Question 1

Tom Finn refers his clients to a title company that is partially owned by Tom. Tom then receives profit distributions from the title company. Which of the following is true?

Accepted Answer

A) Tom is involved in an illegal kickback scheme. 
B) Tom must make disclosures about the relationships as well as the fee payments. 
C) Tom is not liable for any debts or obligations. 
D) RESPA does not apply to transactions handled by a lawyer. 
A) Tom is involved in an illegal kickback scheme. 
B) Tom must make disclosures about the relationships as well as the fee payments. 
C) Tom is not liable for any debts or obligations. 
D) RESPA does not apply to transactions handled by a lawyer.

Question 2

The Consumer Financial Protection Bureau has taken over HUD's role on RESPA.

Accepted Answer

A) True 
 B)False

Question 3

List the types of mortgages to which RESPA applies.

Accepted Answer

?All first and second lien mor

Question 4

Toll Brothers is a high-end home builder. Toll Brothers also owns First Rate Mortgage Brokers and United First Title Company. Each Toll Brothers home buyer is referred to First Rate and United First for their mortgage and closing services once they have signed their contract with Toll Brothers. The homebuyers are not told of the relationships of Toll Brothers to First Rate and United First.

Accepted Answer

A)  Toll Brothers has not violated RESPA because referrals are not prohibited under RESPA. 
B)  Toll Brothers has violated RESPA unless it can show that the fees it charges through its wholly owned entity are less than the buyers could obtain elsewhere. 
C)  Toll Brothers has violated RESPA. 
D)  RESPA does not apply to builder referrals to mortgage and title companies. 
A)  Toll Brothers has not violated RESPA because referrals are not prohibited under RESPA. 
B)  Toll Brothers has violated RESPA unless it can show that the fees it charges through its wholly owned entity are less than the buyers could obtain elsewhere. 
C)  Toll Brothers has violated RESPA. 
D)  RESPA does not apply to builder referrals to mortgage and title companies.

Question 5

Which of the following is not a party to the escrow instructions?

Accepted Answer

A)  Buyer 
B)  Seller 
C)  Escrow agent 
D)  Lender 
A)  Buyer 
B)  Seller 
C)  Escrow agent 
D)  Lender

Question 6

RESPA:

Accepted Answer

A)  Prohibits developers from owning title companies. 
B)  Requires advance estimates of settlement service charges. 
C)  Limits the amounts the seller is required to deposit in escrow. 
D)  Requires a closing process in some government office. 
A)  Prohibits developers from owning title companies. 
B)  Requires advance estimates of settlement service charges. 
C)  Limits the amounts the seller is required to deposit in escrow. 
D)  Requires a closing process in some government office.

Question 7

Which document is delivered to escrow by the buyer?

Accepted Answer

A)  Termite report 
B)  Loan commitment 
C)  Deed 
D)  VA forms 
A)  Termite report 
B)  Loan commitment 
C)  Deed 
D)  VA forms

Question 8

Escrow instructions are an agency agreement.

Accepted Answer

A) True 
 B)False

Question 9

RESPA:

Accepted Answer

A)  Does not apply to FHA or VA loans. 
B)  Applies to settlement charges and not the costs of loans. 
C)  Applies to brokers and title companies, but not to mortgage lenders. 
D)  Does not prohibit builder discounts on closing costs if the buyer uses a builder-affiliated company. 
A)  Does not apply to FHA or VA loans. 
B)  Applies to settlement charges and not the costs of loans. 
C)  Applies to brokers and title companies, but not to mortgage lenders. 
D)  Does not prohibit builder discounts on closing costs if the buyer uses a builder-affiliated company.

Question 10

​Suppose a corporate buyer wanted to back out of a land purchase transaction that is in escrow. What should it do?

