CHAPTER 12 - THE CLOSING Flashcards

CHAPTER 12 - THE CLOSING Flashcards How many days before the closing must the Closing Disclosure Form be delivered to thebuyer?a. 1 Dayb. 2 Daysc. 3 Daysd. 7 Days

• 3 Days - This form must be provided to consumers three

(3) business days before closing on a loan.True or False. There is always only one closing in a real estate transaction.a. Trueb. False

• False - if the buyer is getting a mortgage then there will

be two closings - one for the real estate purchase and the other to close on the mortgage.Who orchestrates the closing?a. The buyer's agentb. The seller's agentc. The loan officerd. The closing agent

• The closing agent - the closing agent can be an escrow

agent, attorney, or a title agent.At closing, which of the following closing costs is the seller responsible for?a. Transfer Taxesb. Broker Commissionc.Owner's Title Insurance Policyd. All of the above

• All of the above. The seller is responsible for transfer

taxes, commission, the owner's title policy, deed preparation fees, lien payoffs, and recording expenses.Why does a pre-closing inspection need to happen 24-hours prior to closing?a. To make sure that the seller has not removed any items included in the purchaseagreement.b. To confirm that the condition of the property is the same or better than theoriginal inspection.c.To make sure that all the specified repairs have been completed.d. All of the above

• All of the above. The buyer wants to confirm the

condition of the property, that all repairs have been completed, that any items in the purchase agreement have not been removed if they shouldn't have been.True or False. The agent will receive their commission check at closing.a. Trueb. False

• False - an agent's compensation always is paid through

the brokerage, never directly from the buyer or the seller.All in all, this could take a couple of days to get everything squared away.Who records the deed?a. Buyer's agent.b. Seller's agent.c.Escrow agent.d. Lender

• Escrow agent. The escrow agent records the deed. The

escrow agent can be a title agent or an attorney.True or False. A seller who files a joint tax return with their spouse will not be liable forcapital gain taxes if the capital gains are less than $500,000.a. Trueb. False

• True. If the property was owner-occupied within at least

two (2) out of the last (5) years, then a single taxpayer can deduct $250,000 and a married couple filing jointly can exclude $500,000.At closing, which of the following closing costs is the buyer responsible for?a. Inspectionsb. Survey Feesc. Deed Recording Feesd. All of the above

• All of the above. The buyer is responsible for

inspections, survey fees, deed recording fees plus homeowner property insurance, and any mortgage-related closing costs.True or False. Both the buyer's and seller's agent need to be present at the closing.a. Trueb. False

• False - The buyer's agent or seller's agent does not have

to be present at the closing unless asked to by their client.