Question 1

In a typical closing, insurance prorations will usually be a credit to the seller and an expense to the buyer.

Accepted Answer

A) True 
 B)False

Question 2

How many days are normally needed to close a residential sale that requires no financing?

Accepted Answer

A)  1 to 29 
B)  30 to 60 
C)  61 to 90 
D)  over 90 
A)  1 to 29 
B)  30 to 60 
C)  61 to 90 
D)  over 90

Question 3

RESPA prohibits the seller from requiring that the buyer purchase title insurance from a particular title company.

Accepted Answer

A) True 
 B)False

Question 4

Choose the one most appropriate answer for each.
-the person or firm in charge of an escrow

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 5

A couple buys a house complete with furnishings. They assume and agree to pay the existing mortgage. All of the following documents should be used in closing EXCEPT

Accepted Answer

A)  note and mortgage. 
B)  assumption papers. 
C)  bill of sale. 
D)  closing instructions. 
A)  note and mortgage. 
B)  assumption papers. 
C)  bill of sale. 
D)  closing instructions.

Question 6

During a "dry closing" the deed is disbursed to the buyer.

Accepted Answer

A) True 
 B)False

Question 7

The division of ongoing expenses and income items between the buyer and seller is called prorating.

Accepted Answer

A) True 
 B)False

Question 8

Choose the one most appropriate answer for each.
-a list of anticipated closing costs given to the borrower by the lender as required by RESPA

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 9

Under the provisions of RESPA payments outside closing are prohibited.

Accepted Answer

A) True 
 B)False

Question 10

According to the Real Estate Settlement and Procedures Act, which of the following is illegal?

Accepted Answer

A)  Examination of the HUD settlement statement the day before closing 
B)  Payment of kickbacks 
C)  Delivery of the closing statement on the day of closing 
D)  Disbursement of commission fees 
A)  Examination of the HUD settlement statement the day before closing 
B)  Payment of kickbacks 
C)  Delivery of the closing statement on the day of closing 
D)  Disbursement of commission fees

Question 11

A disinterested party representing both buyer and seller in a real estate sale is the

Accepted Answer

A)  broker. 
B)  salesperson. 
C)  escrow agent. 
D)  attorney-in-fact. 
A)  broker. 
B)  salesperson. 
C)  escrow agent. 
D)  attorney-in-fact.

Question 12

Choose the one most appropriate answer for each.
-a federal law that deals with procedures to be followed in certain types of real estate closings

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 13

Of the following, the final action to be taken to complete a closing is

Accepted Answer

A)  acknowledgement of all instruments. 
B)  recordation of appropriate instruments. 
C)  signing of the deed. 
D)  title search. 
A)  acknowledgement of all instruments. 
B)  recordation of appropriate instruments. 
C)  signing of the deed. 
D)  title search.

Question 14

In prorating rents, the dollar amount is a credit to the seller and a debit to the buyer.

Accepted Answer

A) True 
 B)False

Question 15

A seller received $81,000 at the close of escrow after paying $1,750 in closing costs and a 6% brokerage fee. What was the sales price of the house?

Accepted Answer

A)  $82,750 
B)  $87,480 
C)  $89,230 
D)  $88,032 
A)  $82,750 
B)  $87,480 
C)  $89,230 
D)  $88,032

Question 16

A seller received a net amount of $29,817 after paying off a $53,000 loan balance, $1,213 in miscellaneous costs, and a 7% brokerage fee. What was the sale price of the house? (round to nearest dollar)

Accepted Answer

A)  $77,020 
B)  $84,030 
C)  $90,355 
D)  $90,360 
A)  $77,020 
B)  $84,030 
C)  $90,355 
D)  $90,360

Question 17

For what price must a house sell if the seller is to net $30,000 after paying $1,500 in settlement and the broker's commission of 6% (rounded to the nearest dollar)?

Accepted Answer

A)  $30,000 
B)  $32,011 
C)  $32,300 
D)  $33,511 
A)  $30,000 
B)  $32,011 
C)  $32,300 
D)  $33,511

Question 18

Under the Real Estate Settlement and Procedures Act, all of the following are required of the lender EXCEPT

Accepted Answer

A)  submission to the borrower of the booklet "Settlement Costs and You". 
B)  submission of a "good faith estimate" of loan closing costs. 
C)  disclosure of the "Annual Percentage Rate". 
D)  use of the Uniform Settlement Statement for closing. 
A)  submission to the borrower of the booklet "Settlement Costs and You". 
B)  submission of a "good faith estimate" of loan closing costs. 
C)  disclosure of the "Annual Percentage Rate". 
D)  use of the Uniform Settlement Statement for closing.

Question 19

Choose the one most appropriate answer for each.
-shows the unpaid balance on a loan and is provided by the lender

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 20

Escrow accounts are opened for the protection of the interests of the

Accepted Answer

A)  general public. 
B)  seller. 
C)  buyer and seller. 
D)  buyer. 
A)  general public. 
B)  seller. 
C)  buyer and seller. 
D)  buyer.

Exam 15: Title Closing and Escrow

In a typical closing, insurance prorations will usually be a credit to the seller and an expense to the buyer.

How many days are normally needed to close a residential sale that requires no financing?

RESPA prohibits the seller from requiring that the buyer purchase title insurance from a particular title company.

Choose the one most appropriate answer for each. -the person or firm in charge of an escrow

A couple buys a house complete with furnishings. They assume and agree to pay the existing mortgage. All of the following documents should be used in closing EXCEPT

During a "dry closing" the deed is disbursed to the buyer.

The division of ongoing expenses and income items between the buyer and seller is called prorating.

Choose the one most appropriate answer for each. -a list of anticipated closing costs given to the borrower by the lender as required by RESPA

Under the provisions of RESPA payments outside closing are prohibited.

According to the Real Estate Settlement and Procedures Act, which of the following is illegal?

A disinterested party representing both buyer and seller in a real estate sale is the

Choose the one most appropriate answer for each. -a federal law that deals with procedures to be followed in certain types of real estate closings

Of the following, the final action to be taken to complete a closing is

In prorating rents, the dollar amount is a credit to the seller and a debit to the buyer.

A seller received $81,000 at the close of escrow after paying $1,750 in closing costs and a 6% brokerage fee. What was the sales price of the house?

A seller received a net amount of $29,817 after paying off a $53,000 loan balance, $1,213 in miscellaneous costs, and a 7% brokerage fee. What was the sale price of the house? (round to nearest dollar)

For what price must a house sell if the seller is to net $30,000 after paying $1,500 in settlement and the broker's commission of 6% (rounded to the nearest dollar)?

Under the Real Estate Settlement and Procedures Act, all of the following are required of the lender EXCEPT

Choose the one most appropriate answer for each. -shows the unpaid balance on a loan and is provided by the lender

Escrow accounts are opened for the protection of the interests of the

Nature and Description of Real Estate

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