The seller must deliver the deed to the purchaser
    • NOT The broker must attend the closing to receive any commission
  9. The process by which expenses are handled at the settlement of a real estate transaction so that oth the buyer and the seller pay their respective portions of the debts is called
    Proration
  10. The Real Estate Settlement Procedures Act RESPA may apply to a loan assumption if the
    Terms of the assumed loan are modified by the lender
  11. The principla balance on an assumed mortgage loan is entered on the closing statement as a
    • Debit to the seller and a credit to the seller
    • From the seller to the buyer--the seller has the pay-off and the buyer takes on the payment(assuming)
  12. The Real Estate Settlement Procedures ACT (RESPA) is a regulation of the
    Federal Gov't
  13. Which of the following items are ususally prorate between the buyer and thw seller at closing
    • Real Estate taxes
    • Rents
    • Utility Bills
    • NOT Recording Charges
  14. The closing statement involves debits and credits to the parties in the transaction.  A debit is
    An expense
  15. In a closing statement, an accrued item is
    An item that is unpaid but is due
  16. The Real Estate Settlement Procedures Act requires
    That disclosure be made of all closing costs prior to closing
  17. All of the following are required by RESPA
    • Lenders must provide borrowers with a good faith estimate of closing costs
    • A uniform settlement form must be used at loan closings
    • No kickbacks may be paid to any party in connection with a loan transaction
    • NOT--the borrower may cancel the loan transaction within 5 days after settlement.
  18. An example of a kickback prohibited by RESPA si an
    fee paid by a surveyor to a broker for a lead on a property surveyed
  19. Services offered by affilaiated business arrangements are permitted under RESPA as long as certain condtions are met
    • The broker may charge whatever fee the broker determines is fair for the service
    • The Borrower must pay whatever fees are charged for the service
    • The broker is required to disclose the existence of other services and products thta are not part of the affiliated business agreement
    • NOT--the morgage broker may pay a referral fee for the mortgage loan
Author:
mgferraro
ID:
316450
Card Set:
Chapter 22 Quiz
Updated:
2016-02-24 21:34:07
Tags:
closingtherealestatetransaction
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Chapter 22 Quiz
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