Question 1

A ___ is a sworn statement signed by the seller stating that there are no existing liens on the property that would encumber the purchaser's title.

Accepted Answer

seller's affidavit or no-lien affidavit

Question 2

Outline the steps to be taken to prorate an item.

Accepted Answer

(1) Determine the proration year used,
(2)determine the proration month used,
(3)determine the proration date,
(4)determine who the day of closing belongs to if the closing date is used as the proration date,
(5)divide the amount of the bill accordingly,
(6)determine how many days in the time frame belong to the seller and how many days belong to the purchaser, and
(7)determine whether the amount is paid in arrears or advance.

Question 3

If no type of deed is specified in the contract for sale and purchase, state law in most states indicates that a special warranty deed be used.

Accepted Answer

A) True 
 B)False  False

Question 4

Explain the various sections of a HUD-1 Uniform Settlement Statement.

Accepted Answer

The answer of Explain the various sections of a HUD-1...

Question 5

What disbursements typically are made after closing?

Accepted Answer

The answer of What disbursements typically are made after closing?...

Question 6

A written request to a lender for information specifying the amount to be paid to satisfy a debt is called a ___.

Accepted Answer

The answer of A written request to a lender for...

Question 7

On a HUD-1 Uniform Settlement Statement, the section that summarizes the borrower's transaction is:

Accepted Answer

A)   Section J
B)   Section K
C)   Section L

Question 8

On a HUD-1 Uniform Settlement Statement, the section that summarizes the seller's transaction is:

Accepted Answer

A)   Section J
B)   Section K
C)   Section L

Question 9

What closing documents typically are prepared by the seller's attorney?

Accepted Answer

The answer of What closing documents typically are prepared by...

Question 10

A ___ certifies that the seller is not a foreign person as that term is defined in section 1455 of the Internal Revenue Code and that monies need not be withheld from the sale for tax purposes.

Accepted Answer

The answer of A ___ certifies that the seller is...

Question 11

It is the closing agent's responsibility to fill out a 1099-S reporting form.

Accepted Answer

A) True 
 B)False

Question 12

Items that are paid in advance or arrears and are to be apportioned between the parties are referred to as ___.

Accepted Answer

The answer of Items that are paid in advance or...

Question 13

On a HUD-1 Uniform Settlement Statement, the section in which prorated items are itemized is:

Accepted Answer

A)   Section C
B)   Section J
C)   Section L

Question 14

The following items are prorated on a closing statement except:

Accepted Answer

A)   real property taxes
B)   title insurance
C)   special assessments

Question 15

On a title commitment, the current owner listed is the buyer.

Accepted Answer

A) True 
 B)False

Question 16

A bill of sale must include the actual purchase price of the personal property sold with the real property.

Accepted Answer

A) True 
 B)False

Question 17

If the seller(s) is/are married, a            should be prepared.

Accepted Answer

The answer of If the seller(s) is/are married, a           ...

Question 18

When setting up a tickler system and worksheet for a real estate file, the best place to start is with the contract for sale and purchase.

Accepted Answer

A) True 
 B)False

Question 19

Explain the way an escrow closing works.

Accepted Answer

The answer of Explain the way an escrow closing works....

Question 20

A closing agent is also known as:

Accepted Answer

A)   a settlement agent
B)   an escrow agent
C)   both a and b

Exam 12: An Introduction to the Closing

A ___ is a sworn statement signed by the seller stating that there are no existing liens on the property that would encumber the purchaser's title.

Outline the steps to be taken to prorate an item.

If no type of deed is specified in the contract for sale and purchase, state law in most states indicates that a special warranty deed be used.

Explain the various sections of a HUD-1 Uniform Settlement Statement.

What disbursements typically are made after closing?

A written request to a lender for information specifying the amount to be paid to satisfy a debt is called a ___.

On a HUD-1 Uniform Settlement Statement, the section that summarizes the borrower's transaction is:

On a HUD-1 Uniform Settlement Statement, the section that summarizes the seller's transaction is:

What closing documents typically are prepared by the seller's attorney?

A ___ certifies that the seller is not a foreign person as that term is defined in section 1455 of the Internal Revenue Code and that monies need not be withheld from the sale for tax purposes.

It is the closing agent's responsibility to fill out a 1099-S reporting form.

Items that are paid in advance or arrears and are to be apportioned between the parties are referred to as ___.

On a HUD-1 Uniform Settlement Statement, the section in which prorated items are itemized is:

The following items are prorated on a closing statement except:

On a title commitment, the current owner listed is the buyer.

A bill of sale must include the actual purchase price of the personal property sold with the real property.

If the seller(s) is/are married, a should be prepared.

When setting up a tickler system and worksheet for a real estate file, the best place to start is with the contract for sale and purchase.

Explain the way an escrow closing works.

A closing agent is also known as: