exam unit 5 Flashcards
the following occur once all the terms and conditions of both parties have been fulfilled in a closing
sellers orders a title search
____ is an amount the seller is making as an allowance to the borrower for items to purchase seperately
Seller Credit
A property insurance policy that protects both owner and lender against physical hazards to property is:
hazard insurance
a property insurance policy that protects both owner and lender against physical hazards to property such as fire and windstorm damage. Lenders require the insurance to cover the outstanding loan on the property.
Hazard insurance
it is the officers job to follow who’s instructions?
buyer and sellers instructions
a home warranty to the buyer of an existing home in conjunction with the purchase of the property is
residential service contract
Frequently buyers ask sellers to pay for a ____________. A ________ is a warranty to the buyer of an existing home in conjunction with the purchase of the property (usually for a term of one year)
What is a Residential service contract
In the Loan Calculations Table, the APR and TIP amounts should be updated from the amounts disclosed on the Loan estimate to reflect;
the terms of the legal obligation at consummation
The Loan Calculations Table includes the
Total of payments, the finance charge, the amount financed, the APR, and the TIP (total interest percentage) table. The APR and TIP amounts should be updated from the amounts disclosed on the Loan Estimate to reflect the term of the legal obligation at consummation.
What is a trust account for funds set aside for future, recurring costs relating to a property?
An impound (or escrow) account
an offer to issue a policy of title insurance in the future for a specific fee is a:
commitment of title insurance
What is meant by a conditional delivery of transfer documents and funds?
the seller will deliver a signed deed that conveys title to the buyer
one of the most common problems that can arise prior to the closing process?
the buyer is unable to obtain a mortgage loan
in a typical transaction, a buyer’s closing costs includes all of the following
settlement fees, recording fees, and lender fees.
which parties typically negotiate the allocation of closing costs associated with a sales transaction?
the buyer and seller; In Texas, the buyer and seller usually negotiate the allocation of the closing costs. Closing costs are either prorated or allocated.