Accepted Answer

​Notify seller and escrow agen

Question 11

Annual taxes on the home Celinda Evans is purchasing are $1,200 (or $100 per month), due on April 30. Celinda's closing on her new home will occur on July 15, and her first full mortgage payment will be made on September 1. Under RESPA, the maximum deposit Celinda's lender can require for her taxes is:

Accepted Answer

A) $100. 
B) $200. 
C) $300. 
D) $600. 
A) $100. 
B) $200. 
C) $300. 
D) $600.

Question 12

If a conflict exists between the escrow instructions and the sales contract:

Accepted Answer

A)  The escrow is invalid. 
B)  The sales contract will control. 
C)  The escrow instructions will control. 
D)  No escrow can be set up. 
A)  The escrow is invalid. 
B)  The sales contract will control. 
C)  The escrow instructions will control. 
D)  No escrow can be set up.

Question 13

The lender is responsible for delivery of loan documents to escrow.

Accepted Answer

A) True 
 B)False

Question 14

Sandpoint Title Company has offered Lenox Homes a 15% discount on closing costs if Lenox brings all of its homebuyers to Sandpoint for closing on their homes. The 15% discount:

Accepted Answer

A) Is a violation of RESPA. 
B) Is a violation of RESPA unless the volume discount is passed along to the Lenox home buyers. 
C) Is not a violation of RESPA as long as the discount is disclosed. 
D) Is the YSP in the transactions. 
A) Is a violation of RESPA. 
B) Is a violation of RESPA unless the volume discount is passed along to the Lenox home buyers. 
C) Is not a violation of RESPA as long as the discount is disclosed. 
D) Is the YSP in the transactions.

Question 15

Under RESPA:

Accepted Answer

A) A broker cannot refer a buyer or seller to an escrow agent. 
B) An escrow agent cannot collect a fixed fee for services. 
C) A broker cannot accept reduced rent in exchange for referrals to an escrow agent who is his/her landlord. 
D) Brokers need not disclose a .25% interest in a referral to a title company. 
A) A broker cannot refer a buyer or seller to an escrow agent. 
B) An escrow agent cannot collect a fixed fee for services. 
C) A broker cannot accept reduced rent in exchange for referrals to an escrow agent who is his/her landlord. 
D) Brokers need not disclose a .25% interest in a referral to a title company.

Question 16

The lender must disclose at the time of a loan application whether the loan may be transferred or assigned.

Accepted Answer

A) True 
 B)False

Question 17

There are criminal penalties for violations of RESPA.

Accepted Answer

A) True 
 B)False

Question 18

Rose Hill Realty referred one of its clients to GMC for their borrowing needs. This referral:

Accepted Answer

A)  Is prohibited by RESPA. 
B)  Alone is not prohibited by RESPA. 
C)  Is not covered under RESPA because it is broker to mortgage company and not broker to escrow agent. 
D)  Is not addressed by RESPA. 
A)  Is prohibited by RESPA. 
B)  Alone is not prohibited by RESPA. 
C)  Is not covered under RESPA because it is broker to mortgage company and not broker to escrow agent. 
D)  Is not addressed by RESPA.

Question 19

Ralph Watkins is a real estate attorney who owns 10% of United Escrow. Ralph refers all of his real estate clients to United for their closings. Which of the following statements is correct?

Accepted Answer

A)  Ralph has violated RESPA because there is a kickback. 
B)  Ralph is not subject to RESPA because he is an attorney, not a real estate broker. 
C)  Ralph can make the referral, but must disclose his ownership interest in United. 
D)  Ralph is not subject to RESPA requirements as an attorney. 
A)  Ralph has violated RESPA because there is a kickback. 
B)  Ralph is not subject to RESPA because he is an attorney, not a real estate broker. 
C)  Ralph can make the referral, but must disclose his ownership interest in United. 
D)  Ralph is not subject to RESPA requirements as an attorney.

Question 20

A valid escrow closing must take place in a courthouse.

Accepted Answer

A) True 
 B)False

Tom Finn refers his clients to a title company that is partially owned by Tom. Tom then receives profit distributions from the title company. Which of the following is true?

The Consumer Financial Protection Bureau has taken over HUD's role on RESPA.

