Settlement & Closing

Question 1

Settlement is:
A: Is The Final Step In Executing A Real Estate Transaction
B: An Official Agreement Between The Buyer And Seller
C: None Of The Above
D: All Of The Above

Answer 1

A: Is The Final Step In Executing A Real Estate Transaction

Question 2

What is the closing process:
A: Is The Final Step In The Real Estate Transaction And Ownership Is Transferred
B: Is The Second To The Last Step In The Closing Process
C: None Of The Above
D: All Of The Above

Answer 2

A: Is The Final Step In The Real Estate Transaction And Ownership Is Transferred

Question 3

What are prorations?
A: Monetary Payments
B: Standard Payments
C: All Of The Above
D: None Of The Above

Answer 3

A: Monetary Payments

Question 4

The closing process entails:
A: When The Ownership Is Transferred To The Buyer On The Closing Date
B: The Closing Date Is Set During The Negotiation Phase
C: None Of The Above
D: Both A & B

Answer 4

D: Both A & B

Question 5

Settlement

Answer 5

• An official agreement with the ability to close the transaction
• The actual appointment to sit down and sign the paperwork (settlement paperwork)
• The meeting where you sign, is called the settlement.

A settlement statement is a document that summarizes all of the fees and charges that a borrower and lender face during the settlement process of a loan transaction. Different types of loans have varying requirements for settlement statement documentation.

Question 6

What is Closing Process?

Answer 6

• Closing (also known as completion or settlement) is the final step in the competition a real estate transaction.
• The closing date is set during the negotiation phase
• This is the last phase of the real estate transaction
• The ownership of the property is transferred to the buyer on the closing date.

Question 7

Closing defined in the real estate purchase
contract:

Answer 7

• When two important tasks take places is funding and recording

Question 8

What is the Closing Disclosure Form

Answer 8

• A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

Question 9

The __________ allow settlement agents to itemize all the fees and charges that both the homebuyer and seller will encounter during the settlement process of the real estate transaction
A: Alta Settlement Statement
B: Loan Details Statment
C: Mortgage Loan Statement
D: None Of The Above

Answer 9

A: Alta Settlement Statement

Question 10

Lets review the Closing Disclosure

Answer 10

• The first section is the closing information (dates, title company, sales price)
• Loan information, a quick glance of what the mortgage is
• Loan terms, loan amount, interest rate, monthly principle
• A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs)

Question 11

What is Prorations?

Answer 11

• Prorations can be many different things, from the distribution of materials to a smaller monthly payment due to the startup of a service. Prorations are usually thought of in terms of monetary payments, and are used extensively in relation to real estate.

Question 12

What is a Mortgage Balance

Answer 12

A mortgage balance is the amount owed at a particular moment in time during the mortgage loan term. Here’s an example: Mrs. Davis finances a home by taking out a fixed- rate $ 150,000.00 mortgage at 4% interest with a 30-year term. She has agreed to make payments of $900 per month

Question 13

What is an arrears?

Answer 13

Money that is owed and should have been paid earlier.

Question 13

What is an “interest”

Answer 13

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party

Question 14

Debit

Answer 14

• What is debit?
• The debit section highlights the items that are part of the total the customer will owe at closing, including the amount due for closing and title costs. Sometimes the seller will assist with the closing cost.

Question 15

What is Credit?

Answer 15

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Question 16

______ on real estate are a common way for creditors to collect what they are owed
A: Debit
B: Liens
C: Credit
D: None Of The Above

Answer 16

B: Liens

Question 17

What is a Lien?

Answer 17

A right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Question 18

Facts about Liens: Review

Answer 18

• All liens have two specific traits
• They are either voluntary or involuntary
• Liens are specific or general
• There are several types of liens such as tax liens, mortgage liens, mechanic’s liens, judgment liens
• The primary purpose of the lien is, in most circumstances, to secure payment of a debt owing the holder.

Question 19

Closing costs are incurred by both the buyer and seller
A: True
B: False
C: Only Buyer Has Closing Costs
D: None Of The Above

Answer 19

A: True

Question 20

Home Owners Association

Answer 20

1) Always know the HOA Rules
2) Make sure your home is in compliance
3) Find out about the fees
4) Obtain a copy of the minutes from the last HOA Meeting
5) Take into consideration the HOA fees

Question 21

In the state of Utah, taxes are always paid in the month of_______
A: November
B: June
C: July
D: None Of The Above

Answer 21

A: November

Question 22

Taxes

Answer 22

• Taxes are always paid in November in Utah

Question 23

The lender can require that you immediately pay the entire loan balance is, if your loan has a ________
A: Demand Feature
B: Final Payment Feature
C: Amoritzation Feature
D: None Of The Above

Answer 23

A: Demand Feature

Question 24

Mud taxes in Utah

Answer 24

We do not have mud taxes in Utah

Question 25

What is a mortgage balance? A: The Amount Owed At A Particular Moment In Time During The Mortgage Term Loan B: The Amount That Must Be Paid Immediately C: All Of The Above D: None Of The Above

Answer 25

A: The Amount Owed At A Particular Moment In Time During The Mortgage Term Loan

Question 26

What is the closing step? A: An Official Agreement With The Ability To Resolve A Dispute B: Is The Final Step In A Completion Of A Real Estate Transaction C: The Second To The Last Step D: All Of The Above

Answer 26

B: Is The Final Step In A Completion Of A Real Estate Transaction

Question 27

What are prorations? A: Monetary Payments B: Loan Payments C: None Of The Above D: All Of The Above

Answer 27

A: Monetary Payments

Question 28

What is a mortgage balance? A: Amount Owed At A Particular Moment In Time During The Mortgage Term Loan B: The Amount The Loan Was Financed For C: None Of The Above D: All Of The Above

Answer 28

A: Amount Owed At A Particular Moment In Time During The Mortgage Term Loan

Question 29

What is a lien? A: A Right To Keep Possession Of Property Belonging To Another Person Until A Debt Owed By That Person Is Discharged B: A Right To Keep Possession Of The Property Until The Debt Will Be Transferred C: All Of The Above D: None Of The Above

Answer 29

A: A Right To Keep Possession Of Property Belonging To Another Person Until A Debt Owed By That Person Is Discharged