Question 1

Deed delivery in an escrow is accomplished by

Accepted Answer

A)  the escrow holder accepting the deed on behalf of the grantee. 
B)  delivery of the deed by the escrow holder to the grantor. 
C)  a courier service. 
D)  the title company. 
A)  the escrow holder accepting the deed on behalf of the grantee. 
B)  delivery of the deed by the escrow holder to the grantor. 
C)  a courier service. 
D)  the title company. A

Question 2

The deposit of documents and funds with a ____________________ third party plus instructions as to how to conduct the closing is called an escrow closing.

Accepted Answer

neutral

Question 3

Choose the one most appropriate answer for each.
-statement by an owner or lienholder as to the balance due on an existing lien against the property

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through M

Question 4

In a closing statement, the amount of interest on an assumed loan is a

Accepted Answer

A)  charge to the seller only. 
B)  charge to the buyer only. 
C)  charge to the seller and credit to the buyer. 
D)  charge to the buyer and credit to the seller. 
A)  charge to the seller only. 
B)  charge to the buyer only. 
C)  charge to the seller and credit to the buyer. 
D)  charge to the buyer and credit to the seller.

Question 5

Choose the one most appropriate answer for each.
-to divide the ongoing income and expenses of a property between the buyer and the seller

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 6

Choose the one most appropriate answer for each.
-the process of completing a real estate transaction

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 7

Choose the one most appropriate answer for each.
-the day on which the closing is finalized. Also called the settlement date

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 8

One advantage of the escrow closing method is that it can eliminate personal confrontation between buyer and seller.

Accepted Answer

A) True 
 B)False

Question 9

Pat bought a home for $75,000. He put up $5,000 earnest money and secured an 80% loan. The bank charged four points and a 2.5% loan fee. Pat received a $900 credit from the proration of taxes. How much cash will he need to bring to close this transaction?

Accepted Answer

A)  $13,000 
B)  $13,900 
C)  $13,975 
D)  $18,000 
A)  $13,000 
B)  $13,900 
C)  $13,975 
D)  $18,000

Question 10

A 9% amortized loan with a November 1 balance of $40,000 requires the payment of principal and interest at the first of each month. If prorating is done as of the 20ᵗʰ of November, the

Accepted Answer

A)  buyer owes the seller $100. 
B)  buyer owes the seller $200. 
C)  seller owes the buyer $100. 
D)  seller owes the buyer $200. 
A)  buyer owes the seller $100. 
B)  buyer owes the seller $200. 
C)  seller owes the buyer $100. 
D)  seller owes the buyer $200.

Question 11

A buyer's walk-through is conducted for the purpose of

Accepted Answer

A)  appraising the property in order to get a loan on it. 
B)  inspecting the property for major structural defects. 
C)  meeting the seller and obtaining the keys to the property. 
D)  making a final inspection just prior to closing. 
A)  appraising the property in order to get a loan on it. 
B)  inspecting the property for major structural defects. 
C)  meeting the seller and obtaining the keys to the property. 
D)  making a final inspection just prior to closing.

Question 12

The property tax year runs from January 1 to December 31. The taxes on a certain house are $1,440 this year, none of which has been paid. If the house sells, not in a leap year, and the closing date is June 12, the

Accepted Answer

A)  buyer owes the seller $796.93. 
B)  buyer owes the seller $643.07. 
C)  seller owes the buyer $796.93. 
D)  seller owes the buyer $643.07. 
A)  buyer owes the seller $796.93. 
B)  buyer owes the seller $643.07. 
C)  seller owes the buyer $796.93. 
D)  seller owes the buyer $643.07.

Question 13

The HUD Settlement Statement required of all federally related real estate lenders is known as the ____________________.

Accepted Answer

The answer of The HUD Settlement Statement required of all...

Question 14

A buyer agreed to put down $5,000 as earnest money toward a house he was buying for $97,000. The offer was based upon receipt of an 80% loan from a bank. The attorney's fees were $2,000 and all other buyer costs amounted to $1,500. How much money will the buyer need to pay at settlement?

