Deck 14: Real Estate Closings

Question 1

Most payments on mortgage loans are made in arrears.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

A foreign person affidavit is signed by the purchaser.

Question 6

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

Question 7

A loan can always be prepaid before its maturity.

Question 8

A foreign person affidavit is signed by the seller.

Question 9

Most mortgage loans are repaid semiannually.

Question 10

Prepayment penalties are never enforceable.

Question 11

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

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Most contracts contain a legal description of the property.

Question 20

Most mortgage loans are repaid monthly.

Question 21

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

Question 22

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

Question 23

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

Question 24

Most loan commitments are not assignable by the borrower.

Question 25

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

Question 26

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

Question 27

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

Question 28

Prepayment penalties are enforceable.

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Most loan commitments are assignable by the borrower.

Question 34

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

Question 35

A loan commitment is effective without acceptance by the borrower.

Question 36

Real estate taxes are often prorated between purchaser and lender.

Question 37

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 38

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

Question 39

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

Question 40

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