section 4 chapter 5

The purpose of the Real Estate Settlement Procedures Act is to: Select one: a. Limit settlement costs to consumers b. To bar excessive interest costs c. To speed up real estate closings d. To allow consumers to shop for settlement services

To allow consumers to shop for settlement services

When conducting a closing, the settlement agent is responsible for all of the following, EXCEPT: Select one: a. Collecting all legal documents and funds pertaining to the closing of the transaction b. Obtaining all information relevant to the marketability of the title c. Paying the net proceeds of the sale to the seller d. Payment of the commission to the listing salesperson

Payment of the commission to the listing salesperson

The HUD 1 lists all of the following EXCEPT? Select one: a. The sales price. b. The earnest money deposit. c. The broker's commission. d. Price the seller originally paid for the property.

Price the seller originally paid for the property.

The Real Estate Settlement Procedures Act: Select one: a. Limits closing costs and settlement fees for services provided. b. Provides for disclosure of estimated closing costs. c. Limits the amount of commission charged. d. Designates a licensed settlement agent.

Provides for disclosure of estimated closing costs.

In which of the following sequences would the listed documents be recorded? Select one: a. Buyer's mortgage, seller's satisfaction of mortgage, seller's deed to buyer b. Seller's deed to buyer, seller's satisfaction of mortgage, buyer's mortgage c. Seller's satisfaction of mortgage, seller's deed to buyer, buyer's mortgage d. Seller's satisfaction of mortgage, buyer's mortgage, seller's deed to buyer Feedback

Seller's satisfaction of mortgage (this is recorded to remove the mortgage lien), seller's deed to buyer (this is recorded to transfer title to buyer), buyer's mortgage (recorded to sell the new loan)

Sam is a licensed real estate salesperson and is working with a buyer in the purchase of a singlefamily residence. Sam recommends ACME Title to the buyer for the purchase of title insurance. ACME pays a referral fee to Sam. This action violates which of the following laws? Select one: a. Truth-in-Lending Act b. Fair Housing Act c. Real Estate Settlement Procedures Act d. None of the above, as the referral fee is not prohibited

real estate settlement procedures act

The type of closing where a meeting is held with the buyer, the seller, the lender, the title insurance company and various attorneys and third parties in attendance is known as a(n): Select one: a. Table closing b. Escrow closing c. Impound closing d. Conference closing

table closing

If the seller has already paid the annual property tax bill when the house is sold, how will the tax proration appear on the settlement statement? Select one: a. A debit to the buyer and a credit to the seller b. A debit to the seller and a credit to the buyer c. A debit to both the buyer and the seller d. A credit to both the buyer and the seller

a debit to the buyer and a credit to the seller

A settlement agent is responsible for paying which of the following? Select one: a. Balance due on the seller's mortgage b. Title insurance premium c. Costs of recording d. All of the above

all of the above

Which of the following is prohibited by RESPA? Select one: a. Kickbacks. b. Steering. c. Blockbusting. d. Redlining.

kickbacks

The Federal Fair Housing Act is intended to protect the public from all of the following, EXCEPT: Select one: a. Blockbusting b. Price fixing c. Steering d. Redlining

price fixing

The type of real estate closing which is overseen by a neutral third party without a special meeting of all the principals and attorneys is called a(n): Select one: a. Table closing b. Escrow closing c. Impound closing d. Conference closing

escrow closing

True or False: An escrow closing agent acts only for the benefit of the seller.

false

True or False: RESPA covers loans for any type of residential first mortgage, regardless of how many family units make up the property.

false

True or False: RESPA was designed to set the prices of settlement services.

false

In transferring title, a buyer is usually expected to pay all of the following taxes and fees EXCEPT the: Select one: a. Grantor tax. b. Recordation tax. c. Transfer fee. d. Clerk's fee for deed of trust.

grantor tax

Which of the following is NOT prorated between buyer and seller at closing? Select one: a. Recording fees. b. Real estate taxes. c. Rents. d. Insurance premiums.

recording fees

Which of the following controls a cash settlement? Select one: a. The Equal Credit Opportunity Act. b. Regulation Z, Truth-in-Lending. c. RESPA. d. Legal property description.

respa

Which of the following statements is most accurate regarding how discount points are listed on a closing statement in the purchase of a home? Select one: a. They would always be a debit to the buyer b. They would always be a debit to the seller c. They would most likely be a debit to the seller d. They would most likely be a debit to the buyer

they would most likely be a debit to the buyer

True or False: At closing, the buyer receives credits for accrued expenses owed by the seller that the buyer will have to pay after closing.

true

True or False: In most states, real estate brokers may serve as escrow agents.

true

True or False: In most states, title companies may be closing or escrow agents.

true

True or False: The real estate contract is the blueprint for the closing and closing costs.

true

When a buyer obtains a loan for the purpose of financing the purchase of real property, how does the amount of the loan obtained appear on the Closing Disclosure? Select one: a. As a credit to the buyer and a debit to the seller. b. As a debit to the seller and a credit to the buyer. c. As a credit to the seller, only. d. As a credit to the buyer, only.

As a credit to the buyer, only.

A house sold for $140,000 with the buyer making a 20% down payment. The grantor's tax is charged at $1.00 per $1,000, what would the tax amount to: Select one: a. $28.00 - based on the down payment. b. $112.00 - based on the loan amount. c. $140.00 - based on the selling price. d. None of the above.

$140.00 - based on the selling price.

A lender receives a mortgage loan application from a consumer for the purchase of a single-family residence. How soon must the lender provide the applicant with a Good Faith Estimate of settlement costs? Select one: a. 5 business days b. 3 business days c. 7 business days d. None, as RESPA does not require Good Faith Estimates

3 business days

After a closing, all of the following documents are recorded EXCEPT? Select one: a. The deed. b. The deed of trust. c. Satisfaction of loan documents for the seller's mortgage. d. A certified copy of the HUD 1 (or Closing Disclosure) form.

A certified copy of the HUD 1 (or Closing Disclosure) form.

RESPA prohibits all the following EXCEPT? Select one: a. Kickbacks and rebates. b. Requiring that title insurance be purchased by a certain insurer. c. Allowing a lender to collect as many months' taxes as it wants to for a tax escrow account. d. Allowing the settlement agent to charge a fee for conducting the closing.

Allowing the settlement agent to charge a fee for conducting the closing.

Which transactions are covered by RESPA? Select one: a. Residential first mortgage loans for owner-occupied homes. b. Residential first mortgage loans and owner financed loans. c. Commercial loans and residential first mortgage loans. d. All of these choices.

Residential first mortgage loans for owner-occupied homes.