Real estate Chapter 11
Sales price $295,000, buyer puts on new 80% loan, and pays 1% loan fee, $45 tax service fee, $400 tax prorations, $175 structural pest control inspection fee, $20 credit report, $20 recording fee, $910 hazard insurance fee, $600 escrow fee. How much will the buyer need to close escrow?
$63,530
Sales price is $800,000. Buyer is to put $200,000 down and obtain new first loan for $500,000, and seller to carry back second loan for $100,000. Documentary transfer tax is
$880
Which insurance policy requires the title company to make a physical inspection of the property?
ALTA (American Land Title Association) (extended coverage policy)
Most homeowners in Cali have which type of title insurance policy
CTLA owner's (Cali Land Title Association)
Which law requires the escrow officer to prepare HUD-1 closing statements
RESPA
On behalf of the buyer and seller, the escrow officer acts as
agent
There are certain requirements that must be met before a transaction can be placed in escrow. They are: binding contract between buyer and seller, neutral 3rd party is employed, conditional delivery of all documents related to sale, all above
all above
With the approval of all parties, real estate brokers can acts as escrow holders in transactions in which they have the: listing, buyer, ownership, all above
all above
A joint protection title policy insures
buyer and lender
Escrow is a process whereby a neutral third party acts on behalf of the
buyer and seller only
A history of title transfers for a particular parcel of land is
chain of title
For an escrow to be valid, there must be a
conditional delivery of transfer documents to a 3rd party
Prepaid property taxes would appear as prorated
debit to buyer
The payment of closing cost is negotiated between the buyer and seller but the seller frequently pays for the
documentary transfer tax
Which of the following is not exempt from the escrow licensing law: trust companies, escrow companies, title insurance, real estate brokers
escrow companies
Which of the following is recurring closing cost
fire insurance
Title insurance covers recorded "deeds and patents". A patent is a
government conveyance
Standard title insurance policy insures against
incompetent parties on record
Which of the following must be licensed to be an escrow holder
independent corporation
Extended coverage title polices are usually requested by
institutional lenders
The most extensive title coverage would be
insurance of title
In a real estate transaction, who decides which escrow company to use
it is negotiated between the buyer and seller
Termination of escrow can occur: when escrow officer completes the paperwork, when listing agent says it is ok, upon completion of sale, none of above
none of above
Which of the following is normally paid by the seller? prepayment penalty, credit report fee, recording fee for trust deed, loan origination fee
prepayment penalty
The buyer's closing costs are divided into categories. They are: recurring and seller's costs, buyer's costs and sellers costs, recurring and nonrecurring costs, nonrecurring costs only because buyer does not pay recurring costs
recurring and nonrecurring costs
Tax service fee is usually paid by
seller
Who decides what title company to use
this is negotiable between buyer and seller
In N Cali, most escrows are handled by
title companies
Title insurance rates are set by
title companies
Title insurance does not cover publicly disclosed
zoning ordinaces