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UNIT 14 EXAM Flashcards B)fees for settlement services performed. Information about the exact location and size of the property is obtained throughA)a survey.B)a title search.C)an agent's diligent visual inspection.D)a property inspection.Which regulatory body administers

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A)HUD Which statement is TRUE of real estate closings in most states?A)The buyer must reimburse the seller for any title evidence provided by the seller.B)Closings are generally conducted by real estate professionals.C)The buyer usually receives the rent for the day of closing.D)The seller usually pays the expenses for the day of closing.D)The seller usually pays the expenses for the day of closing.D)The broker's arrangement with the lenders is an illegal kickback under RESPA.The title insurance company may be able to sue the sellers on the basis of any false or incorrect statements provided by the seller inA)the affidavit of title.B)the certificate of title.C)the title search certificate.D)the title verification certificate.The Real Estate Settlement Procedures Act prohibits all of the following EXCEPTA)kickbacks.B)unearned fees for services not actually performed.C)fee-splitting for referrals of settlement services.D)referral fees to out-of-state brokers.D)referral fees to out-of-state brokers.A)transactions originating on or after October 3, 2015.Since 2002, a real estate broker has had an understanding with two of the five mortgage lenders in town. The broker recommends only those two lenders to clients and does not tell clients about any other lenders. In return, the recommended lenders pay for the vacations the broker offers sales associates as rewards for high performance.Based on these facts, which of these statements is TRUE?A)Because this arrangement has been in existence for more than 10 years, it is exempt from RESPA.B)This is a permissible controlled business arrangement under RESPA because the broker is not paid a fee for the recommendations.C)The broker is not doing anything illegal.D)The broker's arrangement with the lenders is an illegal kickback under RESPA.D)spousal survivor benefits.To which of the following do RESPA regulations apply?A)One-to-four-family residential unit purchasesB)Purchases of more than 25 acresC)Agricultural purchasesD)Seller-financed purchases

A)land, residential or commercial structures, condominiums, and shares in a cooperative housing corporation.RESPA prohibits certain practices that increase the cost of settlement services, including all of the following EXCEPTA)unearned fees for services not actually performed.B)kickbacks and fee-splitting for referrals of settlement services.C)excessive escrow account deposits for such items as taxes and hazard insurance.D)spousal survivor benefits.C)prorations.A security deposit made by a tenant to cover the last month's rent of the lease or the cost of repairing damage caused by the tenant is generallyA)held in escrow until the tenant's lease expires or the tenant vacates the premises.B)returned to the tenant at closing.C)retained by the seller.D)transferred by the seller to the buyer.Expenses to be prorated (such as water bills and unpaid property taxes) that are owed by the seller but will be paid late by the buyer are calledA)accrued items.B)accelerated items.C)allocated items.D)prepaid items.A)accrued items.The purpose of an affidavit of title is toA)protect the buyer from an incorrect title search by the title insurance company.B)give the title insurance company a basis on which to sue the seller should the statements in the affidavit be incorrect.C)protect the buyer from any encumbrances that were placed on the property by the seller's grantor.D)verify that the real estate broker representing the property seller has not placed a lien on the property to insure payment of the sales commission.A package of services may be offered to the parties to a real estate transaction as part ofA)a marketing effort by the seller's brokerage firm.B)a RESPA-approved kickback scheme.C)a state-approved settlement service.D)an affiliated business arrangement.A)a survey.The new forms under the TILA-RESPA Integrated Disclosure rule are required forA)transactions originating on or after October 3, 2015.B)reverse mortgages.C)home equity lines of credit.D)all transactions occurring in 2015 and later years.A)One-to-four-family residential unit purchases Under the TILA-RESPA Integrated Disclosure Rule (TRID), a lender must extend the closing how many days if the annual percentage rate (APR) has changed more than 0.125% before closing?A)Two business daysB)Four business daysC)Three business daysD)Five business days A)a credit to the buyer.The closing statement used for MOST residential closings isA)the Loan Estimate.B)the Certification of Settlement.C)the Loan Affidavit.D)the Closing Disclosure.The document that provides the borrower with general information about settlement costs, RESPA provisions, and what happens at settlement isA)the Closing Disclosure form.B)Your Home Loan Toolkit.C)the Loan Estimate form.D)What You Should Know About RESPA.B)Your Home Loan Toolkit.

A)the affidavit of title.MOST closings involve the division of financial responsibility between the buyer and the seller for such items as taxes, rents, and other items. These divisions are calledA)allocations.B)disbursements.C)prorations.D)divisio ns.C)Three business daysInformation to be reported to the IRS on Form 1099-S does NOT includeA)the buyer's Social Security number.B)the amount of property tax reimbursement credited to the seller.C)the seller's Social Security number.D)the final sales price.C)within three days of loan application. At closing, the principal amount of a purchaser's new mortgage loan isA)a credit to the seller.B)a debit to the seller.C)a credit to the buyer.D)a debit to the buyer.A)the buyer's Social Security number.The Closing Disclosure must be used to illustrate all settlement charges forA)every real estate transaction.B)all transactions involving commercial property.C)residential transactions financed by federally related mortgage loans.D)transactions financed by VA and FHA loans only.C)a credit to the buyer.A couple listed their home for $237,000. They accepted an offer of $230,000 from a buyer who is obtaining financing with a $46,000 down payment. The seller has agreed to pay the agent a commission of 5.5%, which would beA)$11,500.B)$10,120.C)$12,650.D)$13,035.C)lenders financing the purchase of residential properties.Certain real estate closings must be reported to the Internal Revenue Service (IRS) on Form 1099-S. The affected properties include sales or exchanges ofA)land, residential or commercial structures, condominiums, and shares in a cooperative housing corporation.B)residential structures and condominiums.C)land, residential structures, and condominiums.D)land, residential structures, condominiums, and shares in a cooperative housing corporation.C)residential transactions financed by federally related mortgage loans.A buyer purchases a home in an area where closings are traditionally conducted in escrow. Which item would a buyer deposit with the escrow agent before the closing date?A)Title evidenceB)Cash needed to complete the purchaseC)Deed to the propertyD)Estoppel certificate The Real Estate Settlement Procedures Act prohibitsA)buyers from disclosing information relating to race or color.B)property flipping.C)sellers from requiring buyers to buy title insurance from a particular company.D)escrow officers from failing to identify whether the seller is not a U.S. citizen.C)sellers from requiring buyers to buy title insurance from a particular company.D)transferred by the seller to the buyer. At closing, the new loan proceeds would beA)a credit to the buyer.B)a credit to the seller.C)a credit to the

broker.D)prorated between the buyer and the seller.