RE Contracts Ch. 9 Closings

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  1. At the closing, the seller will give the buyer the _____, the buyer will sign the ____ documents, along with other documents.
    • -deed
    • -loan
  2. At a residential closing, a _______________________ will be prepared and given to both sides, which will list who pays for what amount of closing costs.
    HUD-1 "Uniform Settlement Statement"
  3. Closing normally takes place at ____________________ in Texas.
    title insurance companies
  4. Everyone must meet, or the sellers may come in early, sign the papers, and leave, or briefly greet the buyers.
    true
  5. A good broker or salesperson will sit through the experience with first time buyers or nervous buyers.
    true
  6. How is commission handled at closing?
    Title company usually gives the broker the full check (so broker can split up later, broker wants to check for documentation), or the broker authorizes the title company to split the commission with the salesperson
  7. Subparagraph 9.A. The Closing Date
    • -has closing date
    • -closing can be extended up to 22 days if some documents were not ready; survey, etc.
  8. Closing is __ or ___ the contract date.
    on or before
  9. What is a good time frame for closing?
    -for conventional loans
    -FHA/VA loans
    -Bond money program loans
    • -best 30 days (think about buyer and lender)
    • -lenders take their time
    • -conventional; 30 days; book says 10-15 days
    • -FHA/VA loans: 30-45 days
    • -Bond money: 60 days or more
  10. The buyer should be ___________ before the cooperating broker shows houses.
    prequalified; knowing the type of financing, the lender can give a time estimate on how long it will take to close the loan.
  11. What four things does the lender tell the buyer, that can help the buyer calculate the time frame for the loan?
    • 1. Length of time the lender needs gives a date of _______
    • 2. Date by which seller absolutely must move out_______
    • 3. Date by which the buyer absolutely must move in_______
    • 4. Margin for error time (long if possible) _______
    • Closing must be after 2, before 3, and within 1, but add the longest 4 you can, or up to 30 days or so.
  12. Closing dates are usually picked when? and why?
    • -at end of month on the last work day
    • -no weekends or holidays
    • -why: minimize both interim interest and moving problems (lease)
  13. What can affect the closing date and time of possession?
    • -old house to new house; a special addendum, the Sale of Other Property; rare
    • -first; loan; second; purchase and sale of existing residences; third; moving date
  14. Subparagraph 9.B.
    • 1. Obligates sellers to bring a general warranty deed and tax certificates.
    • 2. Buyer must bring a check for "good funds" to the title company closing; lender wires money; cashiers check
    • 3. signing of documents; buyer signs more documents; title company closers are notaries; get copies
    • 4. the seller must represent to buyer that there are no liens that won't be paid off and released at closing; title insurance company checks for them; a loan assumption (taking over old loan) is not a problem; WATCH OUT FOR MECHANIC'S LIENS AFTER CLOSING.
    • 5. basically if the property has a tenant, the security deposit must be transferred.
  15. What type of payment is most likely accepted by the title company at closing?
    • -cashiers check
    • -No Official Bank Checks or any other type of check unless you check with the title company first
  16. What are the list of documents that are needed to be signed and given at closing mentioned in 9.B.(3)?
    • 1. HUD-1 Uniform Settlement Statement (buyer and seller)
    • 2. Truth in Lending Disclosure (buyer)
    • 3. Promissory Note (buyer)
    • 4. Deed of Trust (buyer)
    • 5. Loan Agreement Notice (buyer)
    • 6. Borrower's closing certification and compliance agreementĀ 
    • 7. Purchase Acceptance Letter (inspected it and accepted it)
    • 8. MUD District Notice (if property is in a MUD) (Buyer)
    • 9. Disclosure about lender attorneys (buyer pays them but they work for lender)
    • 10. Contract obligating (buyer and seller)
    • 11. Wood Destroying Insect Report (buyer)
    • 12. Loan Approval Notice & Conditions: (i) clear termite; (ii) flood certification (iii) seller contribution limit (iv) repair certification (buyer)
    • 13. Copy of Survey (buyer)
    • 14. General Warranty Deed (seller)
  17. What is the difference between a General Deed and a Special Deed?
    • -GD: can be traced back to the very first owners
    • -SD: unknown history; check it out
  18. What are four things that can protect the buyer against liens?
    • 1. get title insurance
    • 2. be careful who you chose as a contractor - it may not always be wise to pick the lowest bid (subcontractor trouble)
    • 3. Consider purchasing materials directly from suppliers and furnishing them as needed for the work
    • 4. Postpone all but the most necessary work, like lender required repairs, until after the closing, adjust money.

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Blue2xa88
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321158
Filename:
RE Contracts Ch. 9 Closings
Updated:
2016-06-20 02:42:46
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contract closings
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