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10 Cards in this Set
- Front
- Back
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Which of the following is not an item that a buyer usually pays at closing? |
Buyer closing expenses typically include mortgage recording fees, title insurance, appraisal fees, credit fees, surveys, loan origination fees, homeowner's insurance, and PMI; but sellers pay the broker commission, title clearing fees, and deed preparation fees. |
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Which of the following statements is NOT true regarding a broker acting as an escrow agent? |
Brokers cannot advertise that they conduct escrows unless the ad specifies that the escrows are in connection with the brokerage business. The broker also may not use fictitious names that use the word escrow, may not delegate any escrow duties, must include a statement within escrow instructions with the broker's name and that he or she is a licensed real estate agent. |
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Who is responsible for ordering the preliminary title report? |
Part of the escrow process is to order a preliminary title report to determine the legal holder of the property's title. This step is performed by the escrow officer. |
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Which of these individuals could not act as an escrow agent without an escrow license? |
Real estate salesperson |
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Which statement is not true about opening escrows? |
The buyer's and seller's agents will sign the escrow instructions. |
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Proof of ownership of a property is called: |
Evidence of title |
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RESPA applies to all of the following EXCEPT which? |
RESPA applies to purchases of residential property of one-to-four dwellings, first or second mortgages, and loans that are federally insured. RESPA does not apply to seller-financed loans or loan assumptions. |
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Accepting referral fees: |
Which item is not covered by CLTA, ALTA or ALTA-R insurance policies? |
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Which item is not covered by CLTA, ALTA or ALTA-R insurance policies? |
CLTA, ALTA, and ALTA-R are all title insurance policies, and no title insurance policy covers against defects known to the insured but not disclosed to the title insurer or government zoning regulations. |
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RESPA gives the buyer the right to review the completed closing disclosure how long before closing? |
RESPA requires a loan estimate of settlement costs be given to a borrower at the time of loan application or within 3 business days of application. Further, RESPA requires that a closing disclosure form that details all financial particulars of the transaction be delivered to the borrower at least 3 days before closing. |
