Chapter 5
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.
c. $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?
3 business days
Which of the following statements is most accurate regarding how discount points are listed on a closing statement in the purchase of a home?
A debit to the buyer and a credit to the seller.
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):
Escrow Closing
The HUD information booklet must be given to which of the following? Select one: a. Every person who submits a loan application to a lender over which RESPA has jurisdiction. b. Every person who visits a lender's office inquiring about first mortgage loans. c. Every person to whom a broker shows a home. d. Every person who refinances their existing mortgage.
Every person who submits a loan application to a lender over which RESPA has jurisdiction.
RESPA covers loans for any type of residential first mortgage, regardless of how many family units make up the property. Select one: a. True b. False
False
RESPA was designed to set the prices of settlement services. Select one: a. True b. False
False
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?
Real Estate Settlement Procedures Act
In which of the following sequences would the listed documents be recorded?
Seller's satisfaction of mortgage, seller's deed to buyer, buyer's mortgage First the seller's satisfaction of mortgage would be recorded to remove the mortgage lien. Then the seller's deed to buyer would be recorded to transfer title to the buyer. Lastly, the buyer's mortgage would be recorded to secure the new loan.
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):
Table Closing
RESPA does not apply to which of the following? Select one: a. The sale of residential property with 100% seller assisted financing b. A residential condominium unit. c. The sale of a townhouse in a new development of more than 25 units. d. A single family dwelling.
The sale of residential property with 100% seller assisted financing
The purpose of the Real Estate Settlement Procedures Act is to:
To allow consumers to shop for settlement services
At closing, the seller receives credits for prepaid expenses related to the property.
True
In most states, title companies may be closing or escrow agents. Select one: a. True b. False
True
RESPA was developed to help buyers understand settlement processes and costs.
True
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.
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?
As a credit to the buyer, only.