Chp. 11 Quiz - Title Closing and Costs Flashcards
Which of the following is an item that is not normally prorated?
Title fees
FIRPTA requires a buyer to withhold estimated taxes equal to ______ of the sale price in any sale of property owned by a foreigner.
10%
Revenue stamps are also known as
Transfer tax.
Which statement about prorated items is TRUE?
They are always a debit to one party and a credit to the other party for the same amount.
Which of the following persons may, but is not required to, attend a closing?
Lender representative
Prepaid expenses are those that
were paid in advance.
What form does RESPA require to be used for itemizing closing costs?
Closing Disclosure
What is “chain of title?”
A chronology of successive owners of record of a parcel of real estate.
Who should have title insurance?
The buyer and the lender
RESPA applies to all of the following EXCEPT which?
Seller-financed loan
How does the buyer know how much money to bring to closing?
The escrow agent will subtract the total of the buyer’s credits from the total debits and the result is what the buyer needs to bring.
RESPA applies to all of the following EXCEPT
Five family residential condominium
Which statement is true about accepting referral fees?
It could be a violation of state licensing laws.
Who files a satisfaction of mortgage document with the county clerk’s office?
The seller’s attorney
Where in New York State is the Torrens system used?
Suffolk County
RESPA gives the buyer the right to review the completed settlement statement how long before closing?
Three days before closing
The most important document at closing is the
deed.
Who pays for the credit investigation?
The buyer
Which of the following statements best describes the purpose of a Closing Disclosure?
An official settlement statement used by settlement agents and title companies to itemize all charges for a borrower and seller
How much is the New York City RPTT for a property with a sale price of $600,000?
$8,550
