CH 11
Which of the following is the largest closing expense for the seller...? A) Commissions B) Survey C) Appraisal D) Loan origination fees
A) Commissions
In a closing statement, money to be received or credit given for money or an obligation given is referred to as a...? A) Credit B) Profit C) Debit D) Expense
A) Credit
In a closing statement, an expense or money received against a credit is referred to as a...? A) Debit B) Receivable C) Paid expense D) Debt
A) Debit
A broker is entitled to a commission if they find a ready, willing and able buyer...? A) T (True) B) F (False)
A) T (True)
An escrow account must be extended by mutual agreement between the parties...? A) T (True) B) F (False)
A) T (True)
Escrow may be terminated by mutual agreement...? A) T (True) B) F (False)
A) T (True)
Homeowners insurance typically gets prorated between the buyer and seller at closing...? A) T (True) B) F (False)
A) T (True)
In Northern California, title and escrow are typically handled within the same company...? A) T (True) B) F (False)
A) T (True)
Prorations are documented on the closing settlement statement...? A) T (True) B) F (False)
A) T (True)
The listing agent must sign the purchase contract, in addition to the buyer and seller...? A) T (True) B) F (False)
A) T (True)
This refers to any transaction wherein one person, for the purpose of affecting the sale of real property to another person, delivers any written instruments, money, or evidence of title to the property to a third person, to be held by such third person until the happening of a specified event...? A) Trust B) Escrow C) Security D) Closing
B) Escrow
A broker is never allowed to serve as an escrow agent in a transaction...? A) T (True) B) F (False)
B) F (False)
An escrow account does not have an expiration date...? A) T (True) B) F (False)
B) F (False)
RESPA is a State law...? A) T (True) B) F (False)
B) F (False)
Rents collected on an investment property are not prorated at closing...? A) T (True) B) F (False)
B) F (False)
The buyer and seller are required to equally pay for the escrow...? A) T (True) B) F (False)
B) F (False)
The escrow account for a residential transaction is typically opened by the buyer's agent...? A) T (True) B) F (False)
B) F (False)
Which of the following documents shows all of the buyers' and sellers' closing expenses...? A) Title contract B) Settlement statement C) Listing agreement D) Submission summary
B) Settlement statement
RESPA was first passed in...? A) 1964 B) 1968 C) 1974 D) 1988
C) 1974
Escrow terminates after which of the following occurs...? A) The purchase agreement is signed B) The buyer moves into the property C) Both the deed and funds are transferred D) Once the buyer receives a commitment letter from their lender
C) Both the deed and funds are transferred
Which of the following items gets prorated between the buyer and seller...? A) Appraisal fees B) Commissions C) Property taxes D) Loan origination fees
C) Property taxes
The division of certain settlement costs between a buyer and seller is referred to as...? A) Escrow B) Debit C) Proration D) Credit
C) Proration
Which of the following prohibits kickbacks and referral fees that unnecessarily increase the costs of obtaining a loan...? A) Unruh Act B) ADA C) RESPA D) Fair Housing Act Correct
C) RESPA
Which of the following authorizes the escrow agent to carry out the escrow instructions...? A) The listing contract B) The buyer representation agreement C) The escrow agreement D) The title contract
C) The escrow agreement
Escrow may be handled by which of the following...? A) Insurance companies B) Title companies C) Banks D) All of the above
D) All of the above
Which of the following is required for a valid escrow...? A) A legally binding contract B) A valid deed C) The escrow instructions must be signed by all parties D) All of the above
D) All of the above
Which of the following is the largest closing expense for the buyer...? A) Commissions B) Survey C) Appraisal D) Loan origination fees
D) Loan origination fees
An escrow agent who buys gifts for a real estate broker may be in violation of what Act...? A) ADA B) Unruh Act C) Fair Housing Act D) RESPA
D) RESPA
Who is typically responsible for calculating the prorations at closing...? A) The seller's broker B) The buyer's broker C) Both the buyer and seller D) The escrow agent
D) The escrow agent
Which of the following typically serves as the escrow instructions in a residential transaction...? A) The listing contract B) The independent contractor agreement C) The buyer representation agreement D) The purchase contract
D) The purchase contract