Chapter 14: Real Estate Computations and Closing Transactions Flashcards

1
Q

The _____ must clear any title problems and arrange for preparation of a deed.

A

seller

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2
Q

The seller provides either an _____ or _____ as evidence of merchantable title.

A

abstract of title

title insurance policy

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3
Q

The purpose of a closing statement is to _______.

A

summarize the transaction

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4
Q

When a residential closing involves financing provided by a federally-regulated lender, the closing agent is required to use the _______ form.

A

HUD-1 Uniform Closing Statement

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5
Q

Entries on a closing statement are identified to the buyer and seller as _____ and _____.

A

credits and debits

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6
Q

The closing statement reflects the financial relationship of the buyer and seller on ______.

A

day of closing

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7
Q

The binder deposit shows as a _____ to the _____.

A

credit

buyer

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8
Q

A first mortgage balance would show as a _____ to the seller and _____ to the buyer.

A

debit

credit

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9
Q

Doc stamp tax on the deed is usually paid by the _____.

A

seller

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10
Q

Doc stamp tax on the deed is ____/$100 (oft)

A

$.70

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11
Q

Doc stamp tax on the deed applies to _____ home sales.

A

all

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12
Q

Doc stamp tax on notes is usually paid by the _____.

A

buyer

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13
Q

Doc stamp tax on the notes is _____/$100 (oft)

A

$.35

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14
Q

Doc stamp tax on the note is paid in _____ and _____ types of transactions.

A

new

assumed

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15
Q

State intangible tax on a mortgage is usually paid by the _____.

A

buyer

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16
Q

State intangible tax on a mortgage is at the rate of ______.

A

2 mills

17
Q

State intangible tax on a mortgage is paid in _____ types of transactions.

A

new

18
Q

Title insurance is generally the responsibility of the _____.

A

seller