Unit 23

Question 1

Buyers Issues

Answer 1

Property in same condition as when signed contract

Question 2

Final Walk Thru

Answer 2

Verify same condition as at contract signing, any repairs made

Question 3

Title Procedures

Answer 3

2 Title searches - 1 before closing and 1 after (bring-down) closing

Question 4

Affidavit of Title

Answer 4

Sworn Statement from sellers that no judgments, divorces etc. since first title exam

Question 5

Payoff Statement/Estoppel Certificate

Answer 5

For Seller’s existing loan

Question 6

Mortgage Dates to Know

Answer 6

3 days from Application to get TIL and GFE
7 days before signing loan docs after getting TIL
3 days to wait for closing if APR changes
3 days of closing to get appraisal
3 days before closing get Closing Disclosure

Question 7

RESPA

Answer 7

regulations that apply to loans that prohibits kickbacks and practices that would increase settlement services

Applies to residential mortgages 1-4 units, coop, condo and home equity loans

Question 8

Escrow account limits

Answer 8

monthly 1/12 of total disbursements and shortage
1/6 held as cushion
annual account analysis and return over $50 to borrower

Question 9

Tax Prorations IL

Answer 9

Last tax bill / 360 * number of days Jan 1 to closing date = tax proration (amount seller owes to the buyer)

Question 10

Statutory Years Method

Answer 10

360 days