Determining who pays what at closing involves:
Correct Answer
B) Proration
Proration is the process of dividing expenses (such as property taxes, HOA fees, and utilities) between buyer and seller based on the closing date.
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The closing process, also called settlement, is the final step in a real estate transaction where documents are signed, funds are disbursed, and title is officially transferred from the seller to the buyer.
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
More Transfer Of Property Questions
Taylor Torres wants to give the buyer the most complete deed protection, promising to defend title against lawful claims arising at any time in the chain of title. Which deed should be used?
Closing is always the _____ step in real estate transactions.
In a 1031 exchange, the replacement property must be identified within:
A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → Monthly rent of $2,500 has been collected in advance for a 30-day month. Closing occurs on the 14th day of the month, and the seller owns the day of closing. What rent amount is credited to the seller?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
- → A buyer purchases a property for $420,000 with a loan amount of $378,000. Buyer closing costs are $7,000, and the earnest money deposit already paid is $4,000. Ignoring prorations, how much additional cash must the buyer bring to closing?
- → All of the following are closing or settlement concepts EXCEPT
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