List the types of mortgages to which RESPA applies.

Which of the following is not a party to the escrow instructions?

RESPA:

Which document is delivered to escrow by the buyer?

Escrow instructions are an agency agreement.

RESPA:

Suppose a corporate buyer wanted to back out of a land purchase transaction that is in escrow. What should it do?

If a conflict exists between the escrow instructions and the sales contract:

The lender is responsible for delivery of loan documents to escrow.

Sandpoint Title Company has offered Lenox Homes a 15% discount on closing costs if Lenox brings all of its homebuyers to Sandpoint for closing on their homes. The 15% discount:

Under RESPA:

The lender must disclose at the time of a loan application whether the loan may be transferred or assigned.

There are criminal penalties for violations of RESPA.

Rose Hill Realty referred one of its clients to GMC for their borrowing needs. This referral:

Ralph Watkins is a real estate attorney who owns 10% of United Escrow. Ralph refers all of his real estate clients to United for their closings. Which of the following statements is correct?

A valid escrow closing must take place in a courthouse.

Sources of Real Estate Law

Land Interests: Present and Future

Extent of Real Estate Interests

Nonpossessory Interests in Real Estate

Fixtures

Liens

Describing Land Interests

Co-Ownership of Real Estate

The Landlord-Tenant Relationship

Commercial Leases

Real Estate Communities: Multiunit Interests and Owners Associations

The Brokers Role in the Transfer of Real Estate

The Purchase Contract

Methods of Transfer and Conveyance in Real Estate

Financing in the Transfer of Real Estate

Transferring Real Estate After Death: Wills, Estates, and Probate

Zoning

Constitutional Issues in Real Estate

Environmental Regulation and Sustainability

Legal Issues in Land and Economic Development

Tax Aspects of Real Estate Ownership and Transfer

Filters

Exam 16: Closing the Deal

Tom Finn refers his clients to a title company that is partially owned by Tom. Tom then receives profit distributions from the title company. Which of the following is true?

The Consumer Financial Protection Bureau has taken over HUD's role on RESPA.

List the types of mortgages to which RESPA applies.

Which of the following is not a party to the escrow instructions?

RESPA:

Which document is delivered to escrow by the buyer?

Escrow instructions are an agency agreement.

RESPA:

​Suppose a corporate buyer wanted to back out of a land purchase transaction that is in escrow. What should it do?

If a conflict exists between the escrow instructions and the sales contract:

The lender is responsible for delivery of loan documents to escrow.

Sandpoint Title Company has offered Lenox Homes a 15% discount on closing costs if Lenox brings all of its homebuyers to Sandpoint for closing on their homes. The 15% discount:

Under RESPA:

The lender must disclose at the time of a loan application whether the loan may be transferred or assigned.

There are criminal penalties for violations of RESPA.

Rose Hill Realty referred one of its clients to GMC for their borrowing needs. This referral:

Ralph Watkins is a real estate attorney who owns 10% of United Escrow. Ralph refers all of his real estate clients to United for their closings. Which of the following statements is correct?

A valid escrow closing must take place in a courthouse.

Sources of Real Estate Law

Land Interests: Present and Future

Extent of Real Estate Interests

Nonpossessory Interests in Real Estate

Fixtures

Liens

Describing Land Interests

Co-Ownership of Real Estate

The Landlord-Tenant Relationship

Commercial Leases

Real Estate Communities: Multiunit Interests and Owners Associations

The Brokers Role in the Transfer of Real Estate

The Purchase Contract

Methods of Transfer and Conveyance in Real Estate

Financing in the Transfer of Real Estate

Transferring Real Estate After Death: Wills, Estates, and Probate

Zoning

Constitutional Issues in Real Estate

Environmental Regulation and Sustainability

Legal Issues in Land and Economic Development

Tax Aspects of Real Estate Ownership and Transfer

Filters

Suppose a corporate buyer wanted to back out of a land purchase transaction that is in escrow. What should it do?