Mastering Real Estate Principles, Eighth Edition - Unit 12

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What activity would fall under the provisions of the Real Estate Settlement Procedures (RESPA) Act?

Lenders selling residential mortgages in the secondary market

Real estate salesperson selling interests in limited partnerships

Purchase of a residence in which a lender is involved

Real estate brokers renting office space

On the closing statement, the appraisal usually appears as a

credit to the seller.

credit to the buyer.

debit to the buyer.

debit to the seller.

What is a requirement of the Real Estate Settlement Procedures Act (RESPA)?

The borrower must be given an estimate of the closing costs within three business days of the loan application.

Brokers may not conspire to set commission rates.

Only licensed individuals may be paid a sales commission.

Real estate advertisements must include the annual percentage rate.

Which term best describes the process of handling expenses at closing so that the buyer and seller pay a portion of the expenses?

Assessment

Reconciliation

Equalization

Proration

Real estate taxes for the current year are $4,800 and have been paid in full. If the closing is on September 1 and taxes are prorated using a 30-day month (360-day year) what entry should be made on the closing statement?

Debit the seller $1,600.00.

Debit the seller $3,200.00.

Debit the buyer $1,600.00.

Debit the buyer $3,200.00

The TILA-RESPA Integrated Disclosure Rule applies to

a reverse mortgage loan.

a loan on a mobile home not attached to real property.

a home equity line of credit

a construction loan used to build a house

Under the TILA-RESPA Integrated Disclosure Rule the consumer must receive the Closing Disclosure form from the lender

within three business days before the closing.

at the time of the loan application

at least three business days before consummation of the loan.

at the time a credit check is performed

Using the Mailbox Rule, when can a lender assume a consumer has received the required disclosure placed in the mail or sent electronically?

fourteen business days.

one business day

three business days

seven business days.

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