Deck 10: Real Estate Closings

Question 1

If a loan payment due October 1 pays for interest due for the month of September, the loan payment is deemed to be paid in advance.

Answer 1

False

Question 2

Most loan commitments require the borrower to pay the lender's expenses in closing the loan.

Answer 2

True

Question 3

Most loan commitments do not require the borrower to pay the lender's expenses in closing the loan.

Answer 3

False

Question 4

A corporate seller should provide the purchaser with a corporate resolution.

Question 5

At minimum, a purchaser under a sales contract is required to provide money for the purchase price and proof of insurance at closing.

Question 6

A foreign person affidavit is signed by the seller.

Question 7

A penalty for late payment of a mortgage payment is known as a commitment fee.

Question 8

Most loan commitments require an appraisal of the value of the property be delivered to the lender for review and approval prior to closing.

Question 9

Prepayment penalties are never enforceable.

Question 10

A penalty for late payment of a mortgage payment is known as a prepayment penalty.

Question 11

The main document to review in order to prepare a sale closing checklist is the loan commitment.

Question 12

A foreign person affidavit is for the benefit of the purchaser.

Question 13

Prepayment penalties are enforceable.

Question 14

A surveyor should indicate if the property is located in a flood hazard zone.

Question 15

If a loan payment due October 1 pays for interest due for the month of September, the interest is payable in arrears.

Question 16

Most mortgage loans are repaid monthly.

Question 17

A foreign person affidavit is signed by the purchaser.

Question 18

A determination as to whether property is located in a flood hazard zone is made by the title examiner.

Question 19

A foreign person affidavit is for the benefit of the seller.

Question 20

A loan commitment will always state the amount of the loan.

Question 21

A short sale closing is one that takes less than an hour to complete.

Question 22

​ In a short sale, all net sales proceeds are usually paid to a mortgage lender in return for its agreement to release its mortgage.

Question 23

An escrow agent has a duty to follow the directions given to it by the party delivering documents or money.

Question 24

A loan commitment is effective without acceptance by the borrower.

Question 25

A loan commitment is not effective or binding until it has been accepted by the borrower.

Question 26

Real estate taxes are often prorated between a purchaser and seller.

Question 27

Real estate taxes are often prorated between purchaser and lender.

Question 28

Most loan commitments are assignable by the borrower.