Accepted Answer

A)  $14,400 
B)  $17,900 
C)  $17,700 
D)  $22,900 
A)  $14,400 
B)  $17,900 
C)  $17,700 
D)  $22,900

Question 15

A(n)____________________ statement is a statement by an owner or lienholder as to the balance due on an existing lien against the property.

Accepted Answer

The answer of A(n)____________________ statement is a statement by an...

Question 16

RESPA prohibits ____________________ and fees for services not performed during the closing process.

Accepted Answer

The answer of RESPA prohibits ____________________ and fees for services...

Question 17

The home was sold on July 18. The next payment date is August 1. The buyer agreed to assume the seller's 6% loan which has a balance of $36,800 as of July 1. Interest on this loan would be prorated as

Accepted Answer

A)  debit buyer $77.16 and credit seller $106.84. 
B)  debit seller $77.16 and credit buyer $106.84. 
C)  credit seller $106.84 and charge buyer $106.84. 
D)  credit buyer $106.84 and charge seller $106.84. 
A)  debit buyer $77.16 and credit seller $106.84. 
B)  debit seller $77.16 and credit buyer $106.84. 
C)  credit seller $106.84 and charge buyer $106.84. 
D)  credit buyer $106.84 and charge seller $106.84.

Question 18

During a "dry closing" the money is disbursed to the seller.

Accepted Answer

A) True 
 B)False

Question 19

In most states in which title transfers are handled in escrow, the agents must be bonded.

Accepted Answer

A) True 
 B)False

Question 20

Choose the one most appropriate answer for each.
-when seller and buyer meet in person to close a real estate transaction

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Exam 15: Title Closing and Escrow

Deed delivery in an escrow is accomplished by

The deposit of documents and funds with a ____________________ third party plus instructions as to how to conduct the closing is called an escrow closing.

Choose the one most appropriate answer for each. -statement by an owner or lienholder as to the balance due on an existing lien against the property

In a closing statement, the amount of interest on an assumed loan is a

Choose the one most appropriate answer for each. -to divide the ongoing income and expenses of a property between the buyer and the seller

Choose the one most appropriate answer for each. -the process of completing a real estate transaction

Choose the one most appropriate answer for each. -the day on which the closing is finalized. Also called the settlement date

One advantage of the escrow closing method is that it can eliminate personal confrontation between buyer and seller.

Pat bought a home for $75,000. He put up $5,000 earnest money and secured an 80% loan. The bank charged four points and a 2.5% loan fee. Pat received a $900 credit from the proration of taxes. How much cash will he need to bring to close this transaction?

A 9% amortized loan with a November 1 balance of $40,000 requires the payment of principal and interest at the first of each month. If prorating is done as of the 20ᵗʰ of November, the

A buyer's walk-through is conducted for the purpose of

The property tax year runs from January 1 to December 31. The taxes on a certain house are $1,440 this year, none of which has been paid. If the house sells, not in a leap year, and the closing date is June 12, the

The HUD Settlement Statement required of all federally related real estate lenders is known as the ____________________.

A buyer agreed to put down $5,000 as earnest money toward a house he was buying for $97,000. The offer was based upon receipt of an 80% loan from a bank. The attorney's fees were $2,000 and all other buyer costs amounted to $1,500. How much money will the buyer need to pay at settlement?

A(n)____________________ statement is a statement by an owner or lienholder as to the balance due on an existing lien against the property.

RESPA prohibits ____________________ and fees for services not performed during the closing process.

The home was sold on July 18. The next payment date is August 1. The buyer agreed to assume the seller's 6% loan which has a balance of $36,800 as of July 1. Interest on this loan would be prorated as

During a "dry closing" the money is disbursed to the seller.

In most states in which title transfers are handled in escrow, the agents must be bonded.

Choose the one most appropriate answer for each. -when seller and buyer meet in person to close a real estate transaction

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