AZ Real Estate - Escrow & Closing B7 Flashcards

0
Q

What requires HUD 1 at closing

A

New home purchase w/ conventional financing

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1
Q

Taxes pro rated btw buyer and seller. Taxes paid in advance by seller.

A

Credit seller

Debit buyer

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2
Q

Taxes prorated but have not been paid by seller.

A

Debit seller

Credit buyer

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3
Q

Interest proration w/ new loan on property by buyer is

A

Debit buyer

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4
Q

What is not a debit to seller

A

Amt of buyers new loan

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5
Q

Insurance on a closing statement is always a debit to the

A

Buyer

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6
Q

Earnest money paid by buyer is a

A

Credit buyer only

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7
Q

Sales price is

A

Debit buyer

Credit seller

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8
Q

If buyer assuming existing loan what is prorated at closing

A

Interest only

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9
Q

If subtotal on seller’s closing statement shows more debits than credits

A

Seller must pay money to close escrow.

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10
Q

Once recorded, buyer get deed from

A

County recorder

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11
Q

In double Escrow vendee becomes

A

Vendor

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12
Q

Bring down endorsement is associated with

A

Title

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13
Q

Doctrine of relation back

A

Ensures delivery of deed to buyer even if grantor dies. Eliminates specific performance lawsuits against heirs.

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14
Q

Interpleader is

A

Neutral 3rd party hired by escrow agent to settle dispute.

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15
Q

What law requires use of HUD 1?

A

RESPA

16
Q

What doc is recorded w/ deed?

A

Affidavit of value

17
Q

Seller responsible for taxes through close of escrow..

A

Debit seller

18
Q

IRS FORM 1099S used to

A

Report sales price

19
Q

What would buyer normally pay for?

A

Recording of new loan

20
Q

Uniform Settlement Statement given to buyer how many days before closing?0

A

1 day

21
Q

Property closes 2/3, property taxes prorated based on

A

Last year

22
Q

On settlement sheet rent paid in advance is

A

Credit buyer, debit seller

23
Q

On settlement sheet buyer usually credited for

A

Unpaid taxes

24
Q

What does seller usually pay at closing

A

Deed prep

25
Q

On closing statement what is not prorated

A

Security deposits

26
Q

Commercial closing statement RE: taxes

A

Seller debited for property tax

27
Q

When escrow closed what must be filed w/ IRS?

A

1099S

28
Q

At closing who signs HUD1?

A

Buyer, seller, escrow agent

29
Q

In escrow closing signed deed delivered to?

A

Escrow agent

30
Q

After close of escrow buyer and seller decide to cancel transaction. They must?

A

Prepare and record a new deed

31
Q

What is not charged to seller on settlement sheet?

A

Property insurance

32
Q

When taxes are prorated on settlement sheet taxes are based on

A

Prior year

33
Q

When a new loan is paid PITI what is not on closing statement?

A

Principal payments