chapter 30

A listing agent's duty to the seller after an offer has been accepted includes apprising the seller of all the following, except...? AThe buyer's credit score BIf the buyer made a loan application according to the terms specified in the contract CWhether or not the property has been appraised for the contract price DIf the lender approved the buyer for the loan

A

A property is set to close on November 21st. If the seller collected $4,600 in rent on November 1st, how much will the buyer be credited at closing?

A$1,380 (Dollars)

The outstanding loan balance multiplied by the interest rate equals...?

A$1,380 (Dollars)

What is a borrower's monthly housing payment if we assume the following: $2,560 in principal and interest, $420 in taxes, and $110 in insurance?

A$3,090 (Dollars)

Hubert is conducting a title search on a property. While conducting his search, he is unable to find a recorded Certificate of Occupancy. Local law says that a Certificate of Occupancy is required for every dwelling, and that it is a violation of local law to use a property as a residence until a Certificate of Occupancy is filed in the land records. From the point of view of a title searcher, what has Hubert found?

AA cloud on the title

Theoboldt is a title searcher, and he wants to create a working relationship with Honest Bank. He proposes that if Honest Bank refers borrowers to him for title searches, in exchange, he will agree to charge a premium above his usual rate and give Honest Bank the premium as a finder's fee, without disclosing the arrangement to the buyer. Honest Bank agrees. What is this deal under RESPA?

AA prohibited kickback scheme

Eliot is buying a house. He asks Jenny to perform a title search. Jenny provides Eliot with a report that summarizes all the relevant events and documents she found in the land records. The report concludes, "Based on the evidence in the land records, the seller has and can convey marketable title." What kind of report did Eliot receive?

AAn attorney's opinion of title

A document used to swear that there are no suits, judgments, or liens against him or her or pending against him or her is a...?

ABuyer's affidavit

The seller's outstanding mortgage interest payment will be marked as a .........on the settlement statement.

ADebit

A ............... gives the lender the right to increase the interest rate if a new buyer assumes the loan. AEscalation clause BInterest rate clause CAssumption clause DLender's increase clause

AEscalation clause

How many pages is a Closing Disclosure?

AFive pages, as required by RESPA

Which is usually NOT a seller's primary concern at closing?

AHelping the buyer understand the loan

What does the buyer want to make sure the seller can convey?

AMarketable title

A mortgage payment made on June 1st will be for the month of...?

AMay

Bob the buyer, Sally the Seller, and Morty the Mortgage Lender are at the closing on a house sale. No one else is present or expected to come. Who is most likely to be responsible for filing Form 1099-S?

AMorty

The Closing Disclosure sometimes includes a figure representing mortgage interest for the period from the date of closing to the end of the month. What do we call this figure?

APre-paid interest

A ............ documents the buyer's (borrower's) promise to repay the amount of money borrowed and sets forth the terms under which the money is to be repaid.

APromissory note

A ............ is used extensively to remove from the record possible conflicting interests in property.

AQuitclaim deed

When a licensee represents a buyer, the licensee's duty to a seller includes all of the following, except...? ARecommending an agent to represent the seller BTreating the seller fairly CDisclosing to the seller all material adverse facts known to the licensee DNot knowingly providing false information

ARecommending an agent to represent the seller

Which of the following must come first at closing?

ASigning the loan documents

The Closing Disclosure contains similarities to what other document?

AThe Loan Estimate

The outstanding loan balance multiplied by the interest rate equals...?

AThe annual interest paid

A Closing Disclosure maintains separate columns for keeping track of what?

AThe buyer's and the seller's debits and credits

If there is a dispute over title, the courts begin by presuming that the owner of real property can be determined from what?

AThe land records

In most closings, who usually provides the money that makes the closing possible? AThe lender BThe seller CThe buyer DThe settlement agent

AThe lender

Which participant's interests align most closely with the buyer's at closing?

AThe lender

If you had to boil the IRS rules down to their essence, who is ultimately responsible for filing a 1099-S after closing?

AThe person who gathers all the numbers together and distributes the cash at closing

Assuming property taxes are paid in January of each year, who will receive a credit at closing for property taxes paid if the closing takes place on March 12th?

AThe seller

Many people may own an interest in a particular property, including owners, easement holders, lenders, unpaid workers, and tenants. How do we keep track of all these interests?

AThe title system

A ............. is the most common type of deed used to transfer title.

AWarranty deed

A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.

Abstract of Title

Rent from an income producing property is typically collected...?

Ain advance for the upcoming month

A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in current owner.

Chain of Title -

A bookkeeping entry on the right side of an account, recording the reduction or elimination of an asset or an expense, or the creation of or addition to a liability or item of equity or revenue.

Credit -

That which is due from one person to another.

Debit

Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.

Marketable Title

An attorney's written evaluation of the condition of the title to a parcel of land after examination of the abstract of title.

Opinion of Title -

Adjustments of interest, taxes, and insurance, etc., on a pro rata basis as of the closing or agreed upon date.

Proration -

A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development.

Real Estate Settlement Procedures Act (RESPA)

The document that shows all of the receipts and disbursements handled by the closing attorney for the seller, and all money received in the transaction from the buyer, as well as the reason for and manner in which it was disbursed is the...?

Settlement statement

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss, e.g., defective or unmarketable title.

Title Insurance