Chapter 15: Real Estate Settlements

Question 1

What are the different things that must occur between the time a buyer and seller signs a contract and the day title is conveyed to the buyer?

Answer 1

1. Title must be searched
2. Decision made on how to take title
3. Deed must be prepared
4. Loan arrangements must be made
5. Property tax records checked
6. and more

Question 2

What is a walkthrough?

Answer 2

The final inspection of the property just prior to the settlement date.

Question 3

What is title closing?

Answer 3

Refers to the completion of a real estate transaction. It occurs on the “closing date”

1. Buyer pays for the property
2. Seller delivers the deed

Is also referred to as: Closing, Settlement, Escrow

Question 4

In addition to the real estate agents per buyer and seller, it is also customary for the buyer and seller to have who present at a closing?

Answer 4

Attorney

Question 5

What is the escrow process?

Answer 5

1. Buyer and seller sign contract

2. Both select a neutral escrow agent

Question 6

What are ongoing expenses and income items?

Answer 6

When property ownership changes hands income items are prorated to the buyer and seller

Question 7

What is a closing statement?

Answer 7

The accounting of the buyer and sellers debits and credits.