Deck 14: Real Estate Closings

Question 1

Most mortgage loans are repaid monthly.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

A loan can always be prepaid before its maturity.

Question 5

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

Question 6

Most payments on mortgage loans are made in arrears.

Question 7

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

Question 8

Most contracts contain a legal description of the property.

Question 9

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

Question 10

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

Question 11

A foreign person affidavit is signed by the seller.

Question 12

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

Question 13

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

Question 14

A title examination is generally the last thing to be ordered for a closing.

Question 15

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

Question 16

A foreign person affidavit is signed by the purchaser.

Question 17

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.

Question 18

The main document to review in order to prepare a sale closing checklist is the real estate contract.

Question 19

Prepayment penalties are never enforceable.

Question 20

Most mortgage loans are repaid semiannually.

Question 21

Most loan commitments are not assignable by the borrower.

Question 22

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 23

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

Question 24

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

Question 25

Builder's risk insurance insures that a construction project will be completed.

Question 26

A hazard waste indemnity, found in many real estate contracts, is for the benefit of the seller.

Question 27

Most loan commitments are assignable by the borrower.

Question 28

A hazard waste indemnity, found in many real estate contracts, is for the benefit of the purchaser.

Question 29

A loan that limits a borrower's liability for repayment is called an exculpated loan.

Question 30

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

Question 31

Most lenders in a construction loan want the right to review and approve final plans and specifications.

Question 32

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

Question 33

Prepayment penalties are enforceable.

Question 34

Real estate taxes are often prorated between purchaser and lender.

Question 35

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

Question 36

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

Question 37

A loan commitment is effective without acceptance by the borrower.

Question 38

Most lenders require that a copy of the hazard insurance be provided to them at closing.

Question 39

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

Question 40

Insurance premiums but not real estate taxes are often prorated between a purchaser and seller.