Chpt. 17, Closing The Transaction Flashcards
A method of closing in which a disinterested third party acts as the agent of both buyer and seller to coordinate the closing activities
Escrow
The type of loan in a real estate settlement governed by RESPA
Federally related loans
A charge that a party owes and must pay at closing
Debit
An amount in a party’s favor that has already been paid, that is being reimbursed, or that will be paid in the future
Credit
The division of financial responsibility for various items between the buyer and seller
Proration
Expenses to be divided between the parties that are owed the seller
Accrued items
Expenses that have been paid by and are credited to the seller
Prepaid items
A 360-day period used in calculating prorations
Banking year
An unearned fee, paid as part of a real estate transaction, that is prohibited by RESPA
Kickback
The property map that indicates any encroachments and easements is called the
Survey
A second title search, paid for by the purchaser of the property after closing is called
Bring down
Subject to the requirements of the RESPA, mortgage loans made by banks, savings associations or other lenders whose deposits are insured by federal agencies, plus FHA and VA are called
Federally Related Loans
The form that itemizes all charges to be paid by a borrower and seller in connection with settlement is called
HUD1
To ensure that an existing loan amount is paid in the correct amount on the date of closing, the lender provides a —– to the closing agent
Payoff statement
Another name for the closing
Settlement and transfer
