A seller knows that the property floods during heavy rains because of grading problems. This information would affect a reasonable buyer's decision to purchase. What type of information is this?
Correct Answer
A) Material fact
A material fact is information that would affect a reasonable person's decision about entering into or pricing a transaction. Known flooding problems clearly meet this standard.
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What is the primary purpose of the Loan Estimate form under TRID?
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- → What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
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- → Under TRID, all of the following are included on Page 1 of the Loan Estimate EXCEPT.
- → Under TRID, all of the following pieces of information trigger the lender's obligation to provide a Loan Estimate EXCEPT.
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- → A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
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